Setup Example – Depreciation Journal
- The Depreciation Journal posts the monthly depreciation of your fixed assets to the ledger.
- If the Depreciation attribute set is added to your fixed assets, the depreciation can be calculated and entered for you with Actions (button) > Depreciation > Add Depreciable Assets. See How to Record Monthly Depreciation.
💡This page provides an example of a Transaction Type setup for Depreciation Journals, and explains how to post monthly depreciation.
In this example, the depreciation is posted to the ledger (Dr Depreciation – Equipment, Cr Equipment – Accum Depr).
Header
- Description: Depreciation Journal
- Code: DPR JNL
- Entities: All
Settings (tab)
- This section lists the compulsory and optional settings that can be used to customise Depreciation Journals.
- Settings with Default as part of the name can be changed when capturing a transaction.
- Depreciation > Enable Depreciation should only be enabled on one Transaction Type. A warning appears if it is enabled on more than one.
| Setting | Description | Value | When Required |
|---|---|---|---|
| Accounting > Credit Account Filter (Enter string contained in Accounts > Lookup) | Limits the accounts that can be selected to those that include the letters entered. The filter is case-insensitive. | Accum Depr | If you want to limit the accounts that can be credited. Requires all your accumulated depreciation accounts to include Accum Depr in the lookup field. |
| Accounting > Credit Type | Select from a dropdown list of account types. The options are:
| Ledger | Always |
| Accounting > Debit Account Filter (Enter string contained in Accounts > Lookup) | Limits the accounts that can be selected to those that include the letters entered. The filter is case-insensitive. | Depr | If you want to limit the accounts that can be debited. Requires all your depreciation expense accounts to include Depr in the lookup field. |
| Accounting > Debit Type | Select from a dropdown list of account types. The options are:
| Ledger | Always |
| Accounting > Default – Credit Account | Select a default account from the dropdown list. | Equipment – Accum Depr | Always |
| Accounting > Default – Debit Account | Select a default account from the dropdown list. | Depreciation – Equipment | Always |
| Accounting > Enable Accounting | A checkbox. If checked, accounting is enabled. If unchecked, transactions are created in the module and not posted to the ledger. | Check the box. | Always |
| Accounting > Pricing | Select a pricing option from the dropdown list:
| Accounting | Always |
| Depreciation > Enable Depreciation | A checkbox. If checked, Actions (button) > Depreciation > Add Depreciable Assets is added to the transaction. | Check the box. | Always |
| Transaction Items > Enable Adding Items | Specify which type of items can be added to a transaction. The options are:
| Custom | Always |
Statuses (tab)
- You may create an unlimited number of statuses.
- However, there are only four Status Groups:
- Pending
- Active
- Complete
- Cancelled
- The first status should allow editing, so that you can add the depreciable assets and check the amounts.
- The final status should ideally not allow editing.
- Because Accounting > Enable Accounting is checked, at least one status should have the Accounting column checked.
Categories (tab)
- Use categories to sort records.
- The categories you choose should be meaningful to your business.
- Using categories is optional but recommended.
- Categories can be copied from another Transaction Type. The existing categories are replaced by the copied categories.
This example has no categories. If you want to sort your Depreciation Journals (e.g. by type of asset, such as equipment, vehicles or buildings), create your own categories. See Transaction Categories Tutorials.
Copy Rules (tab)
- Copy Rules determine when transactions may be copied.
- Although two transactions are involved in the copy, you only need to create one Copy Rule.
- User access must be set for each Copy Rule.
- You can automate copying transactions by selecting a Trigger status.
No Copy Rules.
Output Templates (tab)
- Output Templates are the forms you need to print, preview or email a transaction (e.g. invoices).
- Default templates are included. They automatically show your company name, logo and bank details, as filled in on the Output tab of a registered entity.
- You may edit these templates to include or exclude information.
- You may also create your own forms and templates from scratch.
No default templates. If you want to print or email these transactions, you can create your own templates (see Output Template Tutorials) or contact QuickEasy Support to create templates for you.
To post the depreciation each month, see How to Record Monthly Depreciation.