The Fixed Assets module of the online accounting program mKsiegowa.pl allows you to record fixed assets, as well as calculate and process depreciation.
To process depreciation, use the option Process Depreciation in module Fixed Assets.
The depreciation is processes for a fixed asset selected from the item list for the period specified in the form.
The form has the following fields:
- Starting from month - indicates the month from which depreciation should be calculated (explained in detail below)
- Period - the number of periods for which depreciation should be made
- Reference line - an accounting inquiry in which accounting documents are saved; inquiries with separate strings of reference numbers can be set in the Forms Setup
- Description - description added to accounting documents
How it works
The program calculates the depreciation for each month for the selected fixed asset and prepares accounting documents (1 document for each month).
Depending on the depreciation method for a given fixed asset, the program will calculate the monthly value:
- for the one-time method, the program will prepare a depreciation document with the value of the fixed asset; in the field Period you should enter 1
- for the straight line method, the program will prepare a depreciation document for the set number of months; the depreciation value for a given period will be constant and calculated on the basis of the value of the fixed asset and the depreciation period
- for the declining balance method, the program will prepare a depreciation document with a specified percentage value of the fixed asset
Depreciation period
The program allows you to select the depreciation period:
- monthly
- yearly
The period can be set in System and General Ledger GL Setup, field Depreciation period. If a yearly period is set and the beginning of depreciation does not coincide with the beginning of the year, the program calculates the depreciation for the period until the end of the fiscal year.
When depreciation is calculated
Depreciation is calculated from the month:
- the next month after the last month for which depreciation was previously accrued; this month can be checked in FA Items;
- resulting from the start date of depreciation entered in the item, if the depreciation has not been calculated before; the date can be edited until the first depreciation calculation.
Screen operation
After completing the form, we have 2 options:
- View the GL Postings for this Depreciation - preview of prepared depreciation posting documents, without entry to the general ledger yet
- Process depreciation – post the documents into the general ledger
Accounting scheme
Depreciation is posted according to the following scheme:
| Account Name | Where Can I Set It | Party |
|---|---|---|
| Depreciation/Disposal account | FA Items | Credit |
| Depreciation cost account | FA Items | Debit |