Question

Fixed asset - depreciation expense allocations

  • 11 October 2023
  • 4 replies
  • 47 views

Userlevel 3
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Hi, I have a customer that wants to expense depreciation to multiple subaccounts when depreciation is calculated and released.  The only way I know how to do this is by creating an allocation in the financial module to allocate the expenses to the correct subaccounts.

 

Has anyone else know of another way to allocate the expenses to the proper subaccounts, the customer is not on board with the allocation method.

 

Thanks,

Coleen


4 replies

Badge +16

Hello @coleenmcnally22 ,

Individual Assets may direct depreciation to a particular Subaccount:

Panels depreciation expensed to Cultivation department subaccount

Are you saying the customer has one Fixed Asset, such as a vehicle or conference table, that is shared by multiple departments, and they want to split the depreciation among departments that use the vehicle or conference table? If one shared asset needs to post depreciation to multiple subaccounts, then I agree with your idea:  GL Allocations will automatically split the costs of the item, by some  defined percentage calculation.

 

Laura

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@Laura02  - yes I should have mentioned that the customer has shared assets that need to be depreciated to multiple subaccounts.

Thank you for your feedback - I could not think of any other way to do the allocation.

 

Badge +16

Hi,

In special circumstances, an asset could be split into multiple assets: such as when the company purchased “10 desks” and originally handled the 10 desks as one corporate asset. Ovbiously, we cannot split the car or the conference table. 😉

 

LB

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We talked about splitting the asset but each month the allocation percentage can change, so I thought that could get very messy!

I think the GL Allocations would be best way to move forward.

 

 

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