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
Best answer by Melissalutrick21
I’m not a tax expert so please check with your experts but I offer this:
Commercial Printer - being used by 3 departments and you want to have the item depreciated to each.
What if that were set up like this:
Printer (tangible)
Dept A Share- qty .33
Dept B Share- qty .33
Dept C Share- qty .34
These would be made as intangible fixed assets but it should break the depreciation of the original item out based on an allocation.
+19Hello
Individual Assets may direct depreciation to a particular 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
Thank you for your feedback - I could not think of any other way to do the allocation.
+19Hi,
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
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.
I’m not a tax expert so please check with your experts but I offer this:
Commercial Printer - being used by 3 departments and you want to have the item depreciated to each.
What if that were set up like this:
Printer (tangible)
Dept A Share- qty .33
Dept B Share- qty .33
Dept C Share- qty .34
These would be made as intangible fixed assets but it should break the depreciation of the original item out based on an allocation.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.
