Link an exact capitalization journal, review the book schedule and post deliberate depreciation or a no-proceeds write-off.
Register the exact capitalized asset#
Configure double-entry Accounting in the corporate workspace. Set up general asset accounts for capital cost and accumulated depreciation, and choose the expense accounts for depreciation and write-offs.
In Accounting, open the posted capitalization journal. Copy its ID from the journal address and use Find capitalization lines. Select the exact general asset debit. The register takes cost from that original line and accepts each line only once. Enter the asset tag, location, available-for-use date, useful life in months and residual amount in the book currency.
Review the monthly book schedule#
The available-for-use date sets the first full calendar month. This release uses straight-line book depreciation over whole months. The calculation uses minor units and retains the exact cumulative amount, including rounding adjustments at the end of the schedule.
An owner proposes one completed month at a time. Check the date, amount and debit and credit accounts in the proposal before posting. Accounting checks current account access and period locks. Open the posted journal from the event to reconcile the ledger.
Review a no-proceeds write-off#
Reconcile completed depreciation before a write-off. Enter the actual write-off date and review the posting that clears capital cost and accumulated depreciation and records the remaining carrying amount as a loss.
Cancel an unposted proposal when the review changes. If a posting response is uncertain, reload the asset and check the journal link before trying again. Contact the accounting owner for a controlled correction to a posted asset event or linked capitalization.
Keep book policy and tax work separate#
Confirm your policy for recognition, available-for-use dates, residual value, useful life and disposal with the person responsible for the books. This workflow uses the declared country and ledger currency and applies the reviewed whole-month book convention.
Handle tax depreciation, prorated or component schedules, proceeds and statutory filings through the applicable reviewed process.
Keep the active workspace, actual business requirements and current setup summary in view. A guide explains a choice; it does not make that choice for you.