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MYOB – Depreciation - How do I enter – per item or as a total for several?
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Published on Tuesday, 03 February 2015 13:02
Client asked – Am I supposed to enter each depreciating item individually or as one lump sum for the year or month?
Answer – You enter each item purchased, individually, as you pay for an item over $1000 (in 2012-2013 year, over $5000) you pay it from the bank or credit card or loan, then allocate to your Plant & Equip or Furniture & Fixtures (as appropriate) in the asset accounts.
Use the CAP tax code (best to set up CAP that as the default tax code for those accounts so it comes up automatically – one less thing to remember). Then the amount will be in the CAP part of the GST reports, to be reported at G10 Capital Purchases.
Keep all asset invoices in folder/file for the year, then at year-end, the Plant & Equip asset accounts can be printed from 1/7 to 30/6 and then given to the accountant – and they will add them to your asset register.
Then they will calculate the depreciation and you will get the amount in your year-end reports, and some accountants give you a journal to align your accounts and raise the Depreciation.
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