Depreciation and Asset Accounting
Overview
xAssets Enterprise period end processing is a simple and efficient process.
The depreciation
engine is designed to work with any depreciation formulae, table or scenario including the most complex
USA depreciation rules. Users can build, model and compare depreciation formulae to understand their effect.
xAssets Enterprise is multi company. Companies with the same accounting periods can be
depreciated together so groups of companies can be managed as if they were one
company. Companies with different accounting periods can still be stored and
reported together. Companies with different nominal code structures can be
stored together and even depreciated together.
The system supports companies with unusual accounting periods. Accounting
periods can be automatically generated or manually set up.
Depreciation support is comprehensive. Assets can belong to an unlimited
number of books. Depreciation profiles can change over time and the
administrator can specify which formulae or tables are used in depreciation calculations.
The system exposes a number of "variables" for use in depreciation calculations.
Indexation of assets is easy to set up and is defined per category group per
financial year per currency.
xAssets Enterprise is multi currency. True multi currency support is achieved by storing a
currency code against every value stored in the system, so an asset can be
purchased in Yen, Depreciated in Pounds and then Lira and then disposed of in
US Dollars. Exchange rates can be automatically downloaded from the web on a
regular basis.
All financial data is stored in transactions. Each transaction has a
transaction type. Some transactions types are fixed and others can be defined by
users. Examples of Transaction Types are: Purchases, Depreciation, Disposal,
Cost Incurred, Insurance Cost, Routine Maintenance Cost.
Each transaction type has a set of posting rules associated with it. For
example, a disposal’s posting rules might say:
DR 1020 – AP Disposals - CarsCR 1030 – DepreciationDR 2020 –
Depreciation – CarsCR 3020 – Gain/Loss on disposal
Most users will prefer to let the accounting system AP ledger do the posting
for purchases, insurance, maintenance costs etc and just use the Asset
Management system for posting depreciation. Posting rules can be across the
board, specific to a category group or specific to a category.
The depreciation calculation engine will choose the most specific posting
rule over any others which apply.
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