Contents - Index

Asset Register

1. Import assets from the journal transaction used to pay for them in the current year.  To do this set up asset control to link to the capital expenses ledger account.  Import transactions just before, or after, the end of the financial year. Make sure the capital expense account has tax disabled.  Capital expenses must not be taxable items if depreciation is claimed.

2. Enter assets purchased in previous years and calculate the amount of depreciation to be claimed.  This does not calculate depreciation for the current year.  It sets the asset's current value as correct for the current year and therefore ensures that depreciation will be calculated correctly at the end of the year.

3. Dispose of assets.  Professionals Retail Business does not calculate profit or loss on disposal of assets for tax purposes because of the complexity involved.  However it is useful, and will save time and money, if your accountant can identify which assets were disposed of in the current year. You need to create an asset sales account and enter the ledger code in the Income - sale of assets field of the asset configuration form.  This makes sure the value of asset sales appears with the asset information on the trial balance and balance sheet.

4. Calculate depreciation on assets.  Run this process once a year when you want to send your books to your accountant.  Or your accountant can run it for you if they have Professionals Retail Business Version 2 or later.  If they don't contact us and we will send them a demonstration copy - this may be loaded with your data but no editing is possible.

5. Optionally include depreciation and profit/loss on asset disposal in the profit and loss statement.  If you run the trial balance assets are included.

6. Print an asset schedule for a selected or all assets by year or for all years.

Access asset management from the company control center or Balance Sheet form.

Configuring Depreciation 

Create ledger accounts for capital expenses and asset disposal income.  This allows automated creation of assets from your transactions and the calculation of profit/loss on disposal of an asset.

The capital expenditure ledger account must be included in the depreciation control form.  

  • When you click New a description of the configuration is created for you.  You can change this if you wish.
  • Enter, or select, the capital expense account from the ledger.
  • Enter, or select, the sale of asset income account from the ledger.
  • Define the days and months at the beginning and end of the financial year.  These control whether depreciation for an asset is for an entire year or a fraction of the year.  For example, assets are not depreciated for the entire year in the year they were purchased unless they are purchased in the first month of the year.
  • Select the current financial year.  Note this assumes your financial year crosses calendar years.  Depreciation for assets purchased in previous year's is calculated once you save the new asset's entry and is up to, but not including, the current financial year.

    Once the first depreciation schedule has been run the financial year definition cannot be changed manually.  The current year is changed when the depreciation schedule is run for that year.  Run the schedule once during a financial year - at the end of it.