NetAsset - Summarized Depreciation Journals
Summarized Depreciation Journal Entries
Use Case: The summarized depreciation feature allows you to book monthly depreciation by subsidiary rather than by asset. The system will book one summarized journal entry for each subsidiary instead of booking an individual depreciation entry for each asset. This can be useful if you have a very large quantity of assets and want to avoid your general ledger getting cluttered with lots of transactions.
STEP BY STEP PROCESS:
1. Before you can run summarized depreciation entries, the feature needs to be activated in system settings. Navigate to NetAsset > NetAsset Setup > General. At the bottom of the screen under System Settings check the box next to Allow Summarized Depreciation. Save changes.
2. Once the settings are set to allow summarized depreciation, this option will appear on the monthly processing screen. Navigate to NetAsset > Process Monthly Journals > Run Monthly Asset Journals. The box will automatically be checked, but you can uncheck it on this screen if there is a situation when you don't want to summarize depreciation.
3. Once the feature is turned on you can run depreciation like normal. Simply select the assets you would like to run deprecation on and click Create Journals. As long as the Summarize Depreciation box is checked the system will generate depreciation entries by subsidiary rather than by individual assets.
Limitations:
1. There are some limitations to be aware of when using this feature. Because the journal entries will include multiple assets, the assets will not be tagged to the journal entries. This means transaction based reports such as the Asset Balance Roll Forward Report and the Accumulated Depreciation Ledger Balance Detail report cannot be utilized since these reports rely on asset tagging to organize the transactions. You can utilize the Asset Balance Subledger Roll Forward Report as a tool to tie the subledger back to the G/L and Balance Sheet.
2. If you ever need to refresh an asset or delete depreciation for an asset, you will need to delete the entry for the whole subsidiary and then re-run depreciation on all the assets in that subsidiary.