In many corporations there is a one to one relationship between the asset and expense general ledger codes.
An asset is purchased for a particular department and also expensed against that same department. In other instances there is a need to allocate the expense to a different department and in these instances you can define multiple expense codes:
For example, furniture and fixture assets that are used in an administration area could have a specific expense code identifying “Admin” while the same type of asset used in the manufacturing area could have a specific expense code identifying “MFG”. Bassets eDepreciation offers this flexibility to provide the user with a master list for the Expense G/L field in addition to the existing master list for the Asset G/L field.
We have previously talked about Multi-segmented General Ledger Code for Fixed Assets. Combining this feature with multiple expense codes covers most general ledger code scenarios.
Depreciation expense dollar amounts can also be distributed to divisions or cost centers within a corporation. If you need to spread your expense amounts, take a look at our Expense Allocation module:
Questions? Comments? Let us know in the comments section below.
More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.