Reconcile Fixed Assets with Accounting Software

As new acquisitions are placed in service it is important to move this information from accounts payable to fixed assets so depreciation can start. The monthly depreciation amounts can then be summarized by general ledger code and moved into the general ledger to complete the cycle.

Reconcile Fixed Assets

When depreciation is uploaded to the general ledger, the depreciation expense is booked to the debit side while accumulated depreciation is entered as credit. The monthly accounting of depreciation expense is used to match expense to income and to accurately represent the value of your assets in the balance sheet. The monthly amounts will increase with new acquisitions and decrease as assets are disposed.

Some Accounting or ERP packages contain a limited fixed asset module. A best-of-breed solution like Bassets eDepreciation can easily integrate with your accounting software while providing a much more robust solution to your fixed asset requirements. For more detail read our white paper “ The 9 Lives Advantage in Best-of-Breed Fixed Asset Software”.

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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.

Interface Depreciation Journal Entries to General Ledger

To report depreciation expense on monthly financial statements, most fixed asset systems include an expense report. This report will summarize the depreciation calculations by general ledger code for a selected accounting period. For more information:

http://www.depreciationguru.com/2012/03/monthly-depreciation-expense-journal-entries/

There are two main reasons to account for monthly depreciation expense:

  • Match expense to income
  • Accurately represent the value of your assets in the balance sheet

If your organization has a large number of assets then you can save a lot of time and avoid potential errors with a general ledger interface option. This will automate the monthly upload of depreciation journal entries into your General Ledger.

Interface Depreciation Journal

A G/L Interface module allows you to run a procedure to export monthly depreciation to an output file. This file sorted and totaled by G/L Code for both Debit and Credit. A G/L Interface enables you to:

  • select the data fields to export
  • define the type of export file
  • choose the month to process
  • limit the processing for a company, division or other entity

To define the output file, you can select the necessary data fields in the order required. For each data field, set the length, number of decimals and/or default value. This ensures that the output file matches the required format of your general ledger’s batch import module.

Questions or comments about this post? We invite you to respond in the space 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.