Journal grouping strategy examples

The Journal Grouping Strategies simply define how the monthly depreciation journals will be grouped together whether summarised by Asset Type through to having individual journals for each asset.

This setting can be found in the Admin - Set up your accounting rules area:

Group by asset type (summarised): by default, this is what all organisations are initially set to.

It’s a very clean strategy with simply having a total summary of Depreciation and Accumulated Depreciation journal lines for each Asset Type.

Group by asset type: this provides the next level of detail as journals are grouped by Asset Type.

These journals are comprised of journal lines for Accumulated Depreciation and Depreciation for each asset.

Do not group: this is the most verbose strategy as individual journals are created for each asset instead of being grouped by Asset Type.

These journals are comprised of journal lines for Accumulated Depreciation and Depreciation for each asset.

Caution - If you have thousands of assets, choosing the ' Do not group' will result in thousands of journal entries per month in your accounting system.

Also to consider with the ' Do not group' option, depending on the number of assets are depreciating in your organisation, this option can potentially delay the creation of the journals.

This is because of the limits to the number of journals that can be created per day for both the Xero and QuickBooks Online platforms.