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How to set up your accounting rules

The accounting rules that you set up in Asset.Guru (as depicted in the image below) will:

  • Provide an asset disposal suggestion in your Dashboard To Do List;
  • Determine the day of the month that your depreciation journals are automatically posted into your connected accounting package;
  • Specify the depreciation period covered for any journals posted using the red button;
  • Specify the depreciation averaging method used to calculate depreciation;
  • Specify the journal posting start date from Asset.Guru; and
  • Specify your journal grouping strategy.

Each of these accounting rules are explained further below along with the steps to follow to set up each rule. 

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NB. Please navigate to the Administration Page then select "Set up your accounting rules" to access the set up screen pictured

Asset Disposal Suggestion

This feature is used to provide your account with a to do list notification when any asset has depreciated to a specified percentage or absolute dollar amount. The steps to set this up are as follows.

  1. To set up a notification using a percentage value, click on "0%";
  2. a) Enter the percentage in whole numbers (e.g. 10 not 0.1 for 10%) OR
    b) Enter the absolute dollar amount (e.g. 1000 not 1,000).

Depreciation Journal Posting

As you know, Asset.Guru automatically posts your depreciation journals into your connected accounting package... but what day will they actually be posted? The selection you specify under "Last day of monthly accounting period" will specify the day Asset.Guru will process and post your journals for each month.

We recommend that you select the "Last day of the month" to ensure that depreciation for any last assets created into the system are included in your monthly depreciation run.

Please note that depreciation for the full month will be posted regardless of which day is selected.

Journal Posting Strategy

As you can see from the image above, this section of the accounting rules setup include a red button. This red button is used to post journals "manually" into your connected accounting package. The settings you select will determine what period is covered by this manual post. 

For example:

It is currently February 2nd and you need to push the red button to "manually" depreciate your assets using Asset.Guru. If your manual posting strategy is set to "to end of last accounting period" (i.e. the end of the last month which would be January 31st), clicking the red button will post your January depreciation manually.

If your manual posting strategy is set to "to current date", clicking the red button will post your January depreciation as well as the first two days of depreciation in February.

Default Depreciation Averaging Method

The default depreciation averaging method specified in this section will determine whether a daily depreciation rate or a monthly depreciation rate is used by Asset.Guru to calculate depreciation. To change t

NB. The default is set to "Daily" for Australia and New Zealand customers in accordance with the relevant accounting standards. This cannot be changed by an end user.

Journal Posting Start Date

The journal posting start date you enter will determine the period that Asset.Guru will start to post your depreciation journals. You can enter the date by using the date picker or by manually typing the date using the formatting shown (i.e. dd mmm yyyy).

For example, if you want your first accounting period using Asset.Guru to be January 2017, enter 01 Jan 2017 into the date field.

Journal Grouping Strategy

You can select whether to group your depreciation journals by asset type (also known as asset class) or whether you want depreciation for each asset to be posted individually.

We recommend that you select to group your journals by asset type to ensure that your general ledger accounts are not littered with small journals especially where you have a large number of assets.

 

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