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;
- Specify your journal grouping strategy; and
- Enable automatic asset creation upon bill creation in Xero or QuickBooks Online.
Each of these accounting rules are explained further below along with the steps to follow to set up each rule.
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.
- To set up a notification using a percentage value, click on "0%";
- 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 assets created right at the end of the month 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.
It is currently February 2nd and you only just connected your account with Xero or QuickBooks Online so you need to push the red button to "manually" depreciate your assets for January 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.
NB. The default is set to "Daily" for Australian 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 day 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 Asset.Guru to post your depreciation for the first time at the end of January 2017, please enter 01 Jan 2017. If you enter 31 Jan 2017, Asset.Guru will only post one day's worth of depreciation.
Journal Grouping Strategy
You can select whether to group your depreciation journals by asset type (recommended) or whether you want depreciation for each asset to be posted individually.
Enabled Integration Jobs
Asset.Guru is able to automatically create a draft asset upon bill creation in Xero or QuickBooks Online once this integration has been enabled by ticking the check box provided.
Please note that draft assets will only be created for bills processed after the integration has been enabled.