[GNC] An automated depreciation calculator would be really helpful.

[Michael or Penny Novack]

On 12/8/2021 7:50 PM, Gyle McCollam wrote:
> What I do is set up a placeholder account for the asset.  I set up sub accounts for the actual asset purchase and another for the depreciation of the asset.  You could then set up a scheduled transaction to record the depreciation each month, quarter, semiannually, or annually depending on how you want to record it.  There you can set up how many depreciation transactions you would like and it will stop at that point.

Book value vs real value

a) A business subject to taxation USUALLY depreciates fixed assets as 
rapidly as possible. Non-profits(in the US at least) are allowed great 
freedom in the time period they use. It is not related to what the 
actual residual value of the asset might be.

b) Usually (in the US) it is year or fraction of year. Usually doing 
"depreciation" is part of end of year (calendar or fiscal) processing 
and not monthly, etc.

c) Yes, for each fixed asset usual to have a sub-account for "basis" 
(what it cost) and a sub-account for all the depreciation charges.  But 
if the org had a lot of fixed assets bought each yes, I'd probably do 
"by year" with accounts for "bought in year" and "depreciation" and only 
work with the totals.

Michael D Novack

PS -- About "director loans" --- WHY are you going through the "business 
features" for these? They are NOT receivables or payables but only exist 
if and when received or paid out. Or at least I believe that to be the 
case. I am NOT "qualified" to give business law advice about that and 
certainly not for your jurisdiction.