How to enter depreciation for a specific fixed asset
In REI Hub, you can make depreciation entries for an individual fixed asset or an uncategorized depreciation entry that is not associated with a specific asset.
These instructions assume you have already created at least one fixed asset and populated it with the relevant transaction(s) or opening balances.
To enter depreciation for a specific fixed asset:
1) Navigate to the fixed asset in question
Find the Fixed Assets page under Organization on the left-hand menu, and select the account in question.
Or, go to the property's dashboard in question and access its related fixed assets from there.
2) Click on Add Transaction in the upper right of the fixed asset page
3) Select Depreciation from the list of options
Since depreciation is a non-cash expense or deduction (not a bank transaction), it can be entered anytime in the relevant accounting period. We recommend making your depreciation entries on December 31st of the appropriate year for consistency and simplicity.
The amount of depreciation you can take in a given year depends on a few factors. The asset type, its usable life, when it was placed in service, etc. all impact how you calculate depreciation.
At this time, REI Hub does not automatically record your depreciation entries. We do offer a Fixed Asset Schedule report that calculates and provides a recommended annual depreciation entry per asset using the following standards.
- The recommended depreciation is calculated on a straight line basis using the asset's usable life.
- Depreciation is prorated using the mid-month convention in the year that an asset was placed in service.
- The report cannot tell you if any items are eligible for bonus or accelerated depreciation. Check with your CPA for more information about alternate depreciation schedules.
5) Click Save Depreciation
Your depreciation entry is now visible inside of the asset and added to the total accumulated depreciation for the asset.
Also, view the Fixed Asset Schedule report for a consolidated summary of your fixed assets and balances!