How to enter depreciation for a specific fixed asset
In REI Hub, you can make depreciation entries for an individual fixed asset, or you can make 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 from under Organization on the left hand menu, and select the account in question.
Or, go to the dashboard of the property in question, and access it's 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
4) Enter the date and amount
Since depreciation is a non-cash expense or deduction (not a bank transaction) it can be entered anytime in the relevant accounting period. For consistency and simplicity, we recommend making your depreciation entries on December 31st of the appropriate year.
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 calculate nor enter your depreciation entries. We do offer a Fixed Asset Schedule report that provides a recommended annual depreciation entry per asset, but there are some important caveats.
- This recommended number is calculated on a straight line basis using the usable life of the asset.
- At this time, it does not account for the necessary proration in the year an asset is placed in or removed from service (so it is definitely wrong in the year the asset was created).
- The report cannot tell you if any items are eligible for bonus or accelerated depreciation.
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!