How do I add and setup asset groups correctly in the Fixed Asset Register?
Before you can add an Asset Group to the Fixed Asset Register it is advisable to add all accounts needed for Asset Group setup.
For this example we will setup the accounts needed for the Asset Group Plant & Equipment.
1. Depreciation accounts:
If you have more than one type of Asset Group, it may be worth creating Depreciation sub-accounts.
For this example we will create a Depreciation expense account for Plant & Equipment.
2 & 3. Asset accounts and Accumulated Depreciation (contra-asset) accounts
For this example we will create a Asset account for Plant & Equipment.
For this example we will create an Accumulated Depreciation account for Plant & Equipment.
4. Profit on Sale of Assets
5. Revaluation of Assets account
For this example we will Add the new Asset Group Plant & Equipment.
Note: There are two Valuation Methods you can use to calculate asset depreciation.
Click on the following ATO website link: https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules---capital-allowances/prime-cost-(straight-line)-and-diminishing-value-methods/ for further information.