How do I record and depreciate fixed assets in Kontuly?
In Kontuly, record the purchase as usual, then register it in Fixed assets with New asset, choosing a depreciation method and effective life. Click Run depreciation at the end of each month, quarter or year, and Kontuly works out and posts the depreciation.
A fixed asset is something the business owns and uses for more than a year: equipment, vehicles, computers. Depreciation spreads its cost over the years you use it.
Register an asset
- Record the purchase first, as a bill or a bank line coded to the asset account, such as Office Equipment. Registering posts nothing.
- Click New asset.
- Enter the Name, the Purchased date and the Cost (excl. GST).
- Check the Asset account: the account the purchase went to.
- Choose the Depreciation method and Effective life (years). Optionally a Residual value (never depreciated below it) and a later Depreciate from date.
- Check the accounts. Accumulated depreciation and Depreciation expense start as Accumulated Depreciation and Depreciation.
- Click Save. The asset gets a number such as FA-0001.
Choose Not depreciated for land and other assets that don't lose value. For an asset you had before Kontuly, enter its Depreciation already accumulated, which should already be in your opening balances.
Which method?
Both are the ATO's methods, worked out by days held:
- Prime cost (straight line): cost × days ÷ 365 ÷ effective life. The same each year.
- Diminishing value: book value × days ÷ 365 × 200% ÷ effective life. More early, less later.
Which method and effective life to use is a question for your accountant.
Run depreciation
- Click Run depreciation.
- Choose Depreciate up to. It starts at the end of last month.
- Check each asset's amount and click Post.
One entry is posted for the run. To take it back, click Undo last run; runs can't be voided from Journals.
Once an asset has depreciation posted, only its name, description and tracking can change. Undo the runs to correct anything else.
Checking the register
The Fixed Asset Register report lists assets at a date with cost, depreciation and book value, and checks it agrees with your asset accounts.
Kontuly keeps one set of depreciation figures: there's no separate tax and book depreciation and no pooling.
Related questions
- How do I sell or write off a fixed asset in Kontuly?Dispose of a fixed asset in Kontuly and it brings depreciation up to date and posts the gain or loss on sale, or writes the asset off. You can undo it.
- Do I need to do a year-end close in Kontuly?No year-end close is needed in Kontuly. Last year's profit moves into retained earnings automatically. What to do at year end instead.
- How do I track profit by job, project or location in Kontuly?Use tracking categories in Kontuly to tag income and costs by job, project, location or department, then see profit for each in Profit and Loss by Tracking.
More about accounts and reports
- How does the chart of accounts work in Kontuly?Kontuly's chart of accounts sorts every dollar into accounts by type and report group. What a new business starts with and how it shapes your reports.
- How do I add, edit or archive an account in Kontuly?Add a new account in Kontuly's Chart of Accounts, change its code, name or GST code, or archive one you don't use. What can't change once it's used.
- How do I post a manual journal in Kontuly?Post a manual journal in Kontuly for adjustments with no invoice or bank line, such as accruals, depreciation or corrections. Debits must equal credits.
- How do I void or reverse a journal in Kontuly?Void a manual journal in Kontuly to post a reversing entry on the same date. Which journals must be corrected elsewhere, and what blocks a void.
- How do I lock a period after lodging a BAS in Kontuly?Set the lock date in Kontuly's Settings so nothing dated on or before it can be posted, changed or voided, protecting a lodged BAS or a finished year.