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How to post asset depreciation automatically

Created on  | Last modified on 

Summary

How to post automatic depreciation when you run your month end in Sage 50 Accounts.

Description

Business assets, like office equipment and vehicles, lose value over time through depreciation. You can regularly record transactions to record the depreciation on your Profit and Loss report.

In Sage 50 Accounts Professional, once you've set up your Fixed Asset Records you can post depreciation automatically when you run your month end.

You can post depreciation manually if you don't use fixed assets or prefer a different depreciation method. The software offers both the Straight-line and Reducing balance depreciation methods.

 NOTE: Automatic depreciation is only available in Sage 50 Accounts Professional. If you're interested in upgrading, leave your details and we'll be in touch. 

Resolution

Create the depreciation nominal codes

The default depreciation nominal codes are as follows. If you already have these nominal codes, follow the Post depreciation automatically section.

TIP: You can see your nominal codes in Nominal codes.

Nominal Code Nominal name Report Report section
0021 Plant/Machinery Depreciation Balance Sheet Fixed Assets
0031 Office Equipment Depreciation Balance Sheet Fixed Assets
0041 Furniture/Fixture Depreciation Balance Sheet Fixed Assets
0051 Motor Vehicles Depreciation Balance Sheet Fixed Assets
8001 Plant/Machinery Depreciation Profit and Loss Overheads
8002 Furniture/Fitting Depreciation Profit and Loss Overheads
8003 Vehicle Depreciation Profit and Loss Overheads
8004 Office Equipment Depreciation Profit and Loss Overheads
  1. Go to Nominal codes then select New.
  2. Complete the following information:

    N/C Enter the nominal code number that you want to create, for example, 8005.
    Name Enter the name of the account, for example, Plant/Machinery Depreciation.
  3. Click Save.
  4. If required, to create further nominal codes repeat steps 1 to 3.
  5. Click Close.

You've now created the new nominal codes. Check your chart of accounts to ensure the new nominal codes are in the correct Profit & Loss and Balance Sheet sections.

Post depreciation automatically

Once you've created your fixed asset records in the software, post depreciation automatically during your Month end.

  1. Create your fixed asset records, including the depreciation method you want to use.  
  2. Go to Tools, select Period End then Month End.
  3. Run check data then take a backup of your data.  
  4. Enter the relevant month end date.
  5. To include depreciation in your month end postings, select the Include depreciation of fixed assets checkbox.
  6. Select any other required options then click Run Month End.
  7. Click Yes then OK.

This posts the depreciation amounts as journal entries and updates your fixed asset records.

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