You may need to add assets to HandiLedger where the base for calculating depreciation is less than the cost price, e.g., luxury cars or special building write-offs.
If so, there are two ways to capture the data:
Split the asset into two separate assets (preferred method, especially for assets utilising prime cost depreciation), or
Enter the data as one asset, making allowance for the limit in the data entry fields.
Split the asset into two separate parts (preferred option)
Split the asset into two separate assets, one for the depreciable amount and the second for the balance of the cost price.
In the example below, a Luxury Car has been purchased for $100,000, of which only $69,674 can be depreciated, leaving a $30,326 balance that is not depreciable.
Log in to HandiLedger and Select your entity and year.
From the View menu, click Depreciation Schedule.
In the Depreciation Schedules window, click Asset and then New.
For the first asset, in the Asset Detail (Active Asset) window, only enter the depreciable amount in both the Historical Details and Acquisition sections. (Keeping in mind this is the first year of purchase).
Complete the remainder of the information as required and click Save and Close.
Add the second Asset for the remaining balance of the purchase price $30,326.
Set the Depreciation Rate for this asset to 0.00, complete the other required details, and click Save and Close.
When generating the Depreciation Report, it should reflect the desired position.
Enter the data as one asset, making allowance for the limit in the data entry fields
Using the same example as set out in method one, the asset would be entered as follows:
Log in to HandiLedger and Select your entity and year.
From the View menu, click Depreciation Schedule.
In the Depreciation Schedules window, click Asset and then New.
In Historical Cost Details, enter the amount the Asset was purchased for and the Purchase date.
In Acquisition section, enter the amount you want to depreciate and the Purchase date.
Complete the other required details such as the Deprecation rate and Type, and once completed, click Save and Close.
Generating the Depreciation Report should reflect the desired position.
