This is a transcript of a video created by Natasha Klebba, CPA & Principle at IFI Professionals.
I'm occasionally asked about fixed assets and how do we handle recording fixed assets and posting CIP, and/or depreciation, within the system. Well, we have two different approaches.
The first is the out of the box approach. A bill comes in, you code it to CIP or fixed assets, you set up the recurring journal, and that depreciation posts every month, as it should. Clearly, this is on a straight line basis, nothing fancy about it.
Our other approach is to have you purchase the module. The module lets you have CIP and combine multiple CIP bills into one asset, which is very nice. Then, you can schedule out the place and service date, and then the system will record the depreciation as instructed, however, it's set up on the configuration.
Now this process definitely isn't for tax appreciation. So if you're wanting your system or 179 depreciation, this isn't where you want to go. Go to your tax software and handle it there. But if you are looking for your financial ERP books and records to handle depreciation for you on a straight line basis, you can follow either of these two options and have a successful outcome.
If you have any questions on this, or would like to discuss it further, please reach out to us.
- Book a Consultation– for a FREE assessment and personalized Roadmap for Transformation of your Financial Operations
- Read another Blog Post- "Mapping Out Your Key Milestones on the Journey to Frictionless Financial Operations"
- Register for our weekly online discussion and demo with our CFO and Founder – Jim French