Step 9 - Depreciation rates - Charitable Companies tutorial (ICHA)

After setting the specific descriptions,some depreciation rates now need to be set.

Select Edit | Fixed Asset Depreciation Policies. A panel will be displayed asking for the account number.

In the Account field enter 525 (which is the main account for Motor Vehicle Fleet) and select OK. (If the account number is unknown for an asset, use the magnifying glass $image\ebd_37.gif$ when in the account number field.) Refer to the chart of accounts for further information on the fixed assets.

The number of a Depreciation Policy rate must be entered. The Motor Vehicle Fleet is being depreciated at 20% on reducing balance. To list the rates available use the magnifying glass $image\ebd_38.gif$ .

If a rate is required other than the standard rates issued with Accounts Production then you can create a new rate in the Set-Up option from the main menu bar.

Highlight the applicable rate and click Select to enter this number in the field.

In the case of Children on Holiday Funds this rate is the only one that has been applied to the motor vehicles fleet, so the fields for the dates do not need to be completed. Select OK to register the rate. No further rates are required for this asset so click Cancel. You will then see the rate appear on the screen.

Select Close to return to the fixed asset depreciation Account field so that you can go on to select rates for the other assets.

Computer equipment

In the Account field enter the number 526 and select OK. In the Depreciation Policy field use the magnifying glass $image\ebd_40.gif$ to list the policies. Scroll down the screen to highlight 25% on reducing balance and click Select. The rate is entered in the field so select OK followed by Cancel. Select Close.

Entering the depreciation rates is now finished. Select Cancel.

Account 525 has an asterisk (*) next to the description to indicate that the account description has been changed.

Select Close to return to the main Accounts Production screen.