cancel
Showing results for 
Search instead for 
Did you mean: 

Reply to message

View discussion in a popup

Replying to:
FTech
Level 3

Reply to message

Sheesh indeed!

 

You obviously have not seen the method prescribed by the book. The Items are set up with entirely different account types assigned than would be the case if they were being used for inventories--the COGS field, for instance, is not assigned a COGS account. And a combination of several subitems is used to maintain asset book values, accumulated depreciation, and even automatically calculate gain/loss on fixed asset sales...without cluttering up the chart of accounts with umpteen accounts for individual fixed assets. Please don't "pooh pooh" something you know nothing about!

 

I've attached a report example copied from the ebook, so you can see that your initial perception is incorrect.

 

For depreciation to be useful as a management concept (measuring profitability via P&Ls, etc.) it needs to mimic the useful lives of the assets to which it is applied. So not everyone will be satisfied with using Straight Line depreciation for everything, which is the case if you use Memorized transactions to enter depreciation expense.

Need to get in touch?

Contact us