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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Separate Depreciation ...
Small and medium business | Business Central, N...
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Separate Depreciation Accounts from acquisition Accounts in the Balance (GL Account)?

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Posted on by MS-06111451-0 3
Hi,
 
Our company has just started on our Business Central journey, and I'm currently setting up the Fixed Assets.
But I'm struggling to decide on whether we should do the Acquisition and the Depreciation on the same Balance account, where depreciated amount will be credited out throughout the lifetime of the fixed asset.
Or if it is better to create a separate Depreciation account for each of our Fixed Assets Categories:
For instance:
Balance Account for Fixed Assets (Norwegian GL Account standards):
Vehicles (Acquisition) - 1230:
Vehicles (Depreciation - 1231:

Best regards,
Mathias
 
Categories:
Dynamics 365 Business Central
  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 75,595 Super User 2024 Season 2 on at
    Separate Depreciation Accounts from acquisition Accounts in the Balance (GL Account)?
    I vote for separate account. When account balances are inaccurate, separate accounts make it easier to find out why.
    In addition, this will be simpler when grouping reports.
     
     
    Hope this helps.
    Thanks.
    ZHU
  • gdrenteria Profile Picture
    gdrenteria 12,920 Most Valuable Professional on at
    Separate Depreciation Accounts from acquisition Accounts in the Balance (GL Account)?
    Hi
    As our colleague told us, I think it depends more on business analysis decisions.
    I give you some links that I found interesting about this topic. I hope I give you some hints
    best regards
    Gerardo
  • Suggested answer
    Inge M. Bruvik Profile Picture
    Inge M. Bruvik 993 Super User 2024 Season 1 on at
    Separate Depreciation Accounts from acquisition Accounts in the Balance (GL Account)?
    I think is it better practise to have the depreciation on a separate account,. 
    Makes it more flexible when it comes to reporting av gives you more information directly from your char of accounts.
     
    But  I also know that many prefer to have them in the same account so it is more about you and your companies preference.
     
    But when I work with clients i suggest having it on separate accounts.

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