Entering Depreciation on MYOB

Hello any MYOB gurus out there.

I'm playing around with MYOB at the moment and after reading through some of the older MYOB-related posts on this forum I have a few questions.

If I were to record 'Capital Works', 'Depreciation' and 'Low Value Pool' as expense accounts on MYOB and make a debit for these amounts, where would the credit go? Should I create Asset accounts showing the accumulated figures (eg - Accumulated Depreciation), and if so, what should I call these accounts?

For multiple properties should there be separate Capital Works and Depreciation accounts for each property? I assume there is only one Low Value Pool which has items from all properties pooled together so it would be a single MYOB account.

Am I on the right track?
 
There's been a lot of views to this thread but no responses. Does anyone else use MYOB?

Maybe the "Accum Depreciation" and "Accum Capital Works" accounts would be Liability accounts.
 
I think the debit would be the expense account and the credit the Asset account.

You would need to set these up.

I'm sorry I'm much more QB savvy than MYOB, but the accounting principle sounds right.

Quickbooks help is excellent - try MYOB's help under Depreciation or General Journal - Depreciation, something along those lines and hopefully you'll find what you need.

Alternatively if you are really stuck you can phone MYOB (I think) for a small fee or subscribe to their support program for a larger fee! Or most accountants know MYOB well as it is used by so many of their customers so a quick call to your accountant may give you the information you need.

Hope this helps
 
Quickbooks help is excellent - try MYOB's help under Depreciation or General Journal - Depreciation, something along those lines and hopefully you'll find what you need.

Hi Minxdamanx, thanks for the suggestion of using MYOB's help function. It was a big help. I typed in Depreciation and got this:

Using General Journal entries to record depreciation

Your company's vehicles and equipment normally lose value each year. Part of the lost value of vehicles and equipment can be allocated as an expense to your company each year that you benefit from their use. The allocation of the lost value of a piece of equipment over its useful life is called depreciation. While Accounting doesn't calculate depreciation automatically, you can quickly record your equipment depreciation using a General Journal entry.

Example

For example, you might have two accounts: Company Van, numbered 1-4200; and Computer Equipment, numbered 1-4300. To track depreciation, you would create two new asset accounts: one called Company Van-Accumulated Depreciation, numbered 1-4201; and another called Computer Equipment-Accumulated Depreciation, numbered 1-4301. You would also create an expense account called Depreciation Expense. The asset accounts will always have negative balances to show reductions in the value of the depreciable assets.


Also, it looks like my accountant includes the Low Value Pool amount as part of the Depreciation account figure for each asset rather than a separate LVP MYOB entry.
 
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In practice, accountants do not use MYOB to calculate depreciation but instead a separate system and only give you the journal to put through in your own books in order to agree their balance sheet figures to yours.

If you are going to do the entire calculation yourself, you may wish to ensure you are using the correct useful live figures and hence correct depreciation rates.
 
In practice, accountants do not use MYOB to calculate depreciation but instead a separate system and only give you the journal to put through in your own books in order to agree their balance sheet figures to yours.
Yes, I think my accountant copied the figures from my depreciation report and directly entered them into their own system and provided a new print out (showing the same thing but in a different format). They have also amended my MYOB file so it matches the figures on their balance sheet, as you said.

Cheers.
 
Hi!

Recommendations:

For the LVP and depreciation, put both into the same expense account and use a separate one for each entity. The DR is to the depreciation - IP1 and then you would CR accumulated depreciation (a -asset account) the same amount.

For capital works deduction you would do similar, DR the expense account and CR the accumulated capital works deduction account the same amount.

I am a MYOB & Quickbooks bookkeeper and use the same 'guidelines' that I use as an accountant for the accounts

So ie..

Account 1-2010 = Investment property A
Account 1-2011 = Improvements and additions
Account 1-2012 = Other
Account 1-2013 = Accumulated depreciation
Account 1-2014 = Accumulated capital works deduction

Account 1-2015 = Investment Property B
Account 1-2016 = Improvements and additions
Account 1-2017 = Other
Account 1-2018 = Accumulated depreciation
Account 1-2019 = Accumulated capital works deduction

And so forth...

Hope this helps!

Alysha

www.gatherumgoss.com
 
Hi!

Recommendations:

For the LVP and depreciation, put both into the same expense account and use a separate one for each entity. The DR is to the depreciation - IP1 and then you would CR accumulated depreciation (a -asset account) the same amount.

For capital works deduction you would do similar, DR the expense account and CR the accumulated capital works deduction account the same amount.

I am a MYOB & Quickbooks bookkeeper and use the same 'guidelines' that I use as an accountant for the accounts

So ie..

Account 1-2010 = Investment property A
Account 1-2011 = Improvements and additions
Account 1-2012 = Other
Account 1-2013 = Accumulated depreciation
Account 1-2014 = Accumulated capital works deduction

Account 1-2015 = Investment Property B
Account 1-2016 = Improvements and additions
Account 1-2017 = Other
Account 1-2018 = Accumulated depreciation
Account 1-2019 = Accumulated capital works deduction

And so forth...

Hope this helps!

Alysha

www.gatherumgoss.com

Hi Alysha, that's exactly how mine have been set up so thanks for the confirmation.

Two questions for you:

1. What would you use the "Other" asset account/s for?

2. If you developed one of the Investment properties yourself, would you break the figure down further such as:

Account 1-2010 = Investment Property A - Land
Account 1-2011 = Investment Property A - Construction
Account 1-2012 = Improvements etc

Or would you still combine the land and construction costs under the one account? The way you have created a separate account for 'Improvements' rather than increasing the 'Investment Property A' account by the amount of the improvement got me thinking as to whether you would do a similar thing for construction.

Cheers Ebbie.
 
Hi

How you have separated the land and construction would be fine. The 'other' account I would generally have all legals and costs associated with the sale, or valuations done after purchase, things like that. Alternatively, these can just be added to the cost base but some people like them separated so that only the purchase cost is at item a.

Alysha
 
Hi

How you have separated the land and construction would be fine. The 'other' account I would generally have all legals and costs associated with the sale, or valuations done after purchase, things like that. Alternatively, these can just be added to the cost base but some people like them separated so that only the purchase cost is at item a.

Alysha

Makes sense. Thanks Alysha.
 
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