Allocating Unallocated Depreciation
Important: This help guide article is only relevant for churches and charities who set up ExpensePlus before 2021, when setting up opening Fixed Assets wasn't required.
If you create an account on an accruals basis and you are yet to set up your opening fixed assets, then go to the Fixed Assets screen within ExpensePlus. There you will be guided through the steps needed to set up your opening fixed asset register - click here to read the separate help guide about this.
Note: when doing this, you may choose 'bulk together' all opening assets that have now fully depreciated if you don't wish to enter each asset separately. We don't recommend this for assets that have not fully depreciated.
Allocating Unallocated Depreciation
Once opening assets have been set up, you will then need to allocate any depreciation that has previously been recorded within ExpensePlus to the individual assets this relates to, and ExpensePlus will guide you through this process.
Note: it's not an issue if you previously entered a bulk depreciation amount, as you will be able to allocate this to the individual assets it relates to.
Select the 'Allocate Unallocated Depreciation' option:
Details of the earliest depreciation transaction entered will display. All you need to do is to allocate the amount against the corresponding asset or assets it relates to, then click 'save and continue'. Then do the same for the next transaction until all depreciation transactions are allocated.
Frequently Asked Questions (FAQs)
Will allocating unallocated depreciation affect any of my financial reports?
No, your financial reports will not change. This process simply links previously entered depreciation to a specific asset.
Why can't I see the asset I need to allocate depreciation transaction against?
If the asset you were expecting to see isn't shown, this is likely to be because of one of the following reasons:
a) The purchase was entered as an 'expenditure', rather than an 'asset purchase'
As long as the financial year in question is unlocked, you can fix this by editing the purchase in question and updating the expenditure category to a fixed asset category.
However, if you have already created and submitted accounts for the financial year in question, we highly recommend you don't do this unless you are 100% sure what you are doing as reports such as your current balance sheet will change as a result of doing this.
b) The depreciation and fixed assets are in different funds
As long as the financial year in question is unlocked, you can fix this by editing the purchase in question and updating the expenditure category to a fixed asset category. Alternatively, you can update the depreciation transaction (click here, select the financial year, select the depreciation transaction and update the fund).
However, if you have already created and submitted accounts for the financial year in question, we highly recommend you don't do either of these things unless you are 100% sure what you are doing as reports such as your current balance sheet will change as a result of doing this.
c) The date of the depreciation transaction is before the date the asset was purchased
As long as the financial year in question is unlocked, you can fix this - click here, select the financial year, select the depreciation transaction and update the date).
Note: This shouldn't affect your current balance sheet if you do this, but be careful not to add/edit any other depreciation transactions whilst doing so.
d) You have already fully depreciated the asset in question
If you have over-depreciated an asset, then as long as the financial year in question is unlocked, you can fix this by clicking here, selecting the financial year, and deleting the depreciating transaction in question.
However, if you have already created and submitted accounts for the financial year in question, we highly recommend you don't do either of these things unless you are 100% sure what you are doing as reports such as your current balance sheet will change as a result of doing this.
What if I need help with this?
If you need help with allocating unallocated depreciation, then we can support you with this. However, this isn't included in the regular software support that we offer.
Click here to find out more about getting additional help and support.