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Once you've selected an account code, you can enter Taxation and Accounting details. The details include:

  • Depreciation defaults:
    These set the default method and the rates assigned to each new asset in this asset class.

  • Taxation – Integrated accounts:
    These are the general ledger chart of account settings that will be used when the journal entries are created in the journal report.

To add an asset class
  1. Click the Add asset drop-down in the top-right corner and select asset class.
  2. Enter a name for the asset class.
  3. At the Link to account drop-down select:
    1. Don't enter an account code If you're entering personal assets for an individual tax return or
    2. <Account code> if you're entering business assets.
  4. Click + Show default depreciation to see other depreciation fields
  5. Select the appropriate Depreciation method:

    For the calculation type...

    Select from the following

    Taxation
    • Diminishing value
    • Immediate write-off
    • (Australia) Prime cost
    • (New Zealand) Straight line
    Accounting
    • Diminishing value
    • Exempt from depreciation
    • Immediate write-off
    • Prime cost
    • Straight line
  6. Select Calculate depreciation using preferences from the following options:

    FieldDescription of depreciation calculation
    Effective life (Taxation)Based on the years and months entered. If applicable, tick the ATO commissioner's effective life checkbox.
    Useful life (Accounting)Based on the useful life in years entered. Useful life is enabled if you've selected the straight line method.
    Depreciation rateBased on the rate that you enter in Rate year 1 and Rate year 2+.
  7. In the Taxation - Integrated accounts section, select or enter account codes to post journals for each of the following:

    • Realisation
    • Profit on sale
    • Loss on sale
    • Private use (must be a profit and loss account)
    • Depreciation expense
    • Accumulated depreciation

      You can leave account fields blank. However, a blank integrated account field may mean the journal doesn't post to the general ledger

  8. Click Add class.