www.loanperformer.com

Table of Contents (Online Help)

Posting Accounting entries

This page of Loan Performer allows a user to post the asset accounting entries to the selected GL accounts after transactions like buying and selling of assets and depreciation at the end of the period. This keeps the record of assets up to date and posts the costs to the profit and loss account thus reducing the value of the assets on the balance sheet. The Posting tab enables you to make settings that will affect the calculation and recording of depreciation at the period end.

How to post the accounting entries

To make settings for assets postings you go to Accounts/Assets/Asset Register/Postings and a screen will be displayed as follows:

• Branch ID: Select the appropriate ID from the drop down box, e.g., "DB".
• Cost Centre ID: Select a Cost Center from the drop down box to which you would like to assign or allocate that asset, e.g., "Loan Department".

• General Ledger Account Asset: From the dropdown list select the GL to link the asset to. If the Asset GL does not exist in the Chart of Accounts, then click on the New GL Account to create the GL for the asset being registered.
• Balance Sheet Depreciation A/C:  From the dropdown list select the GL for the balance sheet depreciation A/C, e.g., "2220011".
• PL Depreciation : From the dropdown list select the GL for the depreciation cost in the P&L A/C, e.g., "550030".  

Note: If an assets is to be booked automatically to the General ledger at entry, then you need to activate the check box "The entry of asset should be booked to the general ledger" under System Configuration/Accounting/Accounts Settings. This screen will now have an option for payment as seen below:

The Balance Sheet depreciation A/C and the Profit and Loss A/C are the fields that Loan Performer uses to make an entry into the general ledger when depreciating the item. The entry of an Asset does not affect the general ledger. This only happens when you buy the item with an entry at Accounts->Purchases and Sales->Creditors Invoices.

• Depreciation Method: Select a method which you would use to calculate depreciation of your asset, e.g., "Straight". Loan Performer supports two methods, i.e., the straight line and declining balance methods.

• Depreciation Rate (%) : Enter the annual rate of depreciation for the asset, e.g., "20%".
• Cost Price:  Enter the amount at which you purchased or bought the asset being registered e.g., "1,500,000".
• Salvage Value: Enter the estimated value scrap or residual value that this asset will realize upon its sale at the end of its useful life.
• Book Value:  This is the value of the asset after deduction of the depreciation amount. At entry you can enter the value which can be the cost price e.g "12,000,000". Subsequently this field becomes a read only that displays the value of the asset less the accumulated depreciation in the book of accounts, e.g., "11,800,000". As seen below;

• Next Depreciation Date: The value of this field is updated automatically by Loan Performer based on what you entered previously and it is the starting date for the next depreciation period.

• Depreciation to Date:  This field shows what has been depreciated so far. This in general should be the cost price minus the book value. In this example it is (12,000,000 - 11,800,000) 200,000.

• Start Depreciation:  In this box, enter the date on which you want depreciation calculation to begin. This should at the end of the month after registration of the asset or at the end of the financial year. At first registration, the date can be inserted in the text box. After registration, the date will not be altered. It will automatically be updated at the time depreciation is calculated.
• New GL Account :  Click on this button to add an Asset or account that does not exist in the Chart of accounts.

Related Topics

Contact LPF live support for more information
This service requires an Internet connection.