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Forum -> Help with flowlog.net hosted flowlog -> Does a Long Term Asset account need a corresponding expense Acct.?  Resolved

 
Dec. 10, 2018 @ 03:11pm
Does a Long Term Asset account need a corresponding expense Acct.?
flowlogEntity's icon
flowlogEntity
posts: 18
joined: Jan. 19, 2018

And if usually not, would there be any good reason/scenario to have an expense account(s) that corresponds to an LTA account(s)?

Dec. 10, 2018 @ 11:14pm
 
flowlogEntity's icon
flowlogEntity
posts: 18
joined: Jan. 19, 2018

Are you asking about depreciable long term assets or LTA's in general? Are you wondering about how to handle depreciation expense or something else? Feel free to give me an example scenario for what you are wondering about.

When you say "corresponding" that would usually mean a "contra account" which in the case of a LTA, would be a contra long term asset account and not an expense. Though, a "shared" or "global" expense account is created by flowlog for recording all depreciation expense if you have Auto Book Depreciation enabled. You can also see how flowlog creates the contra asset accounts if you have Auto Book Depreciation enabled. Feel free to use the demo just for these types of tests or to learn about how flowlog features work. That's what it's there for. 

Dec. 19, 2018 @ 09:07am
 
melrose's icon
melrose
posts: 1
joined: Nov. 02, 2018

I think you answered my question. I checked over flowlog documentation again for book depreciation and contra account info, i must have misunderstood the last time i read the docs or was just over thinking it. I had forgotten exactly how contra accounts and depreciation worked.

If i come across an unusual scenario when using books that brings me back to this question, then ill make another post here w/ a scenario example. However i don't think i will need to.

Thanks.







Dec. 19, 2018 @ 09:14am
 
flowlogEntity's icon
flowlogEntity
posts: 18
joined: Jan. 19, 2018

yeah, it just depends on your needs. if you only need book depreciation and you enable flowlog's Auto Book Depreciation feature then you don't need to create any additional accounts, as flowlog will handle that. if you're doing your depreciation manually, whether that be tax depreciation or book depreciation, then you will have to create any contra accounts and/or expense accounts you may need.

Dec. 21, 2018 @ 09:41am
 
flowlogEntity's icon
flowlogEntity
posts: 18
joined: Jan. 19, 2018

if we have solved your issue pls set this thread as "resolved" instead of "open". thanks