Frequently Asked
Questions
Find Solutions to Common Issues Related to accounting-reports - depreciation charge
I am having trouble understanding how depreciation was calculated in my books. Can you explain how it was done?
For knowing how depreciation was calculated in your books.You have to know how
Depreciation has been charged in BUSY. Below are the steps to know it.
To define the depreciation rate, please follow the below steps:
Step 1: Go to the Administration menu.
Step 2: Click on Master and then...
I am unable to enter depreciation vouchers for my fixed assets. What should I do?
If you are having trouble entering a Depreciation voucher in BUSY, please follow the steps below:
To define the depreciation rate, please follow the below steps:
Step 1: Go to the Administration menu.
Step 2: Click on Master and then click on the Modify option. Search for the Fixed Asset...
How should I properly record asset depreciation in BUSY?
To properly record asset depreciation in BUSY, you can follow these simple steps:
1.Set Up Depreciation Settings: In the software, go to the account master and configure depreciation rates and methods for your assets.
2.Enable Depreciation for Company's Act: If your company is subject to the Company's Act, enable the...
I am trying to pass depreciation entry in BUSY but it is asking for depreciation rate. How can I set it to pass automatically?
If you are being prompted for a Depreciation rate while passing a Depreciation entry in BUSY, it means that the depreciation rate has not been defined within the Fixed Asset master. To define the depreciation rate, please follow the below steps:
Step 1: Go to the Administration menu.
Step 2:...
How do I record and manage fixed assets in BUSY? How can I troubleshoot depreciation discrepancies?
To record and manage Fixed Assets in BUSY then follow the given steps:
Step 1: Go to Administration menu
Step 2: Click on Master option
Step 3: Then click on Item master
Step 4: Then click on ADD button
Step 5: Then create an item and then go to Specify...
I want to change the depreciation method used for some of my assets. How can I do that?
To change the depreciation method used for some of your assets, you need to ensure that
both depreciation methods are enabled in BUSY software. BUSY software provides two
valuation methods for depreciation - the Income Tax Act method and the Company's
Depreciation Act method. By default, the Income Tax Act method is enabled in BUSY software,
but if you want touse the Company's Depreciation Act method as well, you need to follow
these steps to enable it:
Step 1: Go to the Administration menu.
Step 2: Click on Features and Options.
Step 3: Select the Accounts tab and enable the Company's Depreciation Act method from
there.
To update the depreciation rate, you need to open the account master in modification mode
under the Administration menu. Then, click on the account group option, and a Depreciation
chart window will appear. Here, you can define the depreciation rate as per the method you
have chosen for that asset.
While charging the depreciation, you can open the Depreciation chart option from the Display
menu, and by using F4, you can pass an entry for it.
How is depreciation for fixed assets calculated and recorded in BUSY?
In BUSY we can charge two tpes of depreciation
1. Income Tax Act
2. Company Act Depreciation
For charge depreciation According to Income Tax Act follow these step:
1. In account master of fixed assets mention annual rate of depreciation
2. Then Go in Display then Depreciation chart mention depreciation account and open report
3. After open report press f4 and pass depreciation voucher for all account or selected account
4. Report show in Balance Sheet
For charge Depreciation According to Company Act
1. Go in administration then click on configuration
2. Then Go in Feature/option then click on accounts tab
3. Then Enable Company Act Depreciation
4. Mention depreciation rates in account master of fixed assets as per company act method
5. Then Go in Display then depreciation chart and choose method and open report
6 . After open report press f4 and choose all account or selected account and pass depreciation voucher
7. Report Show in Balance sheet
How to change depreciation methods or rates for existing fixed assets in BUSY
For change in depreciation rates for existing fixed assets in BUSY. Please follow below mention step for enter depreciation rates in fixed assests:-
Step 1:- Administration Tab
Step 2:- Masters
Step 3:- Accounts
Step 4:- Modify, Select fixed assets after group "Fixed Assetsthen a window appear enter depreciation rate which you wants as per Act such as Income Tax Act or Company's Act..
After enter depreciation rate go to Display Tab then Depreciation Chart and you can check Depreciation to be Charged filed
For Change in depreciation method BUSY have 2 methods. Income Tax Act it is a defualt method for change to Company's Act please follow below mention steps:-
Step 1:- Administration Tab
Step 2:- Configration
Step 3:- Feature /option
Step 4:- Accounts
Step 5:- Click on check box Company's Act Depreciation
After enable depreciation go to Display Tab then Depreciation Chart here both methods will show i.e., Income Tax Act and Company's Act
Recommendation:- We recommend you use single deplreciation method in single F.Y.
How do I calculate depreciation in BUSY?.
To calculate depreciation charges in BUSY, follow these simplified steps:
Step 1 : First, ensure that the depreciation rates are correctly set up in the fixed assets account master. If not, update these rates.
Step 2 : Go to the Display menu and choose Depreciation Chart.
Step 3 : In the Depreciation Chart, pick the appropriate method for depreciation. You can choose either the Income Tax Act or Company Act method.
Step 4 : Now, you will need to select the depreciation account where you want to record the depreciation. After making your selection, click the OK button.
Step 5 : The system will genarate a depreciation chart for you with the information you provided.
Step 6 : If you want to record depreciation charges in your accounts, press the F4 key while viewing the Depreciation Chart. This will allow you to post or book depreciation charges in the voucher.
How do I record a part year depreciation for an asset purchased mid year in BUSY
For record a part year depreciation for an asset purchased mid year in BUSY please follow below mention steps:-
Step 1:- Administration Tab
Step 2:- Masters
Step 3:- Accounts
Step 4:- Add Or Modify if already exist
Enter name of fixed assets and select group "Fixed Assetsthen a window appear mention depreciation rate. It is divided half yearly also for example if the yearly depreciation rate is 20% then for Half Yearly its 10%. BUSY auto calculate it.
After enter depreciation rate go to Display Tab then Depreciation Chart and select your depreciation rule as per Company's Act or Income Tax Act. BUSY auto calculate Depreciation as per rule of respective Act and it will reflect you inthe filed of depreciation to be applied.
Note:- For Depreciation charges as per Company's Act enable from Accounts Module from Administration Tab
