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Handling special transactions

This section will provide some instructions on how to consider certain transactions in MYOB Assets.

Additional expenses (second element costs)

Additional expenses (also called second element expenses) are additions to an existing asset in the year(s) following the year of purchase.

These are depreciated at the Year 1 rate (in the year they are added), while the existing/main asset is depreciated at the Year 2+ rate. For example, if you purchased a car in year 1 and in year 2 you added mag wheels, the car would be depreciated at the Year 2+ rate and the mag wheels would be depreciated at the Year 1 rate.

Attaching additional expenses to an existing asset is currently not supported in Assets.

However, additional expenses can be recorded by Creating an asset under the existing/main asset and using an appropriate asset code structure. For example:

1.00 Ford Falcon
1.01 Mag Wheels
1.02 After Market Stereo
1.03 Bluetooth hands-free kit

An advantage of adding these as individual assets rather than additional expenses to an existing asset is that you can easily sell them at a later date. For example, if you keep the car but sell the mag wheels.

Balancing offset adjustments

A balancing offset adjustment is where you offset the profit resulting from the sale of an asset against the cost of the replacement asset. The profit on sale is not accessible, but you are required to reduce the cost of the replacement asset, thereby also reducing the depreciation (which thereby offsets the tax-free profit made on the sale).

Balancing offset adjustments only apply:

  • to tax depreciation

  • if the disposal was involuntary (e.g., lost, destroyed or acquired by the government as a compulsory acquisition).

The offset can only be assigned to certain classes of assets:

  • assets with no private use

  • not fully depreciated

  • (Australia) not pooled

  • not sold.

A balancing offset adjustment should not be required very often (as it only occurs when it is an involuntary disposal and a profit is made on the disposed asset). It is therefore not supported in MYOB Assets.

If you want to account for a balancing offset adjustment, when the replacement asset is added, create 2 assets instead of 1;

  • one with the reduced cost - which is depreciated normally.

  • one for the difference between the actual cost and the reduced cost. This should be depreciated at a zero depreciation rate.

This way the cost of all the assets in the asset register will match cost according to the balance sheet / general ledger and the correct amount of depreciation will also be claimed.

Incidental costs

Incidental costs are costs such as the cost of advertising relating to the disposal of an asset. These are not included when calculating depreciation or capital loss/gain, etc.

Incidental costs are not available in Assets.

If you need to record any incidental costs, you can enter it in the Notes section of the asset details for each asset.

Other Associations (suppliers, cost centres, asset types)

Other associations - suppliers, cost centres, asset types are not supported in MYOB Assets.

If you wish to record this data, enter it in the Notes section of each Asset's details.

Part selling of assets
Part selling an asset is currently unavailable in MYOB Assets. However, if you need to part sell an asset:
  1. Split the original asset into 2 assets and sell the one being sold:

    1. In the year the asset was added, edit the asset and reduce the cost by the cost value of the part of the asset being sold.

    2. In the year the asset was added, create a new asset with the cost value of the part being sold. Ensure that the depreciation rate, method and private use %, etc., are the same as the main asset.
      The net effect on depreciation and total closing written down value should be the same as before you split the asset into 2.

  2. Navigate to the year in which the part sale is being made and sell the relevant asset.

Periodic accounts

At current, you can only calculate depreciation for a full year.

Assets doesn't support multiple periods at this stage.

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