What is n/c 7503 actually used for?
I can't see it being used for purchase of a fax because that's office equipment - 0030.
Is it used for the BT phone bill used for a fax line, separating it from the other phone bills in 7502? Surely the fax is just a phone line so it goes in 7502? Does anyone use 7503?
Btw, talking about telephones, does anyone enter mobile phone bills separate, or just keep everything together in 7502?
Mine get lumped together too, but as Steve said, if any of my clients wanted it separately, I would separate it.
A previous bookkeeper used 7503 for the purchase of a fax machine. I probably wouldn't put a fax machine to 0030 as it would be too small a value to capitalise. However, I could just as easily have put purchase of a fax machine to 7506 which I have set up to be small office equipment/misc office. None of the nominal codes are set in stone, you can change things around as much as you like in order to suit the business, just as long as things are in the right place in the accounts.
I change the narrative to read IT/computer costs and use it for IT support/broadband costs/pc consumables etc but you could use it for anything you like so long as you change the description. You can show it as a separate line in the p&l as well if you change the chart of accounts
I change the narrative to read IT/computer costs and use it for IT support/broadband costs/pc consumables etc but you could use it for anything you like so long as you change the description. You can show it as a separate line in the p&l as well if you change the chart of accounts
I've done similar things with my coa. I have almost a separate line in the p & l for everything as one of my clients likes as much detail as possible...lol
I'm thinking of setting up an account for Computer Euipment, which needs keeping separate because unlike other assets/Office Equipment, this apparently depreciates at 50% per year . I'm not sure is if the 50% depreciation refers only to the actual computer or to associated hardware/peripherals over a certain value?
This leads to the question of at what value does something change from an expense to an asset and if it's a computer peripheral will it be expected to last more than two years.
I like the idea of using 7506 as small office equipment/misc office, so that cheap items are expensed, but may choose a different name, it's too similar to Office Equipment.
You can create another account in the asset range for your computer equipment, no problem.
Not sure about the 50% depreciation question, but I would guess that it would refer to the computer equipment system as a whole at first purchase, e.g. if you purchase a computer, monitor, keyboard, mouse etc as a package....then that total would be subject to the depreciation. Any subsequent replacement peripherals would probably be too small to depreciate.
The value at which an expense becomes an asset is really dependent on the business. Some smaller businesses would consider £200-£500 an asset whereas larger businesses wouldn't capitalise anything under a couple of thousand. I would expect a computer peripheral to physically last more than a couple of years.
