How to make adjustments to Depreciation

At year-end, it is sometimes necessary to make adjustments to the Depreciation Expense, and the Fixed Assets balance, either to spread depreciation over the year when it is only posted in a single month, or to adjust what was posted in each month. Follow the steps below to make these adjustments in RealTime CEO, without reloading data:

1. From the menu, select the Enter Data screen.
2. Click the Adjust button under Prior Period Adjustments.
3. In the Adjustment Type, select Depreciation.
4. Select the Month to adjust.
5. Enter the Depreciation Amount (this is entered as an adjustment to what is already posted, so to increase Depreciation by $1000, enter 1000).
6. Select the Post to account from the displayed accounts, or enter part of the account name to find it.  Only accounts tagged as Depreciation will display here.
7. Click Apply.
8. Repeat the above steps for each other month needing an adjustment.

The following explains the results shown on the Monthly Data screen of a positive adjustment entered:

• The Depreciation expense account selected will be increased
• Total Direct Costs or Total Indirect Costs or Total Misc (wherever Depreciation is posted) will be increased
• Net Profit will be decreased
• A Fixed Asset account will be decreased
• Total Assets will be decreased
• Retained Earnings will be decreased