NESFA® Treasury Procedures: Monthly Transactions
There are a number of transactions which are done monthly and which the
Treasurer needs to initiate. These were previously described as automatic, but
that was inappropriate, as these transactions must actually all be entered manually:
- Change the Peachtree date: It is important to change the active month
in Peachtree as soon as practicable each month, preferably before any transactions
are entered. If the active month is not changed, any transaction entered
will be dated the first day of the previous month. This applies to checks
written, invoices, credit memoranda, etc.
- Building depreciation: We are depreciating the building and major
improvements to it on a 20-year straight-line basis. The monthly amount is
currently $640. Debit EX-CH Depr and credit LI-BuildingDepr.
You can print this form for the transaction file.
You can use the memorized transaction CH Depreciation and add the transaction number.
- Equipment depreciation: We have an unusual (though acceptable) scheme for depreciating
equipment: We depreciate by 3% of the depreciated total each month. This is roughly
equivalent to a 3.5-year depreciation schedule, but avoids us needing to keep
track of individual items purchases times and prices. To do this
- Set the Peachtree accounting period to the month in question.
- Select the report Reports and Forms > Financial Statements... >
Depreciation detail report. This will provide a depreciated value for all
equipment as of the end of that
- Compute 3% of that amount and
- Debit it to EX-Equip Depr and credit it to LI-EquipDepr.
In each case, the Treasurer must create appropriate paperwork to document the
transaction and file it.