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Reports & tax: Fixed Assets

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Fixed Assets - Partial allocation of depreciation for business and private use

To have the ability to account for depreciation on both business and private portions of an asset.

Purpose: Save time for users to get the correct figures rather than going through manual process.

277 votes

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AdminXero Team (Admin, Xero) shared this idea  ·   ·  Report…  ·  Admin →
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Not in pipeline  ·  AdminKelly Munro (Community Manager, Xero) responded  · 

Hi team, we’ve seen a lot of support for this idea, and acknowledge why you’d like a simple way of reflecting if part of a fixed asset is used privately.

As Xero doesn’t currently offer a built-in way to allocate depreciation between business and private use I wanted to re-highlight from our last update how this can be recorded -

Currently you could post manual journals to record the private use apportionment of a Fixed Assets depreciation.

If you're using Fixed Assets in NZ it's possible to set up an asset and apportion a % for private use. However, it's important to note that it's not possible to apportion the private use depreciation of an asset prior to using Xero. In this case when you sell the asset a manual journal may be needed to correctly state the private use.

At this time, we want to be upfront that our product team doesn't currently have plans to build this functionality.

We’ll continue to track interest here, and revisit if priorities shift.

Show previous admin responses (2)
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  • Andrew Heffernan commented  ·   ·  Report

    This has been going on forever, stop buying foreign businesses and spend some money on R&D.

  • Neil Bennett commented  ·   ·  Report

    On NZ version the depreciation for private use works
    However the journal entries xero posts are incorrect as I have the gross amount of depreciation expense and the private portion posted in the P&L

  • Michael Sinclair commented  ·   ·  Report

    Very unsatisfactory to have depreciation or pools without the ability to apply private usage, particularly since in Xero the pool claim automatically populates the tax return.

  • Andrew Heffernan commented  ·   ·  Report

    We have been putting up with this B grade software for a long time now. How about taking some money from your advertising budget and spending on R&D.

  • Mellissa Matchett commented  ·   ·  Report

    Come on Xero, for goodness sake, get on with it and get this done. We just bought a substantial number of clients over to XPM and we find out after that that your asset register is actually useless for a lot of our clients. You promote this as the goto software for accounting practices so how about you make it so!

  • Christopher LAZAREDES commented  ·   ·  Report

    I remember when Xero the product and company in general was the bees knees for innovation and value for money. Such a shamethey have lost their way.

  • Paul Howlett commented  ·   ·  Report

    FFS, you are literally telling us the functionality is available in New Zealand (and I know for a fact it's in Australian tax returns), but someone can't be bothered to figure out how to convert that to the rest of the world!?

    Pathetic.

  • Dande Taxplan commented  ·   ·  Report

    I can't believe you can't account for private use in the depreciation schedule at all. Its a pretty standard feature that even MYOB has. People have been requesting this for almost 3 years and it still hasn't been addressed. So much for Xero looking at these all the time!

  • Roy Kohardy commented  ·   ·  Report

    Please add this function as soon as possible.

  • Janice Cutajar commented  ·   ·  Report

    This is critical - For many of our clients assets are not used 100% for tax purposes. It is crazy that Xero assets did not include this from day 1. It needs to be fixed as soon as possible

  • Chris Nicolas commented  ·   ·  Report

    Essential function for a Fixed Asset Register. As a Xero advocate it’s embarrassing explaining to staff that this isn’t available.

  • Stuart Reid commented  ·   ·  Report

    Please add the private use option urgently as this applies to many of our small business clients.

  • Sarah Odgers commented  ·   ·  Report

    Surely the New Zealand software is similar to that used in Australia, can the coding by copied over?

  • Bennett Collings commented  ·   ·  Report

    Have been adding in a few conversion balances and fixed assets, and discovered that you can't add private use depreciation amount. Our business practice is to leave a note on the transaction, and even if the private use is correct going forward, it doesn't show historically on reporting as private use.
    Would be nice for reporting purposes to include this as separated from the normal accumulated depreciation business use.

  • Phil Davis commented  ·   ·  Report

    SOLUTION:

    Although it would be ideal if Xero added a box for private use %, here is a suggested solution for you to use in the meantime.

    SUGGESTION: Use the 'Cost Limit' box to achieve your objective.

    For example, if a new vehicle costs $60,000 and the business use percentage is 50%:

    1) Enter the asset into the Fixed Assets with the correct purchase price, i.e. $60,000.

    2) Next to the depreciation 'Start Date' click on 'Show more options' so that you can access the 'Cost Limit' box.

    3) Enter $30,000 (asset cost x private portion) into the 'Cost Limit' box.

    This will ensure that:

    1) The purchase and sale are accounted for correctly.

    2) Only the business portion of depreciation is posted to the P&L.

    3) By adding the 'Cost Limit' column to the depreciation schedule, you can see the reason for reduced depreciation and enable reconciliation to the Balance Sheet.

    I hope that helps.

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