Depreciate unpaid asset


Asset was received, but we have not received an invoice. can an asset be depreciated before it is paid for?

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    Hello SR-AZ,

    I am a technician not an Accountant, but the way I am to understand it, if an asset is in service it can be depreciated. I do not recall anyone telling it had to be paid for before it is in service. Now, if it is just sitting in a back room someplace, then it is not in service and should not be depreciated.

    The trick there would be ensuring you have an accurate Value on the asset so that you do not need to change it later. There are many tickets I get which start with, “I just got the invoice for ‘something’ and I need to change the value to match” to which I usually reply with: How to change critical depreciation fields.

    Adding a back dated asset or changing an existing one both present challenges for reporting.