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Thread: Allocation to GL Codes in Pastel

  1. #1
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    Allocation to GL Codes in Pastel

    Hi There

    My company has had a stream of thefts lately and my bosses have decided that they would like to put in a CCTV system.

    This is my question:

    As this is a new 'project' there will be a lot of purchases that will need to be made to get it up and going.

    1. Should I open up new GL Accounts for say: Security Equipment as fixed assets and Security Expenses for the small expenses like cable, connections ect.

    2. The various camera types have different costs should I allocate each camera's below R 7000.00 directly to the expendable equipment account or should I create a new GL code for say "Security Equipment" under fixed assets and allocate all the camera's?

    2. How should I allocate the miscellaneous items like: (a) 32 Channel NVR, (b) Network Switches (c) Hard Drive (d) Switch Mode Power Supply (e) Nano Stations.

    Basically this is going to be a on going project for say 12 months but I want to utilise as much of the expenses as possible for tax reasons, I'm just not sure what is the correct way to really show it all in pastel?

    Any assistance would be really appreciated.

    Thanks

    Debbie

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    Hello Debbie

    If this is, and it seems to be, a full CCTV system, then it should actually not be expensed piece meal but should be capitalised as one asset and then incur depreciation in the financials and a wear & tear charge for taxation.
    The estimated life that SARS has authorised for removable security systems is 5 years.

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    Quote Originally Posted by Andromeda View Post
    Hello Debbie

    If this is, and it seems to be, a full CCTV system, then it should actually not be expensed piece meal but should be capitalised as one asset and then incur depreciation in the financials and a wear & tear charge for taxation.
    The estimated life that SARS has authorised for removable security systems is 5 years.
    Hi There

    Thanks for all your help, I was leaning more in that direction but its always great to have a second opinion

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    For future reference, all costs incurred to get an asset up and running, be it courier costs, or installation thereof, should be capitalised for accounting purposes.

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