The amortization entry form allows you to create new amortization entries or edit existing ones.
Use this form to record periodic amortization expenses for your intangible assets.
The form contains the following fields:
The date when this amortization expense is recorded. This determines when the expense appears in your profit and loss statement.
Amortization spreads the cost of intangible assets over their useful life, similar to depreciation for tangible assets.
A unique reference number for this amortization entry. This can be automatically generated or manually entered for tracking purposes.
References help you locate specific amortization entries and maintain an audit trail of expense recognition.
Enter a description to explain this amortization entry. This helps identify the purpose of the amortization in reports and transaction lists.
Good descriptions might include the period covered, such as 'Monthly amortization for January 2024' or 'Q1 2024 software amortization'.
Specify individual amortization lines which have the following columns:
You can amortize multiple intangible assets in a single entry by adding multiple lines.
Select the intangible asset being amortized. This list shows all intangible assets created under the Intangible Assets tab.
Only active intangible assets with remaining book value appear in this list.
Select the division for tracking purposes. This applies to the amortization expense.
Division tracking helps analyze costs by business segment or department.
Enter the amortization amount for this intangible asset. This represents the portion of the asset's cost being expensed in this period.
The amount should align with your amortization schedule and accounting policies for the asset.
Check this box to automatically generate reference numbers.
Automatic numbering ensures unique references and saves time on data entry.