Checked on release 3.0.74.2 "Accounting for Kazakhstan" (version 3.0).
You are closing the month. You run "Depreciation and Amortization of Fixed Assets," and suddenly the depreciation of the administrative building has been posted to account 8410 "Overhead Expenses" instead of 7210 "Administrative Expenses." The cost of goods sold has inflated, administrative expenses are understated, and the financial result is skewed. The reason is almost always the same: an incorrectly configured method of reflecting depreciation expenses linked to the fixed asset card. This directory is where you set "where depreciation falls" once, and then the program automatically generates entries month after month.
1. Purpose
The directory stores templates: which expense account, which article, and which department to allocate the amount of depreciation (amortization) of fixed assets or intangible assets. You specify one element of the directory in the fixed asset card (or when accepting it for accounting) — and when closing the month, the document "Depreciation and Amortization of Fixed Assets" distributes the accrual according to this template.
2. Where to find
Three working paths:
- Section "Fixed Assets and Intangible Assets" → block "Directories and Settings" → Methods of Reflecting Depreciation Expenses.
- Directly from the card: Fixed Assets and Intangible Assets → Fixed Assets → open Fixed Asset → field "Method of Reflecting Depreciation Expenses" → selection button → "+ Create".
- From the document "Acceptance of Fixed Assets" — the same field on the "Accounting" tab.
Open the list directly in 1C: Main Menu → File → "Go to Navigation Link" and paste:
e1cib/list/Directory.MethodsOfReflectingDepreciationExpenses
2a. How to know your release
Help → About the Program (or the "i" icon in the upper right corner). In the opened window: at the top — the version of the platform (for example, 8.3.24.xxxx), below — configuration release "Accounting for Kazakhstan," version 3.0. The instructions below have been verified on 3.0.74.2; in other releases, field names may differ slightly.
3. How to fill
An element of the directory is valid as a "recipe for distribution." In the header — the name, in the table part — one or more rows of recipients of the amount.
Header
| Field | Mandatory | Why and what will happen in case of error |
|---|---|---|
| Name | Yes | A descriptive name: "Administrative Expenses," "Cost of Goods Sold — Workshop No. 1." If you name it "Method 1," in six months you won't remember what's inside, and you'll post depreciation incorrectly. |
| Organization | Depends on settings | In a database with multiple companies, the method can be made common (empty) or linked to one organization. If linked to "LLP A" — you won't be able to select it in "LLP B." |
Table part (recipients of costs)
Each row indicates where and in what proportion the depreciation goes. There can be several rows if the expense needs to be split.
| Field | Mandatory | Why and what will happen in case of error |
|---|---|---|
| Expense Account | Yes | Debit of the entry. Here you decide the fate of the amount: 7210 (administrative), 7110 (selling expenses), 8410 (overhead production), 2930 (work in progress/construction). If you set 8410 for office fixed assets — you will inflate the cost of goods sold and distort the profit report. |
| Department | Yes (for expense accounts) | Analytics by department. If empty on an account where accounting is done by departments — when closing the month, the entry will "hang" with a filling error. |
| Expense Article | Yes | Determines how the expense will appear in the declaration (deductible/non-deductible for corporate income tax) and in management reports. Choose an article with the type "Depreciation." An incorrect type of expense will distort tax accounting. |
| Nomenclature Group | For 8410/7110 | Required if the account requires accounting by nomenclature groups (production, services). If empty where required — the entry will not be processed. |
| Distribution Method / Coefficient | When multiple rows | If there are multiple rows, the amount is divided proportionally to the coefficients. Coefficients 7 and 3 → 70% and 30%. One row — everything goes to it entirely, the coefficient is not important. |
The credit of the entry (2420 "Depreciation of Fixed Assets" or 2740 "Depreciation of Intangible Assets") is not set by this directory — the depreciation account is taken from the fixed asset/intangible asset card. The directory is only responsible for the debit (expense).
4. Detailed example with entries
Condition. LLP "Astana-Service," general taxation system, VAT payer (rate 16%). There are two objects:
- Administrative building. Book value 14,400,000 ₸, useful life 120 months → depreciation 120,000 ₸/month.
- Production machine. Monthly depreciation 300,000 ₸, serves both the workshop and partially administrative needs: split 70/30.
Directory configuration.
Method "Administrative Expenses" — one row:
- Account 7210, article "Depreciation," department "Administration."
Method "Machine — distribution 70/30" — two rows:
- Row 1: account 8410, article "Depreciation," department "Workshop," nomenclature group "Main Production," coefficient 7.
- Row 2: account 7210, article "Depreciation," department "Administration," coefficient 3.
These methods are specified in the cards of the respective fixed assets.
Entries when closing the month (document "Depreciation and Amortization of Fixed Assets"):
| Dr | Cr | Amount, ₸ | What it is |
|---|---|---|---|
| 7210 | 2420 | 120,000 | Depreciation of the building → administrative expenses |
| 8410 | 2420 | 210,000 | 70% of the depreciation of the machine → overhead production |
| 7210 | 2420 | 90,000 | 30% of the depreciation of the machine → administrative expenses |
Total on 2420 "Depreciation of Fixed Assets" — 420,000 ₸ credit. On the debit: 7210 — 210,000 ₸, 8410 — 210,000 ₸. Later, 8410 will go into the cost of goods sold (7010) after closing the month, while 7210 goes directly into period expenses.
5. Types of operations (methods of distribution)
The directory does not have separate "types of operations" — it is not a document. However, the logic of filling provides different scenarios:
- Direct allocation — one row. All depreciation to one account/article.
- Proportional distribution — several rows with coefficients. The amount is divided by shares (for example, between workshops or between production and administration).
- Separately for tax accounting and management accounting — if the expense article is recognized differently in tax accounting, the type of expense in the article manages its inclusion in deductions for corporate income tax.
6. What is formed when using
The directory does not create entries and does not generate electronic documents (ESF, VAT invoices) — depreciation is a VAT-exempt operation, there is no sale. The method only "configures" future movements. Actual entries are formed by the document "Depreciation and Amortization of Fixed Assets" when closing the month, reading the linked method:
- Accounting entries Dr (expense account from the method) — Cr 2420/2740.
- Movements in the depreciation accrual register.
- Data in tax registers for corporate income tax (through the type of expense article — deductible/non-deductible expense).
7. Printed forms
The element of the directory does not have its own printed form. The result of its work is visible in the printed forms of the document "Depreciation and Amortization of Fixed Assets" and in standard reports: Account Statement for 2420/2740, Account Statement for 7210/8410/7110, report "Depreciation Statement of Fixed Assets".
8. Common errors
"The field 'Department' is not filled" (when processing "Depreciation and Amortization of Fixed Assets"). The expense account has analytics by departments, but the row method is empty. Open the method → fill in the department in each row → reprocess the depreciation document.
"Expense account cannot be used in this entry" / "Nomenclature group is not filled." For accounts 8410 and 7110, the nomenclature group is mandatory. Add it to the row method.
Depreciation was posted to the wrong account. Check not the directory itself, but which method is selected in the fixed asset card. Often, fixed assets are copied, and the wrong method is carried over. This can be corrected by the document "Change of Method for Reflecting Depreciation Expenses of Fixed Assets" (or by directly editing the card before accrual).
The amount was distributed in the wrong proportion. Coefficients in the rows are mixed up. 70/30 means coefficients 7 and 3 (or 70 and 30), not the sum in tenge. The program calculates the share of each row from the total of all coefficients.
Duplicate methods. Created "Administrative Expenses" three times with minor differences. Keep one standard, mark the extras for deletion, and reassign them to the fixed assets.
9. FAQ
What is the difference between this directory and the depreciation account in the fixed asset card? The directory sets debit — where the expense is allocated (expense account, article, department). The depreciation account (credit, 2420/2740) is taken from the fixed asset card. These are two different settings.
Can the depreciation of one fixed asset be split across several accounts? Yes. Add several rows in the method and set coefficients. The amount will be divided proportionally (for example, 70% to 8410 and 30% to 7210).
How to change the method for an already operating fixed asset? By the document "Change of Method for Reflecting Depreciation Expenses of Fixed Assets" (section "Fixed Assets and Intangible Assets"). The new method will take effect from the specified month; past accruals are not rewritten.
What account should be used for office equipment and furniture of the administration? 7210 "Administrative Expenses" with an article of the type "Depreciation."
And for workshop equipment? 8410 "Overhead Expenses" with the nomenclature group specified; it will then close into the cost of goods sold (7010).
Does the method affect VAT? No. Depreciation is a VAT-exempt operation; ESF and VAT invoices are not issued. The VAT rate of 16% has no relation to these entries.
Is one method for several fixed assets normal? Yes, that is how it is intended. One method "Administrative Expenses" is indicated for all administrative objects — fewer duplicates, unified analytics.
Why is the expense article so important? Through the type of expense in the article, depreciation falls into deductible or non-deductible expenses for corporate income tax. If you make a mistake in the article — you distort the tax base.
Is the method used only for fixed assets? A similar mechanism works for intangible assets as well — there, the credit goes to 2740 "Depreciation of Intangible Assets," and the debit is also taken from the method.
Can a method that has already been used be deleted? As long as it is linked to fixed assets and there are movements — no, there will be a reference integrity control. First, reassign the fixed assets to another method, then mark it for deletion.
10. Related documents
- Based on / along with what it is filled: card "Fixed Assets", document "Acceptance of Fixed Assets", the same for intangible assets — here the method is selected in the field "Method of Reflecting Depreciation Expenses."
- What uses this directory: document "Depreciation and Amortization of Fixed Assets" (when closing the month), document "Change of Method for Reflecting Depreciation Expenses of Fixed Assets."
- Where the amounts go next: processing "Month-End Closing" transfers 8410 into cost of goods sold (7010), while 7210/7110 form period expenses and participate in the profit and loss report.
How to know your release
Help → About the Program: the top line — version of the 1C:Enterprise platform, below — release of the configuration "Accounting for Kazakhstan" (version 3.0). Compare with the version in the signature.
The manual has been verified on release 3.0.74.2 "Accounting for Kazakhstan" (version 3.0).