Shift depreciation and internal controls

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Our company performs work at the factory on second shift and third shift as per requirement. Sometimes the machine run for upto 3-4 days continiously. After that we require buffering time to change tools, cleaning, etc. In such time, even though machine is not in operation, other assets like computers, ac, etc. are being used. Till today we have been maintaining Manual Register to record daily working hours of the machine. We are calculating shift depreciation on machines as well as other fixed assets at the factory on the basis of working hours (extra shift) of the machines. How can we improve the internal controls for recording the hours of working each day so that the calculation of shift depreciation is true and fair? Are there any computarised systems or procedures? How should we charge depreciation on fixed assets other than machinery which are being used more than the machines?
Replies (2)

USE EXCEL FOR THIS MAKE USE OF FILTER AND PIVOT TABLE 

GOOD FOR ALL THIS WORK LEARN FOR EXCEL

TUTORIALS  IN U TUBE FOR PIVOT TABLE ETC

For the purpose of charging of depreciation, you can follow the method prescribed in the Companies Act, 2013 (based on the number of years) or Income Tax Act 1961 (based on the percentage). If as per the policy of the company and for the internal purpose you choose to calculate depreciation based on the hours run by the machinery, then you can take help of excel sheet or some customized program attached with the machinery to record the number of hours

If other software are attached to the machine, they shall not be part of the machine and shall be considered separately.

The machine shall not include the computers attached with machine. For the purpose of depreciation, both has to be considered separately. Thus, the working hours shall be calculated separately

 

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