How to Record Medical Device Demo Unit Depreciation
Accounting for the depreciation of high-value equipment used by sales teams for clinical demonstrations.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Selling & Marketing Expense | dr | 2,200.00 | - |
| Accumulated Depreciation - Demo Equipment | cr | - | 2,200.00 |
💡 Accountant's Note
Demo units are classified as property, plant, and equipment (PP&E) rather than inventory because they are not held for sale. Depreciation is a selling expense.
Practitioner & Systems Framework
💻 ERP Architecture
Track demo units in a separate fixed asset class with shorter useful lives due to frequent transport.
⚠️ Audit Flags
Conversion of demo units to 'used' inventory sales without proper cost basis adjustment.
📄 Required Documentation
Serial number tracking logs and field rep deployment records.
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