This ledger account is used in the journal entry below, unless a different ledger account has a higher priority in the applicable financial search path.

Journal entry

When equipment is purchased for the warehouse, the following journal entry is created upon receipt:

Ledger account	Category	Type	D	C	Sum
Equipment	600	10	X		Quantity * Purchase price
Invoices to receive	600	20		X	Quantity * Purchase price

The depreciation of the equipment will be charged to the different orders. At the time the hours are processed, the journal entry is created:

Ledger account	Category	Type	D	C	Sum
Equipment WIP	610	10	X		Depends on depreciation type
Equipment	610	20		X	Depends on depreciation type