Fixed Asset Entries

What entries will the Fixed Assets module generate for me?

It will generate depreciation, depreciation adjustment, and disposal entries to be transferred to accounting. Depreciation adjustment and disposal entries can only be generated for assets that have previously had calculated and transferred depreciation.

How does the Fixed Assets module know what entries to generate?

It generates the appropriate accounting entries for each asset calculation, adjustment, or disposal by utilizing the account code information stored in the Asset Type ID assigned to the asset record (the asset record can be viewed using the Maintain>Fixed Assets>Assets form). The Asset Type ID includes the fixed asset general ledger account (used for disposals), the accumulated depreciation general ledger account (used for all types of depreciation entries), the depreciation expense general ledger account (used for depreciation entries), and the distribution code to be used for the entries. The Asset Type ID can be edited if your transaction coding needs to be changed using the Maintain>Fixed Assets>Asset Types form, or you can switch to a different Asset Type ID for on an asset record.

How do I record an asset addition?

Assets may be recorded using Asset Quick Entry on the Cash Disbursement or Accounts Payable Invoice forms when you use a FAO (Fixed Asset Other) type of account in the transaction. You can manually record the asset in the General Ledger from any type of transaction form, and then make the corresponding entry into the fixed asset inventory using the Maintain>Fixed Assets>Assets form. However, if the Enable without Validating check box is selected on the Organization>Set Up Modules>Fixed Assets form, Assets may be recorded using Asset Quick Entry on the Cash Disbursement or Accounts Payable Invoice forms, and the Create/Modify Purchase Order form without cost and General Ledger Account validating.

How can I reconcile my Fixed Asset Ledger to the General Ledger?

The Fixed Assets module is not a true subledger because entries can be made to your fixed asset general ledger accounts from any transaction source, and assets input into the fixed asset inventory are not checked to ensure they were booked to the General Ledger. As a consequence, you will most likely want to adopt a policy to periodically review your asset inventory in the Fixed Assets module with the general ledger fixed asset accounts to be sure they agree. To accomplish this reconciliation, you will want to compare the Asset inventory list report (Reports>Fixed Assets>Assets) with your Standard or Expanded General Ledger (Reports>General Ledger Analysis>Standard or Expanded General Ledger) fixed asset accounts.

How do fixed asset entries post to the General Ledger?

Fixed asset entries are immediately posted to the General Ledger when you transfer the accounting entries using the Activities>Fixed Assets>Transfer Depreciation/Disposals form.

What is the difference between transferring fixed asset transactions in detail versus summary?

Transferring fixed asset entries in detail will create a document for each asset's accounting entries. Transferring fixed asset entries in summary will create one document for the items selected for transfer summarized by account code combination (there will not be any Asset ID information associated with the summarized accounting entries).