Fixed Assets

OverView

The Fixed Assets module allows fixed assets to be registered into your accounts; Assets are defined by classes, categories & location and uses a base depreciation rate with a rate multiplier for linear depreciation calculation.

Along with the Manufacturing, this module too can be hidden from the user interface in Setup => Company Setup.

Four depreciation methods are available:

• Declining Balance
• Straight Line
• Sum of Year Digits &
• One-Time.

Navigation - Screenshot

Transactions
Fixed Assets Purchase Purchase a Fixed Asset
Fixed Assets Location Transfers Transfer a fixed asset from one location to another
Fixed Assets Disposal
Fixed Assets Sale Sell or Dispose of a Fixed Asset	Process Depreciation of a Fixed Asset
Inquiries and Reports
Fixed Assets Movements
Fixed Assets Inquiry Search Fixed Assets	doc View Fixed Asset Reports
Maintenance
Fixed Assets Create a Fixed Asset Item	Fixed Assets Locations Define Fixed Assets Locations
	Fixed Assets Categories Define Fixed Assets Categories
	Fixed Assets Classes Define Fixed Assets Classes

Workflow

Before you can create a fixed asset for the first time you will need to define:

1. Setup -> Access Setup -> System Administrator -> Fixed Assets Configuration -> Tick -> Save Role -> Logout -> Login
2. Add a Fixed Asset Class
3. Add a Fixed Asset Category
4. Add a Fixed Asset Location

This will allow you to create a Fixed Asset Item

And then you will be able to purchase your Fixed Asset

Examples

IT Equipment - depreciated over 5 years - nil value at end

• Create Class, for Basic Depreciation Rate enter 20% (100% / 5 years = 20% per year)
• Create a location for your asset
• Create a Category - with the correct tax type and UOM - Modify relevant GL accounts
• Add your fixed asset item
  • Choose the fixed asset class you created earlier
  • Depreciation Method: Declining balance
  • Base rate 20% - Rate multiplier 1
• Purchase Fixed Asset

Example Two

To be written

Example Three

To be written

Example Four

To be written

Tips & Tricks

• Checking the math, you know you can’t depreciate past salvage value, so adding depreciation expense in all years equals original purchase value.