Table of Contents

Overview

The system allows you to track all types of Assets - some are financial assets and some are not.

Any asset in the system can be a financial fixed asset and have associated depreciation journals created.

The user requires the Secure Feature "FixedAssetManagement" to use this functionality

Viewing your Fixed Asset Details

Fixed asset details for any assets with any depreciation journals for the current financial year are displayed in the Fixed Asset Dashboard

Creating Depreciation Journals - a manual monthly end of month task.

If you want to you can delete the depreciation journal that latest was created and create it again. Note you can only delete the most recent journal

ie if a journal has been created for December and you want to sell an asset in November
Delete the depreciation journal for December
Delete the depreciation journal for November
Write the asset off in November
Recreate the depreciation journal for November
Recreate the depreciation journal for December

Example Journal

If the Asset was owned for a part of a month (ie was purchased during a month) - the system automatically only calculates the depreciation for that part of the month.
Depreciation is only calculated for assets with a financial book value.
Assets that were written off during a month will the depreciation journal written at the time of the write off and must be written off before the mass depreciation journal is written.
Software is an asset with a 2.5 year life using straight line depreciation

Setting up

Setting up the GL Control Accounts

For Asset Sales (normally an "other income" account

For Depreciation Offset (normally an "Expenses" account) - this is a default in case there is not one defined on the Asset Classifications

For Low Value Pool (links the Asset Group that is considered the Low Value Pool)

Setting up Fixed Asset Classifications

Asset Groups link the Asset value and Depreciation value accounts

Normally Asset Accounts and Depreciation Accounts are in the Assets - Fixed Assets section of your GL

The Asset must be owned by the Host Company

Each Asset that is to have a financial value must be linked to a Fixed Asset Class

Low value Pool Asset Class
The low value pool has special depreciation calculations.
First FY portion diminishing value calculation with a 18.75% annual depreciation allowance
After first FY standard diminishing value calculation with a 37.5% annual depreciation allowance
Each Asset will have its value tracked individually and be visible in the Asset Dashboard like any other Asset.
Once you have setup the Low Value Pool nominate it in the GL Control Accounts

Setting up the Initial Value of the Asset

Supplier invoice to purchase the Asset

Asset value comes from Supplier Invoices that:

Have a Tax code of CAP
Have been linked to the Asset at the line level

Note that the GL code for the Capital value lines will be forced to be the same as the Asset class linked to the Asset. To link an Asset Class to an Asset you will require the Secure Feature
Note - if you are purchasing the asset using a loan:
Create the loan account in the GL

Setup the loan account as a General Credit Account (Host Company > Accounts Cards)

Use a payment without invoice using the general credit account as the account used to make the payment.

The Asset will have a link to the journal/s - choose link type "Asset" and enter the Asset code to create the link

Create the Financial Asset Book Value

Once all the Creditor invoices you want to have included in the initial asset value have been linked to the asset - you can create the Asset Financial Value.

The Current book value is found on the Asset Screen

Bringing in Assets that are partially depreciated already

Examples when to use this include

Purchasing another company
When you purchase a company they will have assets already on their books and you will not have a Creditor Invoice to create the Asset Value
First setup of the system
When you are first setting up in the system you will not have an Creditor Invoice to create the Asset Value

Asset Depreciation Fields

First setup on the Asset - all the fields required for Depreciation