Fixed Asset
The Fixed Asset module facilitates the comprehensive management of assets throughout their lifecycle.
The lifecycle of an asset typically involves the following stages
1.Purchase: Assets are purchased through various source documents such as Purchase Invoices, Bill Payments, or Journal Entries. Line items associated with these transactions must be posted to designated Fixed Asset ledgers within the Chart of Accounts.
2.Import: After payment, assets are imported into the Fixed Asset module. During this process, additional details such as serial numbers, categories, groupings, and depreciation rates are provided to set up asset tracking and management.
3.Depreciation: Depreciation processes are initiated by administrators at every period interval. The system automatically calculates depreciation values. Upon review, the entries were then posted to the General Ledger (GL).
4.Disposal: Disposal of assets process is fully managed within the system. Assets can be disposed of in various ways, sale with value, or write-offs.
Acquiring Asset
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To import new assets, the system will list any unimported items from the Fixed Asset Ledger in the General Ledger (GL).
1.Navigate Menu: Fixed Asset > Assets > New Create
2.Select the assets to be imported.
3.Set the Category and Quantity Grouping
4.Click Create
5.In Asset Tab, fill in additional info
(can be done later) 6.In Value Tab, set the Depreciation Rate
(e.g 10 or 20) 7.Update and change status to Confirm.
Notes: Quantity Grouping
Assets can be imported as groups of items to facilitate easier management.
For instance, 100 office chairs can be imported as a single entry in the Fixed Asset module. Subsequently, disposal can be managed efficiently by reducing quantities as needed. However, it’s important to note that grouping assets may result in the loss of the ability to track each individual chair by serial numbers.
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Depreciation
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Depreciation is typically conducted prior to each closing interval, with the system automatically calculating the depreciation amount based on the depreciation rate. This process can be performed in batches for easier management.
1.Navigate Menu: Fixed Asset > Depreciation > New Depreciation
2.Set the Schedule to the last day of the financial year
3.Leave filters blank to process all assets
4.Scope to only include Eligible assets
5.Click Create
6.Review the items for depreciation, compare the before and after values
7.Override depreciate value if necessary
8.Click Update and Review GL transactions
9.Change status to Posted
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Disposal
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Assets can be disposed of in various ways, including selling for profit, selling for loss, or writing off at zero value.
1.Navigate Menu: Fixed Asset > Disposal > New Disposal
2.Set Description and choose the Disposal Mode
3.Provide customer details (for Sold Disposal mode)
4.Select Asset, Details, Price and Quantity in the line items section
5.Click Update and Review GL transactions
6.Change Status to Posted
7.If the disposal mode is set to sold, continue the process by Receiving Payment.
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