Adding to or Selling Fixed Assets from your Fixed Assets register.
Add Purchase Transactions to an Existing Asset
Overview
After your Fixed Asset Types have been set up, you can add the Fixed Assets.
Each Fixed Asset must belong to one Fixed Asset Type.
To read the Overview about Fixed Assets, refer to the Fixed Assets: Overview.
To read about setting up the Fixed Asset Manager, refer to Fixed Asset Manager.
Add a Fixed Asset
To add a new Fixed asset:
- Start at Fixed Assets > Fixed assets and click New Fixed asset.
In the Create Fixed Asset screen:
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- Description: Enter the Description of the new asset.
- Branch: Enter the Branch that this asset belongs to, or select from the dropdown list.
- Fixed Asset Type: Select the Fixed asset type from the dropdown list.
- Date: Enter the Date of purchase.
- Quantity: Enter the number of items, e.g. for 1 excavator, enter 1, or for a collection of 10 office chairs, enter 10.
- Unit Price (excluding GST): Enter the price excluding GST/Tax, e.g. for the 10 office chairs, enter the price per chair.
- Click Save.
Fixed Asset Details
This takes you on to the Details screen where you can add any further information, e.g. the location and Branch for the asset.
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In the Associations section, assign the following fields:
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Asset Type: This governs the depreciation rate to be used.
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Branch: Enter the Branch for this Asset.
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Department: Enter the Department for this Asset.
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Click Audit log to view the history of transactions and alterations.
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Click Save and Close to save your details.
Fixed Asset Identification
On the Fixed asset Identification screen, you can record further information for identification, registration, serial number, warranty, insurance, etc for the new asset.
- Enter any details required.
- Click Save and Close.
Fixed Asset Transactions
In the Fixed assets transactions screen for the particular Asset, you can record details of additional purchases, or sale details for this asset.
To add an additional purchase to this Fixed asset:
- Click Add purchase transaction. See below for details.
To sell part or all of this Fixed asset:
- Click Add sale transaction. See below for details.
Add Purchase Transactions to an existing Asset
Use this function when you are adding to an existing Fixed Asset.
You may wish to add a Purchase transaction to an existing asset when you have a number of items recorded as one Fixed Asset, and you are adding more items, e.g. you have an Asset called Office chairs, with 10 chairs, and you are now adding two more chairs to this asset.
| TIP: When adding a completely new Fixed Asset, use the Fixed Assets > New Fixed Asset function outlined above. |
- Go to Fixed Assets, and select the asset you are adding to. Click to the Transactions tab.
- Enter the date, reference, description, quantity and net price per item.
- Click Add purchase transaction.
- Click Save and Close.
Add Sale Transactions
Use this function when selling or disposing of a Fixed Asset, or part of a Fixed Asset, e.g. 3 of the 12 office chairs.
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TIP: When the sale transaction is added, the system will calculate the loss or gain on sale and the depreciation recovered, if any, and post these amounts to the General ledger accounts that are set in the Fixed Asset Manager. |
Selling a complete asset:
- Go to Fixed Assets and select the item you are selling. Click the Transactions tab.
- Enter the Date, Reference and Description.
- Enter the Quantity and Unit price (i.e. sale price).
- You may leave the fields for Original purchase amount, Depreciation provision realisation and This year depreciation blank, as the system will calculate these values for the single item.
- Click Add Sale transaction.
- Click Save and close.
Selling part of an asset
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IMPORTANT! When selling part of a Fixed Asset, ensure that you enter the figures relating to the part of the asset that is be disposed of. For example, if you sell 2 of your 5 shelf units for $5 each, enter the Quantity 2, and Unit price of 5. |
| WARNING NOTE: If you leave these fields blank when selling part of an asset, e.g. 2 of 5 shelf units, the system will assume that you are selling the entire collection of items in this asset and will unwind the total values for depreciation, depreciation recovered, and gain or loss on sale. The remaining value will be nil. |
- Go to Fixed Assets and select the item you are selling part of. Click the Transactions tab.
- Enter the Date, Reference and Description.
- Enter the Quantity and Unit price (i.e. sale price) for this part of the asset being sold or disposed of. e.g. for 2 shelf units being sold for $5 each, enter Quantity of 2 and Unit price of 5.
- Enter the Original purchase amount, Depreciation provision realisation and This year depreciation amounts that relate to the specific part of the asset being sold or disposed of, e.g. two of the total number of shelf units.
- Click Add Sale transaction.
- Click Save and close.
Reverse the Sale of a Fixed Asset
If you've inadvertently processed the wrong asset as sold, or made an error with the figures, you can reverse the transactions in the Transactions list. To do this:
Find the transactions in the Transactions tab of the Fixed Asset and click on the double back arrow.
| NOTE: You must individually reverse each transaction line for the sale, which will include the Purchase Realisation, Depreciation recovered and Loss or Gain on sale. |
Other Functionality
Other functionality in the Fixed Assets module are:
- Post pending transactions.
- Post depreciation.
- Close Fixed Asset Month.
- Fixed Asset Depreciation Schedule.
To read about Other Functionality in the Fixed Assets system, refer to Fixed Assets: Other Functionality.
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