On this tab, you can select the fixed asset associated with the inventory item items specified on the Inventory tab. For each fixed asset, you can specify the accounting parameters for this fixed asset's depreciation.
Note. To link the inventory items listed on the Inventory tab with specific fixed asset, you must create a master record for this fixed asset first. If
Note. If you purchased or created multiple identical units of the item which will be used as fixed assets, you must create a unique name and assign a unique ID to each unit of this item, that is, you must create a separate fixed asset master record for each unit.
Once the document is posted, the fixed asset is considered accepted for accounting, and by default its status changes to Active.
The "Fixed Asset Entry (create)" form. The Fixed Asset tab
Click Add on the toolbar to append a line to the document.
In the Fixed Asset field, select or create on the fly a fixed asset to be associated with the inventory items listed on the Main tab Inventory tab.
In the Class field, select the appropriate class of non-current assets for the fixed asset.
The Initial Cost field is automatically populated with the initial cost of the fixed asset calculated based on the costs of the items listed on the Inventory tab.
Use the Salvage Value field to enter the estimated book value of this asset at which depreciation will stop. The salvage value can be used as a base for sale price at the end of its useful life.
The Depreciable Cost field is automatically populated with the amount that is equal to difference between the Initial Cost and Salvage Value.
In the Depreciation Methodmethod field, you can select one of the following depreciation methods available:
- Straight Line: To calculate depreciation in equal monthly amounts during the fixed asset useful life.
- Units of Production: To calculate depreciation amounts proportionally to actual usage of the fixed asset.
Use the Useful Life (Months) field for entering to enter the number of months the fixed asset is being planned to be used.
In the UOM field, select the unit of measure for usage.
The The UOM and Estimated Production Volume field is fields are used only for assets for which the Units of Production is selected as the depreciation method. You can enter the maximum usage in the specified UOMs required for full depreciation of the asset.
In the Depreciation Method field, you can select one of the following depreciation methods available:
- Straight Line: To calculate depreciation in equal monthly amounts during the fixed asset useful life.
- Units of Production: To calculate depreciation amounts proportionally to actual usage of the fixed asset.
Use the Useful Life (Months) field for entering the number of months the fixed asset is being planned to be used.
A check box selected in the Depreciate field indicates that for this asset the system will calculate depreciation in accordance with the selected method until the asset will be disposed of or fully depreciated. By default, the depreciation starts in the month next to the date of the document.
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In the Expense Item field, you can select an expense item associated with this fixed asset depreciation costs.
The Expense GL Account field shows the default GL expense account selected for transactions with the fixed asset. If needed, you can assign another GL account from the Expenses section of COA.
Use the Business Activity field to select the business activity with which this fixed asset is associated.
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