General functionality

This topic provides a general description of the functionality in the Fixed Asset Register.

Depreciation

A fixed asset can be depreciated straight-line or percentage-based, or alternatively, it may not be depreciated at all. Depreciation type and depreciation rate can be changed during the asset’s useful life.

• A lower limit can be set for depreciation, and the book value will not be depreciated below this amount.
• For percentage-based depreciation, an amount for residual value depreciation can be set, which depreciates the entire residual value when the book value reaches this level.
• It is possible to specify the rounding of the book value after the period’s depreciation, with options for rounding to 1, 10, 100, or 1000 NOK, or no rounding. The choice is specified on the individual fixed asset, but it will be suggested for the next fixed asset.

Impairments

• Accumulated depreciation and accumulated impairments are calculated separately.
• Reversal of previously recorded impairments is limited to previously recorded impairments.

Events and Transactions

The fixed asset is based on Events. All events on a fixed asset are registered with event type and date.

Key Information

• The fixed asset has a set of fixed information at the top of the registration screen (e.g., ID, name, account, and tax relation).
• The amounts on a fixed asset are transaction-based.
• The fixed asset has depreciation and book value calculated for its entire lifespan until it is fully written down. There are different transactions that modify the fixed asset from the date the transaction is registered.

Transactions

All events are the source of transactions on a fixed asset.

• Transactions arise from acquisition, depreciation and impairment, disposal, and opening balances (for fixed assets first registered from previous periods or merged fixed assets).
• The transactions to be included in the posting voucher show the account debit/credit and the posting amount.
• The exception is the Depreciation transaction, which represents calculated monthly depreciations (as a result of single events or the sum of multiple events).
• All transactions are calculated for the remaining part of the asset’s lifespan and will not be automatically recalculated.

History and Budget

History: The Fixed Asset Register retains all events and transactions. By selecting a previous period, you can extract reports or generate views based on transactions relevant to the selected period.

Budget: It is possible to extract reports for future periods for existing fixed assets, for example, to use calculated depreciation in budgets.

Relevant Accounts

The following accounts are relevant for a fixed asset and can be selected for the individual fixed asset:

• Balance Account
• Balance Account for accumulated depreciation (if selected under settings)
• Depreciation Account in the income statement

The following accounts in the income statement are used based on the reference account in the chart of accounts: