Convert purchases to assets (FA504500)
By using this window, you can convert purchased items to fixed assets or define the items as components of a specific fixed asset in the system. If a transaction includes multiple units of a purchased item, you can convert fewer units into fixed assets than this quantity. For more information about how to convert purchased items to fixed assets, see: About fixed asset entry
To prepare for the conversion of purchases to fixed assets, when you create the invoices for purchases based on requisitions, you should use the fixed asset accrual accounts and subaccounts that are specified in the Fixed assets preferences (FA101000) window.
The window toolbar
| Button | Description |
|---|---|
| Process | Based on your selections in this window, processes the lines you have selected in the lower table and creates new fixed assets or new components of the specified assets. |
| Process all | Based on your selections in this window, processes all the lines in the lower table and creates new fixed assets or new components of the specified assets. |
The top part
Select the details, such as the accrual account used for fixed assets and the appropriate subaccount to display the purchase transactions in the upper table.
If you need to assign certain selected items to different branches, custodians, or departments, you can specify these details for each item in the respective row of the upper table. You can also specify different branches, custodians, or departments for each unit of the item in the lower table.
| Element | Description |
|---|---|
| Account | The asset account of the purchase transactions that should be converted into fixed assets. By default, this account is the fixed asset accrual account specified in the Fixed assets preferences (FA101000) window. |
| Subaccount | The subaccount of the purchase transactions. By default, this subaccount is the fixed asset accrual subaccount specified in the Fixed assets preferences (FA101000) window. |
| Show transactions marked as reconciled | A check box that you select to view transactions marked as Reconciled. |
| Branch | The branch of the organisation to which the new fixed assets will be assigned. |
| Custodian | The person who will be responsible for the new fixed assets. |
| Department | The department to which the new fixed assets will belong. |
The upper table
This table displays the transactions from purchase receipts. If you select a transaction in this table, you can specify the conversion details in the lower table.
| Column | Description |
|---|---|
| Selected | An unlabelled check box that you can select to include the purchase if you click Process. Leave the check box clear for the purchases you don’t want to convert. |
| Asset class | The asset class to which the new fixed assets will be assigned by default. If multiple assets should be created and assigned to different classes, you can enter these details in the lower table. |
| Reconciled | A check box that indicates (if selected) that the transaction was reconciled. |
| Branch | The branch of the organisation where the selected quantity of the item will be placed if the transaction is processed. |
| Custodian | The person who will be responsible for the selected quantity of the item when the item is converted into fixed assets. |
| Department | The department to which the selected quantity of the item will belong after its conversion into fixed assets. |
| Transaction branch | The branch whose balance is updated by the conversion transaction. |
| Item ID | The item ID of the item to be converted into fixed assets. |
| UoM | The unit of measure used for this stock item. |
| Selected quantity | The quantity of the stock item that will be converted to new fixed assets. This value is automatically updated as you specify details for this stock item in the lower table. |
| Selected amount | The total cost of the selected quantity of the stock item. This amount is equal to the selected quantity multiplied by the unit cost. |
| Open quantity | The difference between the quantity specified in the transaction and the selected quantity. |
| Open amount | The total cost of the open quantity of the stock item, which is calculated as the difference between the original amount and the sum of the amounts specified in the lower table. |
| Orig. quantity | The original quantity, which is the number of units of the purchased item. |
| Unit cost | The cost per unit, according to the invoice. |
| Orig. amount | The total cost of the item, according to the transaction. This amount is calculated as the unit cost multiplied by the original quantity. |
| Transaction date | The date of the transaction. |
| Module | The two-letter identifier of the workspace that is the origin of the transaction. |
| Batch number | The identifier of the batch generated for the transaction. |
| Ref. no. | The external or internal reference number associated with the transaction. |
| Customer/supplier | The customer or supplier that is associated with the transaction. |
| Transaction description | The description of the transaction. |
The lower table
This table provides a list of units of the item selected for conversion in the upper table.
In this table, you can assign new assets (converted from units of the item selected in the upper table) to classes, associate new assets with their parent assets, and specify the department, location, and custodian for the converted assets.
| Column | Description |
|---|---|
| New asset | A check box that indicates (if selected) that the selected unit of the stock item will be a new asset. This asset will have no parent asset if the Component check box is cleared. If the Component check box is selected, select a parent asset. Clear the New asset check box if the selected unit of the stock item will be another unit of an existing fixed asset, which you specify in the Asset column. |
| Component | A check box that you select to indicate that this unit of the stock item will be a component of the asset specified in the Asset column. |
| Asset class | The class with which the new asset is associated. |
| Asset ID | The unique identifier for the new fixed asset, which can be assigned automatically or manually. |
| Quantity | The quantity of the new fixed asset. |
| Asset | A value that has different meanings depending on whether the New asset and Component check boxes are selected:
|
| Branch | The branch of the organisation to which the selected quantity of the item will be assigned. |
| Custodian | The person who will be responsible for the selected unit of the item when it is converted into a fixed asset. |
| Department | The department to which the selected unit of the item will belong. |
| Transaction type | The type of the transaction. The following option is available: Purchasing +. With this transaction, the asset cost asset is transferred from the fixed asset accrual account that is specified in the Fixed assets preferences (FA101000) window to the default fixed asset account specified for the asset class. |
| Receipt date | The date of the purchase receipt document. |
| Date placed in service | The date when an asset will be placed in use and from which this asset will be depreciated. |
| Tran. date | The date of the Purchasing + transaction. For more information, see: About types of fixed asset transactions By default, the date of the purchase document is used (the date that is specified in the Receipt date field). |
| Tran. period | The financial period to which the purchasing transaction should be posted. The period of the transaction date is used. |
| Transaction amount | The amount of the transaction or the cost of the asset. |
| Transaction description | The description of the asset. |
Related pages
Concepts
- Convert purchased items to components of a fixed asset
- About fixed asset entry
- About depreciation of fixed assets