About types of fixed asset transactions
The types of transactions are described in detail below in this topic.
Purchasing +
Through this transaction, the cost of the asset transfers from the fixed asset accrual account (by default) to the fixed assets account, indicating that a new asset has been acquired. The accounting transactions can be illustrated as follows (if the default accounts are selected).
| Account | Debit | Credit |
|---|---|---|
| Fixed assets account | Amount | 0.0 |
| Fixed assets accrual account | 0.0 | Amount |
The Purchasing + transaction is generated by the system, once an asset is created in the system either manually in the Fixed assets (FA303000) window, or by converting a purchase to an asset in the Convert purchases to assets (FA504500) window.
The system uses the date (and its financial period) of the asset purchase document (specified in the Receipt date field) as the date and period of the Purchasing + transaction.
Purchasing –
Through this transaction, the cost of the asset transfers from the fixed assets account to the account specified in the acquisition document (by default, the fixed assets accrual account) when you reverse the asset acquisition. The accounting transactions can be illustrated as follows (if the default accounts are selected).
| Account | Debit | Credit |
|---|---|---|
| FA accrual account | Amount | 0.0 |
| Fixed assets account | 0.0 | Amount |
Reconciliation + and Reconciliation –
Through this transaction, the cost of the fixed asset is reconciled with the appropriate purchasing transaction or transactions.
| Account | Debit | Credit |
|---|---|---|
| Fixed assets accrual account The asset account that is used to record the cost of purchased items that have not been put into service yet. This account is specified for the fixed asset in the Fixed assets accrual account field on the General ledger accounts tab of the Fixed assets (FA303000) window. | Amount | 0.0 |
| Account An account that has been specified in the document (such as an supplier ledger invoice) or the account that has been debited by purchasing of the item. | 0.0 | Amount |
The Reconciliation + transactions are generated automatically when you convert purchases to assets, increase the asset net book value, or enter assets in the initialisation mode. The Reconciliation – transactions are generated automatically when you decrease the net book value of an asset.
Depreciation +
This transaction type is used to record the depreciation incurred during the financial period.
| Account | Debit | Credit |
|---|---|---|
| Depreciation expense account | Amount | 0.0 |
| Accumulated depreciation account | 0.0 | Amount |
Depreciation –
This transaction type indicates that the accumulated depreciation amount was decreased on the accumulated depreciation account, for example, as a result of the disposal reverse of the asset.
| Account | Debit | Credit |
|---|---|---|
| Accumulated depreciation account | Amount | 0.0 |
| Depreciation expense account | 0.0 | Amount |
Depreciation adjusting + and Depreciation adjusting –
Transactions of this type are generated when the system updates the balance of the accumulated depreciation account.
For example: When the asset is split, this transaction displays the amount of depreciation that was added to the new asset.
| Account | Debit | Credit |
|---|---|---|
| Accumulated depreciation account | Amount | 0.0 |
| Accumulated depreciation account | 0.0 | Amount |
Calculated +
This system-generated transaction occurs automatically when you calculate depreciation for an asset. When the transaction is released, it transforms to a Depreciation + transaction.
Calculated –
This system-generated transaction occurs automatically when you reverse depreciation for an asset. When the transaction is released, it transforms to a Depreciation – transaction.
Purchasing disposal and sale/dispose +
Through these transactions, the system records the proceeds from the sale or disposal of the asset.
Purchase reversal and sale/dispose –
These transactions are generated by the system when you reverse the disposal of the asset.
Transfer purchasing
This transaction type indicates that a newly acquired asset that has not yet been depreciated has changed its location, custodian, or department. This system-generated transaction allows for using the other subaccount for the asset.
Transfer depreciation
This transaction type indicates that the asset that has been depreciated has changed its location, custodian, or department. This system-generated transaction allows for using the other subaccount for the asset.