Fixed Assets Process

The process follows an asset from its purchase to its disposal and includes the yearly close. Specific steps and procedures vary from company to company. Use this example as a guideline only:

Master and depreciation information

Enter the master information for the newly acquired asset and verify the default depreciation information.

Voucher entry

Enter an accounts payable voucher for the asset.

Post vouchers to the G/L and fixed assets

Post the batch that contains the voucher for the asset.

Compute depreciation

Compute depreciation in preliminary mode to review journal entries that will be posted to fixed assets and the GL when you compute depreciation in final mode.

Transfer assets

Transfer assets in preliminary mode to review journal entries that will be posted to fixed assets and the GL when you transfer assets in final mode.

Asset split

Create and post journal entries automatically through the split program to the GL and then to fixed assets.

Asset disposal

Dispose of assets in preliminary mode to review journal entries that will be posted to GL and fixed assets when you dispose of assets in final mode.

Annual assets balances close

Close asset balances on a yearly basis after you run the final depreciation. The close program creates the balance records for the next year with cumulative and net balance forward amounts. The close program also carries forward depreciation information.