Fixed Asset Adjustment Transactions

Generally, transactions related to fixed asset maintenance (such as the acquisition or depreciation of assets) are created in the system automatically right after you create or depreciate an asset. You can review the list of transactions related to a particular asset on the Transactions tab of the Fixed Assets (FA303000) form.

Nevertheless, sometimes you may need to change fixed asset amounts posted in the system, such as the amount of the depreciation of the selected fixed asset in a particular period (for example, when you need to allocate the depreciation expenses between the financial periods), or the depreciable basis for the asset (when the cost of an asset has been changed, usually decreased, since you acquired it).

In these cases, you can create an adjusting transaction manually by using the Fixed Asset Transactions (FA301000) form. An amount of your transaction that you create on this form will update a required amount (depending on the transaction type that you have specified).

When you create a new transaction, you need to select an asset, the book that will be affected, and the type of transaction being created, and you should specify the transaction amount.

You can manually create the following types of adjusting transactions:

• Purchasing+

  Through this transaction, the depreciable basis of the fixed asset specified in the transaction will be updated, so that since the period of this transaction, the depreciation will be calculated according to the recalculated depreciable basis.

  This transaction can be illustrated as follows (if the default accounts are selected).

  Account	Debit	Credit
  Fixed Assets Account	Amount	0.0
  FA Accrual Account	0.0	Amount

  As a result of this transaction, the system updates the current cost of the fixed asset (the Current Cost box on the Balance tab of the Fixed Assets form) and the depreciable basis (the Basis box on the Balance tab of the Fixed Assets form) to calculate the depreciation expenses of the selected asset.

  Note: The changes will affect the selected book only.
• Depreciation+

  Through this transaction, the depreciation amount calculated in a particular period for the fixed asset specified in this transaction will be updated. This transaction can be illustrated as follows.

  Account	Debit	Credit
  Depreciation Expense Account	Amount	0.0
  Accumulated Depreciation Account	0.0	Amount

The system updates the amount in the corresponding box of the table (the Depreciated box on the Depreciation tab on the Fixed Assets form) immediately after you have released the Depreciation+ transaction.

This adjusting transaction will affect the selected book only.