Types of Fixed Asset Transactions

The system adds records for every transaction. You can easily check the history of the asset by checking the transaction history. All the transactions in the Fixed Assets module are recorded in the base currency.

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
FA Accrual Account	0.0	Amount

The Purchasing + transaction is generated by the system, once an asset is created in the system either manually on the Fixed Assets (FA303000) form, or by converting a purchase to an asset on the Convert Purchases to Assets (FA504500) form. The system uses the date (and its financial period) of the asset purchase document (specified in the Receipt Date box) 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 FA 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. The accounting transactions can be illustrated as follows.


Account	Debit	Credit
FA 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 FA Accrual Account box on the GL Accounts tab of the Fixed Assets (FA303000) form.	Amount	0.0
Account An account that has been specified in the document (such as an AP bill) —that is the account that has been debited by purchasing of the item. Note: Often, the default fixed asset accrual account (specified in the FA Accrual Account box on the Fixed Assets Preferences (FA101000) form) is used in a document (for example, in the AP bill) because the item that is supposed to be a fixed asset has been purchased. In that case, the same account will be debited and credited by the Reconciliation+ or Reconciliation- transaction.	0.0	Amount

Note: The Reconciliation + transactions are generated automatically when you convert purchases to assets, increase the asset net book value, or enter assets in the initialization 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. The accounting transactions can be illustrated as follows.


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. The accounting transactions can be illustrated as follows.


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. The accounting transactions can be illustrated as follows.


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. For details, see Asset Disposals.

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.