Fixed Asset Creation: Generated Transactions
As you enter fixed assets, the system creates and processes fixed asset transactions. To update the GL balances, the system generates the general ledger transactions described in the following sections.
Transaction Generated for Fixed Asset Acquisition
When you create a fixed asset (whether or not it is under construction) and release the acquisition transaction, the system generates the following general ledger transaction.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Fixed Asset account | The Fixed Asset Account box on the GL Accounts tab of the Fixed Asset Classes (FA201000) form for the asset class | Asset cost | 0.00 |
| FA Accrual account | The FA Accrual Account on the Fixed Assets Preferences (FA101000) form | 0.00 | Asset cost |
You can view the reference number of the GL batch in the Batch Nbr. column on the Fixed Asset Transactions (FA301000) form. The reference number is also a link that you can click to view the GL batch on the Journal Transactions (GL301000) form.
Transaction Generated for Fixed Asset Reconciliation
When you reconcile a fixed asset to two GL transactions and release the reconciliation transaction, the system generates the following general ledger transaction.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| FA Accrual account | The FA Accrual Account on the Fixed Assets Preferences (FA101000) form | Cost of asset 1 | 0.00 |
| FA Accrual account | The FA Accrual Account on the Fixed Assets Preferences form | 0.00 | Cost of asset 1 |
| FA Accrual account | The FA Accrual Account on the Fixed Assets Preferences form | Cost of asset 2 | 0.00 |
| FA Accrual account | The FA Accrual Account on the Fixed Assets Preferences form | 0.00 | Cost of asset 2 |
You can view the reference number of the GL batch in the Batch Nbr. column on the Fixed Asset Transactions (FA301000) form. The reference number is also a link that you can click to view the GL batch on the Journal Transactions (GL301000) form.
Transaction Generated for Reconciliation of a Fixed Asset Under Construction
When you reconcile a fixed asset under construction with a GL transaction and release the reconciliation transaction, the system generates the following general ledger transaction.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| FA Accrual account | The FA Accrual Account on the Fixed Assets Preferences (FA101000) form | Asset cost | 0.00 |
| FA Accrual account | The FA Accrual Account on the Fixed Assets Preferences form | 0.00 | Asset cost |