Fixed Assets, a practical example

Please watch this video (spanish)

Fixed Assets Setup

1. Setup Depreciation Method.

Only “Straight Line” is currently developed. Make sure to use “SL” as value in column DepreciationType.

2. Setup Asset Group.

Asset Group is where the default setup for asset is derived. Entry the Asset Group name and tick Owned and Depreciate. Note that there is a Default flag. When you tick it, this Asset Group Accounting information will become Default for all other new Asset Group.

3. Setup Asset Group Acct

This is where you set all parameters related to Depreciation calculation and all those Accounting account configurations.

4. Setup Product Category

Asset Group must be paired with Product Category. Create a product category for each asset group and set the Asset Group value.

5. Setup Product

• Product Category: you must set the appropriate Product Category that has been paired with a certain Asset Group.

• Product Type: you must not use “Item”. Either “Expense” or Resource is recommended.

• Product price list setup: include the product in a price list. Not necessary if creating an asset manually

Asset Addition

Asset Addition may be from:

• Match Invoice (it will be explain below)
• Import Asset
• Project
• Manual way (see below)

Asset Addition from Match Invoice

1. Create and Complete a Purchase Order with product that will be a new asset.
2. Create and Complete a Material Receipt document and its lines using “create lines from”
3. Create an Invoice Vendor and use “Create Lines From” to automatically create Match Invoice.
4. In the Invoice Vendor line You should notice that the “Asset Related?” [now called 'Create Asset'] flag is ticked.
5. Select “Capital” value on field “Capital vs Expense” and you'll see the related Asset Group value on field “Asset Group”.
6. Complete the Vendor Invoice.
7. Enter to Asset addition window, search and complete the new Asset. (When Match Invoice document is completed, a new asset record and a new asset addition record will be automatically generated.)

Asset Addition from manually created asset

1. Create an asset (window asset) entering at least asset group, product (if not found remove price list selection) and manufacturing year
2. Enter to Asset addition window, create a new entry with source type manual, set to capital and lookup your previously created asset.
3. Enter the correct dates an prices and complete it.

Please watch this video (spanish)

The invoice vendor line will only show the link to the asset once the asset addition has been completed.

NF1.0_Fixed_Assets