Initial Exercises—Fixed Assets Accounting

Initial Exercises

Purpose: The purpose of these initial exercises is for the instructor to demonstrate a couple of basic functions in fixed assets accounting, which include:

• Enter object

• Sell object

Enter Object

Purpose: The purpose of this exercise is to show you how to enter new objects in IFS/Fixed Assets. 

Windows:
Object

1. Open the Object window.
2. Create a new record, and enter the object and description for a machine.
3. Enter the information in the table below:

4. Save your changes.

Note: The object's acquisition account is set as the default in the window when the object group is entered. This is the account that will be used when purchasing the asset. Other default values from the object group are displayed on the Books tab. This information can be modified for each object or object group level. The status for the object is automatically set to Registered.

5. Click the Pre-Posting tab, and use the List of Values to select the cost center to which the object is to be posted.
6. Save your changes.

Sell Object

Purpose: The purpose of this exercise is to show you how to handle the accounting for the sale of an object. This event takes place when a fixed asset is sold and compensation is received. This removes the object's listing in IFS/Fixed Assets and the posting of the event.

Windows:
Posting Control
Object
Object Transactions Analysis
Vouchers Analysis
Posting Control

1. Open the Posting Control window.
2. Check Posting Types FAP7 to FAP10.
3. Check If the Post Profit/Loss from Sales check box is selected for one or several books for posting types FAP35 - FAP38. 
4. If you use Net Cost as the Disposal Posting Method for the book, then check posting type FAP25.

Note: FAP10 is the interim account for the revenue received, the same account, as for FAP10, should be used for the customer invoice. 

Windows:
Object

1. Open the Object window, and query for your machine.   
2. Click on Right Mouse Button and “Sell Object”
3. Enter Amount (Selling price) and check Sales Date and Voucher Date.
4. Select a disposal reason from the List of Values.
5. Save. A message will be displayed whether to check the selected object(s) in respect to depreciation.
6. Click Yes, if the object is to be depreciated until the period defined in the Disposal Principle field of the depreciation methods connected to the object.
7. No, if the object is not to be depreciated until period defined in the Disposal Principle field of the depreciation methods connected to the object.

Note: A voucher is created and transferred to the hold table in Accounting Rules. The object status is automatically changed to Sold. The sales date of the object is shown in the Disposal Date field.

Queries

Windows:
Object Transactions Analysis

Find information on the object that is sold.

Windows:
Vouchers Analysis

Find information on the voucher in the hold table.

Note: Depreciation for the selected objects should be checked if the object is to be depreciated until the sales date period defined in the Disposal Principle field of the depreciation methods connected to the object, otherwise it is not.