If fixed assets were acquired before adopting the SimplBooks software, you need to create fixed asset cards under Accounting -> Fixed Assets.
● It is important to review the central settings for fixed asset accounting before entering the fixed assets to ensure that the default settings match the rules established for fixed asset accounting in your company. Make changes if necessary: Settings -> Environment Settings -> Fixed Asset Settings
To enter a fixed asset card, go to: Accounting -> Fixed Assets -> New Fixed Asset
1. Purchasing value – actual purchasing value (not including VAT)
2. Purchasing date – actual past date of purchase
3. Depreciation per year – annual percentage of depreciation of asset; on the basis thereof the programme divides depreciation in proportion to the years of usage.
For example: 20% = 5 years; 100% = 1 year; 10% = 10 years.
To change the depreciation period you must adjust the depreciation rate.
4. Name – name of asset
5. Description – necessary additional information concerning the asset
6. Location – a free-text field for adding the location of the fixed asset (e.g., the person responsible), and it can also be used for grouping purposes (e.g., machines and equipment, other fixed assets).
7. Asset account – corresponding financial account
8. Beginning of calculation – the choice is between two options: from the purchase date and from the beginning of the calendar month. The first calculates depreciation from the purchase date and the second from the beginning of the calendar month.
9. Transaction interval – the interval at which the depreciation transactions are automatically calculated: monthly, quarterly or annually; choose the most suitable one.
10. First transaction – the date of the first transaction must be the date of the first depreciation transaction (not the first transaction in SimplBooks).
11. Source Document – reference to the purchase document related to the fixed asset. For previously acquired fixed assets, this field is generally left blank. If the fixed asset is recorded through a purchase invoice, this field is always filled in.
Finally, click on “Save asset”.
If everything is correct, the system will calculate the residual value.
Depending on the price of the fixed asset and the calculation methods of different software, there may be some discrepancies in the residual value. To align the residual value of the fixed asset with previous accounting, adjust the first depreciation entry made by SimplBooks (increase or decrease as necessary).
● Adding a fixed asset card does not create financial entries. The acquisition cost and accumulated depreciation of the fixed asset must be recorded in the initial balances entry on the required accounts.Accounting -> Balance Sheet and Reports -> Fixed Asset Report, check if the amounts in the balance sheet and the fixed asset report match. If you had to adjust the residual value on the fixed asset card (by modifying the first depreciation entry), compare the balance sheet and fixed asset report as of that date. ● The default accounts used for recording fixed assets can be set under Settings -> Automatic Entries -> Fixed Assets.
Does the asset amount add up?
- The correctness of the balance can be checked by selecting Accounting -> Balance and setting the date of the initial balances as the date.
- You can also select Reports -> Assets report and set the same period.
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