Fixed Assets Steps

Fixed assets are items a company owns that could not be easily sold (in contrast to liquid assets). Because fixed assets are long-term investments, special accounting rules and some governmental regulations allow you to treat expenses for fixed assets differently. Therefore, you can use calculations for depreciation or, in other words, measures of the amount of value used up within specific accounting periods.

Use these steps to maintain fixed assets in CloudSuite Business.

  1. Configure the application for fixed assets:
    1. Create General Ledger accounts that will be used for the costs associated with the fixed assets.

      See Creating Fixed Assets General Ledger Accounts.

    2. Create class codes on the Fixed Asset Class Codes form.
    3. Set up depreciation schedules on the Fixed Asset Parameters form.
      You can have up to four different ways of depreciating an asset, one for each of the defined schedules.
    4. Create depreciation tables on the Fixed Asset Depreciation Tables form.
    5. Create bonus depreciation codes on the Bonus Depreciation Codes form.
  2. As you acquire new assets, add them in the Fixed Assets form.

    See Adding a Fixed Asset.

  3. Post depreciation.

    See Posting Depreciation to the General Ledger.

  4. Optionally, you can transfer assets using the Fixed Asset Transfer form.
    Use this form to transfer an asset from one class code or department to another. You can transfer only active assets. A Fixed Asset Distribution journal entry is generated to reclassify the asset on the balance sheet. Future depreciation entries are charged to the expense account associated with the new class code.

    If you change any of the related cost or depreciation records, you must delete and re-add the Transfer record so the correct amounts are written to the FA Distribution journal.

    To post fixed asset transfer transactions, use the Fixed Asset Transfer Posting form.

  5. Optionally, you can dispose of an asset using the Fixed Asset Disposal form.
    Use this form to record that an asset has been sold or otherwise disposed. Only assets with a status of Active are disposed. After you enter the disposal transaction, distributions are generated for the asset account and the Accumulated Depreciation account. After disposing of the asset, the system adjusts the Gain and Loss account (from the Fixed Asset Parameters form) in the General Ledger.

    To post the asset disposal, select Actions > Disposal Posting.

  6. At year end, use the Fixed Asset Year End Procedure form to set to zero the YTD Depreciation field for each fixed asset record that falls within the selected range of assets.
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