Accounting Rules for FA - Fixed Assets

FA10: Depreciation

When applied

Account entries are created when a depreciation run is performed for a depreciation type in 'FA Depreciation. Create Account Entries' (FAS100).

References

See Methods for Depreciating Fixed Assets.

See Transferring to Derogatory Depreciation.

Accounting rules for FA10: Depreciation

Rule D/C Name Description
FA10-500 C Value deduction, depreciation

Represents the balance account that is credited with the depreciation made.

To retrieve the correct accounting string for this balance account, use a dynamic object such as 'Fixed asset type' as the basis for exceptions in (CRS396).

FA10-510 D Depreciation Represents the expense account in the profit and loss statement.
FA10-580   Derogatory reserve

Represents the reserve account that is credited with the derogatory depreciation.

Note:  This and the following accounting rules are only used in the French derogatory depreciation.
FA10-582   Derogatory depreciation Represents the debit record for derogatory depreciation.
FA10-584   Adjustment for derogatory depreciation Represents the credit record for derogatory adjustment. When transferring to derogatory depreciation, the derogatory adjustment is the difference in the total depreciation amount for a fixed asset between the previous depreciation method and the new linear depreciation as a result of the transfer.

FA20: Calculation of Cost of Capital

When applied

Account entries are created when the cost of capital is calculated in 'Cost of Capital. Calculate' (FAS120).

References

See Create Cost of Capital Method for Fixed Assets.

Accounting rules for FA20: Calculation of cost of capital

Rule D/C Name Description
FA20-400 D Cost of capital Represents the expense account for the cost of capital. The account is normally an internal account.
FA20-410 C Offset account for cost of capital Represents the revenue account for the cost of capital. The account is normally an internal account.

FA30: Extraordinary Depreciation

When applied

Account entries are created when an extraordinary depreciation is made in 'FA Depreciation. Create Extraordinary' (FAS140).

References

See Configure Extraordinary Depreciation for Fixed Assets.

See Impairing Fixed Assets in M3 BE.

Accounting rules for FA30: Extraordinary depreciation

Rule D/C Name Description
FA30-520 C Value deduction

Represents the balance account that is credited with the depreciation made.

To retrieve the correct accounting string for this balance account, use a dynamic object such as 'Fixed asset type' as the basis for exceptions in (CRS396).

FA30-530 D Extraordinary depreciation Represents the profit and loss account.

FA40: Disposal of Fixed Assets

When applied

Account entries are created when a fixed asset is discarded (disposed of) in 'Fixed Asset. Dispose' (FAS145).

The net cost for the discarding is the difference between accounting rules FA40-550 and FA40-570. Consequently, these two accounting rules would normally use the same account.

Accounting rules for FA40: Disposal of fixed assets

Rule D/C Name Description
FA40-500 D Value deduction Used as the balance account for accumulated depreciation.
FA40-550 D Purchase of assets Represents the accounting string that offsets the original accounting string used for the acquisition. To retrieve the correct accounting string for this balance account, use a dynamic object such as 'Fixed asset type' as the basis for exceptions in (CRS396).
FA40-570 D Discarding of assets Represents the accounting string that offsets the accumulated depreciation, that is, accounting rule FA40-500. The same account should be used as for accounting rule FA40-550.

FA50: Sales

When applied

Account entries are created when a fixed asset is reported as sold in 'Fixed Asset. Sell' (FAS130).

References

See Draft Management in M3, which provides an example of the account entries created for a fixed asset with several depreciation types.

Accounting rules for FA50: Sales

Rule D/C Name Description
FA50-100 D Accounts receivable The debtor's control account on which the invoice is automatically booked in General Ledger
FA50-111 C VAT payable 1 Used when the 'VAT reported on payment day' check box is left cleared for the VAT code in 'VAT Code. Open' (CRS030).
FA50-112 C VAT payable 2 Used when the 'VAT reported on payment day' check box is left cleared in combination with VAT method 2 or 3 in (CRS030).
FA50-113 C Suspense account for VAT payable 1 Used when the 'VAT reported on payment day' check box is selected in (CRS030).
FA50-114 C Suspense account for VAT payable 2 Used when the 'VAT reported on payment day' is selected in combination with VAT method 2 or 3 in (CRS030).
FA50-120 C Revenue Represents the revenues for sales/invoicing, regardless of the inventory system or exchange rate gain or loss.
FA50-190   Rounding-off Represents the difference between the total of the invoice lines and the invoice total, rounded off based on the rounding-off rule defined in 'Currency. Connect Rounding-off Rules' (CRS053).
FA50-211 D VAT receivable 1 Used when the 'VAT reported on payment day' check box is left cleared in (CRS030). When used to record Canadian sales tax on purchases in 'Supplier Invoice. Record' (APS100) it represents the General Sales Tax (GST) or the Harmonized Sales Tax (HST). For details, see Canadian Sales Tax in M3.
FA50-212 D VAT receivable 2 Used when the 'VAT reported on payment day' check box is selected in combination with VAT method 2 or 3 in (CRS030). When used to record Canadian sales tax on purchases in (APS100) it represents the Provincial Sales Tax (PST) or Quebec Sales Tax (QST). If the PST is self-assessed by the company, an offsetting PST credit transaction is created based on accounting rule AP10-217.
FA50-213 D Suspense account for VAT receivable 1 Used when the 'VAT reported on payment day' check box is selected in (CRS030).
FA50-214 D Suspense account for VAT receivable 2 Used when the 'VAT reported on payment day' check box is selected in combination with VAT method 2 or 3 in (CRS030).
FA50-280   Rounding off  
FA50-500 D Value of deducted depreciation Represents the accumulated depreciation. To retrieve the correct accounting string for this balance account, use a dynamic object such as 'Fixed asset type' as the basis for exceptions in (CRS396).
FA50-540 C Gain at sales of asset Represents the financial gain calculated per depreciation type connected to the asset. The value is the result of the following formula: sales price minus the acquisition cost retrieved from the value type on the depreciation type, provided that the value type is not the same as is selected in 'Settings - Fixed Asset Acquisition' (FAS900), minus the accumulated depreciation.
FA50-545 D Loss at sales of asset As FA50-540 but representing the financial loss instead.
FA50-560 D Offset account, debit Represents the offsetting debit account entry.
FA50-565 C Offset account, credit As FA50-560 but used for the credit transaction instead.

FA70: Movements

When applied

Account entries are created when financially moving a fixed asset by changing the values in any of the following fields in 'Fixed Asset. Open' (FAS001): Fixed asset type, fixed asset group, free fields 1–7, accounting dimensions 1–7.

Accounting rules for FA70: Movements

Rule D/C Name Description
FA70-500   Value deduction Represents the accumulated depreciation. To retrieve the correct accounting string for this balance account, use a dynamic object such as 'Fixed asset type' as the basis for exceptions in (CRS396).
FA70-520   Extraordinary value deduction Represents the extraordinary depreciation.
FA70-550   Purchase of assets Represents the acquisition cost.

FA80: Budget

When applied

Account entries are created when depreciation is transferred to a financial budget in 'FA Depreciation. Transfer to Budget' (FAS170), thus updating the budget with the budgeted depreciation.

Accounting rules for FA80: Budget

Rule D/C Name Description
FA80-400   Cost of capital  
FA80-500   Value deduction Represents the budgeted depreciation. To retrieve the correct accounting string for this balance account, use a dynamic object such as 'Fixed asset type' as the basis for exceptions in (CRS396).
FA80-510   Depreciation Represents the extraordinary depreciation.

FA90: Revaluation

When applied

Account entries are created when a fixed asset is revaluated at fair value in 'FA Depreciation. Revaluate' (FAS110).

References

See Revaluation of Fixed Assets in M3 According to IAS 16.

Accounting rules for FA90: Revaluation

Rule D/C Name Description
FA90-500   Value deduction depreciation Represents the amount with which the recorded acquisition value of an asset has been increased or decreased as a result of the revaluation. Use the depreciation type as accounting control object to record depreciation, sales and scrap on separate accounts for the revaluation depreciation type at derogatory depreciation.
FA90-550   Purchase of assets Represents the amount with which the recorded accumulated depreciation has been increased or decreased. Use the depreciation type as accounting control object to record depreciation, sales and scrap on separate accounts for the revaluation depreciation type at derogatory depreciation.
FA90-590   FA revaluation Represents the account entry offsetting FA90-500 and FA90-550. Use the depreciation type as accounting control object to record depreciation, sales and scrap on separate accounts for the revaluation depreciation type at derogatory depreciation.
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