Fixed Asset 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.

To set up fixed assets for Service Management, perform the following procedure. You must perform these steps before performing any routine procedures.

  1. Create general ledger accounts.
  2. Create class codes.
  3. Create depreciation tables.
  4. Create bonus depreciation tables.
  5. Create fixed assets file.
    • Create a fixed asset record.
    • Create fixed asset costs.
    • Generate a depreciation schedule.
  6. Post depreciation.
  7. Transfer assets.
  8. Dispose of assets.
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