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.
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| 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 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. | |
| 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 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. |