Physical Inventory of Fixed Assets

This process is used to create the documentation needed to inventory fixed assets and to update the inventoried assets.

A physical inventory is conducted and the results are reported after using this process.

Before you start

  • A physical inventory number series must be defined in 'Settings - Physical Inventory' (FAS935).
  • Fixed assets must be defined and assigned status 1='Normal FA', 5='Preliminary – recorded from accounts payable', or 8='Fully depreciated fixed asset' in 'Fixed Asset. Open' (FAS001).

Follow these steps

  1. Open 'Fixed Asset. Perform Physical Inventory' (FAS150) and select the New option to access 'Physical Inventory. Open' (FAS150).

  2. Define what inventory to include on a printed list by using this selection criteria:

    • Location 1
    • Location 2
    • Location 3
    • Accounting identity 2
    • Accounting identity 3
    • Accounting identity 4
    • Optionally, enter a 'From' date to specify from which date the registered inventory data is valid.
  3. Perform physical inventory by counting off the assets on the printed list. If any asset is missing or other information on the list is incorrect, enter remarks on the list.

  4. Report physical inventory:

    1. After completing the inventory, open (FAS150) to change any information about a fixed asset.

    2. Select the Open option for the inventory.

    3. Enter a change if the fixed asset was inventoried at a different location than the current entry shows, or if the quantity of the asset was incorrect. Optionally, enter a remark for each asset.

  5. To update physical inventory after all the fixed assets have been inventoried and reported, open (FAS150) and use option 9='Update'.

    As a result, the fixed asset file is updated. If any changes were made for an asset during the inventory, the record is updated to reflect the changes. Information about last physical inventory, physical inventory number and possible remarks is also updated for each asset included in the inventory. As a final step, a journal is printed.