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Fixed Assets Product Guide |
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Fixed Assets Product Guide |
| 2.1. Purchase Methods | ||
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 | 2. Purchasing Fixed Assets |  |
There are two mechanisms for purchasing assets:
To purchase an asset directly from a bank account, select the bank purchase method and the appropriate bank account. You can also enter the vendor if you desire. The bank method will post a ledger series which will include:
Debit – fixed asset account
Debit – tax account (if appropriate)
Credit – bank account
To purchase an asset via accounts payable, use the vendor purchase method. This creates a voucher and posts to accounts payable. Enter the vendor you purchased from and their invoice number. The vendor method creates a payables voucher and the following ledger entries:
Debit – fixed asset account
Debit – tax account (if appropriate)
Credit – creditors control account
Once you have purchased the asset, the new asset window will automatically open and many details of the asset will be pre-populated. At this stage you can add any additional information about the asset, including updating the default Purchased status.
Remember to enter the install date of the asset in order to begin depreciating the asset.
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| 2. Purchasing Fixed Assets |  | 3. Initializing Book Value |