Fixed Assets
Fixed assets refer to the asset and property that is owned by the company which cannot take the form of cash easily. Fixed assets include machinery, motor vehicles, computers, buildings etc. Fixed assets are not directly sold to the customer. Generally tangible assets are the fixed assets. Fixed assets are collectively known as Plant.
10Soft Fixed Assets
1
Generally a purchase cycle is followed for the creation of an FA item. However it can also be created directly.
2
Purchase cycle follows a series of options like FA purchase order, FA purchase order quotation, FA purchase invoice, FA purchase return etc.
3
First a requisition is made for FA and FA requisition item file is used to store FA requisition items and it will be used to create purchase quotation, order and invoice.
4
Then comes the pricing, to request the pricing of fixed asset, FA purchase order quotation is prepared. FA purchase order quotation is prepared before the purchase of FA.
5
From FA purchase order quotation, FA purchase order is made. It can also be made directly without purchase order quotation.
6
Now on the purchase of an FA, and FA purchase invoice is prepared. It also can be generated from purchase quotation and order or directly without them.
7
FA purchase return can be generated from FA purchase invoice or directly without it. It is the same as FA disposal voucher.
8
To maintain the details of fixed asset group like its code, name and description is equally important. For that FA group file plays the role.
10Soft Fixed Assets
9
To store and maintain the company fixed asset, Fixed asset file comes into account. It contains details like asset code, name, department, asset's account and asset amount. Only after creation of FA in this file, user can process FA activities like depreciation, calculations, etc.
10
To start calculating depreciation for an asset, Fixed asset property voucher is helpful. We get the properties from this voucher like its useful life, depreciation date, etc and on the basis of it the depreciation is calculated.
11
When it comes to disposal, the Fixed asset disposal voucher is issued and it contains all the disposal details of the sheet.
12
On the basis of FA file and FA properties documents, depreciation documents can be automatically generated by General depreciation document file.
13
Depreciation documents store and manage FA depreciation documents manually. And it also shows the auto generated depreciation document and allows sending for approval.
14
Whenever the company's financial year starts, opening balance is used to store and manage fixed asset value.
15
Re-evaluate asset value file allows to re-evaluate the asset value and also allows to change asset's life period. It provides functionality to change the asset's current net value and re-evaluate depreciation amount.
