Determine fixed asset values

Use the Determine fixed asset values wizard to define the starting and end values of a fixed asset. You can choose the values you want to calculate.

You can select any of the following:

Acquisition cost: In the wizard, select the journal lines relating to the purchase of the asset and any corresponding costs. The acquisition cost is calculated based on the journal lines.
Acquisition and depreciation values: In the wizard, select the journal lines relating to the purchase of the asset and any corresponding costs, as well as the depreciation costs in previous financial years. The values are calculated based on the journal lines.
Decommissioning: The amount to be depreciated is debited at once. When the remaining depreciation amount is posted, a journal entry called Depreciation costs to Accumulated depreciation is created. The date of the posting counts as the decommissioning date of the fixed asset. This date is filled in in the Decommissioning date field.
Example of decommissioning a fixed asset:

	Account	Debit	Credit
Depreciation costs	4695	1750
To Accumulated depreciation	0360		1750

Sale/disposal of fixed assets: If a fixed asset is no longer used and is sold or disposed of, you can use the wizard to record the corresponding proceeds and/or costs. They will be posted to the ledger account 'Profit on sale of fixed asset'. The journal entry that is created is called 'Profit on sale of fixed asset'. Also the journal entry 'Accumulated depreciation' may be created.
Example of sale/disposal of a fixed asset:

The fixed asset MACH1 has the following values:

	Acquisition cost	8000
	Accumulated depreciation	6500
	Book value	1500

An accounting employee of the company sells MACH1 and creates a sales invoice. The invoice line shows the account for the sale of the fixed asset. When the posting is made, the following journal entry is created:

	Account	Debit	Credit
Debtor	1000	2000
To Profit on sale of fixed asset	4696		2000

The accounting employee opens the wizard, selects 'Sale/disposal of fixed assets', and links the journal line containing the account for the sale of the fixed asset to MACH1. Once the employee has completed the wizard, the software creates a general day book page with lines and a journal entry for 'Sale/disposal of fixed assets'. The journal entry will look like this:

	Account	Debit	Credit
Profit on sale of fixed asset	4696	1500
Accumulated depreciation	0360	6500
To Fixed asset	0350		8000

The profit on the sale of the fixed asset (2000 - 1500 = 500) is shown on the 'Profit on sale of fixed asset' account.