Fixed Asset Program Manual

New Fixed Assets

Fixed Asset Program Manual Copyright 2013 Rupert Parsons This document is licensed under the Creative Commons Attribution Share Alike License version 3. You may copy, distribute and/or modify it under the conditions stipulated in the copyright licence. Click the link below to view the details of the copyright licence which applies to this publication: http://creativecommons.org/licenses/by-sa/3.0/deed.en

Rupert Parsons 2013

Introduction
This chapter contains the following sections (each section starts on a new page): Step 1: Insert new row & enter details Step 2: Check for errors

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Step 1: Insert new row & enter details

When entering a new fixed asset it is recommended that grouping assets together is avoided as as far practically possible. This makes it easier to track the location of the asset and reduces the possibility of complications due to part disposals. For example if 10 computers were purchased, it might be better to register each computer separately. To register a new fixed asset: Click the button 'Fixed Assets' on the home page. Select the fixed asset category that corresponds to the new fixed asset. Click the button 'New Row'. A new row will appear below the final row. Enter the fixed asset details in the yellow cells:

Note that not all yellow cells in the program need be completed. However, the following yellow cells must have an entry for the fixed asset to be registered: Date Description Cost / Value If depreciation is to be calculated the following cells must also be completed: Year 1 Depreciation Months Year 1 Depreciation Month of Purchase Included (Yes / No)? Depreciation Method Useful Life Depreciation Rate % (only if declining balance method is selected) The following yellow cells have a default entry and you will only need to change these if necessary: Year 1 Depreciation Months Year 1 Depreciation Month of Purchase Included (Yes / No)? Depreciation Method Useful Life Depreciation Rate % (only if declining balance method is selected)
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The default entries in the yellow cells will need to be changed in the following situations: If you charge partial depreciation in year 1 or your accounting period does not equal 12 months, then you will need to change the number of months registered in the ' Year 1 Depreciation Months' column. If you charge partial depreciation in year 1 and you do not count the month of purchase then you will need to select No in the column 'Year 1 Depreciation Month of Purchase Included (Yes / No)?'.

See 'Year 1 Depreciation Charge' below for further details. If you need to apply a depreciation policy to a fixed asset that is different from the depreciation policy applied to the category:

Year 1 Depreciation Charge If you charge full depreciation in the year of purchase: You should not normally have to do anything! The default entries in the yellow cells 'Year 1 Depreciation Months' & 'Year 1 Depreciation Month of Purchase Included (Yes / No)' are the correct entries to register full depreciation in the year of purchase for a 12 month accounting period. You only need to change the entry in the yellow cell 'Year 1 Depreciation Months' in the unlikely event that your accounting period is greater or less than 12 months. Full Year Depreciation Convention: If you charge full depreciation in the year of purchase, the fixed asset program assumes no
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depreciation charge in the year of disposal. If you charge partial depreciation in the year of purchase: Go to the cell 'Year 1 Depreciation Months'. Enter / select the number of months of depreciation you want to charge. Go to the cell 'Year 1 Depreciation Month of Purchase Included (Yes / No)? '. Select 'Yes' if you included the month of purchase in the 'Year 1 Depreciation Months'. Select 'No' if you excluded the month of purchase in the 'Year 1 Depreciation Months'. Partial Depreciation Convention: If you charge partial depreciation in the year of purchase and the month of purchase is included ('Yes' is selected), no depreciation is charged in the month of disposal. If you charge partial depreciation in the year of purchase and the month of purchase is excluded ('No' is selected), depreciation is charged in the month of disposal.

If the fixed asset was purchased in a previous month New rows are created under the final fixed asset row. An issue therefore arises where a new fixed asset is registered but needs to be inserted between rows because it was purchased in a previous month and newer fixed assets have since been entered. To move the row to the correct position is explained in the section 'Prior month adjustments' of the chapter 'Prior month and year adjustments'.

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Step 2: Check for errors

After the details of the new fixed asset have been entered in the yellow cells: Go to the column Input Error Messages (column AE). Check that there is no error message for the new asset. If there is an error message, correct the error identified by the message. After correcting the error, go back to the column Input Error Messages and confirm that the error message has disappeared.

Rupert Parsons 2013