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PS Cashbook

Add Assets to Fixed Asset Register

Summary

How do I add assets to the Fixed Asset Register (both new and existing)?

Detailed Description

The Fixed Assets Register:

  • can maintain a simple inventory of assets at cost and/or current valuation for insurance or general management purposes. 
  • can show assets that you will be depreciating. (Note. The Create Depreciation Journals button enables the automatic creation of depreciation journals entries for all depreciable assets for a selected date.)
  • provides detailed depreciation schedules for tax/accounting purposes including; allowance for new assets, assets disposed of and private use percentages.

The details of assets acquired in previous years can be entered (as opening balance details) at any time.

Automatic updating of the Assets Register can occur via cashbook transactions entry. In this way, the assets register can be updated as purchases of assets (payments) or sales of assets (deposits) are entered into cashbook. Alternatively, the fixed assets register can be maintained independently of transactions entered into the cashbook.

Sold assets are automatically removed during the end of year rollover procedure.

Note: The Fixed Assets is only available in level 4 of the program.

 

To Add an asset:

  • Click on the Registers > Fixed Assets menu option.

 

  • A list of Fixed Asset will be displayed, if any have already been entered.
  • Click on the Add button.

 

  1. Enter the Group to which the Asset belongs. You can add a new Group by clicking on the Plus (+) button. e.g. Plant & Machinery, Motor Vehicle.
  2. The Description is what the asset is, for example a specific type of car or machinery.
  3. Serial No./Ref. - optional
  4. Comment - optional
  5. Location of Asset - optional
  6. If you wish to enter a Current Value it is the cost of the item EXCLUDING GST.
  7. Click on the Notepad button for addition freeform notes/history.
  8. Click on the following link to Add an:
    1. Existing Asset (ie. purchased in a previous financial year.)
    2. New Asset (ie. purchased in the current financial year.)

 

1. If the asset was purchased in a previous financial year and you wish to enter opening balance details:

  1. Click on the Existing Asset radio dial.
  2. Original Cost - net of any GST (what you originally paid for the asset.)
  3. Original Purchase Date - the date you bought the asset.
  4. Opening WDV - Opening written down value is the the cost less accummulated depreciation to the end of the previous financial year.
  5. Depreciation Details such as (Depreciation) Rate%, Private Use% and Method of Depreciation - Diminishing Value and Prime Cost. - these should be entered after advice from your accountant.
  6. Click o the OK button to save the asset and bring up a new entry screen. Click Cancel to return to the asset list.

Note:

There are two methods you can use to calculate asset depreciation.

  1. Prime Cost - used to depreciated assets by equal amounts each year over its effective life.
  2. Diminishing Value - uses a percentage to calculate depreciation. (i.e. the value of a depreciating asset decreases more in the early years of its effective life.) 

Click on the following ATO website link: https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules---capital-allowances/prime-cost-(straight-line)-and-diminishing-value-methods/ for further information.

Note:  It is strongly advised you contact your accountant for help in calculating depreciation amounts and which method you should use. Your accountant can look at how your business operates to determine which method is appropriate. Also consult your accountant as to when to depreciate your assets, e.g. at the end of the financial year.

 Note: The sections coloured Red must have information entered in them. The other sections are optional.

 

2. If the asset was purchased in the current financial year and you wish to enter purchase details:

Note: A new asset can be automatically added via the cashbook transaction entry used to record the purchase of the asset. To set up accounts for automatic allocation to the fixed asset register, click on the following Knowledge Base link: Adding an asset account.

  1. Click on the New Asset radio dial.
  2. Date - date asset was purchased.
  3. Cost - net of any GST.
  4. Purchased From - select from drop-down list of suppliers.
  5. Value for Depreciation - this will normally be the same as the cost of the asset.
  6. Date for depreciation - i.e. date from which deprecation is calculated. This will normally be the same as the purchase date.
  7. Depreciation Details such as (Depreciation) Rate%, Private Use% and Method of Depreciation - Diminishing Value and Prime Cost. - these should be entered after advice from your accountant.
  8. Click on the OK button to save the asset and bring up a new entry screen. Click Cancel to return to the asset list.

Note:

There are two methods you can use to calculate asset depreciation.

  1. Prime Cost - used to depreciated assets by equal amounts each year over its effective life.
  2. Diminishing Value - uses a percentage to calculate depreciation. (i.e. the value of a depreciating asset decreases more in the early years of its effective life.) 

Click on the following ATO website link: https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules---capital-allowances/prime-cost-(straight-line)-and-diminishing-value-methods/ for further information.

Note:  It is strongly advised you contact your accountant for help in calculating depreciation amounts and which method you should use. Your accountant can look at how your business operates to determine which method is appropriate. Also consult your accountant as to when to depreciate your assets, e.g. at the end of the financial year.

 Note: The sections coloured Red must have information entered in them. The other sections are optional.

 

 

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