Asset Purchases

How do I record the purchase of an asset?

If you have not got an asset and purchase account in your Chart of Accounts that can be used for the purchase of this asset, you will need to create these accounts before you begin this process. Click on link:  Adding an asset account.

Step 1.

1. Click on the Cashbook toolbar option.
2. Click on the Add button

Step 2.

1. Fill in most of the details as you would for any other expense.
2. The Gross Amount of this transaction is the amount leaving your bank account in payment for the asset.
3. In the dissections, for the asset itself, choose an Asset expenses code and enter the amount that you paid purely for the asset. For example, if you bought a car, you would enter the amount for the actual car not including extras such as registration or insurance. This account will appear in green as it is linked to an asset.
4. For any other expenses incurrred as part of the purchase e.g. registration and insurance, record appropriate dissections, until the sum of the dissections matches the Gross Amount (i.e. the Unallocated amount is zero).
5. Note: If you are on Level 4 you can add the asset to the Fixed Assets Register by click on the F icon at the end of the Notes section. See Step 3 on how to do this.
6. Click on the OK button once all the infomation is entered. You have now set a value for your asset.

Step 3.

NOTE: Adding an item to the Fixed Asset Register is only applicable to those on Level 4.

When adding the transaction in Step 5 there is an F icon in the Notes section. Click on this to add the item being purchased to the register.

Step 4.

In the Fixed Assets Register window that opens, click on the Add button.

Step 5.

In the Edit/View Asset window that opens:

1. Enter the Group to which the Asset belongs. You can add a new Group by clicking on the Plus (+) button.
2. The Description is what the asset is, for example a specific type of car or machinery.
3. If you wish to enter a Current Value it is the cost of the item EXCLUDING GST.
4. The sections coloured Red must have infomation entered in them. The other sections are optional.

For the purchase infomation the Date is the date you bought the asset. The cost is what the asset is worth excluding GST, this section and the date will automatically be filled in if adding from the transaction, as will the Value and Date for Depreciation. When entering a New Asset the Value for Depreciation will be the purchase price for the first year, while an existing assets value will be whatever it depricated to the previous year.