Why We have Default Purchase in Fixed Assets ?
Varadharaj V
Oct 13, 2022 - 6 mins read
Fixed Asset is a Simple module, which helps to handle all your fixed assets and its depreciations job easier. We need to perform the initial Setup of Fixed Assets with its Class , category, And Locations. And than Create fixed assets along with Initial Purchase.
As of our system, Without The Goods in our Stock, we cant process the Depreciations. Inorder to get a fixed asset. We cant use the adjustments to create stock for it. The Only Possibility is buying of the fixed assets. Like Machines, Tools, Equipments, Vehicles, Building, Office Furnitures, etc. Each one will have its own depreciation value and percentage and also initial value to disposal value.
So, the basic point here is to Make Purchase Delivery (GRN) for the Fixed asset to start doing the depreciations. Let's go with some scenarios.
1. Purchased few years Ago
This is like you need to use the appropriate financial year and perform the purchase, date and initial value, if you remember the Invoice reference. Feed that too. And also you need to provide Current Value of the assets, if you have them in previous software or from manually calculated value, we have to feed the current value of the asset. and from that the system will create the first depreciation journal entry.
2. New Purchased Asset
You can keep the intial and current values one and same, which will not make any depreciation entries. and the purchase date can be considered if you have initial and current value of the Asset.
3. Purchased From Second Hand
This is also possible in machines and vehicles. So we can have one reference, and will feed the second hand purchased price. shouldn't feed the original price of the fixed asset here. So than the calculation will go smooth without issues in it.
