Fixed Asset Purchase Invoice

The Fixed Asset Purchase Invoice is used to formally record the acquisition of a fixed asset from a supplier. Unlike a standard purchase, this transaction specifically updates the fixed asset ledger, establishes the initial book value, and sets the stage for future depreciation. You can access this by navigating to Fixed Assets > Transactions > Fixed Asset Purchase Invoice.
For Access this form Navigate To, Fixed Asset Module > Click New Button on Top > Click Purchase Invoice
Header Information
This section defines the core transaction details and the relationship with the vendor:
  • Supplier: Select the vendor providing the asset. Choosing a supplier automatically loads their default currency, tax group, and pre-configured credit terms.
  • Invoice Date (Order Date): The date the transaction is recorded. This date determines the fiscal period for the asset's acquisition entry.
  • Due Date: Automatically calculated based on the supplier's payment terms, indicating when the payment for the asset is required.
  • Reference: The internal system-generated sequence number for this specific purchase document.
  • Supplier's Reference: Enter the actual invoice number provided by the vendor. This is critical for audits and reconciling bank statements.
  • Dimension 1 & 2: Allows you to assign the purchase cost to specific departments, projects, or cost centers for granular financial reporting.
Asset Selection and Pricing
This section details the physical asset being added to the company's holdings:
  • Fixed Asset Item: Use the search or dropdown to select the asset record you created in the "New Fixed Asset" form.
  • Quantity: The number of units being acquired. The system uses this to track the physical count and total cost.
  • Price (Excl Tax): The unit price of the asset before any taxes. This amount serves as the "Initial Value" for depreciation calculations.
  • Item Tax Type: Defines the tax rate (e.g., GST 18%) applied to the purchase. While this defaults from the item settings, it can be adjusted if the specific purchase has a different tax treatment.
  • Discount Percent: Any discount percentage provided by the supplier specifically for this asset line item.
  • Required Delivery Date: The date the asset is expected to be physically delivered to your premises.
  • Asset Location: Select the specific warehouse, branch, or office where the asset will be physically located.
Advanced Tracking
Additional fields for precise asset identification and logistics:
  • Batch No: Used to record the manufacturer's batch or lot number, which is essential for tracking warranties or recall information.
  • Expiry Date: The date when the asset's warranty or operational life is expected to end.
  • Mapped Units & Qty: Used if the asset is purchased in a different unit of measure (e.g., a "Set" of computers) but needs to be tracked as individual units.
  • Custom Fields: Any business-specific fields (like Engine Number, License Key, or Insurance ID) that were configured for your ERP will appear here for data entry.
Payment and Totals
Final financial adjustments before finalizing the document:
  • Cash Account: If the purchase is paid immediately, select the bank or cash account from which the funds are drawn.
  • Transfer Type: Defines the method of payment (e.g., Cash, Cheque, or Bank Transfer).
  • Freight Cost: Enter any shipping or handling charges associated with the asset. These costs are often capitalized into the asset's total value.
  • Tax Overrides: Allows you to manually adjust the tax amount to match the physical supplier invoice if there are small rounding differences.
  • Comments: A free-text area for any internal notes regarding the purchase or condition of the asset upon arrival.
Action Buttons
  • Place Invoice / Process Invoice: Finalizes the transaction, updates the general ledger, and officially activates the asset in the system.
  • Draft: Saves the current progress of the form without posting it to the ledger, allowing you to return and complete it later.
  • Cancel: Discards all entries and returns you to the dashboard.
GL Accounts & Accounting Integration
This section explains how the system maps the invoice values to your General Ledger. These accounts are usually pre-configured based on the Asset Category or Supplier settings:
  • Asset / Inventory Account: This is the primary Balance Sheet account where the acquisition cost of the fixed asset is recorded. When the invoice is processed, this account is debited, increasing the total value of your company's physical holdings.
  • Payable (Creditor) Account: The system automatically identifies your accounts payable ledger linked to the selected Supplier. This account is credited, representing the liability or amount you owe to the vendor for the asset.
  • Tax Account (Input GST/VAT): Based on the Item Tax Type and HSN/SAC Code, the calculated tax amount is posted to your Input Tax Credit account. This allows you to track and claim tax offsets according to regulatory requirements.
  • Freight / Carriage Inward Account: If you enter a Freight Cost, the system can be configured to either add this cost to the asset's value (Capitalization) or post it to a specific expense account, depending on your company's accounting policy.
  • Purchase Discount Account: If a discount is applied at the footer or line level, the system records this in a dedicated discount received account to ensure the net cost reflected in the ledger is accurate.
  • Bank / Cash Account (Direct Payments): If the invoice is marked as a cash purchase, the system bypasses the payable account and directly credits the selected Cash Account (e.g., Petty Cash or Main Bank Account).

We use cookies to improve your experience and for marketing. Learn more in our privacy policy.