fixed assets – functional - eci software...

Fixed Assets – Functional Creating Fixed Assets ................................................................................................................. 2

Transferring Inventory to Fixed Assets ........................................................................................ 7

Purchasing Fixed Assets ............................................................................................................ 10

Depreciating Fixed Assets ......................................................................................................... 12

Adjusting Fixed Assets .............................................................................................................. 15

Disposing of a Fixed Asset ........................................................................................................ 17

Handling Other Fixed Assets ..................................................................................................... 21

Revised: 05/01/2013 © 2013 Digital Gateway, Inc. - All Rights Reserved

Creating Fixed Assets

Overview You use the fixed asset record to track the information about a specific fixed asset. The fixed asset profile tracks the following information: Number: Unique e-automate or user-assigned number. Description: Description of the fixed asset. Asset code: Code associated with the fixed asset that identifies the fixed asset and

accumulated depreciation accounts and depreciation method (Straight Line, 200% Declining, or 150% Declining). The asset code also pre-populates the depreciation code that identifies which expense accounts and departments are affected during depreciation. This selection also populates the depreciation cycle, and the recovery period.

Depreciation code: Code that defines the expense account department combinations to which e-automate posts depreciation expenses.

Item: The inventory item number from your item list, if any. You choose whether or not you identify an item. If you identify an item number that has an equipment code, e-automate activates the Equipment field.

Equipment: Activated when you select an item that has an equipment code. You use this field to identify an equipment record from your equipment list.

Serial number: If you identify an equipment, e-automate displays the serial number associated with the selected equipment. If you do not select an item, you can simply enter the serial number in the field for a non-item fixed assets like a vehicles.

Acquired date: Date you acquired the fixed asset. Activated date: Date you activate or began depreciation of the fixed asset. Disposal date: Date you disposed of the fixed asset. This field is populated when you do a

disposal adjustment. Depreciation cycle: The cycle you use to depreciate this fixed asset. Depreciation period: Fixed assets are depreciated over time, based on the cycle identified

on the fixed asset. The depreciation period is the current period for which you are depreciating this fixed asset.

Cost or Basis: Original value associated with the fixed asset. This value is populated when entering beginning balances, doing fixed asset adjustments, using the import spreadsheet, using an accounts payable vendor invoice, or inventory fixed asset transfer.

Accumulated Depreciation: Amount of depreciation posted for the fixed asset. This value is populated when entering beginning balances, doing fixed asset adjustments, using the import spreadsheet, using an accounts payable vendor invoice, or inventory fixed asset transfer.

Unrecovered basis: Amount of the fixed asset value remaining that has not been depreciated. This field is automatically calculated based on the Cost or basis and the Accumulated depreciation field values.

Recovery period: The number of months over which you intend to depreciate a fixed asset.

Tax cost or basis: The Tax Cost or basis field is matched by e-automate with the Book Cost or basis field.

Tax Accumulated depreciation: Amount of accumulated depreciation that you have recorded for tax purposes. e-automate allows you to track book and tax separately due to


separate methods allowed by different jurisdictions. Some jurisdictions allow more rapid depreciation for tax purposes than is allowed by Generally Accepted Accounting Principles (GAAP). If you are using other methods for tax you can calculate outside of e-automate and record in e-automate for tracking.

Tax accumulated depreciation: Amount of accumulated depreciation you have recorded for tax purposes.

Tax unrecovered basis: The difference between the Tax Cost or basis and the Tax Accumulated depreciation fields.

Tax recovery period (months): The recovery period you are using for tax depreciation. Salvage Value: Amount of value remaining in the asset once you have fully depreciated

the asset. Market Value: Market value of the asset. Location: Location of the fixed asset. This field is automatically populated if you identified

an equipment record. Fixed assets are traditionally carried on a company’s balance sheet and incrementally depreciated over the recovery period. Depreciation allows a company to post a credit to an accumulated depreciation account, thus reducing the value of fixed assets on the balance sheet and offsetting the depreciation entry against an expense account on the income statement. Depreciation occurs until the asset is fully depreciated or the asset is disposed. When a fixed asset is sold, e-automate removes the value for the fixed asset as well as the accumulated depreciation associated with the fixed asset. If you make a profit or a loss on the sale of a fixed asset, the difference is usually posted to a net gain or loss account on your income statement (usually an Other Income account type). Prior balances When coming to e-automate from another software package you will need to enter your beginning balances on your fixed assets. When entering beginning balances for straight line you can simply enter your ending balance from your old software and e-automate can figure out the remaining depreciation amounts based on when the asset was acquired the cost or basis and where the current Depreciation period is field. With the accelerated methods you need to give e-automate more information so it can assume the depreciation. You use the Beginning Balances button to enter your beginning balances. When entering beginning balances you can enter current year and prior year amounts. e-automate determines whether to offer you the prior year balance options based on the dates on the fixed asset. If the Acquired date is in a fiscal year prior to the Depreciation period is field, e-automate displays the prior year balances region in the Asset Beginning Balances window. If the Acquired date and the Depreciation period is field are in the same fiscal year, e-automate only displays the Current year balances region.

Getting to the Transaction 1. From the Accounting menu, select Fixed Assets > Fixed Assets to display the Fixed

Asset list. 2. Click [New] to open the New Fixed Asset window.

Basic Info 1. Complete the following fields as appropriate.


Number: Assigned number for the fixed asset. You can override this number and enter your own number. Description: Brief description of the fixed asset. Asset code: Use the Lookup icon to select the asset code to be associated with this fixed asset. Depreciation code: Code specified by the asset code; change as necessary.

2. Do ONE of the following: If your fixed asset is associated with a non equipment inventory item, use the Lookup

icon in the Item field to select your inventory item. If your fixed asset is associated with an equipment inventory item, do the following:

a. Use the Lookup icon in the Item field to select your inventory item. b. Use the Lookup icon in the Equipment field to identify the equipment associated

with the serial number if any. If there is not an equipment record with which you want to associate your item, leave the equipment field blank.

c. In the Serial number field, enter your serial number. If your serial number has ever been in stock in e-automate, check the Use system serial number checkbox and use the Lookup icon in the Serial number field to select the serial number.

If the fixed asset is not on your inventory item list, do the following: a. Skip the Item field. b. Skip the Equipment field c. If your fixed asset has a serial number, enter the serial number in the Serial

number field. 3. In the Acquired date field, enter the date you acquired the fixed asset. 4. In the Activated date field, enter the date you began depreciation of the fixed asset. 5. Leave the Disposal date field blank, as e-automate populates this field when you dispose

of a fixed asset. 6. In the Depreciation cycle field, the asset code specifies a cycle. Change the cycle as

necessary. 7. In the Depreciation period field, e-automate identifies the current period through which

this fixed asset has been depreciated. You can change this field as necessary to identify the current depreciation period.

8. The Track asset in inventory field is used by e-automate to track fixed assets that are currently in your fixed asset warehouse. In order for the warehouse and bin to display, you must transfer the inventory to your fixed asset warehouse and bin, using a fixed asset transfer. These fields are populated for you by e-automate upon transfer.

9. In the Tax Accumulated depreciation field, enter the amount you have depreciated for tax purposes.

10. In the Recovery period (months) field, verify the recovery period assigned by the fixed asset code. Change the period as necessary.

11. In the Tax Recovery period (months) field, enter the period you are using for tax depreciation.

12. In the Salvage value field, enter the expected value of the asset upon complete depreciation.

13. In the Market value field, enter the estimated market value upon depreciation. 14. In the Location field, enter location information.

Note: You can only enter location information for fixed assets not associated with equipment records.


Beginning Balances If you are entering this asset new from another system in which depreciation has occurred you can enter your beginning balances using the Beginning Balances button. Be sure before you begin depreciating the asset you enter your beginning balances. Once you have begun depreciation you cannot access the Asset Beginning Balances window. When entering beginning balances, e-automate uses the date in the Depreciation period is field to post to the general ledger. If you are entering beginning balances, complete this section. If not skip this section. 1. Do ONE of the following:

If you are entering prior year and current year balances, do the following: a. Click [Beginning Balances] to open the Asset Beginning Balances window. b. Check Enter beginning balance information for this asset checkbox to enable

the balances fields. c. In the region Prior balances, in the Cost basis field, enter the original cost or basis

value for this fixed asset. d. In the region, Prior balances, in the Accumulated depreciation field, enter how

much depreciation accumulated for this asset in the prior accounting year. e. In the Account field, use the Lookup to select a clearing account. This account is

used by e-automate to assure the transaction balances. f. In the Current year balances region, the Accumulated depreciation field, enter

the accumulated depreciation for this asset for this year. g. In the Account field verify e-automate entered the correct account. You can change

this account as necessary. h. Click [OK] to save your beginning balances and close the window.

If you are entering current year balances only, do the following: a. Click [Beginning Balances] to open the Asset Beginning Balances window. b. Check Enter beginning balance information for this asset checkbox to enable

the balances fields. c. In the Cost basis field, enter the original cost or basis value for this fixed asset. d. In the Accumulated depreciation field, enter the accumulated depreciation for this

asset. e. In the Account field, verify e-automate entered the correct account. You can change

this account as necessary. f. Click [OK] to save your beginning balance information.

Completing the Transaction 1. Click [OK] to save the new fixed asset.

Note: You can associate beginning balance value to your fixed assets by using the Beginning Balance functionality found inside the New Fixed Asset window. This is applicable to rapid accelerated methods of depreciation. If you are using straight line depreciation, you can enter your balances in a variety of ways. To associate value (Cost or basis) with your fixed assets you can use several other transactions. See the online help topics, Importing Fixed Assets, Transferring Inventory to Fixed Assets, Purchasing Fixed Assets, or Adjusting Fixed Assets.

Additional Info


Trouble Shooting

System Tips Calculator Feature Cancel Button Ctrl + N Inactive Fields/Buttons Lookup Button/Feature [Next] OK/Apply Button QuickAdd/Add Button Required Fields (*) Tab Key

Question(s) 1. True or False: The e-automate fixed asset record allows you to identify both the

depreciation cycle and the current depreciation period for a fixed asset.

Key Words Fixed, Fix, Asset, Depreciation, code, tax, expense

Related Topics Importing Fixed Assets Transferring Inventory to Fixed Assets Purchasing Fixed Assets Adjusting Fixed Assets

Screen/Window Names Fixed Assets New Fixed Asset


Transferring Inventory to Fixed Assets

Overview If you intend to track an inventory item as a fixed asset and perform depreciation, you must first create a fixed asset record. Next, you must perform a fixed asset transfer to move your inventory value to the fixed asset. When you track inventory as a fixed asset, the method used to move the value of the inventory item to the fixed asset is a special transfer called a fixed asset transfer. The fixed asset transfer removes the value from your inventory account and transfers it to your fixed asset account. This account is identified by the fixed asset code assigned to the fixed asset. Note that you should not perform a fixed asset adjustment to move value from inventory to fixed assets; instead, use the fixed asset transfer. Not only does a fixed asset transfer move the inventory value, but it also moves the inventory in your system from the standard warehouse structure to a special fixed asset warehouse. Because you must transfer inventory to the fixed asset warehouse, you must have previously created a fixed asset warehouse to have it available in your list of warehouses. You should also create an unavailable bin in which to store the fixed assets, and assign the bin you create as the default unavailable bin on the warehouse profile.

Creating a Fixed Asset Warehouse and Bin Use these instructions if you have not already created a fixed asset warehouse. If you already have a fixed asset warehouse, proceed to the steps section below, Performing a Fixed Asset Transfer. 1. From the Inventory menu, select Warehouses to open the Inventory Warehouses

window. 2. Click [New] to open the New Inventory Warehouse window. 3. Complete the following fields as appropriate.

Warehouse: Code for the warehouse. Description: Brief description of the warehouse. Type: Use the Lookup icon to select Fixed Asset. Synchronize address with company address: Check this checkbox to disable the street information and populate your company’s address. Parent warehouse: Leave the parent warehouse field blank.

4. Leave the Use parent warehouse for receiving orders checkbox unchecked. 5. Leave the Copy warehouse settings from field blank. 6. Click [OK] to save your warehouse. 7. Select your new fixed asset warehouse from the list and click [Edit] to open the Edit

Inventory Warehouse window. 8. In the Unavailable bin field, use the dropdown arrow to select New to display the New

Inventory Bin window. 9. In the Bin field, enter a name for the bin. 10. In the Description field, enter a brief description of the bin. 11. Click [OK] to save the bin and identify it as the default unavailable bin for the warehouse. 12. Click [OK] to save the warehouse settings.


Performing a Fixed Asset Transfer Use these steps if you have already created the fixed asset record and it is listed on the fixed asset list. For more information on creating a fixed asset see the online help topic, Creating a Fixed Asset. If you have not yet created the fixed asset, first create it and then return to this instruction set. 1. From the Inventory menu, select Transfers > New Transfer to display the New

Inventory Transfer window. 2. Do ONE of the following:

If your transfer window is labeled, New Inventory Transfer – Quick Entry, do the following: a. In the Type field, use the Lookup icon to select Fixed Asset. b. In the Item field use the Lookup icon to select your fixed asset item.

Note: This should be the same item you referenced on your fixed asset record. c. In the Serial number field, use the Lookup icon to select the serial number you are

transferring to fixed assets. d. In the Asset field, use the Lookup icon to select the asset associated with this

inventory item. Note: You must have the fixed asset record created, or create the fixed asset from here, to perform a fixed asset transfer.

e. In the Transfer to region, in the Warehouse field, use the Lookup icon to select the fixed asset to which you will transfer the inventory item.

f. In the Transfer to region, in the Bin field, use the Lookup icon to select a bin in which you will store the fixed asset.

g. Click [OK] to complete the fixed asset transfer. Note: The inventory item is moved by e-automate to the fixed asset warehouse and bin, and also moves the inventory value from the inventory account to the fixed asset account.

If your transfer window is labeled, New Inventory Transfer – Standard Entry, do the following. a. In the Type field, use the Lookup icon to select Fixed Asset. b. Click [Add] to open the Add Inventory Transfer Item window. c. In the Item field, use the Lookup icon to select the item to be transferred from

inventory to fixed assets. d. In the Serial number field, use the Lookup icon to select the serial number you are

transferring to fixed assets. e. In the Asset field, use the Lookup icon to select the asset associated with this

inventory item. Note: You must have previously created the fixed asset, or create the fixed asset from here, to perform a fixed asset transfer.

f. In the Transfer to region, in the Warehouse field, use the Lookup icon to select the fixed asset to which you will transfer the inventory item.

g. In the Transfer to region, in the Bin field, use the Lookup icon to select a bin in which you will store the fixed asset.

h. Click [OK] to close the Add Inventory Transfer Item window. Note: Repeat steps b through d until you have added all the fixed assets you want transferred to the Items tab.

i. Click [OK] to complete the transfer of the listed items. Note: e-automate moves the inventory item to the fixed asset warehouse and bin,


and also moves the inventory value from the inventory account to the fixed asset account.

Additional Info

Trouble Shooting

System Tips Active Check Box Calculator Feature Cancel Button Ctrl + N Inactive Fields/Buttons Lookup Button/Feature [Next] OK/Apply Button QuickAdd/Add Button Required Fields (*) Tab Key

Question(s) 1. You use a fixed asset transfer to _____________

a. Create a fixed asset warehouse. b. Create a fixed asset record. c. Move your inventory value to the fixed asset record. d. Perform depreciation on the fixed asset.

2. True or False: You must first create the special fixed asset warehouse and unavailable bin before performing a fixed asset transfer of an inventory item.

Key Words Fixed, asset, transfer, value, move, cost, cost, basis, adjust

Related Topics

Screen/Window Names Inventory Warehouses New Inventory Warehouse New Inventory Transfer New Inventory Bin Add Inventory Transfer Item


Purchasing Fixed Assets

Overview When you create a vendor invoice, typically you would identify an expense account to which you will post expenses associated with the vendor. Another use for a vendor invoice is to create a payable in your system that can also be used to associate a cost or basis with a specified fixed asset. If you are using an accounts payable invoice to create a payable for a fixed asset, you can use this online help topic. Before you can complete the vendor invoice, you must have already created the fixed asset record. You can create the fixed asset record by going to the Fixed Assets module and creating it, or by creating a fixed asset during the vendor invoice creation process. For more information on creating fixed assets, see the online help topic, Creating a Fixed Asset.

Creating a Vendor Invoice for a Fixed Asset 1. From the Accounting menu, select Accounts Payable > Accounts Payable Invoices to

open the Accounts Payable Invoices window. 2. Click [New] to open the New window. 3. In the Type field, use the dropdown menu to select Vendor Invoice and e-automate opens

the New Vendor Invoice window. 4. Complete the following fields as appropriate.

Vendor: Name of the vendor from whom you received the invoice for the fixed asset Description: Brief description of this invoice or fixed asset. Purchaser: Name of the employee responsible for this purchase. Number: Automatically assigned invoice number, but you may change it. Vendor invoice: Vendor’s invoice number. Invoice date: Date the invoice was created. Due by: Date the payment for the invoice is due according to the payment terms. Amount: Amount due on the invoice. Note: The charges total and the invoice total must match.

5. To add vendor charges for the fixed asset, do the following: a. Click [Add] to open the Add Charge window. b. Complete the following fields as appropriate.

Description: Brief description of the fixed asset charge(s) on the invoice. Amount: Enter the cost or basis amount for the fixed asset. Apply to fixed assets: Check this checkbox to activate the Asset field. Asset: Identify the fixed asset you are purchasing with this vendor invoice. Note: You must either create the fixed asset here, or have the fixed asset already created in e-automate when you complete the Add Charge window. Note: The total charges you allocate to fixed assets must equal the amount of the invoice.

c. Click [OK] to complete the charge and return to the New Vendor Invoice window. d. To add another fixed asset, repeat steps a through c.

6. When the Summary box and the Charges tab show the same total, click [OK]. e-automate saves the vendor invoice and posts the invoice to accounts payable and to the specified fixed asset accounts.


Additional Info

Trouble Shooting


Question(s) 1. A vendor invoice can be used for:_____________

a. Recording expenses associated with a vendor. b. Tracking inventory items. c. Associating a cost with a purchased fixed asset. d. Both a and c. e. None of the above.

2. True or False: You should create the fixed asset record in e-automate after creating the vendor invoice for the asset’s cost.

Key Words Vendor, invoice, fixed, asset, cost, basis, move

Related Topics Creating a Fixed Asset

Screen/Window Names New Vendor Invoice Accounts Payable Invoices Add Charge


Depreciating Fixed Assets

Overview The act of depreciating a fixed asset involves moving a portion of the fixed asset’s value to an expense on the income statement. For example, suppose that you have three accounts that are used for depreciating fixed assets. They are a fixed asset account, an accumulated depreciation account, and an expense account. When you acquire a fixed asset, you first move the fixed asset value into the fixed asset record in e-automate and then carry the full value as an asset until you dispose of the asset. During ownership of the asset you depreciate the asset incrementally until you have fully depreciated the asset, or have disposed of the asset at a loss or a gain. The process of depreciation involves e-automate performing journal entries in batch that credit your accumulated depreciation account and debit your expense account. These entries reduce the net value of the fixed asset by crediting the accumulated depreciation account. Although the entries are performed in batch, e-automate tracks all fixed assets individually, and tracks how much accumulated depreciation has been posted for each fixed asset. The amount remaining to depreciate for each asset can also be displayed, and e-automate posts fixed asset depreciation entries individually for each asset. Should a problem ever arise, you can correct a specific fixed asset without affecting other fixed assets that were posted in the batch. Depreciation periods for each asset are also tracked by e-automate. When you perform the depreciation activity, the system displays fixed assets that are up for depreciation in the Current Depreciation List based on the Depreciation period is field identified on the fixed asset. Once depreciated, e-automate increments this date forward one cycle.

Depreciating Fixed Assets in a Batch 1. From the Accounting menu, select Fixed Assets > Depreciate to open the New Fixed

Assets Depreciation Batch window. 2. In the Cutoff date field, specify the date for which you are depreciating.

Note: Fixed assets that have a depreciation period ending date prior to your Cutoff date are displayed by e-automate.

3. Check the fixed assets to be depreciated. Note: You can use [Check All]. You can also create a QuickSearch to display only your filtered fixed assets.

4. Click [Create List] to create the fixed asset depreciation list. Note: Your depreciation list is populate by e-automate and displays the list quantities in the Current Depreciation List message window.

5. Click [Post] to open the Post Fixed Asset Depreciation Batch window. 6. In the Post Fixed Asset Depreciation Batch window do one or more of the following:

To review the general ledger entries, do the following: a. Click [Preview GL Entries] to open the Fixed Asset Depreciation GL Preview

window. b. Review the general ledger entries for accuracy.

Note: You can export to Excel as necessary. c. Click [Close] to close the review window.

To post the general ledger entries, do the following:


a. In the Posting date field, specify the date and period in which the general ledger entries should post.

b. In the Batch field, verify the batch number. Change as necessary. c. In the Description field, enter an optional description. d. Click [OK] to post the entries to the general ledger.

Note: e-automate rolls the cycles forward for all fixed assets associated with your fixed asset posting batch.

Voiding a Fixed Asset Transaction 1. From the Accounting menu, select Fixed Assets > Transactions to open the Fixed Asset

Transactions window. 2. You can view the entries and other information about the transaction before voiding by

clicking [View]. 3. To void the transaction, verify the correct transaction is selected and click [Void]. 4. The Attention Required window displays. To void the transaction, click [Yes]. To cancel your

void choice, click [No].

Additional Info

Trouble Shooting


Question(s) 1. True or False: e-automate can post depreciation journal entries in a batch, for all your fixed

assets. 2. True or False: It is not possible to void an entry for an individual fixed asset after the

depreciation batch has been posted.

Key Words Void, fixed, asset, transaction, correction, depreciation

Related Topics


Screen/Window Names New Fixed Assets Depreciation Batch Post Fixed Asset Depreciation Batch Fixed Asset Depreciation GL Preview Fixed Asset Transactions Attention Required


Adjusting Fixed Assets

Overview If for any reason you determine that you must adjust the accumulated depreciation, or the cost or basis for a fixed asset, you can use the adjustment transaction to complete the fixed asset adjustment. You use the adjustment window to adjust fixed asset values for specific periods of time. The adjustment window performs the general ledger entry for you. When adjusting a fixed asset, you can adjust for the accumulated depreciation only, the cost or basis, or a combination of the two. The adjustment window requires that you identify an adjustment account. The adjustment account is used by e-automate to balance the general ledger entries for your defined adjustment, and does not allow unbalanced general ledger entries. Therefore, you must identify an account to balance the transaction before you perform an adjustment.

Adjusting a Fixed Asset 1. From the Accounting menu, select Fixed Assets>Fixed assets to open the Fixed Assets

list window. 2. In the Fixed Assets window, select the fixed asset to be adjusted. 3. Click [Adjust] to open the New Asset Cost Adjustment window. 4. In the Asset field, verify the fixed asset you selected, or change the asset as necessary. 5. In the Adjustment account field, use the Lookup icon to select a general ledger account to

ensure the transaction is balanced. Note: If you enter amounts that cause an out of balance entry in the Base amount or the Accum. dep fields, e-automate uses the account identified in the Adjustment account field to balance the transaction.

6. Do one or more of the following: In the Base amount field, enter your adjustment amount.

Note: Positive numbers add to the cost or basis of the fixed asset. Negative numbers subtract from the cost or basis of the fixed asset.

In the Accum. dep field, enter your adjustment amount. Note: When you use a positive number in the Accum. dep field, e-automate increases the amount of accumulated depreciation. When you use a negative number in the Accum. dep field, e-automate reduces the amount of accumulated depreciation.

7. To identify a date range for the adjustment, identify the range in the From date and the To date fields.

8. Click [QuickAdd] to add your adjustment to the Assets list. 9. Repeat steps 4 through 8 until you have added all the adjustments. 10. Click [OK] to post your adjustment to the general ledger.

Note: A transaction is added by e-automate to the fixed asset transaction list for your adjustment. Additional Info


Trouble Shooting

System Tips Calculator Feature Cancel Button Ctrl + N Date Feature Inactive Fields/Buttons Lookup Button/Feature [Next] OK/Apply Button QuickAdd/Add Button Required Fields (*) Tab Key

Question(s) 1. The adjustment transaction allows you to adjust the __________ for a fixed asset.

a. Cost/basis b. Accumulated depreciation c. A combination of cost/basis and accumulated depreciation d. All of the above

Key Words Fixed asset, adjusting, correction, fix

Related Topics Depreciating a Fixed Asset

Screen/Window Names Fixed Assets New Asset Cost Adjustment


Disposing of a Fixed Asset

Overview You use the Fixed Asset module to dispose of an asset at your discretion. You do not have to have fully depreciated a fixed asset to dispose of it. The variance from the cost or basis and the accumulated depreciation is posted by e-automate to the adjustment account. When you dispose of a fixed asset you are required to identify an adjustment account. Digital Gateway recommends that you post the disposal adjustment to a clearing account. In this case, Digital Gateway recommends a current asset account as a clearing account. If you secured a net gain or a loss on the sale of an asset, you can use the cashbook receipt transaction to clear your clearing account and post the net result to your net gain/loss on sale of an asset account. If you do not have an account for net loss or gain, create one. Typically a net gain/loss account is a current asset account. The above description is typically for fixed assets that you do not have on your item list and will not create a sales invoice. In the event that you decide to sell a fully or partially depreciated piece of equipment that was a rental or demonstration unit you may consider transferring the equipment from the fixed asset warehouse back to a company warehouse and then selling the item. When you transfer from a fixed asset warehouse to a company warehouse, e-automate transfers the depreciated value of the equipment. This includes removing the fixed asset’s cost or basis value as well as any accumulated depreciation. The net is the equipments value in inventory. You can then sell the equipment as normal. See Selling Depreciated Equipment below.

Getting to the Transaction 1. From the Accounting menu, select Fixed Assets to opens the Fixed Assets window. 2. Locate and select the fixed asset of which you want to dispose. 3. Click [Dispose] to open the New Asset Cost Adjustment window.

Note: e-automate checks the Disposal checkbox automatically.

Basic Info 1. In the Asset field, verify the correct fixed asset for disposal is selected. Change the asset as

necessary. 2. In the Adjustment account field, use the Lookup icon to select your clearing account. This

is the account to which you post the variance between the cost or basis and the accumulated depreciation.

3. Click [QuickAdd] to add the asset to the list of assets being disposed of. 4. Repeat steps 1 through 3 until you have added all the fixed assets of which you want to

dispose.

Completing the Transaction 1. Click [OK] to record the disposal and post the adjustments to the general ledger.


Additional Information

Addl. Info – Net Gain/Loss on Sale First, determine the balance of the entry posted to the clearing account. This instruction set assumes that the clearing account is a current asset account. The debits and credits for this instruction set are contingent on the account type you chose when creating your clearing account. 1. Run the Balance Sheet report to determine the clearing account balance and whether the

balance is a debit or a credit balance. Debit balance on a current asset is positive and credit balance on a current asset is negative.

2. From the e-automate toolbar, click on the drop-down arrow next to [Cashbook] and select Receipt to open the New Cashbook Receipt window.

3. Complete the following fields as appropriate. Description: Brief description of the receipt. Method: Method of payment (check, cash, credit card, or wire). Number: Number of the receipt is automatically entered, but you may change it. Date: Date the receipt was created. Amount: Total amount of the money collected for the sale of the fixed asset. Undeposited receipts account: Number of the undeposited receipts account. Note: This is automatically populated and should only be changed to make special corrections.

4. In the Account field, use the Lookup icon to select the clearing account used in the fixed asset disposal.

5. In the Department field, use the Lookup icon to select the appropriate department. 6. In the Description field, enter an optional description of the fixed asset disposal. 7. In the Amount field, enter the appropriate amount to clear the clearing account.

Note: If the current asset clearing account has a debit balance, enter a positive number in the Amount field. If the current asset clearing account has a credit balance, enter a negative number in the Amount field.

8. Click [QuickAdd] to add the clearing entry to the check details list. 9. In the Account field, use the Lookup icon to select your account for net gain/loss on asset

sale. 10. In the Department field, use the Lookup icon to select the appropriate department. 11. In the Amount field, verify the correct amount is present to balance the transaction.

Note: e-automate tries to balance the transaction as you add entries. You should not have to calculate an amount to balance the transaction.

12. Click [QuickAdd] to add the net gain/loss to the Check details region. 13. Click [OK] to post the transactions defined to the general ledger.

Note: This transaction clears the clearing account and accounts for the net gain/loss.

Addl. Info – Selling Depreciated Equipment If you are selling equipment that you have been using as demonstration equipment or rental equipment you may use the following method to sell the equipment. Before you sell a fixed asset that has been depreciated, you must first transfer it back to a standard inventory warehouse and bin so you can sell the item. The transfer returns the inventory to the available pool of items that can be sold at the unrecovered basis value. This is the Cost or basis minus the accumulated depreciation on the asset. This method retains the equipment history tracking information on the equipment.


1. Click [Equipment] to open the equipment list. 2. Locate the equipment you want to sell and select it from the list. 3. Click [Transfer] to open the New Inventory Transfer – Quick Entry window for the selected

equipment. If you did not select the correct equipment, click [Cancel] and re-select the correct equipment.

4. Verify the following fields are correct: Item, Serial number, and Asset. If they are not correct, click [Cancel] and return to the equipment window and select the correct equipment.

5. In the Transfer to region, the Warehouse field, use the Lookup to select the company warehouse to which you want to transfer the equipment.

6. In the Bin field, use the Lookup to select an appropriate bin to which you want to transfer the equipment.

7. In the Description field, enter an optional description. 8. To print a picking list or a packing list upon completion, check Print picking list or Print

packing list as appropriate. 9. Click [OK] to complete the transfer.

Note: If you have equipment history tracking enabled, your configuration may display a Equipment History Tracking window. Complete the fields as necessary as defined by your configuration and click [OK].

10. Complete the sale through traditional sales processes.

Trouble Shooting


Question(s) 1. True or False: You must fully depreciate a fixed asset before you can dispose of it. 2. True or False: You can dispose of multiple fixed assets at once, using the instructions in this

online help topic.

Key Words Gain, sale, asset, adjustment, fixed, loss

Related Topics


Screen/Window Names Fixed Assets New Asset Cost Adjustment Cashbook Transactions New Cashbook Receipt


Handling Other Fixed Assets

Overview If you are not using e-automate’s Fixed Asset module for depreciation you can use the suggestions in this online help topic and in other referenced topics to handle fixed assets. Typically, if you are using the e-automate Fixed Asset module, you would create fixed asset and accumulated depreciation accounts, and place account protection on the accounts. Account protection allows you to prevent general ledger entries from being posted to your fixed asset and accumulated depreciation accounts. Protecting accounts also allows e-automate to reconcile the balance in the general ledger fixed asset and accumulated depreciation accounts with the actual fixed assets and current values on hand. If you are not using the Fixed Asset module, you should not protect your fixed asset and accumulated depreciation accounts, thus allowing you to perform general ledger entries to these accounts. This allows you to calculate your fixed asset depreciation outside of e-automate and use general ledger entries to record the account changes in e-automate. You could also use a mixed approach and have a set of protected accounts for depreciation in e-automate and a different set of unprotected accounts for calculating depreciation outside of e-automate. If you choose to handle some fixed asset depreciation outside e-automate, you can use the general ledger tools to record your depreciation. These tools are: General ledger entries Recurring journal entry template Batch posting or recurring journal entries Using e-agent to post recurring journal entry templates Microsoft Excel General Ledger Import spreadsheet Information on these tools can be found in the online help as well as in e-agent help, which is accessed from the Help menu in e-agent or by pressing the <F1> key while in e-agent. See the topics listed below in the online help: Creating a Recurring General Ledger Entry Template Recording a General Ledger Journal Entry Posting a Recurring General Ledger Journal Entry Using the GL Import Spreadsheet

Additional Info

Trouble Shooting


System Tips

Question(s) 1. True or False: All fixed assets must be accounted for within the e-automate software.

Key Words Fixed asset, general ledger, protection

Related Topics Creating a Recurring General Ledger Entry Template Recording a General Ledger Journal Entry Posting a Recurring General Ledger Journal Entry Using the GL Import Spreadsheet

Screen/Window Names


fixed assets – functional - eci software...

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