Share
Report
740Consider the following scenario...
A server and software are purchased on a Payables invoice (for $5,000). The Purchase Distribution account uses the Fixed Asset Purchase Trigger account.
Using the FA General window, the Asset ID is entered as 2007-01, Suffix of 1.
The Purchase button is available and is used to select the Purchase invoice. The Acquisition Cost of the new fixed asset is $5,000.
The Book window is opened and the new Asset ID 2007-01, with the main Book ID are selected. With the Book Class relationship having been previously created, the Asset Book populates as follows:
Asset ID: 2007-01
Book ID: AMT
Place in Service Date: 04/01/2007
Depreciated to Date: 04/01/2007
Begin Year Cost: $5,000.00
Cost Basis: $5,000.00
Original Life Years, Days 05 000
Remaining Years, Days 05 000
Net Book Value: $5,000.00
The asset has been added to the FA Module
-----------------------------------------------------------------------------------------------------
Along comes the end of the month 04/30/2007 and the asset is depreciated.
-----------------------------------------------------------------------------------------------------
Along comes the end of the month 05/31/2007 and the asset is depreciated.
-----------------------------------------------------------------------------------------------------
It's the middle of June, 06/15/2007 and a Maintenance Plan is purchased for the server (FA Asset ID 2007-01). The purchase is entered as a payables invoice (for $3,000), again using the Purchase Distribution account uses the Fixed Asset Purchase Trigger account.
Using the FA General window, the Asset ID is entered as 2007-01, Suffix of 1.
The Purchase button is available and is used to select the Purchase invoice. The Acquisition Cost of the fixed asset is $8,000 (1st invoice of $5,000 + 2nd invoice $3,000).
The Book window is opened and the new Asset ID 2007-01, with the main Book ID are selected. The Asset Book populates as follows:
Asset ID: 2007-01
Book ID: AMT
Place in Service Date: 04/01/2007
Depreciated to Date: 05/31/2007
Begin Year Cost: $5,000.00
Cost Basis: $5,000.00 <======= Should this have changed?
Original Life Years, Days 05 000
Remaining Years, Days 04 305
Yearly Depr. Rate: $750.00
Current Depreciation: $84.55
YTD Depreciation: $166.37
LTD Depreciation: $166.37
Net Book Value: $4,833.63
---------------------------------------------------------------------------------
So here's my question? Should the Cost Basis have changed to $8,000.00? Should the asset have the Year Rest or the Life Reset, or something else done?
Is this the correct way to process the asset in this scenario?
Thank you!
*This post is locked for comments
All responses (
Answers (
