Fixed Asset Clearing Account

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Posted on by Ozle

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I received an item through receivings transaction entry, where i Capitalized the item on the purchase order and updated the Inventory Account, using the Clearing account number.

However, after adding the item to Fixed Assets, I then checked the clearing account and it still has a debit balance.

Can anyone explain what I may have done incorrectly, as based on what I have read the this account should be zero once the item is added to Fixed Asset.

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mpolino on at

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Re: Fixed Asset Clearing Account

There is a GL Posting routine in the financial series for fixed assets. Running this creates the journal entry to move the asset amounts out of the clearing account and in to a Fixed Asset account on the balance sheet. The Journal entry will still need to be posted after it's created.

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Ozle 1,750 on at

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Re: Fixed Asset Clearing Account

After running the GL Posting routine in the financial series for fixed assets, the journal was not created.

When i checked the clearing account the debit amount was still sitting in the account.

When i looked checked the book for the item, the distribution, the asset account was debited and the clearing account credited.

is there anything else I need to do to allow this to post out.

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Heather Roggeveen 9,146 on at

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Re: Fixed Asset Clearing Account

Is the book set up as being the corporate book? I.e. only the corporate book as defined in Tools --> Setup --> Fixed Assets --> Company posts to the GL.

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Community Member on at

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Re: Fixed Asset Clearing Account

Hi...just one thing and apologies if I am miunderstand - its just reading your two posts you say the 'Debit' is still there. The Debit amount won't actually disappear / get moved out. The account gets 'credited' with the asset cost when he asset is addd to FA.

Best regards,

Ian.

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Ozle 1,750 on at

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Re: Fixed Asset Clearing Account

Ian,

Does this mean that the I will have to put through a journal to clear the debit that sits in the Fa clearing account.

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Heather Roggeveen 9,146 on at

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Re: Fixed Asset Clearing Account

The debit should automatically be offset by a credit. The answer to this post really comes down to whether anything posted at all. Is there a debit in the financials for the asset addition to the correct account? If not, then there is something not quite right with the asset add and the journal has not posted. If there is a debit in this account, then you should be able to trace which account got credited.

The usual process is:

Purchase via POP or accounts payable, code to FA Clearing:

DR FA Clearing

CR Accounts Payable

Add the asset to Fixed Assets and select correct Account and Book information. Use the GL posting routine to post the transaction to the GL.

DR Assets Additions

CR FA Clearing

There could be a number of reasons why it won't post from FA. So can we clarify - has it posted anything at all?

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Muhammed Azharudeen... 50 on at

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RE: Fixed Asset Clearing Account

.

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Muhammed Azharudeen... 50 on at

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RE: Fixed Asset Clearing Account

Hi Everybody,

Too late for a reply however I believe this should help anybody looking for an answer now.

If the book shows the entries already then module has been updated however for the GL implication,that's JV creation Account needs to be mapped.

There should be tick against account as seen below if you check go to of general information window.

Smart List should help in finding the Assets missing account association if for too many assets.

Azhar

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Community Member on at

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RE: Fixed Asset Clearing Account

Hi

I have a fixed asset question as well, but from an inital entry prespective

12/4/13 We paid for an item (equipment) and posted the transaction as follows

Dr Fixed Asset Clearing

Cr AP

However at the time it was not added to fixed assets.

Now the BS reflects a balance for the "Fixed Asset Clearing" and the detail F/A schedule doesnt equal the BS (Property/Equipment).. more than likely because this transaction wasnt added to the fixed asset

What are the steps to update with the fixed asset? What did we do wrong with the initial transaction? Was there a box to check that would have indicated this transaction was a "fixed asset"??

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Heather Roggeveen 9,146 on at

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RE: Fixed Asset Clearing Account

Hi

Under Fixed Assets Setup there is a window where you define Purchasing Accounts. You need to enter here the FA Clearing accounts. This is what then triggers the "Purchase" button in the Fixed Assets window telling you there is something to add.

Without that there however, you can still just add the asset as you normally would (the purchase button just allows for some default fields to populate and the link back to AP). You can manually enter the purchase details by clicking the blue expansion button next to the Acquisition Cost.

Hope that helps.

Cheers

Heather

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