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Finance | Project Operations, Human Resources, ...
Suggested Answer

Explain the asset entries

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Posted on by 10

Hi

Can you please explain the asset entries of acquisition, depreciation which credit and debit

I have the same question (0)
  • qianwang Profile Picture
    7,168 on at

    Hi Satyakishorerajana,

    Different countries will have different fixed asset entries and you need consult your accounting for specific information.

    Take China as an example, Acquisition – Debit Fixed asset   Credit Accounts payable/ Bank deposit / Cash

                                               Depreciation-- Debit Expense   Credit Accumulated depreciation

    According to how to set up it, you can refer to the official MS doc.docs.microsoft.com/.../set-up-fixed-asset-posting-profiles

    Regards,

    QianQW

  • Suggested answer
    saurabh bharti Profile Picture
    15,039 Moderator on at

    Hi Here is the explanation:

    Acquisition:

                             Asset Account (Balance sheet type) : Debit

                                       Vendor Account (In case of Purchase Invoice) or Bank Account (In case of Cash purchase) : Credit

                                        Inventory Account(In case Moving from inventory to Fixed asset) : Credit

    Depreciation:

                             Depreciation Expense Account (P&L) : Debit

                                          Accumulated Depreciation Account (BS) : Credit

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Microsoft Employee on at

    Hi Satyakishorerajana,

    The fixed asset entries that are recorded depend on the way how you acquire and depreciate fixed assets.

    A number of factors influencing this are:

    - whether the fixed asset is purchased

    - whether the fixed asset is constructed through a project

    - whether an item from inventory is used and 'converted' into a fixed asset.

    - etc.

    Also, the number of transactions posted depend on the books that are used and the accounting regulations that you have to apply.

    The vouchers shared above represent a small number of possible postings that can be realized for the transaction types that you mentioned.

    I would recommend that you have a look at the MS docs and MS learn sites for some information what can be all setup and ultimately influence the postings created.

    Best regards,

    Ludwig

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