Summary

Completed

In this module, you learned about the various transaction types and processes that are related to managing fixed assets, particularly focusing on depreciation, disposal, and scrapping.

Additionally, you learned about the following key points:

  • Depreciation transactions - The three types of depreciation transactions are:

    • Depreciation - A periodic reduction of a fixed asset's value, often used for tax deductions.

    • Depreciation adjustment - Corrects or adjusts previously posted depreciation.

    • Extraordinary depreciation - Allows you to concurrently depreciate assets, which is separate from basic depreciation and usually for one-time events.

  • Depreciation posting methods - Typically, you post depreciation by using depreciation profiles, which can automate proposals in journals for depreciation. Also, you can post depreciation manually if needed.

  • Positive depreciation - Governmental funds might require you to record positive depreciation for assets with negative values and to consider negative book value when calculating depreciation.

  • Depreciation run date - Signifies the starting date for the first depreciation calculation, and it can't be before the Placed in service date that you enter.

  • Disposal of fixed assets - You can dispose of fixed assets through sale or scrap, each involving different transaction types, such as Disposal saleDisposal scrapProvision for reserve, and Transfer from reserve.

  • Asset disposal process - Procedures for selling fixed assets by using free text invoices include creating invoices, selecting ledger accounts, adding descriptions, and posting invoices.

  • Reviewing asset valuation - Involves examining changes in net book value, selling price, and associated profit or loss.

  • Vouchers - Provide detailed records of asset transactions and postings, including depreciation, acquisition, and disposal.

  • Scrapping fixed assets - Involves creating a fixed asset disposal journal, selecting the scrap transaction type, and reviewing valuations and vouchers that are similar to asset sales.