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One of the top customer questions we receive in the Fixed Assets area is about starting to use Fixed Assests instead of General Ledger.

For example, a company wants to start using the Fixed Assets module from the 1st of January 2002. Acquisitions and depreciations have been posted in the general ledger until the 31st of December 2001. Fixed assets are created in the following way:

  1. Disable the General Ledger integration. This is done on the Depreciation Book Card.
  2. Create a card and a depreciation profile for each fixed asset. If a fixed asset has been depreciated using the Straight-Line method until now and the company wants to continue to depreciate the fixed asset by exactly the same amount, the yearly depreciation amount can be entered in the field Fixed Depr. Amount. This is done on the fixed asset card and its lines.
  3. Create and post 2 lines for each fixed asset in the Fixed Asset Journal. One line with the fixed asset’s acquisition cost; FA Posting Date should be the fixed asset’s original acquisition date. And one line with the fixed asset’s accumulated depreciation as posted in the general ledger; for this line the FA Posting Date must be the 31st of December 2001. Instead of one line with the fixed asset’s accumulated depreciations, you can create and post one line with the depreciations for each year the fixed asset has been depreciated, but the last line must have the 31st of December 2006 as FA Depreciation Date.
    Having the 31st of December 2001 as FA Depreciation Date for the last entry is important, because only then can the batch job Calculate Depreciation calculate the correct depreciation for 2002.
  4. If a fixed asset has been appreciated, enter and post a line in the Fixed Asset Journal. FA Posting Type must be Appreciation and the FA Posting Date should be the original appreciation date.
    If a fixed asset has been written down, enter and post a line in the Fixed Asset Journal. FA Posting Type must be Write-Down and the FA Posting Date should be the date of the original write down.
  5. Check that the book value is correct for all fixed assets.
  6. Enable the General Ledger integration and make all future postings in the Fixed Asset G/L Journal.

Henrik Sonne

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