Creating a new Asset

In this tutorial I’m going to show you how to set up a New Asset such as a delivery van, because business is booming. This assumes you have already finished going through your system initialization with your consultant, including setting up account determination.

As a quick note, Fixed Assets will not show up in the Inventory Master Data window.

Let me start by showing an existing fixed asset, our delivery van. It has an asset class of Motor Vehicle and an asset group of Motor Vehicles.

At the bottom is the Capitalization Date.

The Values and Depreciation tab will show the depreciation and book value. On the Attributes tab I put down the make and model, as well as the VIN number.

To create a new fixed asset, go to Financials--> Fixed Assets-->Asset Master Data.

When you create a new asset record, it’s only applicable for this one item, being a van. This means that for each new asset, whether it’s a desk, or a printer, or a vehicle, you need to create a new asset master data record.

Because this is a second delivery van, I’m going to call it VAN 002. You can put details in the attributes tab. Because we’re going to buy it, and then sell it when we’re done,I need to put a check in both Sales Item and Purchase Item. We won’t stock inventory it to sell it, so don’t put a check in inventory.

Capitalization Date I’ll fill in later. So hang on to that.

There is also the Useful Life of the vehicle that we need to fill out. In this example, I’m going to change it to four years since we’re busy and the van is going to get a lot of use.

Click Add and it creates the asset. Everything will be calculated automatically.

After it’s created we now need to capitalize this asset. Go to AP Invoice, select the vendor. Add the Item and the posting date. Make certain you enter the cost of the van.

Once you’re done you can look at the Relationship Map from the A/P Invoice. The invoice will show the tax, but the Capitalization will show the capitalization amount. You can also click on the Capitalization and look at the capitalization document.

Clicking on the linking arrow will take us to the Asset Master Data and the asset is now active.

There you go. That’s how you create a new asset.