We’re going to learn how to add new assets to a fincon in each schedule, now if you’ve come from a fixed asset spreadsheet. And this previously was always a bit of a hassle because at the end of each month we have to take a look at all the fixed assets and the fixed asset account and manually transfer any additions to that schedule and calculate depreciation. And the part monks and that sort of thing that hassle is now gone from your life because fincon will do all that for you.
Let’s take a look so to add a new asset to your fixed asset register there are two main methods and I’ll take you through the most common method and then we type to show you the end the longer permitted. So let’s go through the scenario where our cap in the morning. We come to work and we decide you know we really need a new couch for the reception. And we hit down to ABC furniture I’m gonna go and purchase one so I’m gonna go to accounts we mean ABC put furniture sends me an invoice. Or perhaps I’ll put on a credit card however there occurs we didn’t want to record that transaction okay the transfer of the obligation or the funds to ABC furniture so we’ll go to accounts and purchases and enter in that accounts payable as we normally would it’s a new bill ABC furniture.
So today’s date don’t you make that term yeah don’t do dude we think we go live day was there first of August in our scenario so on to do something. After we do that conversion balances it imagines it’s two days later and I’ve gone down there we purchase something. But yeah you count one and it was there two thousand dollars we’re gonna put that to fixed assets like so but actually did it be office equipment. So that fincon knows that that’s a fixed asset account. So I’m gonna put there to office equipment and put there to the office – oh so that’s what your build might look like click approve and make sure we pay those people for that so that’s a scenario.
Number one same version or same sort of scenario but at the different sequence of events if we put that on a credit card then would have a credit card you know as a sitter who’s a bank account here and it’s going to arrive overnight some funds that have gone up to thousand dollars for a couch and a credit card and we look a little bit like this one here capital CAD. We will pretend it’s a couch as well and it will say Kevin can go like so and put that to office computer equipment and it will say a new laptop might look a bit like that excellent. So however it happens when we associate a transaction with a fixed asset account this is what occurs so obviously it reconciles the transaction. It creates an Accounts Payable but in the background what it does is seen that to fix the Shu Joe as a draft fixed assets under accounts. And fixed assets these two are going to be waiting for us and this is the part that used to be manually used to have to run their report at the end of every month. And toughen it up into a fixed asset shooter just so we can calculate that appreciation each month otherwise we were stuck never knowing what our depreciation was month to month. And just having to get an account for that at the end of the financial year so you’ll see that we have two drafts dropped exits in here and it’s giving us the purchase date. And the day we paid for them the amount we paid for them, okay so what we want to do is register those assets now. So if we click on delete we want to fill out the rest of the details such as if this captured the warranty is the serial number the type of asset it is so this one will be office equipment description blue couch for the reception.
Something like that depreciation start date wouldn’t appreciate that from the day we purchased it so you don’t need to stick with them whole months here straight line for a month. And it’s going to do all the math there for you once we have it with them with register just like that so now it’s part of an asset and it’s going to do calculate the part month depreciation for you. And continue depreciating it and going forward and we’ll do one more what happens when we sign an asset class we said it used the default depreciation rate but you can override that as we will here so we’ll put an arrow Cirro number for a laptop. Might be they’re always quite long SEO-type computer equipment office North Island purchase price hundred twenty-three ninety-one laptop replacement for gem core depreciation start date would do the day we purchased it. And it’s picked up the default right there but we could override that based on depending on the type of we purchased so we looked up the IRD website. And check out the rate schedules that are about all there your door one sitting about that consult your accountant before you go and register.
This is excellent that’s a register a so that’s method number one borrow transaction by far the easiest method now if for whatever reason. There is no underlying transaction or it’s secured in the past perhaps with recognizing an asset that’s developed what you want to do is you want to start at your dashboard as we do. And we’re going to go to accounts because there sits and we’re going to click a new asset, okay so there’s no underlying transaction here we’re simply registering a brand new asset. And we’re gonna fill out the whole thing from scratch with the exact same information but there’s no underlying transaction. Now just as an aside a top tip from me is that when you’re registering things like laptops capture anything like that these are the sorts of transactions. It’s quite important to record the original document because of these any faults warranties or want to see that underline because these tend to be high in value people. Want to view that underlined purchase documentation and then what you might want to do is add a document to this transaction okay and so when we purchase this product you can see because these two products here came from the laptop. And the couch came from a credit card and accounts payable you’ve got this option. Here to see the original transaction so that’s linking the asset in the assets you drilled through the original transaction. And in this original transaction you know they have a little folded a four up here and this is where you want to upload the actual copy of the purchase of this laptop. So that it’ll help with any warranty claims many years into the future as you don’t have to go and hunt around for that bit of paper.
So that’s just our top tip for you so we covered there were two different options for adding in fixed asset to your fincon maintaining fix they said she took the day today. We went through the easiest option which was just as you purchased them any time you use a fixed asset account. Go and check your draft fixed assets under accounts of success it’s and completely separate the registration with the depreciation rate method etc. Next number two was worth it if we develop a fixed asset we’re just going to go to accounts fixed asset the new asset and follow the form as we always would so hopefully you found this article worthwhile.