How to acquire a fixed asset

To acquire a fixed asset

1. Click Client administration > Lists > Clients.
2. Locate and double-click the client you'd like to work with.
   
    You may also right-click the client and select Properties.
   
   
3. Click Assets > Fixed assets. 
4. Click Acquire an asset.
   
   
   
   
5. In Name, enter a name for the fixed asset. 
6. In Asset category, select an option from the dropdown that best suits the asset you are entering into the system. For example, if you are entering a car, select Vehicle. This will be important when buying the fixed asset. 
7. Note down which Asset category you have selected. This will be important when verifying whether the asset category is drawing from the correct ledger account or not. See verify the asset category below for further information.
8. Select a Currency and Method of acquisition from the dropdowns. Provide a Description for the asset.
9. Click Save.
   
    Once saved, new tabs will appear: Details, Documents, Custom fields, Cessionary details, and Administration. The Details tab allows you to add an Asset class, Asset region, Asset style, and Interest requirements. The Documents tab allows you to upload any documents that might pertain to the created asset.  
   
   
10. When complete, click Close.

Once a fixed asset has been created, it will display in the Fixed assets list with an Asset status of Active. The Purchase amount will display 0.00 because it has not technically been purchased yet.

Verify the fixed asset's asset category

After the fixed asset has been entered into the system, you must ensure that the asset category selected for the fixed asset is both Active and drawing from the correct ledger account.

1. Click Financial management > Lists > Fixed assets > Asset categories.
2. Locate and double-click the asset category you selected in the previous step.
3. Under Ledger of accounts, set the Asset field to whatever ledger you would like this asset category to draw from. 
   
    Generally, you can use a Fixed assets account. If unsure of what account to set it to, you can also use 2750 - Other Fixed Assets.
   
   
4. Note down the ledger you have selected in the previous step. This will be important for when you verify the chart of accounts and buy the asset.
5. Ensure that the Status field is marked as Active.
6. If you made any changes to the asset category, click Save and close. If not, click Close.

Verify the chart of accounts

Once you have verified that the asset category is set up, you must verify that the chart of accounts allows for the selected general ledger to be drawn upon.

1. Click Financial management > Lists > Setup > Chart of accounts.
2. Locate and double-click the ledger you noted down in the previous step. For this example, we will use 2750 - Other Fixed Assets.
   
    Some account types reference other account types. If you select one that does, a warning message will appear displaying which account type it references. You will have to modify the main account for the changes to take place, in addition to the account you are planning to use.
   
   
3. Click the Transaction requirements tab. 
4. In Asset, select Required. This will enable this chart of accounts to be used when making a payment for an asset.
5. Click Save and close.

Verify the client you are working with has the correct accounts

When working with fixed assets, you must ensure that the client who will be buying the asset also has a Fixed assets account.

1. Click Client administration > Lists > Clients.
2. Locate and double-click the client you'd like to work with.
   
    You may also right-click the client and select Properties.
   
   
3.  Click Assets > Accounts.
4. Verify that the client you are working with has a Fixed Asset account in the Currency that you selected when adding the asset to the system.
   
    If there is no Fixed asset account, click Add account. In the Account type dropdown, select Fixed Asset. Enter all remaining fields as you see fit. When complete, click Save and close.

Once you have ensured that the client has a fixed asset account and all the ledgers are set up, you can buy the asset.

To buy an asset

1. Click Transactions > Cash transactions > Make payment.
2. In the Payer field, select the client that will be buying the asset.
3. In the Payee field, select the client who added the asset to the system and is currently selling it.
4. In Currency, select the currency that you specified when adding the asset to the system.
5. Select an account to pay from in the Pay from client account field.
6. Select a method of payment in the Payment method field.
7. Under Lines, double-click the currently empty line item. The Line item details screen will appear.
   
    You may also click the  symbol to load the line item details screen.
   
   
8. In Ledger, select the noted down G/L account from the previous steps (in this case, we used 2750 - Other Fixed Assets).
9. In Account, select the Fixed Asset account.
10. In Asset, select the asset you created in the first step.
11. In Amount, select the amount to be paid for the asset.
12. Enter any other fields where appropriate.
13. When complete, click Close. The Line item details form will close and you will be returned to the Make payment form.
14. Review any other details on the Make payment form.
15. When complete, click Submit.
16. Click Client administration > Lists > Unposted transactions.
17. Under Waiting for approval, locate and right-click the asset Make payment transaction.
18. Select Approve.
19. Click Yes on the confirmation screen.

To review that the fixed asset has been bought

You can return to the client's Properties and verify that the fixed asset has been bought.

1. Click Client administration > Lists > Clients.
2. Locate and double-click the client you'd like to confirm with.
3. Click Assets > Fixed assets. 

The purchased fixed asset will display in the list with the updated book cost.

If you made a payment that was higher or lower than the book cost, the amount paid will become the new book cost.

See also

How to transfer a fixed asset

How to adjust a fixed asset