Fixed and intangible assets from receipt to disposal

What is inside

1. 01

   Values come from the journal

   The system does not store cost, accumulated depreciation and carrying amount in the asset card. It calculates them from the journal each time, so the card never drifts from the books. After the first depreciation run, the method, useful life and accounts can no longer be changed.

   Screen A1Fixed asset card with values calculated from the journal

2. 02

   Four depreciation methods

   The system depreciates assets on a straight-line, reducing balance, accelerated reducing balance or sum-of-the-years’-digits basis. In the last month of the useful life, the charge brings the carrying amount exactly to the residual value. An intangible asset may have an indefinite useful life, and a title document is required for it.

   Screen A2Depreciation document with accounting and tax depreciation columns

3. 03

   Four types of disposal

   The disposal document covers four operations: liquidation, sale, transfer free of charge and contribution to share capital. It posts the depreciation for the month of disposal by itself. The VAT base is never below the minimum tax base, and on liquidation VAT goes through a self-issued VAT invoice (tax invoice).

   Screen A3Disposal document for the sale of a fixed asset

4. 04

   Low-value items with three write-off options

   The cost of low-value items is written off in one of three ways: 100%, 50/50 or over the useful life. Quantity and the responsible custodian are tracked on an off-balance-sheet account. Putting items into use, transfers and write-offs each have their own document.

5. 05

   Deferred expenses in the month-end close

   Deferred expenses are written off in the month-end close in equal parts, by calendar days or by schedule. Their opening balances have a section of their own.

6. 06

   Tax depreciation under Article 138

   Tax depreciation is kept in a separate register with tax groups and non-production assets. The system derives the depreciation differences for profit tax from this register automatically.