Fixed Asset Register in LegalSuite

LEGALSUITE FIXED ASSET REGISTER

Author: Laura Stewart

Date: July 2008

Audience: Bookkeeping

Summary: How Fixed Assets are registered in LegalSuite

CONTENTS:

· Introduction

· Account Setup in the General Ledger

· Moving of Assets from one account to another

· Acquiring of Assets

· Disposing of Assets

· Depreciation process

· Profit and Loss on Sale of Asset

· Reporting

· Conclusion

Introduction:

A Fixed Asset Register is a list of all fixed assets, showing what you possess, what the cost price is, when you bought the asset, how much it has depreciated by, what the net book value is, when you sold the asset and what profit or loss you got on the sale of the asset.

Account Setup:

· Select the Business Ledger icon .

· The Business Ledger window will open (Fig 1):

Fig 1: Business Ledger

· Click on the insert icon .

· The following window will open (Fig 2):

Fig 2: Inserting Business Ledger

Description – fill in the description of the asset

Type – this will be Fixed Asset

Old Code – fill in the code of this account if brought over from a previous system

Vat Rate – select the default VAT rate

· Tick the Use Asset Register check box. The register tab will now appear (Fig 3).

· Click on the Register tab (Fig 3):

Fig 3: Register Tab on Fixed Asset Ledger Account

The deprecation account is automatically created.

Select the percentage you would like the asset to be depreciated by. (in this case we are working with vehicles so our percentage will be 20%).

If depreciation is run on a monthly basis it will work out the percentage according to the applicable periods.

· Click on the OK button to add this account to the Business Ledger.

Moving of Assets from one account to another:

For those existing LegalSuite users, if you have an asset account already inserted in the Business Ledger with transactions posted to it but have forgotten to tick the check box for ‘use asset register’ and now wish to use the asset register. The following steps need to be taken:

Click on the Business Ledger icon .
Select the asset account and click on the change icon.

The following screen will appear (Fig 4):

Fig 4: Changing Business Ledger Account

Change the description to ‘Old’ as shown above.

Click the OK button

Click the insert icon

The following screen will appear (Fig 5):

Fig 5: Inserting Business Ledger Account

· Change the description to ‘New’ and tick the check box for ‘Use Asset Register’

· Click OK

The ‘old’ account will no longer be used, so now you need to pass a journal between the two accounts bringing in all the transactions from the ‘old’ account to the ‘new’ account.

· Click on the batches icon .

· Select the Journal tab

· The following screen will appear (Fig 6):

Fig 6: Journal Screen In Batches

· The new asset account will be debited and the old asset account credited.

· Click on the ellipse button by Asset and select the asset you wish to ‘move’ across to the new account.

· Select the amount of the asset (bearing in mind this is the net value of the asset).

· Click OK and now the asset will be sitting in the new account and in the asset register.

Acquiring An Asset:

1. Acquiring an asset using a Business Payment

· Click on the batches icon .

· The Batches window will open (Fig 7):

Fig 7: Batches Screen

· Click on the payments tab and select Business Payment:

· The Business Payment screen will appear (Fig 8):

Fig 8: Business Payment Screen

Type – the type will be Business

Account – select the fixed asset account

Description – fill in a description for the asset

Asset – click on the ellipse button. The Select Asset window will appear. Within that block, right click and insert. The Record Will Be Added window will open. Fill in the details of the

asset and click OK.

This asset will now be sitting in the Asset block on the Business Payment.

· Fill in the rest of the payment details (Fig 9):

Fig 9: Business Payment Screen

· Click OK on the Business Payment and click the icon on the batches screen.

· The asset will now reflect in the asset register (Fig 10):

Fig 10: Fixed Asset Register

2. Acquiring an Asset using a Creditor payment:

· Click on the Creditors icon .

· The Browse Creditors window will open (Fig 11):

Fig 11: Browse Creditor Screen

· Click on the insert button .

· The Adding a Creditor window will appear as shown above.

· Fill in the details of the creditor and click OK.

· The creditor will now be added to the creditors list.

· Click on the batches icon .

· Select the Creditors tab (Fig 12):

Fig 12: Creditors Tab in Batches Screen

Click on Creditors.

The Business Creditor screen will appear (Fig 13):

Fig 13: Business Creditor Screen

Creditor – select the correct creditor

Description – fill in the description of the asset

Amount – fill in the cost price of the asset

Account – will be the account of the asset in the Business Ledger

Asset – click on the ellipse button.

The Select Asset screen will appear as shown above.

Right click and insert.

The Record will be added screen will appear as shown above.

· Fill in the details of the asset and click the OK button.

· This asset will now be sitting in the Asset block on the Creditor Payment screen.

· Click OK and post the Creditor Invoice batch.

· Once this has been posted the asset will now be sitting in the asset register (Fig 14):

Fig 14: Fixed Asset Register

3. Acquiring an Asset through a Journal:

· Click on the batches icon .

· Select Journal.

· The Journal Will Be Added screen will appear (Fig 15):

Fig 15: Journal Screen in Batches

In the top block we will be debiting our asset account (as to increase the account).

Type – will be business

Account – select the asset account from the Business Ledger

Description – fill in a description of the journal

The bottom block we will be crediting the Directors loan account as they have purchased the car on behalf of the company.

Type – will be business

Account – the account you are crediting

Description _ fill in a description of the journal

Asset – click on the ellipse button

The Select Asset window will appear.

Right click in this screen

The Record Will Be Added screen will appear

· Fill in the details of the asset and click OK.

Amount – fill in the cost price of the asset (Please note when capturing a journal VAT is not taken

into account. If there is vat included in the cost price of the asset then capture another journal for the VAT portion).

· Post this Journal Batch and the asset will now be sitting in the asset register (Fig 16):

Fig 16: Fixed Asset Register

Disposing of Assets:

1. Disposing of an asset using Business Receipt:

· Click on the batches icon .

· Click on the Receipts tab and select Business Receipt.

· The Business Receipt window will appear (Fig 17):

Fig 17: Business Receipt Screen in Batches

Type – will be business

Account – the ledger account where the asset has been allocated to

Description – fill in a description for disposing of the asset

Asset – click on the ellipse button and select the asset you are disposing of

Amount – fill in the cost price of the asset

· Click OK and post the Business Receipt Batch.

· Once the batch has been posted the new balance of the asset will be reflected in the Fixed Asset Register

(Fig 18):

Fig 18: Fixed Asset Register

2. Disposing of an asset using a Journal:

· Click on the batches icon

· Select Journal.

· The Journal Will Be Added screen will appear (Fig 19):

Fig 19: Journal Screen in Batches

In the top block we will be debiting the expense account in the Business Ledger in this case we will be using the account Theft.

In the bottom block we will be crediting the asset account.

· Click on the ellipse button by Asset and select the asset.

· Click the OK button and post the Journal Batch.

· Once this batch has been posted the new balance of the asset will be reflected in the asset register (Fig 20):

Fig 20: Fixed Asset Register

Depreciation:

1. Deprecating assets through the Asset Register:

· Click on the Business Ledger icon .

· Click on the Asset Register Icon .

· Click on the Depreciate Assets icon as shown below (Fig 21):

Fig 21: Fixed Asset Register

The following screen will appear (Fig 22):

Fig 22: Depreciation Fixed Asset Screen

· Click on the button.

· The following filter screen will appear (Fig 23):

Fig 23: Filter Depreciation Screen

The user can depreciate all assets or only selected or tag assets if they wish

Assets can be depreciated daily, monthly or yearly.

· Click the OK button.

· The following screen will appear (Fig 24):

Fig 24: Depreciate Fixed Assets Batch Screen

All the assets for this month (as I have chosen in the filter) will be depreciated. LegalSuite works out the amount that needs to be depreciated.

· Click on the icon.

· The following message will appear (Fig 25):

Fig 25: Post Batch Screen

The deprecation transaction that is created is a journal entry by debiting the depreciation account and crediting the accumulated depreciation account for the applicable ledger accounts.

2. Deprecating assets through a Journal:

· Select Journal in the batches screen.

· The Journal window will appear (Fig 26):