How Abel keeps track of your Assets

Gidday, This is the latest in a series of blogs I am writing on Abel’s features and what they can do for you. This month’s topic is Abel’s Fixed Asset functionality.

The features provided by Abel Fixed Assets include:

  • The asset register including employee, location, serial number, company / department.
  • Purchase, sale, depreciation and transfer.
  • Part sale and part purchase of pooled assets.
  • Book and tax depreciation registers.
  • Consolidation of depreciation to any company, division or branch.
  • Straight Line or Diminishing Value depreciation.

When you purchase a new asset,  Abel will create depreciation from the purchase date for the remainder of the financial year. The postings will use the accounts you specify in Asset Group maintenance.

Asset groups are a mandatory classification of assets. Create asset groups that suit your business requirements, you can specify both tax account codes and book value codes (if used) for your fixed asset postings.

All transactions within Abel Fixed Assets are automatically registered in the General Ledger. Depreciation is calculated a financial year in advance using the annual depreciation journal. Any transactions you do during the year such as asset sales, purchases, transfers or adjustments will have their future asset value and depreciation automatically accounted for, so that the true value of assets is always known and correctly shown in the balance sheet. The asset stays in the asset register until sold – even if it has been written off.

Abel also supports interdepartmental asset transfers.  This is like a sale from one department to another and it automatically transfers the future depreciation as well. You can create a fixed asset journal for the ‘from’ department with a transfer ‘Trnf’ line to the ‘to’ department.

In summary, Abel fixed assets components include:

  • Asset Maintenance – holds all your asset data in one place within Abel.
  • Asset Group – a mandatory classification for assets that also defines all the posting codes.
  • Asset Category – an optional extra classification for reporting purposes – an asset can belong to multiple categories.
  • Asset Ledger – provides a transaction view per asset.
  • Asset Journals – handles asset purchases, depreciation, transfers and sales.
  • Asset Reports.

If you want to know more about Abel’s Fixed Asset functionality and how it can help your business, please contact your Abel Consultant or an Abel Distributor.

Until next time.

Rik

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