Hi There. Did you know that Abel handles Intangible Assets?
Intangible assets are non-physical assets that normally have a useful life greater than one year that local accounting practices permit you to amortize. Often they arise from buying other companies where part of the purchase price is for intangible assets such as the customer base, trademarks or goodwill of the company you are buying.
What’s different about Intangible Assets?
- Intangible assets are amortized, whereas fixed assets are depreciated
- Amortization requires an additional transaction to clear it from the balance sheet in the month that the asset reaches its Amortization Last Date
Intangible assets often have a simpler lifecycle than typical fixed assets…
- Create the Intangible Asset
- Create the Purchase journal
- Raise the Monthly Amortization Journal
And at the end of their life…
- Reverse the Amortization for fully Amortized Assets – Abel automatically creates postings for assets that have reached their Amort Last Date to remove them from the Balance Sheet. This is done during the Monthly Amortization Journal processing.
- Make the Asset inactive – You can deactivate assets that have completed their lifecycle when you no longer want them to appear in the default view of asset maintenance, reports, or select screens.
Intangible Assets are another example of the breadth of Abel’s functionality. If you want to know more about Abel’s functionality and how it can help your business, please contact your Abel Consultant or an Abel Distributor.
Until next time.