Case 4: Purchase new Fixed Assets.
When a User creates a new Asset, the Cost cannot be entered through the Asset profile window; hence, the depreciation schedule is not there. This Cost must be entered through the purchase new Asset Menu by creating a bill and then paying or making a direct payment.
Users can enter new assets into Hinawi Software by
- Import Fixed Assets from Excel
- Create a New \ Used Assets window
1. Import Fixed Assets From Excel
Go to File-->Import \ Enter Lists and Balances-->Fixed Assets-->Import Fixed Assets.
Now in this window, you have selected how you want to import.
- Select Asset's Kind:
Select either Asset are used or new.
The difference between new and used will be these additional columns available only if you choose Used Assets. "Opening balance Date," "Opening balance of Accumulated depreciation," and "Net Book Value."
Both cases will start the Asset life from the service start Date.
- Select Asset Expiry Data:
Either you want to calculate the Life by the expiry Date or Life in years and months.
- Date Format used in excel:
Specify the Date format you have used in excel.
After selecting all these options, you can press next, opening the import window.
Select the category for which you want to import assets first.
Note:
Categories will import fixed assets. You cannot import assets together in one turn if you have more than categories.
After selecting the category, Account no. We are welcoming automatically from category settings.
Enter the opening balance Date if you selected used assets in the previous window.
Now you can see the same column name in excel. You have to copy the Data from excel and paste it here. You can copy the whole column for one category from excel, e.g., Asset code, and right-click on the first box here to paste.
Suppose you want to enter the same value for all the assets in one column. Enter the Data in the first column, right-click CK, and select copy down. It will copy all the columns down.
This way, you can fill all the columns and click on import assets to import fixed assets into the software
2. Create a New \ Used Asset
Go to Fixed Assets-->Create New \ Used Asset
Users can use this form to enter the Fixed Asset information directly into the System.
Make sure to Fill the all the mandatory information in the details tab.
And then move on to Purchase Info Tab. The User must select "NEW" to save an Asset not yet purchased.
Option "NEW"
If the fixed Asset is new, some fields will be blocked. Users cannot enter those fields as they are for used assets. The Cost of new fixed assets will not be entered through this window. It will be entered through a bill or payment window. This will be covered later in the Purchase Asset Menu.
- Life of the fixed Asset to calculate Depreciation and expiry Date to be entered in years and months.
- Life Expiry Date is reading automatically from the purchase date and Life.
- The service Start Date is very important here. The Depreciation will not be started from the purchase Date. It will begin from the service Date when the Asset comes into service. This can be the same as the purchase Date.
- Warranty of the Asset. This will not affect anywhere in the accounts, but more information can be stored through the warranty tab.
Other details are extra fields for vehicles to enter their registration information. This can be updated anytime.
After saving the "NEW" Assets by any of the above methods (import from excel or create a new \ used Asset window), the User can purchase the New Asset.
Purchase Asset
As discussed earlier, when a User creates a new Asset, the Cost cannot be entered through the Asset profile window; hence, the depreciation schedule is not there. This Cost must be entered through the purchase new Asset Menu by creating a bill and then paying or making a direct payment.
To do this, Go to Fixed Assets-->Purchase Asset
To generate a bill for a new Asset,
Go to Fixed Assets-->Purchase New Asset-->Create Bill for New Asset
Create Bill for New Asset
Go to Fixed Assets-->Purchase Assets-->Create Bill for Purchase Asset
- Select the supplier name from which the fixed Asset is bought.
- Select the accounts payable Account (If more than 1) where the User wants to track this payable Amount.
- Enter the Ref. no of the bill
- Date of the bill
- Bill No
- Bill due Date
- Memo of transaction.
Then on the right side of the Fixed Asset tab, the User can see a button for Load New Assets. Click on this button to load new assets for this particular vendor. Remember, only the assets created as new and for this vendor will be shown here. Clicking on this button requires permission if the User wants to load a new Asset.
Click Yes, and the Asset (s) will be loaded into the column. Users can enter the Asset price, Quantity, other charges, or total Amount for the Fixed Asset. Whatever information entered here will be updated to the fixed Asset profile, and Depreciation will be scheduled automatically.
If the User enters the bill, this bill can be paid usually now through an accounting Module using any of these three windows.
- Cash to pay bills.
Go to Accounting-->Cash Payment-->Cash Pay Bills-->Create Cash Pay Bills - Cheque to pay bills
Go to Accounting-->Cheque Payment-->Cheque Pay Bills-->Create Cheque Pay Bills. - Bank transfer to pay bills
Go to Accounting-->Bank Transfer-->Bank Transfer To Pay Bills-->Create Bank Transfer To Pay Bills.
The other method is direct payment. Rather than entering the bill, the User can make direct payment for this fixed Asset. There will be no accounts payable in direct payment as we are recording the Cost and payment for the fixed Asset simultaneously. But the User has to select the Load New Asset button to load the Asset in these forms.
All three forms have the same procedure, but only the payment method differs.
- Cash Payment will be in Cash, and the Cost of assets will be recorded.
- Cheque payment is through the bank with additional columns for Cheque no and cheque Date.
- A Bank Transfer is a payment for a new Asset through a transfer from the bank.
Important: The forms in the purchase new Asset window (Enter Bill, Cash payment, Cheque payment, or Bank transfer) are also available in the accounting Menu; the reason to use them from here is the option "Load New Asset," which is not available in accounting Menu.
After purchasing, the Asset using payment, Go to Reports-->All Posted Accounting Entries List.
Users can see the Payment entry here.
Then Go to Fixed Assets-->Fixed Asset List, then search for the Asset created and Purchased.
Go to Depreciation. Their User can now find the depreciation details
After entering the Cost of new assets, the Depreciation will show automatically in this window and reports.
- The total cost of assets
- Service Start Date
- Asset life in years and months
- Expiry Date
- Opening Depreciation balance to be deducted from Cost and calculated net book value.
- Opening Balance Date
- Net Book Value of an Asset
- Remaining Life of the Asset as depreciation periods + 1 line for opening balance (e.g., remaining life 43 + 1=44 calculated periods) and Account No for Accumulated Depreciation, which is pre-filled if category settings exist.
The table shows monthly Depreciation for fixed assets equally for the remaining Life and netbook Value.
This schedule can be exported to excel by clicking the Export to Excel button.
Update Depreciation
After entering the Cost of a new Asset, the Depreciation is ready to be posted anytime for new and used assets. Depreciation is calculated automatically, but the User must click the Update button to update the monthly Depreciation.
To Do this, Go to Update to Accounting-->Fixed Assets Update-->Update Depreciation.
In this window, select the month for which the Depreciation needs to be posted.
Select View how the User wants to post Depreciation either by each Asset or by categories as one category total category Amount.
They posted a dropdown to select if the User wants to see the posted Depreciation or not posted.
Select the Number of JVs either User wants to post Accounting all assets in one JV or a separate JV for each Asset.
Enter the transaction Number. (By default, it's coming from the Journal voucher series)
Select the Customer name if Depreciation is for the Asset used for a specific Customer.
Tick mark the Asset (s) to post Depreciation and click the update Accounting button. Entry will be updated to Accounting.
After that, Go to Reports-->All Posted Accounting Entries List
Users can see the Journal entry for the Posted Depreciation
Dispose of Asset
Now to Dispose of the Assets,
Go to Fixed Asset-->Disposal-->Dispose of Asset
- Select the Asset from the dropdown.
- Asset information will be shown, including purchase Date, opening balance Date, price, Life, and netbook Value.
- Select the disposal reason.
- Write the disposal/selling Value in the selling Amount Field.
Important:
This Field will not affect any amounts in the automatic disposal entry in Hinawi Software. This is just a record, and the User will have to manually make the receipt or adjustment entry for the Amount received. - Select the Disposal Date. This Date is very important. Suppose Depreciation before this Date is not posted to Accounting. In that case, the System will not allow the Disposal of the Asset and will ask the User to update Depreciation to Accounting before this period.
- Write any additional notes.
- The original Value of an Asset,
- Down their User can see the Total Depreciation of this fixed Asset, including opening balance (if any) plus updated Depreciation to Accounting.
- Depreciation for the period is the difference in Depreciation posted for the month and when the Asset is disposed of (Disposal Date). E.g.. if the Asset is disposed of on 25 January, where the Depreciation for the whole month of January has already been posted to Accounting, this depreciation Value will be a reversal for seven days of January that are already posted.
- Total Asset depreciation is the difference between the above two amounts.
- Net Book Value is the difference between the original value and total Asset depreciation.
After entering this information, save the Disposal. This Disposal will not take effect before approval.
Update Disposal
Since the fixed Asset has been disposed of, the User can update this disposal entry to Accounting.
Go to: Update to Accounting-->Fixed Assets Update --> Update Disposal
A window will appear with all approved disposals. Tick mark one to update and click on the Update Accounting button.
The System will open a new window with a JV showing the reversal of Cost and accumulated accounts and closing to Disposal accounts. These accounts are filled from category settings. Users cannot change anything in this entry and click the save button to post this entry to Accounting.
Important:
Remember, this will reverse the Cost and accumulated Depreciation, and the User must enter the Disposal receipt manually.
All the entries User can find it in the All Posted Accounting Entries List
Go to Reports-->All Posted Accounting Entries List
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