13.13 Asset

As an accounting term in the balance sheet, Assets represent the resources owned by the company, whether tangible (cash, inventories) or intangible (patent, goodwill). Assets may have a short-term time horizon – such as cash, accounts receivable, or inventory – or a long-term value, such as equipment, land, or buildings. The Asset sub module in the Accounting Box refers to long – term and fixed assets. You can register, depreciate, or scrap these fixed assets in this module. In this Chapter, we will introduce how to manage fixed assets with 2BizBox, and the related accounting operations.

13.13.1 Asset Type

You can start Asset Management by adding Asset Types. Under the “General” tab of “Accounting Box – Asset,” click “All Asset Types” to view all Asset Types in the system. At the search results, click “2Add” to add a new Asset Type. 

ID: Self-defined ID for the Asset Type.

Asset Type: Buildings, plant, machinery, vehicles, etc.

Click “2Add” to create an Asset ID, and open “Update Asset Type” interface, in which you can update the Asset Type Description. Then, click “2Update” to submit. 

13.13.2 Add Asset Card

Asset Cards established in 2BizBox ERP are prepared for counting and drawing fixed assets, so that no GL Transactions will be generated. You can manually make GL transactions in the GL sub module through different access to the fixed assets.

To add an Asset Card, click “2Add Asset” under the “General” tab to open the Add Asset interface.

Fill in the Asset # and desciption, then click “2Add” to open the Update Asset interface. 

The Update Asset Interface requires the user to fill in detailed information, including General Information, Equipment Information and Accounting Information.  

General Info

• Asset #: Self-defined Asset # when adding the Asset Card; cannot be changed once established.
• Asset Type 1: Select the asset type from the dropdown menu. 
• Location: Fill in the location where the asset is utilized; can be used as a search criteria.
• Status: The current status of the Asset Card; can be “OPEN,” “CLOSED” or “SCRAPPED.” 
• Assets in a “CLOSED” Asset Card have finished depreciation and the value equals the net residual value. Assets in a “SCRAPPED” Card have finished the scrapping process. Assets out of the previous two statuses will remain “OPEN,” such as in use, unused, on transfer, in depreciation, etc.
• Quantity: Quantity of the fixed asset.
• Asset Type 2: Make up for Asset Type 1.
• Ref Document 1/Ref Document 2: Fill in the reference doc# if there is one.
• Description: Fill in a description of the asset.
• Department: Select the ID of the department that owns this asset.   Comments: Fill in any necessary comments necessary.

Equipment Info

• PO #: Fill in the PO# that purchased the asset.
• Purchase Date: Fill in the purchase date of the asset.
• Pay Date: Fill in the date that payment is made.
• Receive Date: Fill in the date that the asset is received.
• Serial #: Fill in the Serial # made by the manufacturer for future tracking.
• Principal: Fill in the principle’s name.
• Manufacturer: Fill in the manufacturer’s name of the asset.
• Manufacturing Code: Fill in the manufacturing code given by the manufacturer.
• Technique Status: Fill in the technique status of the asset when it was purchased.
• Specification Model #: Fill in the Specification Model of the asset.
• Project Name: If the asset is utilized in the project of the company, fill in the project name.

Accounting Info

• GL Account #: Select the CU and Account# of the asset; this should usually be the ACCT “FIXED ASSET”.
• Amor. Expense ACCT#: Click the “Edit” button to set the depreciation account according to different usage of the fixed assets. E.g. for fixed assets used in the workshop, the depreciation values are counted in “Manufacturing Expense.” 
• Acquisition Cost: Cost of the asset might include purchasing price, tax, transportation, installation, etc.
• Foreign Currency: Select a foreign currency if the asset is calculated in foreign currency. 
• Foreign Currency Cost: Record the foreign currency cost, but the original value in asset depreciation will still use the “Acquisition Cost.”
• Depreciate Status: Indicate if the asset requires depreciation. 
• Depreciation Type: 2BizBox uses the Straight-line method to depreciate fixed assets.
• Using Status: Using status of the asset can be “In Use,” “On Hire” or “No Use.”
• Useful Life (Year/Month): Fill in the useful year and month of the asset.
• Accumulated Depreciation: If the asset has been depreciated out of the system, fill in the accumulated value when establishing the asset card; if the asset is depreciated in the system, the value will be filled automatically.  
• Initial Depreciation Month: Fill in the month if the asset is depreciated before entering into the system.
• Depreciate Start Date: Set the start date of depreciation; usually it is the first day of the month after the date recorded. Increased fixed assets in the current month will start depreciation since the next month.
• Depreciate End Date: Set the end date of depreciation; after this date the asset will stop depreciating.  The End Date will automatically be calculated by the formula: End Date = Start Date + Useful Years. You can also set this manually. 
• Accu. Depr ACCT#: Asset Depreciation Account is set in “Company Accounting Settings.” 
• Net Sal Rate: Fill in the net salvage rate of the asset.
• Initial Book Value: Fill in the initial value of the asset when entering the record.

After all of the information above is filled out, click “OK” to submit the Asset Card. The system will calculate the monthly depreciation value, rate, and yearly depreciation rate of the asset.

Clicking the three tabs “Usage Records,” “Asset Dashboard,” and “Depreciation Detail” on the Asset Properties will show the asset’s status. 

Under “Usage Records,” click “2Add” to record the usage or lease details of the asset.

Under “Asset Dashboard” you can view the Depreciation status and rest value in the form of a bar chart. 

The “Depreciation Detail” tab will list the Asset’s depreciation detail with Period, GL# and other information.

13.13.3  Look Up & Search Asset

13.13.3.1 2Lookup by Asset#

Fill in a complete Asset # and click the button to view Asset Properties. 

13.13.3.2 2Search Asset by Asset#

Fill in the keywords of an Asset# to search for Assets.

13.13.3.3 2Search Assets by Various Conditions

Use multiple conditions to search for Assets.

13.13.3.4 All Assets

Click this button to view all Assets in the system.

13.13.4  Asset Depreciation

2BizBox uses “Straight-line Depreciation” method to do asset depreciation. The depreciation is accrued by month. Asset Depreciation can be operated under “Accounting Box – Asset – Asset Depreciation.” 

Select a period (month), Asser # and other information required. Check “Show All” will show all assets in the search criteria, including assets need depreciation and those don’t need depreciation. If not checked, you’ll only get assets required to be depreciated in the accounting period.  

The search result will be shown as below. Select assets require depreciation:

Click “Post Depreciation” at the bottom right corner to confirm depreciation:

Click “No” will quit the whole process. To continue, you’ll need to click “”Post Depreciation” again to start over. Click “Yes” to will process depreciation to the assets selected, and the GL Transaction will be generated.

Debit: Fixed assets amortization account

Credit: Accumulated depreciation account

When the fixed assets are fully depreciated in the using period, the asset card status will become “CLOSED.”  

13.13.5 Asset Scrap

When some fixed assets are required to be scraped during the using period, you can process asset scrap in asset properties. Click the “Scrap” button at the bottom to process scrap. 

Select the Asset Liquidation Account, fill in the summary and then click “OK” to scrap the asset. 

The credit and debit info is as follow:

Debit: Fixed assets amortization account

Credit: Accumulated depreciation account

13.13.6 Asset Depreciation Report

13.13.6.1 Asset Depreciation Yearly Report

Select a fiscal year to run a yearly asset depreciation report. Other conditions for defining the report include Asset#, type, department ID, location, asset status and Amor. Expense Account#. 

13.13.6.2 Fixed Assets Disposals

Fill in Asset# and other information to search fixed assets that finish depreciation during the certain period, and show the total. 

13.13.6.3 Fixed Assets Additions

Fill in the Asset # and other information to search fixed assets purchased during a certain period, and show the total in search result.

13.13.6.4 2Search Depreciation

Search the fixed assets should be depreciated during the accounting period, and show the total in search result.