Fixed assets
Fixed assets are items of value, such as buildings, vehicles, land, and equipment, that are owned by an individual or a company.
You can set up and enter acquisition information for fixed assets, and then manage them by depreciating them and setting a capitalization threshold to determine depreciation.
The following are tasks that you can perform in the Fixed assets module:
- Create fixed assets
- Capitalize fixed assets
- Transfer or lend fixed assets
- Revalue or update fixed assets
- Split fixed assets
- Depreciate or amortize fixed assets
- Dispose or retire fixed assets
When you use general ledger with fixed assets, you can view the current value of all fixed assets.
The way in which fixed assets are handled must correspond with both international accounting standards and the accounting legislation in each country or region. Requirements might include rules for recording acquisition and disposal transactions, depreciation, lifetimes, and write ups and write downs of fixed assets.
The fixed assets functionality in Finance incorporates many of these standards and rules.