Fixed Assets is not just about acquiring the asset and listing it on the Balance Sheet. Each year depreciation is charged and the written down value needs to be tracked for the next year's depreciation charge. At the end of the life of the asset it may be sold which will have implications for Profit & Loss. Also, as a major asset with a long life span, other information will be important for the management of the asset.
Currently Reckon One Fixed Assets allow for the same configuration as other Chart of Account categories. Fixed Assets category should be expanded to contain generally required information for asset management.
Basic Information includes:
Asset Name
Acquisition Date
All up Cost - Purchase + other initialization costs
Serial Number
Location
Expected Life
Depreciation Method
Further information that may be valuable, depending on the nature and size of the business is:
Asset Description
Purchase description - New/Old
Supplier
PO Number
Warrantees
Depreciation Schedule - Date, Amount, Written down Value
Disposal - Date, Price, P/L on written down value
Notes
An advanced feature would be an Asset Register where all Assets can be listed in one spot with added information, such as:
Maintenance Schedule
Maintenance Costs
Repair Costs
Asset Groups - collect low priced assets and depreciate as one item.
Creation of the Fixed Asset Item should also give an option to create a series of sub-accounts that are generally used:
Equipment (header account)
At Cost (subaccount)
Depreciation (subaccount)
