Create or dispose fixed assets

How to

Add a fixed asset record with basic details only

You can create a fixed asset without knowing all the depreciation details that you want to enter, although it won't become active A fixed asset becomes active when you enter the depreciation details. You can only depreciate and dispose of an active asset. (you won't be able to depreciate or dispose of it) until you do enter the depreciation details.

Open: Nominal > Fixed Assets > Enter New Asset

Click into the Code field and add a unique identifying code for this asset.
Add a description of the asset to help your colleagues identify it. This description will be shown on reports and enquiries.
Enter the Initial value of the asset.
Enter the date you purchased the asset in the Date acquired box.
If you are entering details for an asset that has already been depreciated outside Sage 200, enter the date it was last depreciated. Otherwise, leave this blank. When you make an asset active and post depreciation for the asset, the Last depreciated date is updated automatically.
If you want, and you have this information to hand, you can also enter the name of the asset Manager, the Location of the asset and any other information you want to record for the asset in the Analysis boxes.
Click Save.

Add a fixed asset record with depreciation details

You can create a fixed asset with all the depreciation details, and make it active A fixed asset becomes active when you enter the depreciation details. You can only depreciate and dispose of an active asset..

Open: Nominal > Fixed Assets > Enter New Asset

Click into the Code field and add a unique identifying code for this asset.
Add a description of the asset to help your colleagues identify it.
Enter the Initial value of the asset.
Enter the date you purchased the asset in the Date acquired box.
Enter the fixed asset Depreciation Details:

Enter the Depreciation method. You can measure depreciation by period or annually, using either straight line Straight line depreciation is normally used if you forecast that the use of the asset is spread evenly across the time period of its use. The asset's value is reduced by a percentage value based on the initial value, the residual value and the asset life span in years or periods. The value of depreciation remains the same each time. or reducing balance Reducing balance depreciation is normally used if you expect an asset to wear out quickly. The asset's value is reduced by a percentage of the Net Book Value which reflects the asset's current worth, every year or period until it is reduced to a realistic scrap or write off value. depreciation.

Enter the current Net book value. If the asset is new, this will be the same as the Initial value. If it has already been depreciated outside Sage 200, change this to show the current value of the asset (i.e. Initial value less depreciation).
Choose the nominal accounts for this asset's depreciation postings.

The Nominal accounts should have been set up already in Default Nominal Accounts screen.

Balance sheet account: when an asset is depreciated, the value of the depreciation is added to this account as a credit.

If you select the account which holds the asset value, you will see the reduced value when depreciation is posted.
If you select a separate account for depreciation, you will see the amount depreciated in this account.

Profit and loss account: when an asset is depreciated, the value of the depreciation is added to this account code as an expense to the company as a debit posting.

Straight Line depreciation:
1. Enter the asset's Residual value. This is the value that you estimate would be the sale value at the end of the asset's life.
2. Enter the expected Asset life span. If you are depreciating by period, enter this in periods. If you are depreciating annually, enter this in years.
Reducing Balance depreciation: Enter the Annual percent or Period Percent to apply.
- Annual Reducing Balance: The Annual percent rate will be applied each year.
- Period Reducing Balance: The Period percent rate will be applied to each period.
  
  This percentage is applied to the remaining value of the asset each period, so take this into consideration when you work out the percentage to use. For example, say you want to depreciate an asset by 50% over 5 periods, you would need to use a rate of around 12.94%. But if you set this to 10%, it would only depreciate the asset by around 41% over 5 periods.
  
  To calculate the Period percent for a set number of periods:
  1. Click the % button, next to Period percent.
  2. Enter the Total percent to depreciate, and the Number of periods over which it will be depreciated. The Result shows period percentage rate.
    
    For example, if you set the total percent to 50% and number of periods to 5, that would give a rate of 12.94%.
  3. Click OK to use this percentage rate.

If you are entering details for an asset that has already been depreciated outside Sage 200, enter the date it was last depreciated. Otherwise, leave this blank. When you make an asset active and post depreciation for the asset, the Last depreciated date is updated automatically.

You can also enter additional details about the asset.

These are all free text, and any details you enter can be quickly selected again from a list when you enter other fixed assets.

Manager

Enter the name of the employee who is registered to use the asset.

Location

Enter the location of the asset.

Analysis 1

Analysis 2

Analysis 3

Enter any information that you want to record for the asset in the Analysis boxes.

Click Save.

Make a fixed asset record active

A fixed asset record won't become active A fixed asset becomes active when you enter the depreciation details. You can only depreciate and dispose of an active asset. until you enter the Depreciation Details.

Open: Nominal > Fixed Assets > Amend Asset

Enter the Depreciation method. You can measure depreciation by period or annually, using either straight line Straight line depreciation is normally used if you forecast that the use of the asset is spread evenly across the time period of its use. The asset's value is reduced by a percentage value based on the initial value, the residual value and the asset life span in years or periods. The value of depreciation remains the same each time. or reducing balance Reducing balance depreciation is normally used if you expect an asset to wear out quickly. The asset's value is reduced by a percentage of the Net Book Value which reflects the asset's current worth, every year or period until it is reduced to a realistic scrap or write off value. depreciation.

Enter the current Net book value. If the asset is new, this will be the same as the Initial value. If it has already been depreciated outside Sage 200, change this to show the current value of the asset (i.e. Initial value less depreciation).
Choose the nominal accounts for this asset's depreciation postings.

The Nominal accounts should have been set up already in Default Nominal Accounts screen.

Balance sheet account: when an asset is depreciated, the value of the depreciation is added to this account as a credit.

If you select the account which holds the asset value, you will see the reduced value when depreciation is posted.
If you select a separate account for depreciation, you will see the amount depreciated in this account.

Profit and loss account: when an asset is depreciated, the value of the depreciation is added to this account code as an expense to the company as a debit posting.

Straight Line depreciation:
1. Enter the asset's Residual value. This is the value that you estimate would be the sale value at the end of the asset's life.
2. Enter the expected Asset life span. If you are depreciating by period, enter this in periods. If you are depreciating annually, enter this in years.
Reducing Balance depreciation: Enter the Annual percent or Period Percent to apply.
- Annual Reducing Balance: The Annual percent rate will be applied each year.
- Period Reducing Balance: The Period percent rate will be applied to each period.
  
  This percentage is applied to the remaining value of the asset each period, so take this into consideration when you work out the percentage to use. For example, say you want to depreciate an asset by 50% over 5 periods, you would need to use a rate of around 12.94%. But if you set this to 10%, it would only depreciate the asset by around 41% over 5 periods.
  
  To calculate the Period percent for a set number of periods:
  1. Click the % button, next to Period percent.
  2. Enter the Total percent to depreciate, and the Number of periods over which it will be depreciated. The Result shows period percentage rate.
    
    For example, if you set the total percent to 50% and number of periods to 5, that would give a rate of 12.94%.
  3. Click OK to use this percentage rate.

Click Save.

Amend a fixed asset record

Open: Nominal > Fixed Assets > Maintain Asset

Select the asset Code.
Make the required amendments to the asset.
- You cannot amend the Code.
  
  If you need to change the code, you can delete the asset and add it again.
  
  If you need to change the code but the residual value of the asset is greater than 0 (zero), you would need to dispose of the asset before you can delete it.
- If you have not posted depreciation for the asset, you can amend any of the other information.
- If you have posted depreciation for the asset, you can only amend the Description, Location, Manager, and Analysis 1 to Analysis 3.
Click Save.

Dispose of fixed assets

Open: Nominal > Fixed Assets > Dispose Asset

A list of assets is displayed, showing the Code, Description, Last Depreciated date, Depreciation Method, Residual Value and Net Book Value.

Note: Only assets that still have some Net Book Value are shown.

Select the assets that you want to dispose of.
Click Dispose.
On the Confirm Disposal window, select the Disposal Transaction Date.

This is the date you are disposing of the assets. This defaults to today's date.

The nominal postings and the asset transaction will have the date you specify here.

To dispose of the assets, click Dispose.

Delete fixed assets

Open: Nominal > Fixed Assets > Delete Asset

A list of assets is displayed, showing the Code, Description, Date Acquired, Last Depreciated date and Disposal Date.

Note: Only assets that have been disposed of, or where the Net Book Value is 0 (zero), are shown in the list.

Select the assets that you want to delete.
Click Delete.
Confirm that you want to delete the selected assets at the prompt.

Useful info

Creating fixed assets

You can create fixed asset records by adding some information initially and filling in the depreciation details later.

Fixed assets only become active A fixed asset becomes active when you enter the depreciation details. You can only depreciate and dispose of an active asset. when all depreciation details have been entered.

Maintaining fixed assets

Once a fixed asset record has been set up you must perform all further maintenance on the Maintain Asset screen.

If there have been no depreciation postings for the asset, you can amend any information apart from the Asset Reference. If there have been depreciation postings, you can amend the Description and the Analysis details.

What you can't change on a fixed asset record

The Code - the identifying code given to the asset once its details have been saved.
If depreciation has been posted for the asset:
- Description
- Analysis Details

Disposing of fixed assets

Use this to dispose of assets whose value is greater than 0 (zero).

Note: Disposing of an asset writes off the net value of the asset. You must account manually for any residual value of an asset.

Deleting fixed assets

You might want to delete fixed assets for the following reasons:

The asset has been disposed of, perhaps it has been traded in, is no longer used or is beyond economic repair and so can be scrapped.
The asset was set up without depreciation details and is no longer required.

You can delete assets:

That you have disposed of.
Whose Net book value has depreciated to 0 (zero).

You can't delete an active A fixed asset becomes active when you enter the depreciation details. You can only depreciate and dispose of an active asset. fixed asset if you have posted depreciation for the asset and the Net book value is greater than 0 (zero).

If you need to delete and start again because the asset has been set up incorrectly, or it has been duplicated by mistake, you must dispose of the asset first and then you can delete it.

Note: It may be considered prudent not to delete any assets until your Auditors have completed their work. This is so that they can see all of the assets for the relevant financial year. Once you delete an asset it is completely removed. There is no report or listing available for deleted assets.

Import fixed asset records

If you need to add a number of fixed asset records to your system it might be quicker for you to import their details straight into Sage 200.

See Import fixed asset records.

Fix it

I want to change the asset code

You can't amend the Code once the asset has been created and saved. However, if you really need to change the code for an asset, you can do this using one of the following methods:

If you haven't posted depreciation for the asset, delete the asset and enter it as new but with the correct Code.
If you have posted depreciation for the asset, you must dispose of the asset, delete it and add it back again.

If your new fixed asset uses the same nominal accounts for posting as the original one you are deleting, the postings will continue to go to the same nominal accounts but when you add the new fixed asset you should adjust the Net book value and Depreciation periods to take into account all depreciation already posted. Alternatively, you could post nominal journals to adjust the postings made previously and then you would just create the fixed asset again as if no depreciation had taken place for it.
If your new fixed asset uses different nominal accounts for posting, you may want to make the appropriate nominal journals between the incorrectly used nominal account and the correct nominal account.

I want to change the depreciation details

You can't amend depreciation details for an asset once you have posted depreciation for the asset. If you need to amend the depreciation method you can:

Dispose of the asset and delete it, then add it back with the correct depreciation method.

Remember that Professional Accounting Standards require a good reason for you to do this. Moving from one method of depreciation is not normally permitted, but on the grounds that you need to change so as to provide a truer and fairer view it may well be permitted. In this case you would need to consider at what point to make the change. It will involve disposing of the asset, deleting the asset and then adding it again with the correct depreciation details.

You may need to adjust the asset and depreciation accounts in the Nominal Ledger to reflect the changes for the current financial year, so you may require to post journals between these two accounts. If you need to reflect adjustments in last year's accounts, then you can use the Prior Year Journal feature, but remember that any such adjustments are only reflected in the Nominal Ledger and not in the Fixed Assets register.

I want to change the nominal accounts being posted to

You can't amend the nominal accounts being posted to once you have posted depreciation for the asset.

Dispose of the asset and delete it, then add it back with the correct nominal accounts selected.
You may want to make the appropriate nominal journals between the incorrectly used nominal account and the correct nominal account.

What happens when I

Save a fixed asset record?

When you create or amend a fixed asset record:

The fixed asset record is created and its details are available on the system.
The fixed asset record is marked as active A fixed asset becomes active when you enter the depreciation details. You can only depreciate and dispose of an active asset. if all Depreciation Details have been entered, or inactive if not.

When you delete a fixed asset record:

The fixed asset record is removed from the system.

Note: No postings are made during deletion. Postings to the Nominal Ledger only occur during the disposal and depreciation processes.

Dispose of a fixed asset record?

Using the Disposal Date, the Net book value is:

Credited to the asset's Balance sheet account.
Debited to the asset's Profit and loss account.
Set to 0 (zero) on the asset record.
A disposal date is set on the asset.

A fixed asset transaction posting is also made. This contains the following information:

Reference	The asset code.
Narrative	The description, Disposal of asset.
Transaction Date	The disposal date.
Transaction Type	This is type Disposal.
Accounting Period	The accounting period in which posting (and disposal) will be made.
Old Net Book Value	The old net book value.
New Net Book Value	The new net book value.
User name	The user name.
User number	The user number.
URN	The transaction unique number.
Posting Value	The net book value posted.

Delete a fixed asset record?

The record is completely removed from Sage 200. There is no report or listing available for deleted assets.

Note: For this reason, it may be considered prudent not to delete any assets until your Auditors have completed their work. This is so that they can see all of the assets for the relevant financial year.