Hello dear Users,
I would like to request @lubos To Add Location To Fixed Assets And A tab named Fixed Assets Transfer in manger Similar to like For Inventory:-
Here is The Reason For My request:-
Let’s Take the Same Example In My Another Topic-
So, Each Complex Is Represented by a project.
They have Many Construction Related machines Which are Transferred From One Project to Another Frequently According to their need at Various Project Sites. So, We Have A Fixed Assets Location Then We Create Different Locations Each Named as A Project and with Fixed Assets Transfer Tab We can Transfer Machines Between Different Sites.
Note:- Yes, I can Track Location With The Help of Custom fields But There is a cache Here-
We cannot Track the Location history with Custom fields ( if used For location ).
You’ve been asking for a good suggestions over the past days and worth considering them.
Regarding your topic here, I would appreciate having such a tab and detail in Manager. However, especially since these transfers will not be repeated much during the fiscal year I can make appropriate adjustments to this process by creating an account of the asset repeatedly in all divisions and when there is a transfer of an asset between divisions I can record this through journal entries.
The procedural obstacle will be the book value of the asset at the time of transfer as the depreciation of the asset will have to be calculated during the financial period before transferring. Here we are facing a problem in the way that Manager treated the assets depreciations – there are other topics discussing that – but this option is available to me without going into battles with experienced forum members to demand improvements that they will often see as unnecessary contrary to what you and I believe.
You are trying to use an accounting program to keep track of the physical location of construction machinery. But, as you described your situation, there are no accounting aspects of moving a machine. So just use a custom field to record the current location. You complain that you cannot track the location history. Why does that matter to you in your accounting records? It has no financial or accounting impact. The impact of moving fixed asset costs and accumulated depreciation should be recorded using divisions, not locations.
Do you think this is not contradicts, for example, with the financial statements, especially the balance sheet of different divisions for several dates?
@Ehab, if you are directing your question to me, I do not think my answer represents a contradiction. As I mentioned, when a fixed asset is transferred from one division to another, both costs and accumulated depreciation must be transferred. My point was that much more is involved than a simple change of location. Several journal entries would be required. This is why I oppose the concept of recording fixed asset location changes the same way as inventory is moved from one location to another. It’s an entirely different set of financial transactions. You can change inventory location without affecting the balance sheet at all. (However, changing location of inventory is also not the same as transferring ownership of inventory on hand from one division to another.)
Sorry, I always mistake with reply for posts. Yes I was asking you.
Is it not logical to allocate the burdens of acquiring the asset to the divisions it belongs to?!
If the asset is transferred with all the burdens of its acquisition such as depreciation expenses to another division, while the same asset participated in generating revenues during the same period in another division, this gives false results for the profits and loss of these divisions
Hello @Tut ,
Yes , Moving of Assets has no direct Impact on financial Statements.
first Thing I should Say here is in my example Machines are Moving from One Project to Another in the Same Division. So, By Creating Location and Transfers We Can Get A Overview Of Location of Fixed Assets At Any point of time during the year.
and
Now I will Define Its Indirect Effect on Financials:-
As you Know we have to apportionment the Fixed Expenses of the machines to projects According to their Time spend on the project.
Yes, it can be Recorded At The Time of movement of assets. But, in absence of history They is no way to check weather The Expenses are Correctly Apportioned to Projects.
Yes , it is possible to use this method if transfer is inter-divisinol. But if transfer is intra-divisnol then this method fails.
Like a machine is transferred from one project to another and both projects are located in same division according to hierarchy of Organization.
@Omnipotent.inc, your latest post reinforces the fact that you are not dealing with accounting transactions. So this feature has no place in accounting software.
I think that both of you are right. From a pure accounting point of view the assets belong to the legal entity that for example is fiscal responsible to the tax authorities, or responsible for insurance premiums, bank accounts, etc. For pure accounting there is no need to know any details beyond acquisition costs and depreciation.
However, we would benefit from having a Fixed Assets Register in Manager (we currently use a spreadsheet for this but it would be great if we could do this in Manager) where we can record details such as:
Asset name
Unique asset identification number (we tag them)
Asset acquisition cost
Expected usage expressed in months or years
Asset location
Responsible unit (in @Omnipotent.inc case should be able to select from Division, Project, Company, etc)
Accumulated depreciation for the asset
Salvage value assigned to the asset
I don’t think we have to treat them similar to inventory although it would be attractive to see the movement of assets and changes in responsibility. We have lots of donor projects and when a project ends they often advise us where the fixed assets can be transferred to. At that stage the value has reduced but usage and responsibilities change. So from a very practical perspective but to a certain extent accounting as well (expected usage can change and thus also depreciation) being able to keep the register in Manager and being able to transfer the assets internally would be an excellent idea.
What is wrong with copying the Fixed Assets tab listing to a spreadsheet? Custom fields can be set to show as columns in the list. This concept is illustrated (for another purpose) in the Guide: https://www.manager.io/guides/7277. Different jurisdictions may dictate that different information be recorded; and different organizational structures may require various facts to be included.
I don’t think this is a realistic expectation. How would you show movement or changes? You can show status, but movement can only be displayed in a report like the Fixed Assets Summary, which we already have.
There is nothing wrong with that, I already indicated that we do use a spreadsheet at the moment as register. However, managing and Assets Register that includes location and transfer is common in for example:
Quickbooks online; In the asset information section when recording fixed assets you can specify the fixed asset location, the purchase order (PO) and serial number, and the warranty expiration date.
Xero handles it similar to Manager does not include location either but applications such as integrations Asset Guru does. I agree that Manager can not turn itself into specialized applications such as Asset Guru and Oracle and Asset Guru both expensive.
One can easily add a custom field for location. So is ok whatever is decided but it would help if treated like basic QBO.
Hello @Tut ,
Again You Are Not Understanding The Reason Behind My Idea.
So, Here is the Another Explanation-
Now There is 3 Projects in a Same Division.
And There is a Machine Which is to be used in all 3 Projects in the Next month.
( Machine Has A Dep. of Rs 1000 Per Day And This Dep. Has To Be Charged to All Projects )
Now,
Machine Worked on Project 1 For 10 Days
then Machine is in transport for next 3 days
then machine worked on project 2 for 10 days
then Machine is in transport for next 3 days
the machine worked on project 3 for 4 days this month.
so, dep should be allocated as follows-
project 1- 1000 X 10 = 10000
Project 2- 1000 X 10 = 10000
Project 3- 1000 X 4 = 4000
and this is allocated as stated above using Dep. entries tab.
But After The End of the month , auditor wants to check weather dep. is properly allocated among the projects or not And For this He needs Movement History of that Particular Machine to check.
if there is Fixed Assets Transfer Tab Then we Can Easily Give The Req. data to auditor to check.
but if we use Custom Field to Display the Status of machine then
how Should we Provide the Location History to the Auditor for Checking ? @Tut
I do not misunderstand you, @Omnipotent.inc. I disagree with you. Explaining again and again will not change my view. Your suggestion has flaws I have already explained.
However, especially since these transfers will not be repeated much during the fiscal year I can make appropriate adjustments to this process by creating an account of the asset repeatedly in all divisions and when there is a transfer of an asset between divisions I can record this through journal entries.
