Fixed assets - no date field

1

Hi,

Just started to use the software and it is great.

One thing I have found it that the fixed asset tab, does not allow you to specify a date. Clearly this means a problem for the balance sheet. I am using version 23.12.12.1221

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Thanks!

2

The form you showed only defines the asset. The date comes in when you record the acquisition with a payment or purchase invoice.

1 Like
3

I see thanks. I did not realise this could link via Fixed assets, at cost, using a journal entry:

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I can now also set the acquisition cost here instead of when defining at asset creation as I was doing.

This is a single owner business and the purchase was made outside of the business account but for the business so Owner’s equity is being increased.

Thanks

Nick

4

Since this was a new purchase, you should have used an expense claim, not a journal entry.

5

Not sure why this would be the case, considering this is a sole trader business. I looked at the expense claim option but it does not seem to fit what I am after. Of course I could be missing something.

7

It is exactly what you are after. See the Guide: Use expense claims | Manager. You, as the owner, paid an expense that could normally have been paid by the business. You are correct that your owner’s equity might be increased. There are two ways this could be handled:

  • If you are using a capital account, all capital account members are automatically expense claim payers. Enter an expense claim and it will be posted to your capital account, the equivalent of a contribution of capital.

  • If you are using an owner’s equity account, first define yourself as an expense claim payer. You then have the option of reimbursing yourself for the purchase to clear the liability established by the expense claim or using a journal entry to clear the liability, debiting the Expense claims account and crediting your owner’s equity account. This is especially convenient if you also have expenses incurred through allowances. (There are examples in the Guide linked above.

No, I definitely did not. No payment was made from any bank or cash account of the business. The asset was purchased with private funds. That is what expense claims are for.

8

Thanks for the clarification. So to keep this simple I have created expense claims for each financial year (adding relevant asset transactions) and put the date on the first day of it so that the depreciation calculation works as expected (from a tax perspective). I can then also add a single journal entry at the end to debit Expense claims and Credit Owner’s equity.

I am still getting used to this, but keen to get this (as close to) right from the start.

9

Now you are confusing me. Although you did not say so explicitly, the tenor of your earlier posts conveyed the impression you were just setting up this business and had purchased a fixed asset with your own money as part of the startup.

If the business has been going for some while under a different accounting system, that is an entirely different situation. If that is the case, you should not be using expense claims; instead, you should define starting balances for acquisition cost and accumulated depreciation as of the date you start doing your accounting with Manager. The starting balances are the closing balances from the prior system. This is called migration and is the only time starting balances are used in Manager.

10

Sorry yes I see what you mean. This is quite a new very small business, and trying to bring everything in (no existing accounting) I have just been learning how everything works (adding some examples etc) and I am trying to find the way this should be done in a simple efficient way. Anyway I think I am getting there