AP TO FA FLOW

1. Create Standard Invoice in AP (Enter Asset Clearing Account in Distributions(Asset Category), Validate, Create Accounting).
2. Pay the Invoice in full (Format, Create Accounting).(Optl)
3. Run Payables Transfer to General Ledger (Only invoices that are transferred to GL will be transferred to FA).
4. Run Mass Addition Create in AP (GL date should be Invoice GL date).
5. Run Mass Additions Create Report in FA (View output to confirm the process).
6. Navigate to Prepare Mass Additions in FA (Query based on AP invoice number, change the Queue to Post, add the required fields and click on done).
7. Navigate to Post Mass additions (Run the program).(New Asset number for the above process will be in the output file,Now the asset is ready).

Fixed Asset Accounting

Asset Additions

Asset cost A/c------------------------------Dr
         Asset Clearing A/c------------------Cr

Asset Retirements

Accumulated depreciation A/c--------------Dr
Retirement gain/loss A/c----------------------Dr(Asset book)  
        Asset cost A/c----------------------------Cr


Asset Retirements with Proceeds of sales

Accumulated depreciation A/c--------------Dr
Proceeds of sales A/c--------------------------Dr
              Asset cost A/c------------------------Cr
              Gain/loss A/c-------------------------Cr

Asset Reclassification

Asset cost A/c------------------------------Dr (New Asset Category)
Accumulated depreciation A/c-----------Dr (Old Asset Category)
        Asset cost A/c------------------------Cr (Old Asset Category)
       Accumulated depreciation A/c------Cr (New Asset Category)

Depreciation

Depreciation Expense A/c-----------------Dr
        Accumulated depreciation A/c------Cr

When Cost adjustment made, amount is increased

Depreciation Expense A/c-----------------Dr
Asset cost A/c-------------------------------Dr
          Accumulated depreciation A/c------Cr
          Asset Clearing A/c--------------------Cr

Same entries will be reversed when amount is decreased
These accounts are taken from asset category