Fixed Assets

Fixed asset management is an important part of every organization. SAP Business One enables you to create, manage and retire fixed assets that belong to your organization. Let us dive deeper concepts into the concepts and SAP Business One forms that help us in managing Fixed Assets.

 

1.      Asset Master Data: SAP Business One lets you manage all fixed assets in the asset master data. You can create, update, and delete a fixed asset using the asset master data. After an asset is capitalized, you can view and maintain the asset depreciation details in the asset master data.

2.      Capitalization:  Capitalization is the process of recording an acquisition and production cost as a fixed asset (written off as depreciation over several accounting periods) instead of an expense (charged against earnings in one accounting period).

3.      Retirement:  In accounting, retiring a fixed asset means removing it from a corporate balance sheet and operating activities. Use this window to create retirement for assets. You can retire an asset in the following ways: Retirement through Sale, Retirement through Scrapping & Complete or Partial Retirement.

4.      Transfer: In SAP Business One, you can transfer a fixed asset to a different asset class or a different asset master data record. This may be necessary if you want to do any of the following: Assign a different set of G/L accounts to an asset, Create different asset master records for the same asset, Change the asset class of an asset for which bookings have already been carried out & Change the asset class when an asset construction has been completed.

5.      Depreciation: Each single asset transaction leads to a change in planned depreciation, but not to a posting to the relevant general ledger accounts. Only when you execute a depreciation run does the system carry out all depreciations planned up to the specified date. Use this window to enter the desired data for a depreciation run and view previous depreciation runs.