Accounts

QAD 2017 Enterprise Edition > User Guides > Fixed Assets > Introduction to Fixed Assets > Base Data > Accounts

Accounts

Fixed Assets uses the following account data set up with functions on the GL Setup Menu (25.3):

• GL accounts

• Sub-accounts

• Cost centers

• Project codes

In Domain Create (36.1.1.1.1), you enter the GL intercompany account, sub-account, and cost center for tracking transfers of fixed assets between companies.

In Location Maintenance (32.1.13), you optionally enter a sub-account and cost center for each location.

In Class Maintenance (32.1.17), after maintaining the books, you set up default GL accounts for each class-book combination. Fixed-Asset Accounts lists the account types you need to set up in Account Create (25.3.13.1).

Fixed-Asset Accounts


Account	GL Type	Category	Debit/ Credit	Description
Asset Account	Fixed Asset	Asset	Debit	Tracks the acquisition cost of a fixed asset.
Accumulated Expense	Standard	Asset	Credit	Tracks the amount of depreciation that has accumulated and been posted since the start of the depreciation calculation.
Periodic Expense	Standard	Expense	Debit	Tracks the amount of depreciation expense for the accounting period.
Construction in Process (not currently used)	Standard	Asset	Debit	Tracks the purchase cost of a fixed asset.
Gain on Disposal	Standard	Income	Credit	Tracks gains from fixed asset disposal.
Loss on Disposal	Standard	Income	Debit	Tracks losses from fixed asset disposal.
Asset Suspense	Standard	Liability	Debit	Tracks the disposal value of a fixed asset (proceeds of sale).

In Fixed Asset Maintenance (32.3), you can modify the default account data for each individual asset. You can also add a project code.

Example:

This example illustrates the fixed asset accounts used during the sale of an asset.

You acquire an asset for $10,000.


Account	Dr	Cr
Asset Account	10000
Construction in Progress		10000

In time, the asset depreciates in value.


Account	Dr	Cr
Period Depreciation	278
Cumulative Depreciation		278

You retire (sell) the asset for $8000.


Account	Dr	Cr
Asset Suspense	8000
Loss on Disposal	1722
Cumulative Depreciation	278
Asset Account		10000

The system debits the asset suspense account with the proceeds of the asset sale. A sales invoice is raised for the sale and the asset suspense account is credited.


Account	Dr	Cr
Accounts Receivable	8000
Asset Suspense		8000

Payment for the asset sale is collected using the Accounts Receivable module. For more information on the Accounts Receivable module, see QAD Financials User Guide.