GL Transactions in Fixed Assets
The following unposted transactions are created when you run Fixed Asset Transaction Post for each activity. See
Accounts for details.
When the asset depreciation is posted, the following accounts are affected:
• The depreciation expense debits the Periodic Expense account.
• The depreciation expense credits the Accumulated Expense account.
When an asset is retired, the following accounts are affected:
• The acquisition cost credits the Asset account.
• The accumulated depreciation debits the Accumulated Expense account.
• The amount of the sale debits the Asset Suspense account.
• If there is a gain on disposal, the Gain on Disposal account is credited. If there is a loss on disposal, the Loss on Disposal account is debited.
When an asset is transferred within the same entity and different locations, the following accounts are affected:
• The asset-acquisition cost credits the Asset account for the old location and debits the Asset account for the new location.
• The accumulated asset depreciation debits the Accumulated Expense account for the old location and credits the Accumulated Expense account for the new location.
When an asset is transferred between two entities, the following accounts are affected:
• The asset-acquisition cost credits the old entity and debits the new entity. The asset-acquisition cost also updates the Cross-Company Fixed Assets account for the domain using the intercompany codes associated with each entity.
• The accumulated asset depreciation debits the Accumulated Expense account for the old entity and credits the Accumulated Expense account for the new entity. The asset-acquisition cost also updates the Cross-Company Fixed Assets account for the domain using the intercompany codes associated with each entity.