4 - Configuring Fixed Asset Accounts for Detailed Tracking

Using the Fixed Asset Module for Detailed Tracking and RIMSS calculation of Accumulated Depreciation requires that all Fixed Asset accounts are set up with references to Fixed Asset.  Here we will show examples of setting up the referenced accounts, and the standard accounts that are required for automatic Depreciation calculation and reporting.

Fixed Asset Accounts and Accumulated Depreciation Accounts

Fixed Asset and Accumulated Depreciation accounts will be set up with the following configuration:

1. An account type of Fixed Asset  
2. A Reference type of Fixed Asset

Asset and Accumulated Depreciation accounts must be set up as separate accounts.  

You can set up a single Accumulated Depreciation Account to manage depreciation entries for all Fixed Asset value accounts, or you can set up a separate Accumulated Depreciation account for each Fixed Asset value account.  

You can track all assets through a single Fixed Asset value account and separate categories through reporting, or you can set up accounts for each category of fixed asset.

In my example below, I set up a separate Accumulated Depreciation Account for each value account and I separate my categories through my Fixed Asset accounts.

Depreciation Expense Accounts

In order to track YTD Depreciation Expense, you will also need to set up at least one G/L account with the following configuration:

1. An account type of Expense
2. A Reference type of Fixed Asset

You can set up separate expense accounts for each category of YTD Depreciation Expense that you would like displayed on a separate line item in financial reports, or you can track all YTD Depreciation Expense in a single Expense Account.  

In my example below, I have set up 2 categories of YTD Depreciation Expense to track on my Financials.

Once all required G/L accounts are created and referenced to Fixed Asset, you are ready to begin creating your Fixed Asset Master Records.