In this article
Fixed Assets: Examples
Review the following transaction examples to better understand how fixed assets work in Multi-Entity Management.
To use fixed assets with Multi-Entity Management ensure that the fixed asset security option is selected on the Multi-Entity Management Setup.
An equipment fixed asset item has the following information:
- General Ledger account: 1180
- Entity: 200
Payment by Credit Card
The equipment is purchased by entity 200 and a credit card payment of 1,500.00 is made.
| 200-1180 Equipment | 1500.00 | ||
| 200-2300 Credit Card Payable | 1500.00 |
Payment to a Vendor
The equipment is purchased by entity 100 for entity 200 and a payment of 1,500.00 is made to a vendor.
| 200-1180 Equipment | 1500.00 | ||
| 100-2100 Account Payable | 1500.00 | ||
| 100-Due from 200 | 1500.00 | ||
| 200 Due to 100 | 1500.00 |
Monthly Depreciation
The equipment is depreciated monthly in the amount of 200.00.
| 200-Depr Expense | 200.00 (FA owner) | ||
| 200 Accumulated Depr | 200.00 (FA Owner) |
Equipment Maintenance Paid by Petty Cash
Equipment maintenance fees of 300.00 are paid by entity 100 through petty cash.
If the maintenance fees are paid by entity 200, intercompany transactions are not needed.
| 200-1180 Equipment | 300.00 | ||
| 100-1030 Petty Cash | 300.00 | ||
| 100-Due from 200 | 300.00 | ||
| 200-Due to 100 | 300.00 |
