Increasing an asset's value (tutorial)

Increasing an asset's value (tutorial)

If an asset's value increases through a change in the asset the details should be added immediately to keep Fixed Assets up to date. This tutorial shows how to enter addition transactions when you add a new component to an asset, or when you buy more units for a set of identical assets held in a single asset code.

Open the tutorial database Learn how.

$image\bm1.gif$ Transactions are entered using the Transactions Tab of the List assets window. To open the List assets window either click the List assets command on the Assets menu or press Ctrl + L.

Step 1: Selecting an asset

Open the List assets window and type 'Comp' in the Search key field. The assets list will show all assets that match the word 'comp':

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This is just one of the ways assets can be selected. As well as typing part of an asset's key (or description) in the Search key field, you can also:

· Move through the list using the up arrow and down arrow keys.

· Scroll through the list with the mouse and click on a line.

These can be combined; you can enter part of the an asset key into the Search key field, and then use the arrow keys to select the particular asset you want. Try typing 'Co' into the Search key field and using the down arrow key to move to the COMP600 asset.

After you've selected an asset, you can view its details on the other tabs.

$image\bm1.gif$ Assets can be selected from any tab. This allows you to scroll through your assets while viewing their details.

Step 2: Entering an addition transaction

For this tutorial you'll upgrade the Compaq Deskpro in the sales department. This asset has had a $225.00 memory upgrade, which is to be entered as an addition. Select the COMP233 asset and click the Transactions Tab and Additions sub-tab.

To enter the addition, click the Add button. The Asset addition window will appear, prompting for the addition's details:

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Enter following information as shown in the next diagram

The Period field will automatically display 1 once you enter the date.

$image\bm1.gif$ If you type an incorrect date, you may receive a message that the date is in the wrong year.

$image\bm1.gif$ If you make a mistake with an addition (such as an incorrect date or value), you can select the addition in the Assets details list later and use the Edit button to correct the addition's details.

Leave the Revaluation check box unselected, and click OK.

The addition will now appear in the Additions details list:

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Step 3: Increasing an asset's quantity

Identical assets are often grouped together as a single asset code with the number of units stored in the Quantity field. The tutorial database has two of these assets, CHAIRSTD (which records 22 chairs) and DESKSTD (which records 18 desks). For this tutorial you'll add two new chairs to the database.

Select the CHAIRSTD asset by entering 'chairstd' in the Search key field, and click the Additions tab. Click Add to enter the addition's details into the Asset addition window:

Date 7/8/2000

Value $238.00

Quantity 2

Click OK to save the addition.

$image\bm1.gif$ For this example, the new chairs cost the same ($119.00 each) as the existing chairs. This can be checked by launching the Windows calculator from the Toolbar and checking the year opening value ($2618.00) against the year opening quantity (22). The value can also be calculated by pressing the space bar in the Value field to open the popup calculator, and entering 119 * 2 and pressing ENTER.

$image\bm4.gif$ The List assets windows will only show the year opening quantity for an asset, until the end-of-year rollover.

What next?

This tutorial has shown how to use additions to record increases in an asset's value. The next tutorial section, Building up an asset's value over time, shows how to enter additions in multiple periods for assets that grow regularly over time.