This comprehensive guide compiles key insights from SWK Technologies’ training resources on the Acumatica Fixed Assets module, demonstrating the core functionality available for tracking assets throughout their lifecycle. This built-in application delivers a wealth of extended accounting functionality – from asset acquisition and depreciation to transfers, splits, and disposal – empowering your finance team to maintain accurate records while ensuring regulatory compliance.
Leveraging insights provided by SWK’s team of expert ERP consultants as part of customer training regimens, this detailed walkthrough breaks down the essential configuration options, daily workflows, and advanced features that make this module so valuable. Whether you are setting up the Fixed Assets module for the first time or looking to optimize your existing processes, this guide will provide you with step-by-step instructions for properly configuring and managing your fixed assets in Acumatica:
Configuring Acumatica Fixed Assets to Get Started
Before you can begin tracking your business’s assets, proper module configuration is essential. SWK’s implementation specialists recommend specific settings to align the system with your accounting practices while maintaining compliance.
Essential Preference Settings
The Fixed Assets module offers several configuration options that impact how assets are processed throughout their lifecycle:
General Settings:
- Numbering Sequences: Controls how assets are numbered (located on the right side of the screen, unlike other modules)
- Fixed Asset Accrual Account: Establishes the temporary account where newly purchased assets reside before being formally set up in the Fixed Assets module
- Depreciation View: Determines how you’ll view depreciation history (by book versus side-by-side)
- Depreciate in Disposal Period: When checked, the system will calculate depreciation for the period in which an asset is disposed, affecting gain/loss calculations
- Secure Full Reconciliation before Disposal: Ensures all reconciliation is complete before an asset can be disposed
Posting Settings:
- Automatically Release: During initial implementation, SWK’s consultants recommend keeping this unchecked to allow for review of transactions before posting
- Update GL: Must be enabled to run depreciation but should be disabled during initial setup and data import
- Automatically Post on Release: Determines whether transactions immediately post to GL upon release
- Post Summary/Post Depreciation Summary: When enabled, consolidates multiple lines with the same GL account into a single entry
Books, Calendars, and Asset Classifications
Acumatica Fixed Assets uses a hierarchical structure to organize your assets, providing both flexibility and control.
Understanding Books and Calendars
Books represent different accounting treatments for your assets:
- Posting Book: You can only have one posting book, which posts to your general ledger
- Tax Books: Optional additional books for separate tax depreciation methods
Each book requires its own calendar setup. During implementation, SWK consultants configure calendars that extend from your oldest asset’s acquisition date through at least 50 years forward, ensuring your system is prepared for long-term assets.
Asset Types and Classes
The classification system uses a two-tier approach:
- Types: Determine fundamental properties like whether assets are tangible and/or depreciable
- Classes: Define specific settings including:
- Useful life
- Depreciation method
- Averaging convention
- Bonus depreciation eligibility
- GL accounts for asset, accumulated depreciation, and expenses
Averaging Conventions
Acumatica provides multiple averaging convention options that determine how depreciation is calculated in the acquisition and disposal periods:
- Full Period: Calculates full depreciation for the period regardless of acquisition date
- Mid Period: Calculates half-period depreciation if acquired in second half of the period
- Modified Half Period 1 & 2: Various calculations based on acquisition timing
- Full Quarter/Mid Quarter: Quarter-based calculations
- Full Year/Mid Year: Annual-based calculations
- Full Day: Precise day-based calculations
These conventions can be set at the class level and modified for individual assets when necessary, giving you complete control over depreciation timing.
Asset Creation and Management
Setting Up New Assets
Acumatica provides multiple options for creating fixed assets:
From Purchases:
- Your AP team enters invoices to the fixed asset accrual account
- Navigate to Finance > Fixed Assets > Process > Convert Purchases to Assets
- Select the appropriate class, branch, and department
- The system creates entries debiting your asset account and crediting the accrual account
Manual Creation:
When assets are not acquired through AP, you can create them directly in the Fixed Assets module with comprehensive information tracking across multiple tabs:
- General: Basic asset information, status, and parent/child relationships
- Tracking: Branch, department, custodian, and location details
- GL Accounts: Asset, accumulated depreciation, and expense accounts
- Balance: Depreciation details, acquisition cost, and current book value
- Other Information: Warranty information, manufacturer details, and custom tracking
- Components: Child assets or components that make up part of this asset
- Depreciation: Complete history of depreciation transactions
- Transactions: All financial transactions affecting the asset
- Locations: Transfer history and current location
- Reconciliation: Balance tracking and reconciliation status
Parent-Child Relationships vs. Components
Acumatica supports sophisticated asset relationships:
- Parent-Child: Link related assets (e.g., a building as parent with its roof as a child)
- A fixed asset can have unlimited child assets but only one parent
- When a parent is disposed, children remain active on a provisional basis
- Only applicable for tangible assets
- Components: Create parts of an existing asset with their own asset IDs
- Components can have different depreciation methods and useful lives
- Useful for tracking major additions to existing assets
Daily Operations and Workflows
Calculating and Posting Depreciation
The depreciation workflow included in SWK’s training sessions follows these steps:
- Navigate to Finance > Fixed Assets > Process > Calculate Depreciation
- Select the period for calculation
- Choose “Calculate Only” to preview or “Depreciate” to create entries
- Review the system-generated entries (DR Depreciation Expense, CR Accumulated Depreciation)
- Release transactions to post to GL
This process can be performed for individual assets or across your entire portfolio, giving you both detailed control and efficient processing.
Managing Asset Transfers
When assets change locations or departments:
- Navigate to Finance > Fixed Assets > Process > Transfer Asset
- Select the asset to transfer
- Specify the new branch, department, or location
- Process the transfer, which creates entries moving both the asset and accumulated depreciation
- View the transfer history on the Locations tab of the asset
The system creates appropriate journal entries that debit the new location and credit the original location for both the asset and its accumulated depreciation.
Splitting Assets
The split function is particularly valuable when portions of assets need to be moved or disposed separately:
- Navigate to Finance > Fixed Assets > Process > Split Asset
- Choose to split by quantity or cost (percentage or specific amount)
- The system creates a new asset with proportional cost and accumulated depreciation
Asset Disposal Process
When disposing assets, Acumatica provides a straightforward process:
- Navigate to Finance > Fixed Assets > Process > Dispose Asset
- Select the disposal date, method, and proceeds (if any)
- Choose whether to calculate final depreciation
- Complete the disposal, which updates asset status and creates appropriate GL entries
Reporting and Analysis
The Acumatica Fixed Asset module includes powerful reporting capabilities that help you maintain compliance and make informed decisions:
- Disposals Report: Track all disposed assets by period
- Additions Report: Monitor newly acquired assets
- FA Balance Report: View comprehensive asset information including depreciation method, acquisition cost, and book value
- FA Balance by GL Account Report: Reconcile fixed assets to your general ledger
- Net Value Report: Analyze asset values by class
These reports offer filtering by branch, department, or class, with drill-down capability to view underlying transactions and asset details.
Module Organization and Navigation
Acumatica organizes the Fixed Assets module into logical sections that make navigation intuitive:
- Transactions: Manage fixed asset transactions and adjustments
- Processes: Access tools for asset creation, depreciation, transfers, and disposals
- Inquiries: View asset summaries and account balances by various dimensions
- Reports: Generate standard financial and management reports
- Preferences: Configure module-wide settings
This organized structure helps users quickly locate the functions they need for day-to-day asset management.
Advanced Features
Multiple Depreciation Methods
Acumatica supports various depreciation methodologies:
- Built-in methods compliant with U.S. regulations
- Custom depreciation method configuration
- Different methods for financial versus tax reporting
- Averaging conventions controlling first and last period calculations
Mass Processing
For businesses with large asset portfolios, Acumatica provides:
- Mass transfer capabilities
- Mass disposal functionality
- Batch depreciation processing
Implementation Best Practices from SWK Technologies
Based on extensive implementation experience, SWK recommends:
- Individual Asset Setup: Create separate assets rather than using quantity fields, even for similar items purchased together
- GL Account Configuration: Carefully establish accounts during setup, as asset and accumulated depreciation accounts cannot be changed after release
- Regular Period Closing: Close Fixed Asset periods monthly, just as you would other financial modules
- Transaction Review: Review all transactions before release, particularly during your initial months using the module
Discover More Tips, Tricks and Other Features for Acumatica
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