In the inventory journal for fixed assets, you can enter the acquisition of fixed assets that the legal entity has produced or constructed for itself. You can then transfer inventory items to fixed assets either as an acquisition or as part of an acquisition.
You can also acquire assets by using purchase orders. When purchase orders contain inventory items that are designated as fixed assets, the setting of the Allow asset acquisition from Purchasing check box in the Fixed assets parameters form determines whether an acquisition is posted for the fixed asset when the invoice is posted. The effect that the acquisition of fixed assets has on inventory depends on the setup of the legal entity.
When an inventory item becomes a fixed asset acquisition through the inventory journal, a purchase order, or an acquisition proposal, a fixed asset value model acquisition transaction is created. If a value model acquisition includes a derived depreciation book, a depreciation book acquisition transaction is also created.
The decrease in inventory when an acquisition is posted is controlled by the posting rules that are set up in the Posting form in Inventory management. However, you do not always decrease inventory when you post invoices that are related to fixed assets. In some cases, the fixed assets might be purchased for internal use, such as a laptop that is purchased for the sales department. When you work with purchase orders, you can use items that are set up for both resale and internal use.
If you use specific receipt and issue accounts on item groups for fixed assets, you can use the same inventory item both for internal purchases and as stock for resale.
Fixed assets that are for internal use are set up so that they have a Fixed asset receipt account type. This account type is used to track the receipt of the fixed asset. When you post a vendor invoice, use the fixed asset receipt account if any of the following conditions is true:
The invoice line contains an existing fixed asset for internal purposes.
The New fixed asset? check box is selected for the product receipt line that is posted.
The Create a new fixed asset check box is selected for the vendor invoice line.
This account is typically an expense account. You can set up the Fixed asset receipt account type for either an item group or an individual item by using the Purchase order tab in the Item group or Posting forms.
Similarly, fixed assets that are for internal use can be set up so that they have a Fixed asset issue account type. This account type is used to track the issuing of the fixed asset to the recipient. When an asset is acquired by using a purchase order, the fixed asset issue account offsets the fixed asset debit account. The asset acquisition can be posted either when you post a vendor invoice, or when you post the asset acquisition in the Fixed assets journal, possibly by using an acquisition proposal. You can set up the Fixed asset issue account type for either an item group or an individual item by using the Inventory tab in the Item group or Item posting form.
Ultimately, the main accounts that are used for posting are determined by the options for ledger integration that are specified for the item model group. Additionally, the main accounts that are used vary, depending on whether an asset is assigned to the purchase order line. The accounts are derived from the posting profile for each item group.
If an inventory reservation exists when product receipts are posted, you cannot assign a fixed asset or create a fixed asset from the line.
The accounts that fixed asset transactions are posted to depend on whether the assets are purchased or constructed by the legal entity, and on the transaction type of the asset.
The transaction type connects the inventory transaction to the posting profile in Fixed assets. Because the posting profile in Fixed assets defines which accounts are updated, the selection of a transaction type for a fixed asset is also, indirectly, the selection of the main accounts that the transaction is posted to. For both constructed and purchased fixed assets, the transaction type is usually Acquisition or Acquisition adjustment.