Fixed asset accounting

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Fixed asset accounting is a process of managing fixed assets from their acquisition to disposal.

1C:Drive supports the following steps of the fixed asset accounting:

• Set up fixed asset accounting
• Purchase fixed assets
• Recognize fixed assets
• Depreciate fixed assets
• Change depreciation parameters
• Write off fixed assets
• Sell fixed assets
• Monitor fixed asset cost and depreciation

Setting up fixed asset accounting

To be able to process fixed assets:

• Go to Settings > Company and, under Other, select the Use fixed assets checkbox.

Purchasing fixed assets

In 1C:Drive, before recognizing an inventory item as a fixed asset, you need to register the inventory item purchase. To do this, create a supplier invoice and specify the inventory item on the Goods tab. For details, see Creating supplier invoices.

Recognizing fixed assets

To recognize an inventory item as a fixed asset:

1. In the Fixed assets catalog, create a fixed asset item for a new fixed asset. For details, see Creating fixed assets.
2. Create a fixed asset recognition document. In the document, do the following:
   • On the Initial cost tab, specify the details of the inventory item.
   • On the Fixed assets tab, specify the fixed asset and depreciation settings for it.

For details, see Creating fixed asset recognition documents.

When you post the fixed asset recognition document, 1C:Drive decreases the inventory item balance in the warehouse and increases the fixed asset balance.

1C:Drive will use the details from the fixed asset recognition document to calculate and record depreciation charge for the fixed asset.

Depreciating fixed assets

Depreciation is the allocation of the cost of a fixed asset over a period of time for accounting purposes.

1C:Drive supports two main depreciation methods:

• Straight-line depreciation
• Units-of-output depreciation

A depreciation charge is an amount periodically charged to expense in compensation for depreciation of property. In 1C:Drive, depreciation charges are calculated and recorded on a monthly basis.

To record depreciation charges:

1. For fixed assets with the Units-of-output depreciation method: during a month, create fixed asset usage documents to record the actual number of units that the fixed asset produced.
2. At the end of the month, use one of the following options to calculate and record depreciation charges:
   • Go to Company > Month-end closing and run month-end closing with the Accrue depreciation checkbox selected. This automatically generates a fixed asset depreciation document.
   • Create a fixed asset depreciation document manually.

1C:Drive calculates records depreciation charges for all recognized fixed assets. For these assets, the Accrue depreciation checkbox is selected in the fixed asset recognition document or the fixed asset depreciation changes document.

You can monitor depreciation charges using fixed asset reports. For details, see Monitoring fixed asset cost and depreciation.

To learn more about depreciation in 1C:Drive, see Fixed assets depreciation.

Changing depreciation parameters

1C:Drive calculates a fixed asset depreciation charge based on parameters such as a fixed asset cost, useful life, and others. The parameters can change during the fixed asset useful life. For example, a fixed asset cost change because of market conditions. To record such a change, create a fixed asset depreciation changes document.

Writing off fixed assets

This step applies when you dispose of a fixed asset without receiving a payment in return. For example, a fixed asset is scrapped because its useful life is over and there is no option to resale the fixed asset.

To record such a fixed asset disposal, create a fixed asset write-off document.

Selling fixed assets

This step applies when you dispose of a fixed asset by selling it off.

To record a fixed asset sale, create a fixed asset sale document. When you receive the payment for the sold asset, generate a bank receipt or cash receipt from the fixed asset sale document to record the payment.

Monitoring fixed asset cost and depreciation

1C:Drive provides the following reports to help you monitor a fixed asset cost and depreciation:

Report	Description	How to open
Depreciation statement	Shows changes in a fixed asset cost and depreciation within the selected period, including; Initial cost, cost at the beginning and at the end of the period and their difference, and net book value. Depreciation accumulated by the beginning of the period, during the period, and by the end of the period.	Go to Company. Under Fixed assets, click Fixed assets. Double-click a fixed asset line. In the link bar of the fixed asset card, click Accrued depreciation. The report is displayed. If required, change the report settings such as Accounting period and click Generate to view the report with the new settings.
Inventory card	Shows a fixed asset initial cost, total depreciation, and net book value.	Go to Company. Under Fixed assets, click Fixed assets. Double-click a fixed asset line. In the link bar of the fixed asset card, click Inventory card. The report is displayed. If required, change the report settings such as Accounting period and click Generate to view the report with the new settings.

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