Payment - Fixed Assets

Payment can be made to purchase of fixed assets for company use.

For supplier invoice that are one-off purchase ( i.e. never maintain an account in the supplier master), payments are made by crediting the bank direct and debiting the fixed assets

Payment for purchase of fixed asset

To enter a purchase of a fixed assets (Cash basis Accounting)

Exercise:

Assuming a purchase of a computer for the sales department on 06/09/2021

               Inv 234565 dated 06/09/2021  $1,500.00  with and additional of GST 7 % or  $105.00

For cash basis accounting, this fixed asset is taken in only at the time of payment, i.e. 24/10/2021

(Being payment made to Super Office IT Pte Ltd for a computer purchased OCBC 123491)

At [A/c Entry], click [Payment]

Click [Others]

Enter the information as shown below, from [1] to [14]

If your company is not GST Registered, read more...

Note 1 : This method would be used when this is a one-time purchase from this supplier and you do not wish to

             maintain a supplier id in your accounts payable sub-ledger, or it is a cash purchase in this month.

As the payment was made in October, the Fixed asset will be reflected in the October Balance Sheet, even though the supplier invoice is dated September.

Next, learn how to enter the above information into the Fixed Asset Register to let the system auto generate monthly depreciation.

http://realtimme.cloudapp.net/basic/index.html?payment_-_fixed_assets.htm