In Codejig ERP, the Recognition document is used to recognize items as fixed assets and to define their period of useful life, specify depreciation methods for them and to set parameters required for depreciation accrual, e.g. initial and salvage values. The Recognition document is used for recognition of both tangible and intangible non-current assets. To recognize an item as a fixed asset, at first it has to be purchased, manufactured (assembled) or acquired in any other way, and then allocated to a warehouse.
Only items of the Fixed asset type may be recognized as fixed assets.
For more details on how to create an item and choose its type, see the Item.
For more details on the purchase, manufacturing (assembly) or other ways to acquire fixed assets, see Purchase invoice, Product Assembly or Inventory adjustment respectively.
Each fixed asset is added to a new recognition document as a line item. In order to distinguish a specific fixed asset among other similar fixed assets with the same name, you have to assign a unique inventory number to it. For example, if you need to recognize 5 identical personal computers as fixed assets, you have to add them as 5 separate entries and assign 5 different numbers to them.
You may add one or multiple fixed assets to one recognition document. If you add several fixed assets, on the listing page of the Recognition document, fields Inventory number and the Fixed asset will be filled in with a -list of assets- value.
For the document to take effect, it has to be posted. The posting affects the Fixed asset journal by making a journal entry to it that records the new fixed asset and its initial value. The document also impacts the Inventory journal, as it writes off the item recognized as a fixed asset together with its cost. Depreciation parameters of the recognized fixed asset are recorded in the Fixed asset property journal.
For more details about enabling or disabling negative balances in the system, see My company settings.
To go to the Recognition:
- On the Codejig ERP Main menu, click the Fixed assets tab.
- Under the Fixed assets tab, click Recognition.