Priority‘s Fixed Assets module manages assets owned by the company. It contains forms and programs that record the company’s fixed assets, calculate depreciation, record asset transactions in the general ledger and produce various reports.
Priority manages depreciation records for tax purposes and accounting purposes in parallel.
The system supports both straight-line and accelerated depreciation, calculated in either nominal, linked or dollar values. Different depreciation parameters can be set for different intervals, for accounting and/or tax purposes.
When data is transferred from other systems to Priority, the accumulated nominal depreciation is retrieved from the previous system, and Priority takes this figure into account when calculating depreciation.
Scrapping and Appreciation
• Partial Scrapping – Priority can scrap part of an existing asset via a unique mechanism that divides the asset into two parts. After division, the new asset can be scrapped, thus reducing the value of the original asset.
• Appreciation–Appreciations are listed as new assets,for which depreciations are calculated separately. These new assets are then linked to their original asset.
Fixed Asset Parameters
A fixed asset record is opened for every new asset. This record includes the asset’s purchase data (or sale data, after it is sold) as well as the asset group to which the asset is assigned. You can also enter a category for classification (for example, the company department to which it belongs), the asset’s physical location, and the investment plan to which it belongs. These parameters allow for more varied and efficient reports.
Fixed Asset Groups
You can define common depreciation percentages and ledger accounts for all assets in a given asset group. You can also override these definitions for individual assets.
Fixed Asset Accounts
Each asset is linked to four main GL accounts:
• An asset account
• An accumulated depreciation account
• A depreciation expense account
• A capital gains account.
Depreciation expenses can be allocated to several expense accounts or profit/cost centers. The system allows each account or profit/cost center to be assigned a percentage of the overall depreciation.
Linkage to Additional Modules
General Ledger Module
The system automatically records journal entries for depreciation and scrapping in the general ledger. Depreciation is recorded each month, quarter or year, as defined by the user. Scrapping is recorded on the date of the scrapping.
New assets can be opened through purchase invoices recorded in the Purchasing module.
Assets can be sold using customer invoices recorded in the Sales module.
Fixed Asset Reports
The system includes a number of reports pertaining to the status of assets owned by the business. Depreciation reports can be issued both for tax and accounting purposes, in either linked, nominal or dollar values. The following reports are available in the Fixed Assets module:
- Form 11
- Cost and Depreciation
- Capital Gains
- Pos & Neg Changes in Cap Gains
- Add’l Deduction for Depreciation
- Capital Gains for Tax Authority
- Appendix to Calc. Capital Gain
- Tax vs Accounting Depreciation
The Fixed Assets module includes two report generators with which you can create custom-designed reports: the Fixed Assets Report Generator and the Tax Report Generator.