How do I record a fixed asset purchase?

This article is for churches and charities that account on an accruals basis.

For charities that account on a receipts and payments basis (cash basis), asset purchases are simply treated as 'expenditure'.

Entering a fixed asset purchase

A fixed asset purchase is recorded in exactly the same way as a regular expenditure purchase.

However, you should select a fixed asset category rather than an expenditure category.

Fixed asset categories appear at the very bottom of the category dropdown on the enter/edit purchase screens.

Note: if you have the role of Finance Team, you can update the category of a purchase from an expense category to a fixed asset category by clicking on the transaction.

Fixed Assets Permission

Permission to view/enter against a fixed asset category is given via the user settings screen in the same way as regular expenditure categories are. Again you will find the fixed asset categories at the very bottom of this screen.

Fixed Asset Categories

When you create a new fund, it will automatically have a fixed asset category.

To add/edit Fixed Asset categories, go to the Fixed Asset Category settings screen.

Fixed Asset Types

Once you have reconciled the purchase, you will need to give the fixed asset an asset type.

Go to the Fixed Asset screen, click on the asset and select 'Edit Asset Details'.

Then select one of the asset types from the drop-down menu.

ExpensePlus gives template fixed asset types however, you can edit and delete these or add other types on the Asset Type Settings screen.

These are the template asset types given by ExpensePlus:

Computer & Office Equipment
Fixtures & Fittings
Freehold Property
Leasehold Improvements
Music & Technical Equipment
Vehicles

Fixed Assets bought from restricted funds

If you buy a fixed asset from cash that is in a restricted fund, the fixed asset should typically not remain restricted.

Instead, the fixed asset purchase is typically coded to a fixed asset category in your general fund or fixed asset fund if you keep these in a separate fund.

You should add a fund transfer from the restricted fund to the fund where the asset has moved to cover the amount paid for the fixed asset from the restricted funds.

You will see a warning sign when you try to transfer money out of the restricted fund. But it's generally allowable for this purpose. If in doubt, you should check with your Independent Examiner.

Note: Fixed Asset purchases do not appear on Income and Expenditure reports (because they are not expenditure).

Instead the value of the purchase expenditure is transferred to the Balance Sheet as an asset. You will find the value detailed on the Fixed Asset register.

Learn more in the this blog: Fixed Assets in Charity Accounting

To help you better understand the Fixed Assets module as a whole, please visit the module overview page here.