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 expense purchase, except that a fixed asset category should be selected, rather than an expenditure category.
Fixed asset categories appear at the very bottom of the category dropdown on the enter/edit purchase screens. To add a fixed asset category, go to the Fixed Asset Category settings screen.
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 simply 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.
You may wish to create the following asset categories for each fund:
- Free Hold Property
- Plant & Machinery
- Fixtures & Fittings
- Office Equipment
- Computer Equipment
- Audio / visual equipment
Note: Fixed Asset purchases do not appear on Income and Expenditure reports (because they are not an expense), 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.
To help you better understand the Fixed Assets module as a whole, please visit the module overview page here.