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Track assets that you have already expensed and add them to fixed assets.
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Frequently
asked
questions
What is the Fixed Assets module in Gravity Software?
The Fixed Assets Module in Gravity Software helps organizations manage and depreciate long-term fixed assets. This module allows users to create, track, and manage asset records, apply various depreciation methods, and generate reports for financial and tax purposes. It supports multiple asset books, including those for internal, federal, state, and property tax reporting.
How do I create fixed asset records in Gravity Software?
You can create fixed asset records in Gravity Software in three ways:
- From Voucher Lines: When entering vouchers in the expense area, mark non-inventory voucher lines as fixed assets. These items will appear in the acquisition wizard.
- Directly in Fixed Assets with Journal Entries: Manually create an asset with a corresponding journal entry if necessary.
- Directly in Fixed Assets without Journal Entries: Create assets directly without journal entries if they’ve already been recorded in your general ledger.
What are Fixed Asset Books in Gravity Software?
Fixed Asset Books allow you to track depreciation for different purposes, such as financial reporting or tax compliance. Each asset can have multiple depreciation books. The primary book, labeled "Internal (Post to GL) - FA-X", posts depreciation to the General Ledger, while additional books for federal, state, or property tax purposes can be created and maintained.
How is depreciation calculated in the Fixed Asset Module?
Depreciation in the Fixed Asset Module is calculated using various methods, including:
- Straight Line: Equal depreciation expense each year.
- Declining Balance (150% and 200%): Higher depreciation in the earlier years, decreasing over time.
- Manual: Custom depreciation method set by the user.
You can also select the half-year convention for automatic depreciation in the first and last years.
What types of assets can I track with Gravity Software’s Fixed Asset Module?
The Fixed Asset Module supports various asset types, including:
- New Assets
- Leased Assets
- Used Assets
- Other Assets
Can I track multiple depreciation methods for one asset?
Yes, Gravity Software allows you to track multiple depreciation methods for the same asset across different books. For example, you can use the Straight Line method for internal financial reporting and the Declining Balance method for tax purposes, providing flexibility for various accounting and regulatory requirements.
How does asset retirement work in Gravity Software?
When an asset is retired, the system’s Retirement Wizard is used to record the disposal. It calculates any gains or losses and updates the fixed asset records accordingly. The proceeds from the sale or retirement of the asset can be tracked and posted to the appropriate accounts.
Can I generate depreciation reports in Gravity Software?
Yes, Gravity Software offers comprehensive Fixed Asset Reports. These reports provide detailed information about asset depreciation for specific periods, books, and accounts. You can generate monthly depreciation reports for financial and tax purposes, ensuring compliance and accurate financial reporting.
How do I post depreciation to the General Ledger?
To post depreciation to the General Ledger, first, ensure that the Fixed Asset Books and Depreciation Lines are set up. Then, use the Background Post option from the menu to post depreciation for all assets or individual assets. You can specify the fiscal period and apply the posting date as needed.
What accounts are required for setting up Fixed Assets?
When setting up Fixed Assets, the following accounts are needed:
- Asset Account: Where the asset’s cost is recorded.
- Accumulated Depreciation Account: Tracks the depreciation of the asset over time.
- Depreciation Expense Account: Records monthly depreciation expenses.
- Proceeds Account (for asset retirement): Used to track proceeds from asset disposal.
These accounts are automatically configured during the setup process, but you can adjust them as needed.
Can I use Gravity Software’s Fixed Asset Module for tax reporting?
Yes, the Fixed Asset Module supports tax reporting needs by allowing you to create separate depreciation books for federal and state tax purposes. You can apply the appropriate depreciation methods and track depreciation specifically for tax reporting, ensuring compliance with relevant regulations.
What is the "Acquisition Wizard" in the Fixed Asset Module?
The Acquisition Wizard in Gravity Software helps you create and manage fixed asset records efficiently. It allows users to create assets from voucher lines or enter asset information manually. The wizard simplifies the acquisition process by linking relevant vouchers for audit purposes and enabling the creation of journal entries if required.
Is there any flexibility in how depreciation is calculated?
Yes, Gravity Software provides flexibility in how depreciation is calculated. You can select between several methods, including straight-line depreciation, declining balance, and manual calculation. You also have the option to choose a half-year convention to simplify the depreciation process.
Can I customize the fields for each Fixed Asset record?
While some fields, such as the Fixed Asset ID, are system-generated, you can customize other fields such as Description, Acquisition Cost, Type (New, Leased, Used), and Asset Life. These fields allow you to track specific asset details important for accounting and insurance purposes.
How do I ensure tax compliance with the Fixed Asset Module?
To ensure tax compliance, you can create separate depreciation books for federal and state tax reporting. The Fixed Asset Module supports various tax-specific depreciation methods and provides the ability to calculate and track depreciation separately for tax purposes, ensuring that assets are reported correctly on tax filings.