Up until this month our organization has entered fixed assets and calculated depreciation on a monthly basis in the Fixed Asset module of Financial Edge.  Our finance director would like to change our current procedure and record fixed assets as an expense during the year, then reclass the assets to capitalize them and calculate depreciation at the end of each year.  Is anyone who is using the fixed asset module currently "expensing" fixed assets during the year, then capitalizing the assets and calculating depreciation at the end of each year?  How can we set this up and what problems would we encounter?

Thanks for any advice on this.

Marlene

You can set your system up to do both. Usually I recommend setting up a separate Fund for fixed Assets. The Fixed Assets gets expensed in your normal funds and in the Fixed asset fund you will credit the expense and debit the asset. Record monthly depreciation in this fund also. Now print your reports without the fixed asset fund and you have Grant or Cash basis statements. Print the reports with the fixed asset fund you have GAAP statements. (the dr expense is offset to zero by the corresponding cr in the fixed asset fund.)