8.1.2 Example

In this example, we have purchased a VERYFAST computer for $10,000. The useful life of the computer is expected to be five (5) years. The first thing that must be done is to enter the VERYFAST computer into the Fixed Asset Master File. This is done by selecting Fixed Assets from the Select, Fixed Assets menu. The screen below shows the entries made to enter the VERYFAST computer into the fixed asset master file.


Note that the Purchase Cost field is blank. This field has information displayed in it after a voucher has been entered for the purchase of the asset.

The next step is to enter a voucher for the purchase cost amount. This is done by selecting Payables Vouchers from the Data Entry, Accounts Payable menu. Refer to the Accounts Payable Vouchers chapter in the Accounts Payable Manual for detailed instructions on entering a voucher. The information entered on the top part of the voucher screen is not unique for a fixed asset purchase, so it is not repeated here. An example of the detail line of the voucher screen follows:


Once the information on this screen is stored, the Purchase Cost field on the fixed assets screen displays the amount that was entered in the voucher.