Should fixed asset purchases appear on the P&L? Here we want to record the property purchase. We have the following two scenarios and I just wanted to check that they are still correct:
In order to record Fixed Assets (Purchase of Properties) transactions please follow the steps as mentioned below:
A. In case there are no Payables (Cash Basis Transaction):
- Please go to Account Manager (in Left Panel)
- Click Journals
- Click Add Journal
- Enter Date, Description, select property and in Account fields select the accounts as:
Fixed Asset like Property and amount in DEBIT field
Bank/Cash Account and amount in CREDIT Field
B. In case there are Payables or Property purchased on Credit:
1. Go to Property Manager --> Expense --> Add Expense --> Enter details like Date, Reference, Property, Check Capital Cost radio button, Enter description, amount and in Account drop down please select relevant Fixed Asset Account
For Property you would select Building/Property account
For Furniture items select account 'Furniture & Fixture'
For Business Computers select 'Office Equipments Account'
Note: If there is no such Fixed Asset account you would create new one
2. Once you make the payment to Supplier (whether in cash or from Mortgage Account) please go to that invoice (Under Property Manager --> Expense) and record the payment. You would select Cash or Bank Account
Is this still correct and should this then show on the P&L?