Subscribe to and configure Fixed Assets Management

Follow these steps to subscribe to and configure Fixed Assets Management for the first time. Fixed Assets Management is an additional subscription. When subscribing, you also need to configure the required settings.

Previous step: Before you begin

1. Go to the top level of your company.

2. Go to Company > Admin > Subscriptions.
3. Find Fixed Assets Management in the list of subscriptions.
4. Select the toggle to turn it on.

5. Select Subscribe.
   

   The configuration page for Fixed Assets Management opens.

6. Select an Asset ID sequence.

   Fixed Assets Management requires a document sequence for Asset IDs. The sequence determines how assets are automatically numbered.
   

7. Create journal posting rules.

   Learn more about creating journal posting rules

   Journal posting rules determine which journals the Fixed Assets Management application can post to and how. Each rule contains details about the journal, convention, useful life units, and more. Journal posting rules are used to automatically populate valid information for depreciation rules, saving you time.

   1. In the Journal posting rules section, select Add row or Add (circle).
      

   2. Enter a Journal posting rule ID and name.
      

      The ID and name are referenced when you create a depreciation rule. Use a meaningful name that's based on the book such as Accrual, Compliance, or Tax. The ID must be unique.

   3. Select a Journal.
      

      The journal where fixed asset transactions are recorded.You can select journals that use either the Accrual or Cash accounting method, but not both. When creating multiple journal posting rules, each rule must use a different journal, and each journal must belong to a different book.

   4. Select a Convention.
      

      The convention determines how depreciation is calculated in the first and last periods of an asset's life.

      Supported conventions
      

      • Full month: Assets start to depreciate on the first day of the month that they are placed in service, regardless of the exact in-service date. This does not affect assets that are under the Daily depreciation method, which start to depreciate on the exact in-service date.

      • Half year: Assets depreciate for half a period in the first year they are placed in service, regardless of the exact in-service date. The remaining depreciation is applied in an extra period at the end of the asset's life.

      • Full year: Assets start to depreciate on the first day of the year that they are placed in service, regardless of the exact in-service date.

   5. Select the Useful life units.

      The units of useful life must match the convention. For a Full month convention, select Months. For a Half year or Full year convention, select Years.
      

   6. Optionally, if the book is a tax book, select Tax.
      

      If the Tax setting is enabled, and if the convention is Half year or Full year, Sage Intacct uses the entity’s tax year-end for depreciation posting period dates. If the entity's tax year is not defined, it uses the company’s instead. The tax year-end is determined by the First tax month setting, which you can find on the Entity information (Company > Setup > Entities) or Company information (Company > Setup > Company > Accounting tab) pages. For example, if the First tax month is July, then the posting periods each year will be on June 30th.

   7. Optionally, to ignore the salvage value of assets in depreciation expense calculations, deselect Use salvage value.
      

      By default, the Salvage value is used to calculate the depreciation expense of an asset. However, in some countries such as France, the salvage value must always be considered $0 for tax purposes.

   Repeat these steps to add additional rules as needed.

8. Select a Gain or loss GL account.

   You can change this account at any time.
   

9. Configure the optional settings.

   You can also configure these settings later.

   Learn more about the optional settings

   1. If you plan to manage Construction in Progress assets, select Enable CIP.

   2. Optionally, select Create assets from AP purchase invoices.
      

      This setting allows you to create assets automatically when entering an AP purchase invoice in Accounts Payable.

   3. Optionally, select Create assets from purchasing transactions.
      This setting allows you to create assets automatically when creating transactions such as PO purchase invoices in the Purchasing application. To select this setting, you must select Create assets from AP purchase invoices first.

   4. Optionally, select Enable automatic posting.
      

      When automatic posting is enabled, Sage Intacct creates a bulk action run on the last day of each month. This run posts all depreciation schedule entries with scheduled posting dates on or before the last day of the current month.

   5. Select a Fixed Assets Management journal .

      This journal is used for transferring assets, disposing of non-depreciable assets, and capitalizing CIP assets. You can change this journal at any time.
      

   6. If you have historical assets, select a Go-live date.

      To avoid conflicts, we recommend finalizing this date before placing any assets in service. Learn more about the go-live date.

   7. If you have historical assets, choose how Historical accumulated depreciation is determined.

      Choose from the following options:

      • System calculated (default): Fixed Assets Management calculates historical accumulated depreciation automatically based on the selected depreciation method and go-live date.

      • Enter manually: Provide your own custom historical accumulated depreciation amounts for assets. Depreciation schedules are adjusted according to the amount provided. Use this option to align more precisely with your organization's prior records. See examples of depreciation schedules with custom historical amounts to learn more.

10. Select Save.

    You’re now subscribed to Fixed Assets Management. However, you will not see it in the Application menu until you assign user permissions, which will be done in the next step.

Next step: Assign permissions