Here is the design proposal for the feature which will allow your consume the stock item to Fixed Asset and vice versa. Is Asset Capitalization & De-capitalization of correct term for it?
Based on the discussion below, there can be three types of capitalization entries.
- Asset Capitalization: Stock to Fixed Asset
- De-capitalization: Fixed Asset to Stock
- Fixed Asset to Fixed Asset
Stock Item to Fixed Asset
Let’s assume we purchased CPU peripherals as a stock items, and now consuming them to get a Server, which will be Fixed Asset item.
Considering that there could be multiple Stock Item’s getting consumed for create a single fixes asset, I propose a child table for the stock item.
- These are the items and Qty which will get consumed from stock
- Based on the valuation method, item’s valuation will be posted
- Total value of item will be calculated. The value of fixed asset has to tally to this value!
Fixed Asset Item
This will be a single Fixed Asset Item`Fixed Asset table will be child table, as there could be multiple fixed asset items.
- Fixed Asset will be created before the creation of this entry, as an existing Asset.
- The value of this Fixed Asset must be equal to the total value of Stock items consumed.
Stock Ledger Posting
Let’s assume total value of item is $5,000
General Ledger Posting
|Fixed Asset a/c||5000|
The vice versa will be happening when a Fixed Asset is converted into stock items. However, the flow of fields in the form will have to be set in that order. First select Fixed Asset Item, and then stock item.
- Is the stock ledger and general ledger posting as simple as this? Could there be taxation part being involved here?
In case of capitalization, before creation of this entry, a Fixed Asset item will have to be created as a Exising Asset item. Does that sound fine? Just like there are multiple Stock items, could there be scenario wherein multiple Fixed Asset items will be getting consumed or produced at once in a single entry?