Service company Asset, item Questions

[Speciallift_Sales]

We are Rental Company of heavy equipment. and providing services of equipment.
For Fixed Asset:

1. First I will make child account of equipment in chart of accounts. And when created all account in asset category
   

   

2. In asset category, do we have to make separate account for each equipment or keep one category account for all equipment?
   

   

3. Our business main purpose is to providing services of heavy equipment. The market price depend on market situation, sometime equipment does not depreciate. So is it essential to tick the fixed asset. When we are creating item?
   Also, if we do not tick “is Fixed Asset”, what difference does it make in the software operation?
   

   

[umair]

In asset category, do we have to make separate account for each equipment or keep one category account for all equipment?

Both the options are fine.

Our business main purpose is to providing services of heavy equipment. The market price depend on market situation, sometime equipment does not depreciate. So is it essential to tick the fixed asset. When we are creating item?
Also, if we do not tick “is Fixed Asset”, what difference does it make in the software operation?

Managing fixed asses is mainly for the accounting and deprecation. However, what you sell is a services of fixed asset, and not the fixed asset itself.

Hence you should create separate service/rental items and select them in the sales transactions. For your reference, you can link an Asset for update Asset ID. But you should not select Asset Item itself in the sales transactions.

[Speciallift_Sales]

When i created the child account in chart of accounts with name of Mobile Crane.

after that i created asset category. fixed asset account select Mobile Crane, but which name i should give on asset category. “Mobile Crane” is ok?

when i am creating asset, what name should be asset name, item code, warehouse?

crane number plate is 12345
crane capacity is 65 ton
machinery type is Mobile Crane
our garage is located in Abu Dhabi (so warehouse should be named Abu Dhabi or just Garage?)

Is this category useful for anything other than depreciation?

[umair]

Absolutely upto you. It could be combination of Words and Number, for the ease of identification. The only need is, each Asest ID should be unique.

[Speciallift_Sales]

but when i select the asset in reference, the invoice is save & submit easily.

If i will not select the asset in reference, this below error is showing.

we put the depreciation amount with 300,000, it’s also showing in GL & COA. and linked with invoice also, the status of asset is sold. before it was fully depreciated.

we are not selling the equipment. we are providing services on rental basis.

[umair]

When you select an Item, which item is selected? Is it Asset item or some other service item? If it is an asset item itself, it means that you are selling that Asset Equipment itself to the Customer.

Perhaps you should only update Asset ID in the Item Description, and not select Asset ID in the link field, because there is validation based on it.

[Speciallift_Sales]

item we selecting has service Written next to it.
as you can see in the picture below.

[Speciallift_Sales]

Gentle reminder.

[Speciallift_Sales]

without solving this issue, we can’t use this software to create invoices… can someone please help us ?

if something is not clear, we can explain again… but someone please reply…

[umair]

That’s an Item Group. But are you selecting the Asset item itself? If yes, you should not. Rather create another Service Item for the rental services.

[Speciallift_Sales]

I’m sorry but I don’t understand.

Item Groups are already in the system… and we selected “Services”

This picture shows how we set up the item as a Fixed Asset, and selected Item Group.

Now, what exactly are you suggesting can you explain step by step please?
Do I create another Item Group? or another Item? but what changes do it make?