Hi Team,
Can we create a Fixed asset directly from Purchase order. I know we can do with “convert purchase items to Fixed assets” but I do need to know how it works when we directly purchase from Purchase order.
And what will be the possible transactions that will be displayed in the “convert purchase items to fixed assets”.
Best answer by Laura02
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+18
Hello,
When you purchase a Fixed Asset with a PO, the debit from PO Receipt (or from the AP Bill if there is no PO Receipt) will go to Fixed Asset Clearing account. Fixed Assets Clearing should be $0 when all assets have been set up in the FA module; it is not $0 when we have purchases not yet converted to Fixed Assets.
The transactions in the Convert Fixed Assets screen will look the same as this GL example, except they will show you the Vendor and will say AP instead of GL. (I’m sorry my test database has no AP examples right now; use your imagination.)
The process of PO to Fixed Assets will work fine using any account: notice we can choose account in Convert Purchases to Assets screen. I think if you choose a different account for your PO Receipt/AP Bill fixed assets purchase, then it’s more likely we could forget to convert it and the GL will be incorrect; the Assets/Depreciation could be incorrect. Therefore I recommend use of FA Clearing.
Hi Laura,
Thanks for your response. Here, I am having another doubt to be clarified, while creating the Purchase order → Details tab - > it is asking for the Line type to be selected. If I select - description I cannot enter the amount.
Please suggest.
+18
Hello,
Description lines on POs are for extra descriptions like instructions to the vendor, notes or clarification or order.
I think, fill out the rest of the line, skip Line Type for now. Enter your description, unit, cost, GL Account and allow Line Type to auto-populate. I did a quick test and my line with no Inventory Stock or Non-stock item set itself at “Service” and I was able to save my line. I think Service or whatever Acumatica auto-fills will likely work fine for your purpose.
Thanks laura, it works.
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