How To Add a Capital Asset Purchased with a Trade-in
What you need to know:
Keeping your capital assets accurately recorded gives you a clearer view of your business finances and helps you plan for future equipment needs, manage tax liabilities and prepare for financing.
With AgExpert Accounting, capital assets are organized as sub-items within their asset classes, so you don’t need to create a separate account for each piece of equipment.
Simply record new capital asset purchases through transactions to capture key details like down payments, financing and trade-ins.
What you need to do:
Have purchase records on hand with details of capital asset purchases.
Confirm with your accountant what class your new capital asset belongs to.
Ensure the capital asset being traded is in the system.
Check with your accountant to confirm if the new capital asset is associated with the Accelerated Investment Incentive Program (AIIP) or the Designated Immediate Expensing Properties (DIEP).
Ensure the capital asset class is already set up in your Chart of Accounts.
How to (Step by Step):
Click the orange plus sign.
Select Withdrawal.
Use the drop-down menu to choose Supplier. If your desired supplier does not already exist in your books, click Add new supplier and fill out the details in the slide-out, and click Save.
Note: Only First name and Last Name OR Company name is required to be entered, but it is recommended to also check both boxes so that the contact is both a Supplier and a Customer.
Enter the Date of your transaction by using the calendar or manually entering the day, month, and year.
Select the appropriate Bank account. If the wrong payment source appears, click ‘x’ and Choose the correct bank account or credit card.
Enter a Withdrawal total for the purchase, if necessary.
Add a Reference (optional).
Note: This could be a cheque number, invoice number, or any other way you want to help identify the transaction. This field is searchable from the Transactions page.
If you wish to add Attachments to the transaction, click Add and browse your computer to select a file, then click Open.
Use the drop-down menu to select C- Capital asset sale.
Select the capital asset class for the item you are selling using the drop-down menu.
Use the second drop-down menu to select the item being traded in.
Enter a Description, if necessary.
Enter the Amount being given for the trade in item.
Select Add a row.
Use the drop-down menu to select C+ Capital asset purchase.
Select the capital asset Account using the drop-down menu.
Enter a Description of the capital asset (for example, make and model).
Enter Serial number, if desired.
Check the box for AIIP or DIEP, if necessary.
Enter Purchase price before taxes.
Enter GST/HST, if applicable.
Enter PST/QST, if applicable.
Enter the Business percent for the new asset. If this amount is less than 100%, you must use the drop-down menu to select an Account to apply the personal portion to.
Click Save.
Verify the subtotal, taxes, and total are correct for the withdrawal.
When the transaction shows as Balanced, you can:
Click Save and close to record the transaction and take you back to the last screen you were viewing, or:
Click Save and new to record the transaction and open a new Withdrawal screen.
References and Additional Resources
Still have questions? Contact support
Contact us at 1-800-667-7893 or email support@fccagexpert.ca if you require additional support. You can find other help options under the question mark Icon in the top right of AgExpert Accounting at any time.