How To Add a Capital Asset Purchased with Financing
What you need to know:
Keeping your capital assets organized gives you a clearer picture of your farm’s finances and helps you plan for future equipment purchases, manage tax implications and prepare for financing.
With AgExpert Accounting, individual capital assets are tracked as sub-items within their asset classes, so there’s no need to create a separate account for every piece of equipment.
Simply add a new capital asset through the purchase transaction and capture key details like down payments, financing and trade-ins at the same time.
What you need to do:
Have your purchase records on hand with details of capital asset purchases.
Confirm with your accountant what class your new capital asset belongs to.
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.
Set up the new equipment loan in the Chart of Accounts.
Note: You can set up the new loan in the transaction, but it is easier to do through the Chart of Accounts prior to starting the transaction.
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.
Note: Typically, the total is the down payment on the equipment.
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 L+ Loan addition.
Select your loan account using the drop-down menu.
Enter a Description, if necessary.
Enter the principal Amount of the loan.
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.