Entering capital assets

The capital asset screen is used to enter, update, and maintain your capital asset list.  A capital asset is any long-lived tangible or intangible asset that contributes to the operation of the business throughout its service life.  All capital assets except land are depreciated over the course of their useful life.

To maintain your capital assets, go to Setup > Capital Assets. The Capital Asset screen opens.

Click Add. The Add Capital Asset screen opens.

Enter as much information about the capital asset as you can.  This can include:

• CCA class  - the CCA class number the capital asset belongs to
  
  
• Description - the description of the capital asset
  
  
• Tag - a reference that gives the system an alternate way to sort your assets.  This is an optional field (for example dairy, cattle, tractors, etc.)
  
  
• Serial number - the serial number, if applicable
  
  
• Purchase date - the date you purchased the capital asset
  
  
• Business % - the percentage of the asset that is used for business purposes.  If the percentage is less than 100%, the remainder is classified as personal and allocated to a personal drawings account.  For historical capital assets, this percentage is for reference only.
  
  
• Personal drawings account number - the personal drawings account number for the capital asset if the Business % is less than 100
  
  
• Original cost - the total original cost of the capital asset, including any GST/HST and PST you haven't claimed for it
  
  
• Adjusted cost - the adjusted cost, which is the original cost minus any business investment tax credit taken on this asset
  
  
• GST/HST claimed - the total GST/HST claimed on the capital asset
  
  
• PST claimed – the total PST claimed when you purchased this capital asset (if applicable).
  
• Business portion and Personal portion - Once you enter the business percent, the business and personal portions are calculated and displayed here.  The business portion is used to calculate capital gains and losses and the annual CCA expense.  The personal portion is for your reference.
  
  
• Asset life (years) - the capital asset's expected useful life in years
  
  
• Salvage value - the capital asset's estimated value at the end of its useful life
  
  
• Depreciation rate - the yearly depreciation rate as a percent.  This number could be different from the CCA percentage
  

Note: The Asset life, Salvage value and Depreciation rate values are used by the asset depreciation management tool to calculate different types of depreciation for the asset.

• Net book value - the asset's net book value, which is equal to the asset's original cost minus depreciation and amortization
  

If the purchase or sale of a capital asset was recorded through a transaction, the details will appear in the box on the right side of the screen. Click the Audit # to open the transaction for review or editing.

Once you have entered all the information for your capital asset, click on Save.  The capital asset will be added to your capital asset list.

If you are entering a current capital asset purchase, rather than a historical capital asset, you must go to the Transaction Entry screen to make the entry.  All disposals must also be completed through the Transaction Entry screen.

The default view for your capital asset list is In Possession, which lists all of your current and available capital assets in the system.  To view any capital assets that have been disposed, change the filter to Not In Possession.

You can also choose to group your capital assets by Class, or by the Tag you have assigned your assets.

Last updated on September 8, 2017 by FCC AgExpert