Repair and modernization of fixed assets

To display fixed asset repair or modernization entries, such documents as Fixed Asset Release Act with the Modernization, Send to Modernization and Back from Modernization types and the FA Modernization Act are used. These documents make it possible to carry out transactions to increase the initial cost of a fixed asset by the repair or improvement cost amount.

Using Release Act

The FA Release Act with the Modernization type reflects transactions to increase the book value of fixed assets that have already been released on the corresponding depreciation book.

To display entries with the fixed asset sent for repair, the Release Act with the Send to Modernization type is used. After posting such an Act, the status of the fixed asset will be changed to Modernization. The accrual of depreciation of fixed assets is suspended for the period of its reconstruction, modernization or improvement.

To return a fixed asset from repair or modernization, it is necessary to post the FA Release Act document with the Back from Modernization type. The status of the fixed asset changes to Operation. See FA Release Act to learn more about filling in the fields of the Release Act document.

Using FA Modernization Act

To modernize a fixed asset with an item, the FA Modernization Act document is used.

To create an FA Modernization Act:

1. Click to open Search, enter FA Modernization Act, follow the link.
2. On the FA Modernization Act list page, click New to create a new Act.
3. On the card of the new Act, fill in the following fields:
   • Location Code with the code of the warehouse where the item used for fixed asset modernization is located,
   • Gen. Bus. Posting Group with the code of the general business group for which this transaction is carried out,
   • Posting Date and Document Date.
4. In the lines of the Act, it is necessary to indicate the Item No. of the item used for fixed asset modernization, Quantity of the item, FA No. with the number of the fixed asset that is being modernized and Depreciation Book Code with the code of the depreciation ledger which will reflect the fixed asset modernization amount. If necessary, the Reason Code can be indicated to show the reason behind item write-off. The Unit Cost, Unit Amount and Unit of Measurement Code fields will be filled in automatically from the item card.
5. To view or add document signatures, click Employee Signatures.
6. To post the Act, click Post, and the document will be moved to the Posted FA Modernization Acts page.

See Also

Fixed Asset Card
Creating a Fixed Asset card
FA acquisition and distribution of additional expenses
FA Release Act
Transfer Item to FA
Internal movement of fixed assets
FA Write-off
FA Sale