This topic describes the types of acquisition, depreciation, and disposal transactions made in the general ledger for assets purchased with either governmental or proprietary fund types.
Note: The elements used to track depreciation, asset and accumulated depreciation are set in Capital Assets Configuration > Asset Categories.
The Investment in Capital Assets balancing account element is specified in Element Value Maintenance.
This section describes the types of transactions that are created for different actions when assets are purchased with governmental fund types. Government fund types are: general, special revenue, capital projects, and debt service.
Creates an acquisition transaction
Books all to Capital Asset Tracking Fund
Books a debit record to Asset code — records capital asset
Books a credit record to Investment in Capital Assets balancing account
Moves acquisition code from the Current Account Code field to Acquisition Account Code field
Enters Depreciation code in the Current Account Code field to track depreciation transactions
Fund changes to Capital Asset Tracking Fund
When entering a historical asset:
Add the beginning accumulated depreciation balance directly into the Depreciation Beg. Accum. field. Note: The system books the accumulated depreciation based on the entry in this field.
Enter an In Service Date for the asset.
When accepting the asset, specify a Transaction Date that falls within the current accounting cycle.
Transactions created when a historical asset is accepted:
Books a debit record to Asset code — records capital asset
Books a credit record to Investment in Capital Assets balancing account
Books a credit record for accumulated depreciation from date in Depreciation Date Run field forward
Depreciation transactions post to the Capital Asset Tracking Fund.
Creates a debit record for Depreciation Expense
Creates a credit record for Accumulated Depreciation
Disposing an asset or asset item reverses the transactions created when the asset was accepted. If the asset is a historical asset or depreciation was run, disposal also reverses the depreciation transactions.
Books a credit record to Asset code — reverses the record of the capital asset
Books a debit record to the Investment in Capital Assets balancing account
Books a debit record for accumulated depreciation for historical assets or depreciated assets
This section describes the types of transactions that are created when assets are purchased with proprietary fund types. Proprietary fund types are internal service and enterprise.
Does NOT create an acquisition entry. The item is already accounted for when it is purchased.
Moves acquisition code to Acquisition Account Code field
Enters Depreciation code in the Current Account Code field to track depreciation transactions
Fund stays in original purchase fund to track depreciation. The Capital Asset Tracking fund is not used for tracking transaction; instead the fund used to purchase the item is used.
Does NOT create an acquisition entry. The item is already accounted for when it is purchased.
Moves acquisition code to Acquisition Account Code field
Enters Depreciation code in the Current Account Code field to track depreciation transactions
Fund stays in original purchase fund to track depreciation. The Capital Asset Tracking fund is not used for tracking transaction; instead the fund used to purchase the item is used.
Depreciation transactions post to the proprietary fund used to purchase the capital asset.
Creates a debit record for Depreciation Expense
Creates a credit record for Accumulated Depreciation
Disposing an asset or asset item reverses the transactions created when the asset was accepted. If the asset is a historical asset or depreciation was run, disposal also reverses the depreciation transactions.
Books a credit record to Asset code — reverses the record of the capital asset
Books a debit record to the Investment in Capital Assets balancing account
Books a debit record for accumulated depreciation for historical assets or depreciated assets
Return to About Asset Depreciation
Return to Capital Assets Overview
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