Learn here how to create an asset and its amortization table
What is an Asset?
As a general rule, an asset is an acquisition whose nature is generally a good, tangible or intangible, associated with a purchase, and that in most cases will be subject to amortization, thus generating its activation with its accounting, not imputing the expense from the purchase, but the one associated to the depreciation that it suffers at the rate of certain coefficients, established by regulation.
These types of assets are represented at the balance sheet level and at the time of closing, whether it is monthly, quarterly, or annually, will allocate the proportional part of the period with respect to its amortization.
When creating an asset, if you classify the counterpart as a group 2 account, that is, assets, said asset will be incorporated into its section, generating a table with different information such as:
- Asset purchase date
- Account in which the asset has been included
- Account name
- Name or description of the asset
- Document originating the inclusion of the good
- Purchase price
- Amortized value to date
- Present value of the asset, after deducting the accumulated depreciation
- State of the asset, we can find it in the current or amortized state
Amortizing your asset in Holded
Either generating a purchase invoice or manually creating the asset without an invoice, an accounting entry will be generated.
In the assets section, you can make both monthly and annual amortization. Holded will take into account the type of amortization when generating the table and the corresponding entry.
The system acts as a pro-rata and performs the distribution of the annual expense on a monthly basis, in the same way, a calculation is made regarding the day of purchase so that the amortization is only taken into account in the period in which it has been in the company.
If you select the annual period, the amortization entry will be generated on December 31 of the current year, on the contrary, if you choose the monthly amortization, it will be recorded on the last day of each of the months
From the assets section, select an asset to consult its file with all the details:
- Description of the asset
In this block you can find the most relevant aspects that allow you to identify the asset: the account, the purchase date, the number of asset units, the possibility of including an image of the asset, and a button to access the invoice that generated the asset.
- Valuation widgets
In this section, you can see the value of the asset when the amount amortized to date was purchased (Accumulated depreciation) and the current value of the asset (acquisition value - Accumulated depreciation)
- Amortization details
Here is a summary of some relevant aspects of amortization such as the concept of tables chosen to carry out the amortization, the amortization period, the applied coefficient (% of amortization), and the number of years according to the official tables
- Amortization table
The amortization table is generated automatically by Holded, with the selection of the values that make up the amortization, in this sense the elements appear in the table: period, coefficient, amount, accumulated, pending, and the seat marker, which we inform if it has been generated.