What is an asset and how is it amortized?

 

Go to Accounting, then click Assets

 

 

An asset as a general rule is an acquisition whose nature is generally a good, tangible or intangible, associated with a purchase, and which in most cases will be susceptible to amortisation, thereby generating with its accounting the activation therefore, not imputed spending from the purchase but the expense associated with depreciation that the same suffers at the rate of some coefficients, established by regulation.

 

So we must take into account that this type of assets will be represented in the balance sheet level, and at the time of closing, whether the same monthly, quarterly or annual, we will allocate the proportional part to the period with respect to its amortisation.

 

In Holded when making the purchase of the asset if we inform that the counterpart is a group 2 account, this is assets we will incorporate this asset into the assets section, generating a table in which we can observe various aspects informative about them, these aspects are the following:

 

Note: Each line of the invoice automatically creates an asset, in this way we can assign within a purchase with two assets each to its corresponding account

 

Enter in the system the purchase invoice that will originate the accounting of the asset as an asset, this will be included in the assets section, and clicking on it we can enter your file, but what information does the asset record provide us?

 

Within the tab of each of the assets we find 4 large blocks, which are detailed below.

 

Description of the asset: In this block we find the most relevant aspects that allow us to identify the asset, in this sense we find; the account, the purchase date, the number of asset units, the possibility of including an image of it, and a button to access the invoice generated by the asset.

Valuation widgets: With a look at this section we can see the value of the asset when the amortized amount was purchased up to date (Accumulated Amortization) and the current value of the asset (acquisition value - Accumulated Amortization).

 

Details of the amortization: In this section we find a summary of some relevant aspects for depreciation purposes such as the concept of tables chosen to carry out the amortization, the amortization period, the applied coefficient (% depreciation) and the number of years According to the official tables, we can see the selected accounts for the purpose of accumulated amortization and amortization expense.

 

Amortization table: The amortization table is automatically generated Holded, with the selection of the values ​​that make up the amortization, in this sense the elements appear in the table; period, coefficient, quantity, accumulated, pending, and the seat marker, which informs us if it has been generated.