How to access:
- Access the "Accounting" section of the top bar
- Access the "Assets " section
What is an asset?
As a general rule, an asset is an acquisition whose nature is generally an asset, 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 expense associated with the depreciation that it suffers at the rate of certain coefficients, established by regulation.
Thus, we must bear in mind that we will represent these types of assets at the balance sheet level, and at the time of closing, whether it is the same monthly, quarterly or annually, we will allocate the proportional part to the period with respect to its amortization.
When creating an asset if we inform that the counterparty is a group 2 account, that is, of assets, we will incorporate said good in the assets section, consequently generating a table in which we can observe various informational aspects about them, these aspects are as follows:
- 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
Once the purchase invoice is entered in the system or by creating the asset without an invoice that will cause the property to be recorded as an asset, it will be included in the assets section, and by clicking on it we can enter its file, but what information does it provide us the asset token?
Within the file of each of the assets we find 4 large blocks, which we will detail 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 the asset, and a button to access the invoice that generated the asset.
- Valuation widgets: With a glance at this section we 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: In this section we find a summary of some relevant aspects for amortization purposes 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, below we can see the accounts selected for the purposes of accumulated amortization and amortization expense.
- 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, quantity, accumulated, pending, and the seat marker, which informs us if it has been generated.
Monthly and annual amortization. Generation of accounting entries
The assets section includes the option to carry out both monthly and annual amortization, in this case, Holded will take into account this data when generating the amortization table and the corresponding entry.
In this case, the system acts pro rata and distributes the annual expense on a monthly basis, in the same way a calculation is made regarding the purchase day so that the amortization is only taken into account in the date period in which it has been in our company
If we have selected the annual period, the amortization entry will be generated on December 31 of the current year, on the contrary, if we select monthly amortization, it will be recorded on the last day of each of the months
Remember that with our posts we offer generic examples of some of the most everyday situations that transcend and must be accounted for, in any case if your casuistry implies or requires greater knowledge or specificity at the accounting or tax level, remember that you should go to your manager or tax advisor.
How is an asset amortized in Holded?
In Holded you can easily amortize your assets so that they are accounted for automatically without the need to add entries manually.
For example, you can amortize your equipment for information processes , Constructions, Machinery, Furniture, Transport Elements, Installations or Industrial Property, etc.
In Holded you can register an asset by creating the purchase invoice in the corresponding year .
1) Create an asset
How to access:
- Access the "Accounting" section of the top bar
- Access the "Assets " section
- Click the button top right blue "+"
- Select the option to "Create asset" or "Purchase invoice"
In Holded you can register an asset by creating the purchase invoice in the corresponding year . In the event that you do not have the invoice, you will have the option of creating it manually or importing several assets.
1.1) Create an asset without a purchase invoice
- Access the "Assets " section
- Click the button top right blue "+"
- Select the option "Create asset"
- Fill in the information in the "Asset Details" and click "Create"
In the event that you want to register Assets acquired in previous years and you do not want to enter the purchase invoice in the corresponding year, you must fill in the following fields to generate the Asset file :
- Name: Details the name of the asset.
- Contact: Select a previously created contact.
- Start date: Select the initial amortization date in Holded. You can enter the current date and the value pending amortization today or the purchase date and the purchase value.
- Description: Specifies details about the asset.
- Pending amortization: Add the unit amount without taxes pending amortization on the date you specify.
- Units: Add the number of units.
- Total: This field will be filled in automatically when including the previous Price and units data.
- Account: Select the accounting account number of group 2 (Non-current assets). For example, 2 0100000 Development, 21000000 Land and Buildings.
What value and start date should I enter?
You will have 2 options:
1) Import it with the purchase value and the purchase date : the table will be generated from the start year but you can generate the entries from the current year. Simply select the number of years of amortization and the% will appear automatically.
Attention! In case you do not generate the entries for all previous years, the "Amortized" and "current value" amount will not be the real one.
2) Import it with the value pending amortization as of today and with the current date (or value and date as of 01/01). In this case, add the number of years pending amortization and the amortization% will be made automatically.
In this second case, when downloading the asset file, the standard depreciation in % of the tables will not appear, but the proportional calculation based on the remaining years.
1.2) Create an asset with a purchase invoice
- Access the "Assets " section
- Click the button top right blue "+"
- Select the option "Purchase invoice"
- Fill in the invoice information and select an accounting account from group 2 (Non-current assets)
- Click "Save"
When registering a purchase invoice, the Asset tab will only be generated if in the lower left section "Categorization" you select an accounting account from group 2 (Non-current assets). For example, account 21700000 (Equipment for information processes).
2) Generate the amortization tables
2.1) Generate the amortization tables
- Access the "Accounting" section of the top bar
- Access the "Assets " section
- Access the file of an "Asset"
- Click on the upper right blue button "Amortize", select the options and click " Save"
In order to be able to amortize the asset, you must configure the main fields for the amortization calculation:
For example, in this case we want to account for the purchase of 100 computers to be amortized in a linear way at the percentage of 20%.
- Concept of amortization tables: Electronic equipment (20%)
- Payback period: Annual
- Coefficient: 20%
- Age: 10
- Accumulated Amortization Account: (Group 28)
- Amortization Expense Account: (Group 68)
You will see how the amortization table is, being able to see the amortization of the period, the accumulated and the slope. Remember that you can generate your amortization annually or monthly.
2.2) Generate the tables of various assets
- Access the "Accounting" section of the top bar
- Access the "Assets " section
- Select several "Assets" with the left selector
- Click the "Amortize" button below , select the options and click " Save"
In the event that you wish to amortize several assets of the same type, for example several "Furniture" assets, simply select them in the list, fill in the information and the tables of the different assets will be generated to be able to generate the amortization entries later.
3) Create the amortization entries
3.1) Create the depreciation entries of an asset
- Access the "Accounting" section of the top bar
- Access the "Assets " section
- Access the file of an "Asset"
- Check the button "seat" of the repayment installment
Once the Asset depreciation table has been generated, you can create the entries by clicking on the "Entry" button in the right-hand section of the table. Once the seat has been registered, the button will be marked in green .
3.2) Create the entries of various assets
- Access the "Accounting" section of the top bar
- Access the "Assets " section
- Select several "Assets" with the left selector
- Click on the bottom button "Create pending transactions", select the year and click on "Amortize"
In the event that you want to create the period entries in bulk, you will be able to select the assets in the list and check which entries will be generated automatically.
4) Download the asset file
- Access the "Accounting" section of the top bar
- Access the "Assets " section
- Select several "Assets" with the left selector
- Click on the "Download PDF" button below
Once you have amortized your assets, you will be able to download the Asset sheets for each of them, in which a summary of the details of the asset, amortization and sale will appear.