How to Purchase Fixed Asset?

An Asset must be Added before purchase.

Steps to record 'Purchase' transaction :

1. Navigate to the Purchase Tab:

   • Go to the Fixed Assets Management Module.
   • Select the Purchase & Sale tab.

2. Click on 'New Purchase':

   • Press the + New Purchase    button to open the purchase entry form. 
3. 

4. Fill in the Purchase Details:

   • Date:

     • Select the date on which the asset was purchased.
     • Example: 22/01/2025.

   • Code:

     • Automatically generated a unique identifier for the purchase transaction.
     • Example: FAP-5089-0029.

   • Lot Number:

     • Automatically a unique Lot Number will be assign , which automatically increments for every new purchase of the same asset.
       • Example:
         • First purchase of Tables → Lot Number: 123-2
         • Second purchase of Tables → Lot Number: 123-3
         • Third purchase of Tables → Lot Number: 123-4

   • Fixed Asset Group:

     • Select the appropriate group/category for the asset (e.g., Furniture and Fixtures, Laboratory Equipment).
     • Example: Furniture and Fixtures.

   • Select Account:

     • Choose the account (e.g., cash or bank) from which the asset purchase is funded.
     • Example: Bank Transaction | Bank Account.

   • Select Item:

     • Choose the specific asset item being purchased from the dropdown.
     • Example: Tables.

   • Description:

     • Provide a brief description of the asset or the purchase.
     • Example: Purchased for the new lab setup.

5. Enter Financial and Asset-Specific Details:

   1. Unit Price:
      • Enter the cost per unit of the asset.
      • Example: 5,000 PKR.
   2. Quantity:
      • Specify the total number of units purchased.
      • Example: 3 units.
   3. Total Amount:
      • Automatically calculated based on the unit price and quantity.
      • Formula: Unit Price x Quantity.
      • Example: 5,000 x 3 = 15,000 PKR.
   4. Salvage Value:
      • Enter the estimated residual value of the asset at the end of its useful life.
      • Example: 1,000 PKR.
   5. Useful Life:
      • Specify the expected lifespan of the asset (in years).
      • Example: 5 years.
   6. Depreciation Value:
      • Automatically calculated based on the formula:
      • (Purchase Cost - Salvage Value) ÷ Useful Life.
      • Example: 25,000 - 10,000 ÷ 5 = 3,000 PKR/year.
6. Click Save & New or Save |& Close.

NOTE: After Purchase an Asset , Impact on Accounts in Summary.

• Amount Deducted from Cash/Bank Account.
• Amount Added in front of the Fixed Asset account.