In my first post about posting groups, I show you what results are when you post item purchase. I also show how looks like when we post Item Charge purchase. Now, in this post, I will describe some difference when you want to purchase Fixed Asset. Generally, it is a similar process, but it still has some difference. Some posting groups will not be used, but we also have one new posting groups – FA Posting Group. On this setup, we can configure all accounts in relation with fixed assets processes.
Process of using all posting groups in FA purchase process is shown on following flowchart:
Depending on the FA Posting Type on Purchase Line, we can get two different results. If we want to buy new fixed asset, we will choose Acquisition Cost type and we will get following G/L entries:
But, we can also choose Maintenance FA Posting Type to post maintenance for some existing fixed asset. In this situation, we will get following G/L entries:
In previous example, I didn’t use discounts, because I have already showed it when I described item purchase. In this case, everything is the same.