Fixed Asset Purchase

When a fixed asset is planned to be purchased, that is not budgeted but it still affects the balance sheet. The values entered will increase an asset account (such as Fixed Assets). The payment increases a liability account (such as Accounts Payable) and is amortized away from that account according to the Amortization Schedule (in this example, 90% in the month budgeted, 10% in the following month). The Fixed Asset template is used. For multi-entity configurations, an entity must be provided since fixed asset purchases and sales are not budgeted.

Fixed Asset Purchase Template 

This example illustrates a planned purchase where the payment is 90% in the month budgeted and 10% in the next month.