Recording a Capital Expenditure or Capitalizing Fixed Asset have 5 major steps.
Step 1: Creating Asset Account
A. Go to Admin -->> General Ledger -->> Chart of Accounts
B. Click on Assets Tab
C. Create assets accounts as mentioned at this
link Note: For example create assets account named "Fixed Asset - Lift"
Step 2: Creating Expense Account
A. Go to -->> General Ledger -->> Chart of Accounts
B. Click on Expense Tab
C. Create expense accounts as this
link Note: For example create expense account named "Fixed Asset"
Step 3: Creating a new Vendor, if not exist already.
A. Go to Admin -->> Expense Tracker
B. Click on "Add Vendor" Button.
C. Enter the relevant information
D. Click on "Save" Button.
Step 4: Book Vendor Invoice for asset purchased.
A. Go to Admin -->> Expense Tracker -->> By Vendors
B. Click on "Invoice" Under "Enter Invoice" Column for the row of respective vendor.
C. Enter Invoice details, Select "Expense Head" as "Fixed Asset"
D. Click on "Save" Button.
E. Invoice will be posted for fixed assets purchased.
Step 5: Pass the journal entry.
A. Admin -->> Journal Entries -->> Create Journal Entry
B. Enter Journal Notes as required.
C. Select Journal Date
D. Enter Amount
E. Select Fixed Asset Account for Debit. In this example, Select "Fixed Asset - Lift" which we created before.
F. Select Expense Account for Credit. In this example, Select "Fixed Asset" expense account which we created before.
G. Click on "Submit" Button.