Finance Management - Revision history

Khkoh: /* Best Practices */

2025-06-09T07:49:12Z

Best Practices

← Older revision		Revision as of 15:49, 9 June 2025
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	Any ongoing costs such as maintenance, servicing, or minor repairs should be treated as operating expenses in the relevant accounting period.		Any ongoing costs such as maintenance, servicing, or minor repairs should be treated as operating expenses in the relevant accounting period.

	==== ~~'''~~Best Practices~~'''~~ ====		==== Best Practices ====

	Keep detailed records of all fixed assets, including purchase details, depreciation schedules, and related liabilities.		Keep detailed records of all fixed assets, including purchase details, depreciation schedules, and related liabilities.

Khkoh: /* Update */

2025-06-09T07:48:54Z

Update

← Older revision		Revision as of 15:48, 9 June 2025
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	#* Track the depreciation expense on your assets each year. By following these tips, you can ensure that your fixed asset management system is accurate and efficient		#* Track the depreciation expense on your assets each year. By following these tips, you can ensure that your fixed asset management system is accurate and efficient

	=== ~~'''~~Update ~~'''~~ ===		===Update ===
	#Under the Asset Management Sub-tab, there are 5 functions namely: Asset Setup, Asset Deprecation Months, Asset Category, Assets Master and Depreciation Posting.		#Under the Asset Management Sub-tab, there are 5 functions namely: Asset Setup, Asset Deprecation Months, Asset Category, Assets Master and Depreciation Posting.
	## '''Asset Setup''':		## '''Asset Setup''':

Khkoh: /* Accounting Treatment */

2025-06-09T07:48:39Z

Accounting Treatment

← Older revision		Revision as of 15:48, 9 June 2025
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	Since the machine will earn income through leasing or rental over time, it is classified as a fixed asset rather than inventory.		Since the machine will earn income through leasing or rental over time, it is classified as a fixed asset rather than inventory.

	==== ~~'''~~Accounting Treatment~~'''~~ ====		====Accounting Treatment ====

	'''Initial Recognition:'''		'''Initial Recognition:'''
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	Rental or lease income should be recognized as revenue in the income statement when earned.		Rental or lease income should be recognized as revenue in the income statement when earned.
	Any ongoing costs such as maintenance, servicing, or minor repairs should be treated as operating expenses in the relevant accounting period.		Any ongoing costs such as maintenance, servicing, or minor repairs should be treated as operating expenses in the relevant accounting period.

	==== '''Best Practices''' ====		==== '''Best Practices''' ====

Khkoh: /* Key Concepts */

2025-06-09T07:47:03Z

Key Concepts

← Older revision		Revision as of 15:47, 9 June 2025
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	When your business purchases a new machine with the intention of leasing or renting it to customers, it should be recorded as a fixed asset on your balance sheet — not as inventory.		When your business purchases a new machine with the intention of leasing or renting it to customers, it should be recorded as a fixed asset on your balance sheet — not as inventory.

	==== ~~'''~~Key Concepts~~'''~~ ====		====Key Concepts====

	'''Assets vs. Inventory:'''		'''Assets vs. Inventory:'''
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	'''Inventory''' refers to goods held for sale in the ordinary course of business.		'''Inventory''' refers to goods held for sale in the ordinary course of business.
	Since the machine will earn income through leasing or rental over time, it is classified as a fixed asset rather than inventory.		Since the machine will earn income through leasing or rental over time, it is classified as a fixed asset rather than inventory.

	==== '''Accounting Treatment''' ====		==== '''Accounting Treatment''' ====

Khkoh: /* Dispose or Sell an Asset */

2025-06-09T07:40:25Z

Dispose or Sell an Asset

← Older revision		Revision as of 15:40, 9 June 2025
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	# Navigate to: '''Finance → Asset Management → Asset Master'''. The '''Sell''' link is located on the far right of each asset row.		# Navigate to: '''Finance → Asset Management → Asset Master'''. The '''Sell''' link is located on the far right of each asset row.
	# Click on the '''Sell''' link, fill in the form with the '''sale value''' and '''sale date''', then click the '''Process''' button.		# Click on the '''Sell''' link, fill in the form with the '''sale value''' and '''sale date''', then click the '''Process''' button.
	# The system will automatically calculate the '''gain or loss''' on disposal and update the General Ledger accordingly.		# The system will automatically calculate the '''<u>gain or loss</u>''' on disposal and update the General Ledger accordingly.
	# Please '''note''':		# Please '''note''':
	## In the Fixed Asset Reports, the book value of the asset will still be displayed. It will not be changed to zero unless the asset is fully depreciated.		## In the Fixed Asset Reports, the book value of the asset will still be displayed. It will not be changed to zero unless the asset is fully depreciated.

Khkoh: /* Dispose or Sell an Asset */

2025-06-09T07:39:34Z

Dispose or Sell an Asset

← Older revision		Revision as of 15:39, 9 June 2025
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	# Navigate to: '''Finance → Asset Management → Asset Master'''. The '''Sell''' link is located on the far right of each asset row.		# Navigate to: '''Finance → Asset Management → Asset Master'''. The '''Sell''' link is located on the far right of each asset row.
	# Click on the '''Sell''' link, fill in the form with the '''sale value''' and '''sale date''', then click the '''Process''' button.		# Click on the '''Sell''' link, fill in the form with the '''sale value''' and '''sale date''', then click the '''Process''' button.
	# The system will automatically calculate the gain or loss on disposal and update the General Ledger accordingly.		# The system will automatically calculate the '''gain or loss''' on disposal and update the General Ledger accordingly.
	# Please '''note''':		# Please '''note''':
	## In the Fixed Asset Reports, the book value of the asset will still be displayed. It will not be changed to zero unless the asset is fully depreciated.		## In the Fixed Asset Reports, the book value of the asset will still be displayed. It will not be changed to zero unless the asset is fully depreciated.

Khkoh: /* Dispose or Sell an Asset */

2025-06-09T07:39:03Z

Dispose or Sell an Asset

← Older revision		Revision as of 15:39, 9 June 2025
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	# The system will automatically calculate the gain or loss on disposal and update the General Ledger accordingly.		# The system will automatically calculate the gain or loss on disposal and update the General Ledger accordingly.
	# Please '''note''':		# Please '''note''':
	## In the Fixed Asset Reports, the book value of the asset will still be displayed.		## In the Fixed Asset Reports, the book value of the asset will still be displayed. It will not be changed to zero unless the asset is fully depreciated.
	## This is the asset’s net value after the last depreciation and before disposal.		## This is the asset’s net value after the last depreciation and before disposal.
	## The book value shown will not be updated after the asset is sold — it serves as a historical record.		## The book value shown will be preserved and not updated after the asset is sold — it serves as a historical record.

	[[#Top\|<u>Go to Top</u>]]		[[#Top\|<u>Go to Top</u>]]

Khkoh: /* Dispose or Sell An Asset */

2025-06-09T07:35:02Z

Dispose or Sell An Asset

← Older revision		Revision as of 15:35, 9 June 2025
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	Engage a qualified accountant or advisor to ensure compliance with applicable accounting standards (e.g., IFRS or local GAAP).		Engage a qualified accountant or advisor to ensure compliance with applicable accounting standards (e.g., IFRS or local GAAP).

	=== Dispose or Sell An Asset ===		=== Dispose or Sell an Asset ===

	#When ~~come to a point where~~ an asset ~~need~~ to be disposed or sold, ~~user can~~ go to the Asset Master and "Sell~~" the asset~~.		# When an asset needs to be disposed of or sold, go to the Asset Master and use the '''Sell''' function.
	#Navigate to Finance, Asset Management, Asset Master. The "Sell" link is on the ~~extreme~~ right.		# Navigate to: '''Finance → Asset Management → Asset Master'''. The '''Sell''' link is located on the far right of each asset row.
	#Click on ~~it and then~~ fill in the form~~. Enter~~ the sale value ~~of the asset~~ and ~~the~~ date~~. And~~ click the "Process" button.		# Click on the '''Sell''' link, fill in the form with the '''sale value''' and '''sale date''', then click the '''Process''' button.
	#The system will ~~automiatcally~~ calculate the gain or loss ~~of the asset due to this sale~~ and the ~~GL will be updated~~ accordingly.		# The system will automatically calculate the gain or loss on disposal and update the General Ledger accordingly.
	#Please '''~~NOTE~~''' ~~that in~~ the Fixed Asset Reports, the book value is still ~~indicate the value~~. This is the value ~~of the asset recorded~~ after the last depreciation and before ~~it is sold~~. ~~This~~ value will not be ~~changed~~ after it is sold.		# Please '''note''':
			## In the Fixed Asset Reports, the book value of the asset will still be displayed.
			## This is the asset’s net value after the last depreciation and before disposal.
			## The book value shown will not be updated after the asset is sold — it serves as a historical record.

	[[#Top\|<u>Go to Top</u>]]		[[#Top\|<u>Go to Top</u>]]

Khkoh: /* Dispose or Sell An Asset */

2025-06-09T07:32:31Z

Dispose or Sell An Asset

← Older revision		Revision as of 15:32, 9 June 2025
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	[[#Top\|<u>Go to Top</u>]]		[[#Top\|<u>Go to Top</u>]]

	== How to Delete a Fiscal Year in Highnix ERP ==		== How to Delete a Fiscal Year in Highnix ERP ==

Khkoh: /* Example: Recording a New Machine for Lease or Rental */

2025-06-09T07:32:16Z

Example: Recording a New Machine for Lease or Rental

← Older revision		Revision as of 15:32, 9 June 2025
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	=== Example: Recording a New Machine for Lease or Rental ===		=== Example: Recording a New Machine for Lease or Rental ===
	When your business purchases a new machine with the ~~intent to lease~~ or ~~rent~~ it to customers, it should be recorded as an asset on your balance sheet ~~rather than~~ as inventory.		When your business purchases a new machine with the intention of leasing or renting it to customers, it should be recorded as a fixed asset on your balance sheet — not as inventory.

	==== '''Key Concepts:''' ====		==== '''Key Concepts''' ====

	# '''Assets vs. Inventory:'''		'''Assets vs. Inventory:'''
	## '''Assets''' are resources owned by ~~your~~ business that are expected to generate ~~revenue~~ over time.		'''Assets''' are long-term resources owned by the business that are expected to generate economic benefits over time.
	## '''Inventory''' ~~consists of~~ goods ~~intended~~ for sale ~~to customers~~ in the ~~normal~~ course of business.Since the machine will ~~generate revenue~~ through leasing or ~~renting~~, it ~~qualifies~~ as an asset.		'''Inventory''' refers to goods held for sale in the ordinary course of business.
			Since the machine will earn income through leasing or rental over time, it is classified as a fixed asset rather than inventory.
			==== '''Accounting Treatment''' ====

	~~==== '''Accounting Treatment:''' ====~~		'''Initial Recognition:'''
	# '''Initial ~~Recording~~:'''		Record the purchase price of the machine under the appropriate fixed asset category (e.g., "Leased Equipment") on the balance sheet.
	## Record the purchase ~~cost~~ of the machine ~~as an asset~~ under the appropriate fixed asset category on ~~your~~ balance sheet.		Include directly attributable costs, such as delivery, installation, and setup fees, in the asset’s capitalized value.
	## Include ~~any additional~~ costs ~~directly related to acquiring the machine~~, such as ~~shipping~~, installation, or setup fees, ~~as part of~~ the asset’s value.		'''Subsequent Revenue and Expenses:'''
	# '''Revenue ~~Recognition~~:'''		Rental or lease income should be recognized as revenue in the income statement when earned.
	~~## When you~~ lease ~~or rent the machine, the rental~~ income should be ~~recorded~~ as revenue ~~on your~~ income statement.		Any ongoing costs such as maintenance, servicing, or minor repairs should be treated as operating expenses in the relevant accounting period.
	## Any ~~expenses incurred during the leasing or renting period,~~ such as maintenance or ~~repair costs,~~ should be ~~recorded~~ as operating expenses.		==== '''Best Practices''' ====

	~~==== '''Best Practices:''' ====~~		Keep detailed records of all fixed assets, including purchase details, depreciation schedules, and related liabilities.
	~~# Maintain~~ detailed records of ~~your~~ assets and ~~associated~~ liabilities ~~to accurately assess your business’s financial health~~.		Periodically assess fixed assets for signs of impairment or obsolescence and adjust their carrying value if needed.
	~~# Regularly review your~~ fixed assets for impairment or obsolescence~~, adjusting~~ their value ~~on your balance sheet as necessary~~.		Engage a qualified accountant or advisor to ensure compliance with applicable accounting standards (e.g., IFRS or local GAAP).
	~~# Consult with an~~ accountant or ~~financial~~ advisor to ensure ~~your asset management practices align~~ with ~~current~~ accounting standards ~~and best practices~~.

	=== Dispose or Sell An Asset ===		=== Dispose or Sell An Asset ===