Asset Transactions
Overview
Asset transactions are used to record events in an asset's lifecycle via depreciation and appreciation. Each transaction type affects the asset's book value and generates the appropriate accounting transactions.
Types of Asset Transactions
- Depreciation Transactions: for when an asset value decreases and you want to record the decrease in value.
- Appreciation Transactions: for when an asset value increases and you want to record the increase in value.
Fields of the Asset Transactions Form Explained
Asset transactions in Mezan are created from the asset page, you can initiate a depreciation or appreciation event, and the following fields are required:
- Transaction Date: The date of the transaction. This is the date when the transaction is recorded in the general ledger.
- Description: A description of the transaction. This is optional and purely for reference purposes. You can add the reasons for the transaction, or any other information you need to remember about the transaction.
- Transaction Amount: The amount of the transaction. This is the amount that is recorded in the general ledger. It will also modify the asset's displayed "Book Value" in the assets list and details. If the operation is a depreciation transaction, you can use the "Suggest Amount" button to automatically calculate the amount based on the asset's depreciation settings.
- Transaction Note: A note to describe the transaction. This is optional and purely for reference purposes.
Other properties of the Asset Transactions
- Transaction Type: This is automatically populated based on the type of transaction selected at the time of creation. It can be "Depreciation" or "Appreciation".
- Asset: This is a link to the asset that the transaction is related to. It is automatically populated based on the asset at the time of creating the transaction.
- Confirmation Status: This is used to track the status of the transaction. It can be "Draft" or "Confirmed". This is a common approach across all transactions in Mezan. Confirmed state can influence if it shows up in reports by default or not, as reports can be filtered based on the confirmation status.
- Organization Member: This is the organization team member who created the transaction. It is automatically populated by the system based on the user who created the transaction. It is useful in reporting, permissions, and audit purposes.
- Transaction Account: This is the account that will be used to record the transaction in the general ledger. It is automatically populated based on the asset's configuration.
Transactions Generated by Asset Transactions
Depreciation transactions will generate the following transactions:
- Asset Account: A credit transaction is generated on the asset account of the asset, to reduce the asset's book value.
- Depreciation Account: A debit transaction is generated on the depreciation expense account of the asset, to record the depreciation expense.
Appreciation transactions will generate the following transactions:
- Asset Account: A debit transaction is generated on the asset account of the asset, to increase the asset's book value.
- Appreciation Account: A credit transaction is generated on the appreciation revenue account of the asset, to record the appreciation of the asset.