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Assets such as land, buildings, machinery, vehicles, licenses, and patents purchased by a business to continue its activities constitute the fixed assets of that business. Fixed assets such as buildings, machinery and equipment are called "Tangible Assets", and fixed assets such as licenses, copyrights and software are called "Intangible Assets". According to the legislation, Tangible Assets start with account code 25 and Intangible assets start with account code 26.

Fixed assets are an important criterion when determining the value of a business. The values of land and buildings increase, and as machines are used, their values decrease. This process requires depreciation and revaluation. Workcube does not approach fixed assets only with an accounting focus. Fixed assets fail, are maintained and insured. For example, a computer in the stock of a company that sells computers can be converted into a fixed asset. He can sell the fixed asset after using it for a while. Workcube approaches business functions to fixed assets from a broad perspective.

In Workcube, the entire life history of a fixed asset, including depreciation and valuation transactions from acquisition to redemption, is monitored in an integrated manner with accounting records.

Valuation of Fixed Assets. and Depreciation
Rules regarding valuation and depreciation are determined by legislation. Depreciation has two dimensions. Method and Period.

The following methods are available in Workcube:

Declining Balance
Normal Depreciation

Period
The number of times the depreciation method will be applied in a financial year. In W3, depreciation can be done once a year - annually, 4 times - every 3 months, 12 times - every month.
Two depreciation methods are accepted in VUK: normal and decreasing balances. You can examine the example below to show the difference between the two methods.

Sample Case
The depreciation period for a crane purchased for 1,000 TL is 5.5 years. In this case, the depreciation rate is 18%.

According to the normal procedure; 1,000 x 0.18=180 TL will be depreciated in the first five years, and the remaining 100 TL will be depreciated in the last year.

The depreciation period of the fixed asset is taken according to the decreasing balance procedure. The depreciation rate is calculated by dividing the depreciation purchase value by the period and multiplying the rate by 2.

[1 18]

0.36

[146 ]

Year	Depreciation Base	Depreciation Rate	Depreciation Amount
1	1,000	0.36	360
2	640	230.4
3	[ 133]409.6	0.36	147,456
262,144	0.36	94,372
5	167.772	0.36[1 74]	60,398
6	107,374[1 88]	1	107,374

Each In both methods, the depreciation amount allocated is equal to the depreciation purchase price. The decreasing balance method allows more depreciation amounts to be written off as expenses in the first years.

Before Use

Transaction Types
Accounting Account Definitions

Module Functions

Fixed Assets
Fixed Asset Purchase
Fixed Asset Sale
Return from Fixed Asset to Stock Receipt
Stock to Fixed Asset Conversion Receipt
Fixed Asset Transactions
Fixed Asset Update
Depreciation and Valuation
Fixed Asset Period Transfer Transactions

Related in Other Modules Functions

Stocks
Physical Assets
Accounting Transactions
Subscribers (Fixed assets used in subscriber management

Tip
You cannot delete or update fixed assets that have been sold or revalued.

Attention
The value of your fixed assets, depreciation amounts or revaluation Make sure that increases are recorded correctly in the accounting accounts. Transactions recorded in wrong accounts give rise to legal responsibilities.

Recommendation
By defining fixed assets as physical assets, you can manage transactions such as warranty, debit, malfunction and maintenance with the relevant modules and functions of W3.

Tips

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