Fixed Asset - Directly Attributable Cost

OliverSiguancia · ‎May 26, 2020

My question is related to Fixed Asset accounting, when you purchased an Asset you need to capitalize all directly attributable cost necessary to bring the asset to its intended use such as shipping cost, duties and installation cost. Is there a way in Quick Book Enterprise to merge these direct attributable cost to the total cost of a fixed asset like the concept of Landed Cost? The Landed Cost concept works only in Inventory but not in Fixed Asset,

Teri · ‎May 26, 2020

@OliverSiguancia - Yes, you just record them all to the same asset account and assign an asset #.

@OliverSiguancia wrote:
My question is related to Fixed Asset accounting, when you purchased an Asset you need to capitalize all directly attributable cost necessary to bring the asset to its intended use such as shipping cost, duties and installation cost. Is there a way in Quick Book Enterprise to merge these direct attributable cost to the total cost of a fixed asset like the concept of Landed Cost? The Landed Cost concept works only in Inventory but not in Fixed Asset,

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Teri · ‎May 26, 2020

@OliverSiguancia - Yes, you just record them all to the same asset account and assign an asset #.

@OliverSiguancia wrote:
My question is related to Fixed Asset accounting, when you purchased an Asset you need to capitalize all directly attributable cost necessary to bring the asset to its intended use such as shipping cost, duties and installation cost. Is there a way in Quick Book Enterprise to merge these direct attributable cost to the total cost of a fixed asset like the concept of Landed Cost? The Landed Cost concept works only in Inventory but not in Fixed Asset,

OliverSiguancia · ‎May 26, 2020

@Teri Thank you for your reply it really help a lot. However how about major repair which increased the productive efficiency and useful life of the asset, in which it needs to capitalized how it will be added to the cost of the Fixed Asset?

Thank you again.

OliverSiguancia · ‎May 26, 2020

@Teri

Thank you for your reply, it solved the issue. However how about those major repairs that increases the productive efficiency and useful life of the asset, in which we need to capitalized how can it be added to the cost of the asset?.

Thank you again.

Teri · ‎May 26, 2020

Repairs and maintenance of fixed assets are generally not added to the cost of the asset since they are considered "period costs" so they are expensed in the current period. This is better anyway since then you get to count as tax deductible expense in the current year.

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Fixed Asset - Directly Attributable Cost