FA Accounts Explanation

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<b>Depreciation Expense ?</b> This accounts store the depreciation computed for an asset ? this can be monthly depreciation or any depreciation catchup that happens on adjustments.

<b>Accumulated Depreciation ? </b>The depreciation reserve for an asset gets stored in this account.

<b>Deferred Accumulated Depreciation, Deferred Depreciation Reverse,Deferred Depreciation Expense ?</b> These 3 accounts are used when you create deferred journal entries for your Asset book

<b>Depreciation Adjustment ?</b> This account is used if you have to change your depreciation amount retrospectively refer Page 381 of the FA User Guide.

<b>Asset Clearing -</b> When you purchase an asset, your payables group creates a journal entry to the asset clearing account. When your fixed assets group records the asset, they create an offset journal entry to the asset clearing account to balance the entry from the payables group.

<b>Asset Cost ? </b>This account stores the asset cost on addition or subsequent adjustments etc.

<b>Bonus Expense, Bonus Reserve ?</b> These accounts are used when you have Bonus rules defined and attached to your assets.In this case, the bonus depreciation is charged to these 2 accounts.

<b>CIP Clearing, CIP Cost ?</b> These accounts are similar to Asset Cost and Asset Clearing, except that they are used for CIP Assets instead of Capitalized assets.

<b>Intercompany Payables, Intercompany Receivables ?</b> These accounts come into picture if you perform interomapny transfer.

<b>Revaluation Amortization, Revaluation Reserve, Revaluation Reserve Retired Gain,Revaluation Reserve Retired Clearing and Revaluation Reserve Retired Loss -</b> This set of accounts is used when journal entries are created for revaluation.The accounts come into play based on your revaluation setups and scenarios.You can refer to the FA User Guide for more details on Accounting --> Journal Entries for Revaluation.

<b>Net Book Value Retired Gain, Net Book Value Retired Loss, Net Book Value Retired Clearing, Proceeds of Sale Gain, Proceeds of Sale Loss, Proceeds of Sale Clearing, Cost of Removal Gain, Cost of Removal Loss and Cost of Removal Clearing -</b> This set of accounts is used when journal entries are created for retirement.You can refer to the FA User Guide for more details on Accounting --> Journal Entries for Retirement.

Account Description For All Required Asset Setup GL Accounts [ID 373313.1]