Capital improvements is a special asset category that includes capital renovations, improvements, technical updates, additional construction, and acquisition of additional equipment for a fixed asset. When you update capital improvements, calculated depreciation is not revalued; however, the depreciated cost and service life of the fixed asset change.

1. Click Fixed assets> Common Forms> FA journalto open the Journalform.

2. Press CTRL+N to create a new journal.

3. In the Namefield, select a journal name.

4. In the Descriptionfield, view or modify the description of the journal.

5. Click Linesto open the Journal voucherform to create fixed asset transactions.

6. Press CTRL+N to open the Add to journalform.

7. In the Transaction datefield, select the date to update the transaction.

8. In the Transaction typefield, select Major repairs.

9. In the FA numberfield, select the fixed asset number.

10. In the Value modelfield, select the fixed asset value model.

11. In the Reason codefield, select a reason code.

12. In the Reason commentfield, view or modify the reason for the refurbishment of the fixed asset.

13. Click OK. The improvement lines for the asset are displayed in the journal.

14. In the Transaction textfield, select a transaction text.

15. In the Debitor Creditfield, enter the transaction amount.

16. In the Offset account typefield, view or modify the offset account type.

17. In the Offset accountfield, view or modify the offset account number.

    Note
    You can also click Group operations> Major repairsto create transactions for several fixed assets.

18. Click Post> Postto post the journal. Fixed asset and ledger transactions are created.

19. Press CTRL+S or close the form.

    Note
    Click Fixed assets> Common Forms> Fixed assets> Value models> Balanceto open the FA balancesform to view the updated amount.

20. Click Fixed assets> Common Forms> Fixed assets> Value modelsto open the FA value modelsform to change the lifetime of the fixed asset as the result of the refurbishment.

21. On the Overviewtab, select the value model of the fixed asset for which you want to change the lifetime or the factor.

22. Click the Generaltab, and in the Lifetimefield, enter the new lifetime of the fixed asset.

23. Click Yesin the Changing lifetimeform to confirm the period change.

24. In the Datefield, select the lifetime change date.

25. In the Reason codefield, select a reason code.

26. In the Reason commentfield, view or modify the reason for the transaction.

27. Click OK.

28. In the Factorfield, view or modify the increasing or reducing factor to be used to calculate the depreciation. You can change the factor of the fixed asset only if you select the Linearmethod of depreciation.

29. Click Yesin the Changing factorform to confirm the factor change.

30. In the Datefield, select the factor change date.

31. In the Reason codefield, select a reason code.

32. In the Reason commentfield, view or modify the reason for the transaction.

33. Click OK.

    Note
    Click FA lifetime historyto open the FA logform to view the fixed asset lifetime or factor change history information, such as the updated lifetime or factor, date that the lifetime or factor was changed, and any other changes that you made.

34. Press CTRL+S or close the form.