Virtual Fixed Assets

After completing this topic, you will be able to explain the process of managing virtual fixed assets.

Summary:

1. When your company needs to purchase identical fixed assets in large quantities for internal use, create a virtual item representing the fixed asset. 
2. In the A/P Invoice choose this template item and enter a certain quantity in the item row (virtual items can be capitalized by A/P invoices only). 
3. Once you add the A/P invoice with the virtual item:
   1. Asset master data records are automatically created in the same quantity you have specified in the A/P invoice row.
   2. A Capitalization document including the created assets is issued automatically as well as a journal entry against the asset account
4. Few facts about virtual fixed assets:
   1. The Virtual Item checkbox is available only if you use numbering series for the asset master data. 
   2. If you chose to enforce serial numbers for an asset master data, you will have to define these numbers when purchasing the asset in the A/P invoice. 
   3. You cannot define an asset master data as an inventory item therefore these are not regular serial numbers. They are asset serial numbers saved in the asset master data for tracking purposes

 You can also download the document here for your records.