Creating a pooled asset within AO Classic Fixed Assets

1. Open the Fixed Assets module by following the menu path Tools > Client Accounting > Fixed Assets.

2. Select an asset ledger from the Select Ledger drop-down list and click Open.

3. From the Fixed Assets window, press F4 to add a new asset category and change the Sort number from the New field to a range that suits. For example 6000. A 'New Entry' is inserted in the asset list, and the display on the right-hand side of the window changes.

   

   The sort number determines where the assets appear within the Asset ledger list. You can manually change these sort numbers at any stage by clicking in the Sort Number field and editing the existing number and pressing TAB to move to the next field.
4. Type the name for the asset heading, for example Low-Value Pool, and press Enter.
5. Select Heading from the New Type field, and press Enter.
6. Click Edit Defaults.
   

7. Select the Pooled (%) method in the Depreciation field and enter the relevant depreciation rate.

   

   The Pooled method calculates depreciation for the assets in the pool at the specified rate for the second and subsequent years. However, in the first year, depreciation for the assets in the pool is automatically calculated at half the specified rate. Therefore, for a low-value pool for example, you should enter 37.5 as the rate, which will ensure that depreciation is calculated at 18.75% in the first year and at 37.5% for subsequent years.

8. Type the account codes, percent, and expense types in the relevant fields of the following tabs.

   Tab / Headings	Field	Example
   Depreciation & Asset Codes
   Depreciation & Asset Codes: Depreciation (Profit & Loss)	Code	330
   	Percent	100
   	Type	Business
   Depreciation & Asset Codes: Asset Codes (Balance Sheet)	Asset Cost	742
   	Accumulated Dep'n	743
   Sale & Capital Profit Codes	Sale Proceeds	742
   Sale & Capital Profit Codes: Capital Profit	Code	742
   	Percent	100
   Profit/Loss on Sale Codes
   Profit/Loss on Sale Codes: Profit on Sale (Depreciation Recovered)	Code	742
   	Percent	100
   	Type	Business
   Profit/Loss on Sale Codes: Loss on Sale	Code	742
   	Percent	100
   	Type	Business

9. Click OK.

1. Press F4 to add a new asset category, and change the Sort number from the New field to a range that suits, for example 6010. A New Entry is inserted in the asset list, and the display on the right-hand side of the window changes.

   

   The sort number determines where the assets appear within the Asset ledger list. You can manually change these sort numbers at any stage by clicking in the Sort Number field and typing over the top of the existing number and pressing TAB to move to the next field.
2. Type a name for the New Entry field, for example Low-Value pool, and press Enter.
3. Select Group from the New Type field, and press Enter.
4. Select the This Group is a Pool checkbox.

5. Click Yes.

A new asset is created with the description Consolidated Sold Assets. The Consolidated Sold Assets by default, has a sort number that is 10 above the Group category. For instance, 6020 is the sort number from the example above. You can manually change this number to appear lower on the sort list if you wish. For example, 6998.

1. Press F4 to add a new asset category, change the Sort number from the New field to a range that suits, for example 6999. A New Entry is inserted in the asset list, and the display on the right hand side of the window changes.
2. Type a name for the New Entry field, for example Sub-Total LV-Pool, and press Enter. The cursor moves to the New Type field.
3. Select Total from the New Type field, and press Enter. The window panel on the right-hand side changes its view.
4. Select your Asset header in the From field, for example, Low-Value pool. The Asset header is selected in the From field.

You can now add your assets into this pooled group range.

The total line will add all the assets between the Header account and this total line.

For information on how creating Asset items refer to article Creating a fixed asset in the asset ledger

1. Select the asset that you want to assign to the Group category range. The assets details are displayed on the right-hand side of the Assets window.

   

   Make sure the asset sort number appears between the group category, and the consolidated sold assets category. If not then you need to re-assign the sort number.

2. Select the Group category in the Link to Group field, for example Low-Value pool, and press Enter. The asset is assigned to the group category, and the options for depreciation method, rate, and posting codes, will be greyed out.

   

   A warning message "Add Asset to the Pool" may appear, if the asset is not currently within the Group heading sorting range. This warning message indicates that the default settings - depreciation method, depreciation rate and the accounts that are being posted - for the asset selected, will be replaced by the group heading default settings. This includes settings for zero and blank fields. Select YES to assign the asset to the group category.

1. Press F4 to add a new asset and enter the New Entry and New Type fields.

2. Locate and click on the new asset created.

3. Under the Asset tab ensure the following information is entered:

   • Purchase Date (ensure this date is in a previous financial year)

   • Price

   • Link to Group

4. Under the Other tab ensure the following information is entered under the Accumulated Depreciation Claimed section:

   • Depn Schedule value

   • Depn Schedule Up To date (ensure this date is in a previous financial year)

1. From the Reports menu, select Fixed Asset Schedule.
2. Select the reporting period, and then click Next.
3. Click Next and then at Step 3, click Print.
4. Click Print.

The Fixed Asset Schedule report will display the total value of the Pool/group category, without listing the individual items of the pool. For a detailed list of the assets assigned to the Pool category, select Draft at Step 2 of the Print Asset Schedule Report, from the Report Style fields.