Issue/Symptom/Question

Explain the Fixed Asset Acquisition Offset Account

Need to pay for a new asset, what account do I use for the AP Invoice?

Applies To

• Fixed Assets > Asset Information > Pop up after Asset has been set up

Resolution/Fix/Answer

The Acquisition Offset Account is the clearing account PENTA credits for the original value of the Asset. When the AP Invoice comes in (is entered) the same offset account needs to be Debited.  The Account Distribution tab is used to Debit the offset account and the Credit is to the Accounts Payable liability account.  

This process facilitates the creation of the Asset in PENTA for use much more quickly than waiting for the invoice to be received to create the asset.

Asset Information window is closed after the asset is created:

Debit:   Asset Account in the Asset Class window

Credit:       Fixed Asset Acquisition Offset Account

AP Invoice window is closed after the invoice is entered:

Debit:   Fixed Asset Acquisition Offset Account  (Account Distribution Tab)

Credit:       Accounts Payable