Managing Fixed Assets and Depreciation in FalconPro Real Estate Software

Managing Fixed Assets and Depreciation in FalconPro Real Estate Software

Introduction

Managing fixed assets efficiently is essential for accurate financial reporting in FalconPro Real Estate Software. FalconPro allows users to:

  • ✅ Create and categorize fixed assets (e.g., cars, laptops, buildings).
  • ✅ Track asset purchase values and depreciation schedules.
  • ✅ Automatically generate depreciation entries and vouchers.
  • ✅ Maintain a history of all depreciation transactions.

This guide explains how to set up, manage, and depreciate fixed assets using FalconPro.

1. Setting Up Fixed Assets in FalconPro

Before tracking depreciation, users must first define fixed asset categories and details.

Steps to Add a New Fixed Asset Category:

  1. Go to Fixed Assets → Fixed Asset Categories.
  2. Click “Add New Category”.
  3. Enter the Category Name (e.g., Cars, Equipment, Furniture).
  4. Click Save.

After creating a category, users can add subcategories to further classify assets.

2. Adding a Fixed Asset and Assigning Accounts

Once categories are set, users can add specific fixed assets and assign relevant accounting entries.

Steps to Add a Fixed Asset in FalconPro:

  1. Go to Fixed Assets → Add New Fixed Asset.
  2. Select the Asset Category (e.g., Cars).
  3. Enter Fixed Asset Details:
    • Asset Name (e.g., Toyota Corolla 2021).
    • Purchase Date.
    • Purchase Value (e.g., 50,000 AED).
    • Depreciation Rate (e.g., 10% per year).
  4. Set the Accounting Entries:
    • Fixed Asset Account (Debited at purchase).
    • Accumulated Depreciation Account (Credited during depreciation).
    • Depreciation Expense Account (Debited during depreciation).
  5. Click Save.

✅ Now, the fixed asset is recorded and ready for depreciation tracking.

3. Managing Fixed Asset Depreciation in FalconPro

FalconPro automatically calculates depreciation values based on the selected method and time period.

Steps to Process Asset Depreciation:

  1. Go to Fixed Assets → Fixed Asset Depreciation.
  2. Select the Asset to Depreciate.
  3. Choose the Depreciation Period:
    • ✅ Monthly
    • ✅ Quarterly
    • ✅ Yearly
    • ✅ Custom Date
  4. FalconPro Displays the Depreciation Preview:
    • ✅ Total Depreciation Days
    • ✅ Value Before Depreciation
    • ✅ Depreciation Amount
    • ✅ Value After Depreciation
  5. Click “View Voucher” to Preview the Accounting Entry.
  6. If Correct, Click “Create Voucher” to Finalize Depreciation.

✅ FalconPro will now generate a journal voucher (JV) for depreciation.

4. Understanding the Accounting Entries for Depreciation

When depreciation is recorded, FalconPro automatically creates an accounting entry:

  • Depreciation Expense (Debit) → Records the expense.
  • Accumulated Depreciation (Credit) → Reduces the asset value.

📌 Example Journal Entry for a Car Depreciation:

  • Debit Depreciation Expense → 5,000 AED
  • Credit Accumulated Depreciation → 5,000 AED

✅ This ensures accurate financial reporting while maintaining the asset’s history.

5. Reviewing Asset Depreciation History

FalconPro provides a complete depreciation history for all fixed assets.

Steps to View Depreciation Records:

  1. Go to Fixed Assets → Depreciation History.
  2. Select an Asset from the List.
  3. Check the History of All Depreciation Entries:
    • ✅ Voucher Number
    • ✅ Depreciation Date
    • ✅ Total Days Depreciated
    • ✅ Amount Depreciated
  4. Users can double-click any entry to view or adjust details.

6. Best Practices for Fixed Asset Management in FalconPro

  • ✅ Ensure all fixed assets are properly categorized before adding new items.
  • ✅ Set up depreciation accounts correctly to avoid miscalculations.
  • ✅ Verify depreciation calculations before generating vouchers.
  • ✅ Use the history log to track asset values and ensure compliance.
  • ✅ Consult auditors for asset structuring and depreciation methods.

Conclusion

FalconPro Real Estate Software provides a powerful and automated system for tracking fixed assets and depreciation. By following these steps, businesses can:

  • ✅ Accurately record asset purchases and track their financial impact.
  • ✅ Ensure compliance with accounting standards.
  • ✅ Automate depreciation calculations and journal entries.

FAQs

1. What happens if I enter the wrong depreciation rate?
Depreciation rates should be set carefully at asset creation. If an incorrect rate is used, users must manually adjust future depreciation calculations.

2. Can I change an asset’s purchase value after saving it?
No, once an asset is saved, its purchase value cannot be edited. Adjustments must be made using journal entries.

3. How does FalconPro calculate depreciation?
FalconPro uses straight-line depreciation by default but allows custom schedules based on company policy.

4. Can I process depreciation for multiple assets at once?
Yes, FalconPro allows batch processing of depreciation for multiple assets, reducing manual work.

5. What if an asset is sold or disposed of?
When an asset is sold, FalconPro provides an asset disposal option, which removes it from active records and generates a final accounting entry.

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