Fixed assets and accounting amortization

When the trial balance is imported and the books are not kept in TeeBooks, the Fixed assets page (menu, under Adjustments) computes each asset's accounting amortization for the dossier's fiscal year, then posts it as an adjusting entry. It covers tangible assets and intangible assets.

Updating the register

The Update the register card (top of the page) shows what no longer follows the trial balance:

• Untracked cost: a cost the auditor reclassified to assets (accepted reclassification entry), or an adjustment that debits a fixed-asset account, with no asset record. *Add to the register* opens a pre-filled asset (the entry's date, the cost, amortized like the last asset on the account). The line that exactly explains the difference is marked "explains the difference"; if no combination explains it, the card says so and you choose.
• Amortization start that does not follow the acquisition date: *Start at acquisition* (or *Align all*).
• The balance's accumulated amortization changed since the import: when TeeBooks keeps the client's amortization and it was corrected or re-posted after the register was imported from the trial balance, the (re-sent) trial balance and the register no longer agree. *Take over the balance's accumulated amortization* brings the asset back in line in one click (when a single asset holds the account). Do not post the difference entry in that case: it would undo the correction made in TeeBooks. If TeeTax's register is the one that is right, post it.
• The amortization entry: to post, or to update.

There is nothing to undo: the amortization entry recalculates by itself and replaces the previous one. Add the asset or fix the date, then click Update the entry: it is never a duplicate. In the form, the amortization start follows the acquisition date as long as the two dates are identical; a deliberately different in-service date stays as entered.

How amortization is computed

• Daily (the default for new assets, the same calculation as TeeBooks): an addition of the year is amortized at the applicable rate × days held ÷ 365 (acquisition day included, 366 in leap years). The opening balance is amortized on its net value: (cost − accumulated amortization) × rate.
• Straight-line: (cost − residual value) × days held ÷ (life in months × 365 ÷ 12).
• Whole months (older assets): amortization starts with the in-service month (included) and stops with the disposal month (included). Declining balance: opening net book value × rate × months in service ÷ 12.
• Half-year (per asset): half of the annual amount in the first year and in the year of disposal.
• Not amortized: land, goodwill, work in progress.
• Never below the residual value.

When the amortization is already booked in TeeBooks

If the client keeps its books in TeeBooks, the amortization is calculated and booked in the journal there, then pushed to the file's trial balance: nothing needs to be redone here. The Fixed assets page then shows a box (entries, amount, TeeBooks register) and, if you still click Post the amortization, it warns you and asks for confirmation. For a year-end engagement without bookkeeping, enter each asset with its acquisition date: the daily calculation does the rest.

Why posting the entry again does not double it

The entry does not say "add the amortization": it brings the trial balance's accumulated amortization (accepted adjustments included, excluding the register's own) to the figure the register computes. If the imported trial balance already includes the amortization, there is nothing to post. If it does not match the register's schedule at the opening, the difference is shown and included in the entry.

Disposals

The disposal icon records the date and proceeds. Amortization stops, and the page generates the entry that removes cost and accumulated amortization and records the gain or loss. Post the amortization entry first: the disposal removes the accumulated amount the register computes up to the disposal date.