Updating Assets

[washingtonag]

When I set my account up it asked for the original cost for all of our building/properties. But I can not find where to enter new updated information as our property and building values have increased. Right now all I am showing on my asset report is the original totals and they are not accurate. Any suggestion as to how to update those values?

[NeilZ]

When I set my account up it asked for the original cost for all of our building/properties. But I can not find where to enter new updated information as our property and building values have increased. Right now all I am showing on my asset report is the original totals and they are not accurate. Any suggestion as to how to update those values?

Basically you would create a transaction in Fund Accounting that DB the asset, and CR the net assets account. This was posted by John Meyers back in 2012, still works today:

To add $10,000 market value to the property, there are two ways.

One is to add directly to the building asset account and equity.
DB 01-1810-000 building asset $10,000
CR 01-3110-000 unrestricted net assets $10,000

One is to show the increase as non-cash income:
DB 01-1810-000 building asset $10,000
CR 01-4110-000 market change in bldg value $10,000 (closes-to 3110)

Note: sometimes the market change is negative, and that is ok to enter the same way.

I think I would enter it as non-cash income, simply because I always get in trouble whenever I directly change an equity account for no good reason. At the close of the last month of the year, the income will automatically update the "unrestricted net asset" account, so the end result is the same.

[washingtonag]

Thanks I will try that out

[jaclyn01]

Neil - We had some damage during the hurricane last summer/fall and a few of our buildings were total losses. Would you follow the same process that was suggested? Thank you!
-Jaclyn

[NeilZ]

Neil - We had some damage during the hurricane last summer/fall and a few of our buildings were total losses. Would you follow the same process that was suggested? Thank you!
-Jaclyn

Basically, yes. You would reverse the debit and credit from the 'increase' example.