Fixed assets journal entry overview

This table provides you with an overview of the journal entries automatically generated by Profit and which you must enter manually.

Profit generates one of the following journal entries:

Depreciation costs account	-,-
To Depreciation Account		-,-

If there is a subsidy for the asset and the amount is released with an equalisation account, then the following journal entry is created:

Subsidies equalisation account	-,-
To Subsidies Release Account		-,-

You can find more details about these journal entries in the table below:

Situation	Amount	Journal entry	Entry
Start
The opening balance position when starting with Profit	Sum of purchase + additional costs reduced by the reinvestment amount and directly entered subsidies	Tangible fixed assets To Opening Balance	Manually via opening balance
In accordance with the last closed year in the fixed assets period table	Sum of the depreciation period	Opening balance To depreciation tangible fixed assets	Manually via opening balance
	Sum of periodic subsidy releases	Opening balance To Subsidy Releases	Manually via opening balance
Purchase
Purchase from a purchase invoice	Purchase amount + additional costs	Tangible fixed assets VAT reclaimable To Creditors	Manually from purchase journal
Purchase via bank	Purchase amount + additional costs	Tangible fixed assets VAT reclaimable To bank	Manually from bank journal
(Partial) transfer general reinvestment reserve	Reinvestment amount	General reinvestment reserve To Tangible Fixed Assets	Manually via general journal
Received subsidies
A received subsidy that is directly deducted from the purchase price.	Directly entered subsidy amount	Bank To Tangible Fixed Assets	Manually from bank journal
A received subsidy that is entered using an equalisation account	Received subsidy amount	Bank To Subsidies Equalisation Account	Manually from bank journal
Periodic depreciation
Depreciation	Depreciation period amount	Depreciation costs To Depreciation Tangible Fixed Assets	Automatically by Profit
Subsidy release handled via the equalisation account	Sum of periodic subsidy releases	Subsidies equalisation account To Subsidy Releases	Automatically by Profit
Sales
Sales suspense account	Sales amount to be received	Sales suspense account	Automatically by Profit
Disinvestment	Sum of purchase + additional costs reduced by the reinvestment amount and directly entered subsidies	To Tangible Fixed Assets	Automatically by Profit
Depreciation contra entry	Sum of the depreciation period amounts	To depreciation tangible fixed assets To depreciation costs	Automatically by Profit
Subsidy release handled via the equalisation account contra entry	Sum of periodic subsidy releases	Subsidy releases To Subsidies Equalisation Account	Automatically by Profit
Option 1: Loss to P&L account	Sales loss amount	Sales loss	Automatically by Profit
Option 2: Profit to P&L account	Sales profit amount	To sales profit	Automatically by Profit
Option 3: Profit to general reinvestment reserve	Sales profit amount	To general reinvestment reserve	Automatically by Profit
Option 4: Profit to replacement asset	Sales profit amount	To Tangible Fixed Assets	Automatically by Profit

Sales invoice	Sales amount	Debtor To VAT sales To sales suspense account Any rounding difference	Manually via sales journal