Adjusting Asset Value for Accurate Accounting with Empress

Guides & Tutorials
1

Introduction

In the course of running a business, your assets’ value may fluctuate. For example, you may need to decrease the value of a company laptop if it becomes damaged. The Asset Value Adjustment feature in Empress provides an efficient way to accurately document these changes, ensuring consistency in your company’s accounting records. This guide will guide you through accessing and using this feature.

Accessing the Asset Value Adjustment Feature

To navigate to the Asset Value Adjustment feature, follow these steps from the Empress homepage:

  1. Click on Assets
  2. Navigate to Maintenance
  3. Click on Asset Value Adjustment

Before You Begin

Before creating and implementing an Asset Value Adjustment, there are a couple of things you need to do:

  1. Create an asset within the system. You can find the instructions on how to do this here
  2. Enable the ‘Calculate Depreciation’ option in the Asset form.

Creating an Asset Value Adjustment

Once you’ve done the above, you can proceed to adjust an asset’s value. Here’s how:

  1. Go to the Asset Value Adjustment list and click on the New button.
  2. Select the Asset that requires a value adjustment.
  3. Choose the date for the adjustment.
  4. Fill in the current and new value of the asset.
  5. Click on the Save and Submit buttons.

After saving your changes, Empress will automatically record a “Gain/Loss on asset revaluation” and adjust the asset’s valuation accordingly. You also have the option to change the cost center and add a finance book if necessary.

On submission of the adjustment, a Journal Entry will be created under the ‘Accumulated Depreciations’ account.

This feature ensures that your asset values are always accurate, reflecting any sudden changes due to damages or other unforeseen circumstances. Regularly checking and adjusting asset values can help maintain a clear and accurate picture of your company’s financial situation.

By using the Asset Value Adjustment feature in Empress, you can effectively manage your assets and maintain accurate financial records, contributing to the success of your business operations.