Effortless Stock to Fixed Asset Transfer in Empress

Guides & Tutorials
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Introduction

Welcome to this user-friendly guide where we walk you through the process of transferring a stock item to a fixed asset in Empress, a powerful tool for managing your company’s resources effectively.

Why is this Feature Important?

As a business, you may sometimes need to reclassify items from being consumable stock to fixed assets. This could be for a variety of reasons such as when an item is no longer consumed but is being used over a long period, hence needing to be depreciated. This is where the Stock to Fixed Asset Transfer feature in Empress comes in handy.

Step 1: Stocking Out a Consumable Item

To start the process, you first need to ‘stock out’ the item from your warehouse, essentially removing it from your consumable inventory. Here’s how to do it:

  1. Go to the Stock Entry section and create a new entry. Select Material Issue as the entry type.
  2. In the Items section, pick the item you wish to reclassify and ensure to select the correct Source Warehouse where the item is currently stored.
  3. For the chosen item, set Stock Adjustment as the Difference Account.

Once you submit this Stock Entry, Empress will automatically deduct the item from your warehouse’s stock and the item’s valuation will be recorded in the Stock Adjustment Account.

Step 2: Adding the Item as a Fixed Asset

Now that the item is out of the consumable inventory, it’s time to add it to your Fixed Asset Register:

  1. Head over to the Assets section and select New to create a new asset.
  2. In the Asset master, select the item and fill in all the necessary details.
  3. Set the Is Existing Asset option to Yes.

At this stage, Empress recognizes the item as a fixed asset. However, to reflect this change in your financial records, you need to update your Fixed Asset Account.

Step 3: Updating the Fixed Asset Account

The final step involves creating a journal entry to credit the Stock Adjustment Account and debit the Fixed Asset Account:

  1. Navigate to the Journal Entry section and create a new entry.
  2. Here, debit the Fixed Asset Account and credit the Stock Adjustment Account accordingly.

And that’s it! You have successfully transferred a stock item to a fixed asset.

Conclusion

By understanding and utilizing the Stock to Fixed Asset Transfer feature in Empress, you can enhance your company’s financial processes by ensuring accurate accounting and effective management of assets. This feature is just one of the many ways Empress can streamline your business operations. For additional support or resources, please visit our Help Center or reach out to our Support Team.