Create a journal posting rule—Fixed Assets Management

Journal posting rules determine which journals the Fixed Assets Management application can post to and how. Each rule contains details about the journal, convention, useful life units, and more. Journal posting rules are used to automatically populate valid information for depreciation rules, saving you time.

1. Go to Fixed Assets Management > Setup > Configuration.
2. Select Edit.
3. In the Journal posting rules section, select Add row or Add (circle).
   

4. Enter a Journal posting rule ID and name.
   

   The ID and name are referenced when you create a depreciation rule. Use a meaningful name that's based on the book such as Accrual, GAAP, or Tax. The ID must be unique.

5. Select a Journal.
   

   This is the journal where transactions related to Fixed Assets Management are recorded.You can select journals that use either the Accrual or Cash accounting method, but not both. When creating multiple journal posting rules, each rule must use a different journal, and each journal must belong to a different book.

6. Select a Convention.
   

   The convention determines how depreciation is calculated in the first and last periods of an asset's life.

   Supported conventions
   

   • Full month: Assets start to depreciate on the first day of the month that they are placed in service, regardless of the exact in-service date. This does not affect assets that are under the Daily depreciation method, which start to depreciate on the exact in-service date.

   • Half year: Assets depreciate for half a period in the first year they are placed in service, regardless of the exact in-service date. The remaining depreciation is applied in an extra period at the end of the asset's life.

   • Full year: Assets start to depreciate on the first day of the year that they are placed in service, regardless of the exact in-service date.

7. Select the Useful life units.

   The units of useful life must match the convention. For a Full month convention, select Months. For a Half year or Full year convention, select Years.
   

8. Optionally, if the book is a tax book, select Tax.
   

   If the Tax setting is enabled, and if the convention is Half year or Full year, Sage Intacct uses the entity’s tax year-end for depreciation posting period dates. If the entity's tax year is not defined, it uses the company’s instead. The tax year-end is determined by the First tax month setting, which you can find on the Entity information (Company > Setup > Entities) or Company information (Company > Setup > Company > Accounting tab) pages. For example, if the First tax month is July, then the posting periods each year will be on June 30th.

9. Optionally, to ignore the salvage value of assets in depreciation expense calculations, deselect Use salvage value.
   

   By default, the Salvage value is used to calculate the depreciation expense of an asset. However, in some countries such as France, the salvage value must always be considered $0 for tax purposes.

10. Select Save.

Repeat these steps to add additional rules as needed.