Fixed assets module

Lease

The following settings are required.

Lease contracts (GESLEA): The rule needs to account for a debt contracted for the lease, with the long–term debt and the short–term debt. Usually, the due date for the short–term debt cannot exceed 12 months.

Generation of fee events (LEAPAY): In the journal entry of the contract installment, you must include the interest expenses. In addition, for the journal entry of the contract installment, there must be an additional journal entry each year, coinciding with the date in which the lease contract was signed.

Debt reclassification: At the end of each year, the installments that must be paid the next year must be moved from the long–term debt account to the short–term debt account.

Accounting

This section describes journal entries associated with fixed assets.

Create the lease contract

• Entry type: LEACRTSPA
• Currently, the following journal entry (LEACRT) is created:

  Account	Concept	Debit	Credit
  218	Fixed asset	€35,000
  174	Long–term financial lease creditors		€35,000

The Spanish rule specifies that the debt, in this example €35,000,) must be split between the long–term and short–term debts. Of the €35,000, the repaid capital in the first year is €7,000. The journal entry should be as follows:

Account	Concept	Debit	Credit
218	Fixed asset	€35,000
174	Long term financial lease creditors		€28,000
524	Short term financial lease creditors		€7,000

Contract installment

• Entry type: LEAPAYSPA
• Group entry: LPGSP
• Automatic journal: LEPAY and LPSPA
• The Spanish rule indicates that the payment must be split between capital and interest.

  Account	Concept	Debit	Credit
  524	Short term financial lease creditors	€700
  662	Expenses interest	€300
  4109	Invoices pending receipt		€1,000

In addition, when the payment is in the same year when the lease contract was created, you must reclassify the debt from long term to short term according to the debt to pay the next year.

Account	Concept	Debit	Credit
524	Short term financial lease creditors		€8,400
174	Short term financial lease creditors	€8,400

Classification for sale

To comply with accounting requirements, you can enter the expected sale amount in the corresponding field.

Next entry types: FASHELDSALIAS and FASISSIASSPA

At the time of the reclassification:

Account	Concept	Debit	Credit
2813	Accumulated depreciation of machinery	€6,000
691	Impairment losses of machinery	€800
580	Non–current assets held for sale (€4,000 – €800)	€3,200
213	Machinery		€10,000

At the time of the sales invoice

Account	Concept	Debit	Credit
4300	Customers	€3,630
6711	Losses from the non–current assets held for sale(or Gains in the 7711 account)	€200
580	Non–current assets held for sale (€4,000 – €800)		€3,200
477	Machinery		€630

Subsidies

Create a subsidy

The following settings are required:

• In the GRTTAXCPY – Corporate income tax % parameter (AAS chapter, GRT group), enter the percent for the corporate income tax at the company level.
• Accounting code: Add lines 6 and 7 to define the required accounts in the journal entry.
• There is an automatic journal: GCSPA.
• There is an account posting type: GRTCRTSPA.
• There is a treatment to calculate the tax amount (corporate income tax): TRTFASSPA routine CAL_IS1.
• There is an automatic journal group: GRCSP. This group is assigned to the previous account posting type. This group is assigned to 2 automatic journals, the GRCRT automatic journal and the GCSPA automatic journal.

Entries when a subsidy is created:

• Automatic journal entry (GRCRT): Journal entry for obtaining the subsidy.

  Account	Concept	Debit	Credit
  4708	Public entities. Receivable grants (€300,000 * 0.6)	€180,000
  6711	Income from government capital grants		€180,000

• Journal entry for the recognition of the deferred tax liability:

  Account	Concept	Debit	Credit
  8301	Deferred tax (€180.000 * 0.3)	€54,000
  4790	Liabilities arising from taxable temporary differences		€54,000

Subsidy depreciation

• There is an automatic journal: GRSPA.
• There is an account posting type: GRTCRBSPA.
• The treatment to calculate the tax amount (corporate income tax) is: TRTFASSPA routine CAL_IS2.
• There is an automatic journal group: GRRSP. This group is assigned to the previous account posting type. This group will be assigned to two automatic journals: the GRREP automatic journal and the GRSPA automatic journal.
• Entries at the depreciation of a subsidy:
  • The imputation to the results of the part of the subsidy that corresponds to the depreciation. The standard journal entry is GRREP.

    Account	Concept	Debit	Credit
    8400	Transfer of government capital grants (€50,000 * 0.6)	€30,000
    7460	Capital grants, donations and bequests taken to income		€30,000

• Journal entry that cancels part of the deferred tax liability:

  Account	Concept	Debit	Credit
  8301	Deferred tax (€30.000 * 0.3)		€9,000
  7460	Liabilities arising from taxable temporary differences	€9,000