If all transactions related to fixed assets are recorded in the asset cards, we can proceed with basic checks before the accounting closing to verify that everything has been posted.
The accounting processing of asset additions/disposals/improvements/accounting depreciation takes place in the Accounting module. You can find these entries under Accounting / Accounting Outputs / Accounting Journal.
Asset Card
First, it is necessary to have the asset card completed, with both accounting and tax depreciation generated within it. If you require the posting of asset additions, this option must also be checked in the asset card. The same applies to capital improvements, etc.
Accounting Journal
The transactions will be posted to the accounts specified in the asset card and will appear in the accounting journal.
Open the accounting journal and filter by the relevant accounting period. To display only fixed asset module transactions, it is recommended to narrow the filter to "Module Name - Fixed Assets".
Trial Balance
You can then check accounts in classes 01, 02, and 03 for the given accounting period in the trial balance against the "Asset Status Overview as of Date" report.
Accounting / Accounting Outputs / Trial Balance
Fixed Assets / Asset Status as of 31.12.2020
It is likewise possible to cross-check accounting depreciation against the asset status overview.
Basic Checks
Review of accounts 50x and 51x
Verify that accounts 50x and 51x (consumed purchases/services) do not contain transactions that actually represent the acquisition of fixed assets or should be included in the acquisition cost of fixed assets.
Check whether accounts 51x (services) contain transactions that may appear to be repairs but are in fact capital improvements.
Particular attention should be paid to amounts exceeding CZK 80,000, as well as to combinations (totals) of individual amounts — so-called sets of tangible movable assets — which may even be posted across different accounts. For example, an amount posted to 51x that should correctly be posted to 04x or 02x.
Review of accounts 04x (assets under construction)
Check the closing balances on these accounts and verify whether they should already have been included in the acquisition cost of capitalised assets (i.e., transferred to the individual asset accounts).
Review of accounts 05x (advances paid for fixed assets)
Verify that advances paid for fixed assets have actually been reflected in the acquisition cost.
Check whether accounts 31x (operating advances paid) contain any advances that were in fact advances for fixed assets and should have been included in the acquisition cost of those assets.
Review of accounts 01x, 02x, and 03x (intangible fixed assets, depreciable tangible fixed assets, and non-depreciable tangible fixed assets)
The balances on individual asset accounts should correspond to the acquisition costs recorded in the asset register (on the asset cards).
The balances on these accounts should correspond to the relevant lines of the balance sheet (gross column).
If asset additions are posted exclusively through accounts 04x, the debit turnover on accounts 01x, 02x, and 03x should equal the credit turnover on accounts 04x.
For asset disposals, the credit turnover on accounts 01x, 02x, and 03x should correspond to the debit turnover on accounts 07x and 08x — asset disposal entries.
Review of accounts 07x and 08x (accumulated depreciation)
The credit turnover on accounts 07x and 08x should correspond to the debit turnover on accounts 55x (or 54x) — depreciation charges or the net book value at the time of disposal (e.g., when disposing of a partially depreciated asset).