Budgeting for Fixed Assets

This template guides the user to schedule the purchasing of fixed assets over multiple planning periods (financial years). (The template provides for ten [10] financial years). Provision is made for 500 individual fixed assets.

As a secondary function, the template also makes provision for the scheduling of fixed assets to be purchased in the current financial year according to commitments created (the month in which the order will be placed) and actual cash flows (the month when the payment will be done).

Key definition:

A fixed asset is an item with a useful life greater than one reporting period, and which exceeds an entity's minimum capitalization limit. A fixed asset is not purchased with the intent of immediate resale, but rather for productive use within the entity. An inventory item cannot be considered a fixed asset, since it is purchased with the intent of either reselling it directly or incorporating it into a product that is then sold. The following are examples of general categories of fixed assets:

• Buildings

• Computer equipment

• Computer software

• Furniture and fixtures

• Intangible assets

• Land

• Leasehold improvements

• Machinery

• Vehicles