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title: "Fixed Assets - Parameters"
canonical: "https://wiki.soft1.eu/space/SS5EN/336134168/Fixed%20Assets%20-%20Parameters"
format: markdown
---
For Fixed Assets, you can set various parameters by navigating to Parameters Menu → Financials → Fixed Assets → Parameters. Below is a detailed description of the parameters' functionality, directly associated with the functionality of fixed assets in SOFT1 ERP, along with examples.
| **Parameter** | **Functionality** | **Example** |
| --- | --- | --- |
| **▶️Fixed Assets Parameters**
**(*****Parameters menu→Financials→Fixed Assets→Parameters*****)** |
| ##### **Code format** | Set the coding of the fixed asset according to the specifications required for the [Code Format](https://soft1wiki.atlassian.net/wiki/spaces/SS5EN/pages/189268499) in the corresponding fields in SOFT1 ERP. | The codification of an asset could refer, solely as an identifier, to an accounting tracking code, e.g. in the form NN.NN.NN.NNNn → 14.00.00.0001 |
| ##### **Fixed Asset one to one with entity ** | If you select 'Yes', then all fixed assets and Improvements/Additions are monitored as separate fixed assets. | For example, let's assume that fixed asset monitoring is conducted using the 'Fixed one-to-one with Entity' method. You purchase a desktop computer with the code 14.03.00.0031. Later, you acquire a hard disk to add to the computer. In this case, the hard disk will not be treated as an addition to the existing computer asset. Instead, it will be regarded as an independent fixed asset with its own code, such as 14.03.00.0032. |
| ##### **Automatic suggestion of entity code** | :info: Only applies when the monitoring method is "**Fixed Asset one with multiple entities".**
- Yes→ when creating/saving a new F/A, either from the purchase Doc. or from the F/A Docs. , the entity code is automatically filled in according to the fixed asset code by adding an increment number to the suffix.
- No→ the entity code and description should be filled in by the user. | For example, suppose you have purchased two fixed assets, an office desk and its extension. In the Fixed Asset Purchase document, once you type the Fixed Asset: 14.00.00.0031, the entity code for the office desk (14.00.00.0031-1) is automatically created. The same process applies for its extension, resulting in the entity code 14.00.00.0031-2.
 |
| ##### **Entity code separator ** | :info: It only applies when the monitoring method is "Fixed Asset one with multiple entities."
Set the character to be used in separating the fixed asset code from the** **increment number of the improvement/addition when creating the entity code. | For example, if the separator you set is ' - ' then the entity code will be in the 14.00.00.0031-1 form. |
| ##### **Cost centers-Comm. Mgmt. ** | - Yes→ Commercial management Cost Centers will be available for selection (*Jobs menu→ HR & Payroll→ Employees Management → Setup*).
- No→ Fixed Asset Cost Centers will be available for selection (*Jobs menu→ Financials→ Fixed Assets→ Set up → Master tables*).
It refers to the following:
- in the 'Cost Center' field found in the Fixed Asset’s profile (Jobs menu→ Financials→ Fixed Assets→ General).
- Fixed Assets document lines
- Fixed Assets reports | |
| ##### **Depreciations calculation method ** | Select the method by which F/A depreciations will be calculated:
Per month → Depreciation will be calculated based on actual months.
Per day → Depreciation will be calculated based on the actual acquisition days of the fixed asset." | For example, let's consider a fixed asset acquired on 31/1/2022, with an acquisition value of €50,000 and a depreciable value per year of €10,000.
For the 1st year → 2022
- per month 9.166,67/11
- per day 9.166,67/335 (or 334) depending on whether the year is a leap year or not
For the 2nd year → 2023
- per month 10.000/12
- per day 10.000/366 (or 365) depending on whether the year is a leap year or not |
| ##### **Calculation on sale ** | Select how depreciation of fixed assets is calculated when they participate in sales documents.
1. Up to sales date
2. Up to the end of the sales month
3. Up to last sales date
4. Up to the end of the previous month of sale
5. Value from tax depreciation | For example, if you've sold a fixed asset on 15/5/2023 and selected the "Up to last sales date" method. Once depreciation is calculated, results depend on 2 cases:
A) If the asset is not yet depreciated, two lines will be created:
- One showing the depreciation value up to 14/5/2023.
- One indicating the profit or loss incurred by the company from the sale of the asset.
B) If the asset is fully depreciated:
- One line showing the profit or loss resulting from the sale of the asset will be created. |
| ##### **Grouping ** | Set a suggested Aging /[Grouping](https://soft1wiki.atlassian.net/wiki/spaces/SS5EN/pages/189268981) scenarios (for display in reports). | |