Fixed Asset Module - Best Practices and Uses

Katie Turner
Katie Turner
Fourth Anniversary Kudos 1 Facilitator 1
in Blackbaud Financial Edge NXT® General Discussions
Good morning folks! We are getting ready to implement the Fixed Asset module in FE/FENXT and I'm curious to hear your best practices and uses of the module. I know that it will calculate our depreciation for us, yay! But I'm curious about getting the FA into the system after our initial import. Currently, when we purchase an asset, we hit an expense and cash in the Plant Fund. How do you go about moving it from the expense to the proper fixed asset account? We've been doing this via an Excel spreadsheet and JE, but will the FA module do this for us? And at what point? We have traditionally moved the expenses to the FA account at year end so that we can track the cost throughout the year. Open to any and all thoughts! Thanks in advance!

Comments

  • Ferdie Alayon
    Ferdie Alayon
    Seventh Anniversary Kudos 2 Name Dropper Participant
    If it's your choice, you may continue your practice of recording an asset first as an expense.

    In the Add Assets step 4. Transactions tab, you may define your debit fixed asset account and credit expense account.

    But, it defeats the purpose of automatically calculating monthly depreciation if you're doing this at year end.


    If it met your threshold, why not book it straight as a fixed asset?

    Upon acquisition, it would be better to create the asset and in Add Assets 4. Transactions, debit the fixed asset account and credit accounts payable or cash.

    In most cases, acquisition would originate from an accounts payable transaction. So, for step 4, select Post Status - Do Not Post so it's not duplicating the entry in the GL.


    NXT fixed assets is pretty straightforward whichever approach you choose. Good luck!
  • David Smith
    David Smith
    Second Anniversary Facilitator 1

    @Deb Foos Hi, Deb! I'm working on recording some construction in progress, and I saw your comment come up when I was searching for help. You said that you move an asset from CIP to the proper asset class when you acquire the asset in the Fixed Assets module, but I'm not sure how I would do that on our end. When we acquire an asset, we debit the proper asset account and credit our fixed asset fund balance, but I'm not sure where I would go to create the journal entry moving the asset from CIP to the specific asset account within the FA module. I appreciate any advice you might be able to give!

  • Deb Foos
    Deb Foos
    Ninth Anniversary Kudos 2 Name Dropper Participant

    @David Smith Hi David - Here is the process we use. I hope you find some part of this process helpful….

    Let's use the construction of a playground as the new asset. As contractors submit their invoices, they are posted to a Construction in Progress account through AP. When the job is complete, and the last invoice has been submitted, the total cost of the asset has been posted to the CIP account.

    To move this cost from our CIP account, to the Fixed Assets, this is done the Asset Acquisition Transaction tab when adding a new asset in the Fixed Assets Module. We debit the asset account (Building, Equipment, etc.) and credit the Construction in Progress Account. I hope this helps, but if you would like to talk through this, I'm happy to chat on the phone.

  • Susan Ferraro
    Susan Ferraro
    Eighth Anniversary Kudos 1 Name Dropper Facilitator 1

    @Katie Turner I know your fixed asset post is a few years old but we are considering if we want to start using the fixed asset module. It sounds like we handle fixed asset recording the same as you (record first in an expense account to allow for tracking that aligns with our fund budgeting and then reclass all at year end to the appropriate fixed asset balance sheet account or a different expense account if it doesn't follow GAAP rules to qualify as a fixed asset). How have you been handling this process using the FA module?

  • Judith Alexander
    Judith Alexander
    Participant Facilitator 1 July 2025 Monthly Challenge

    Is there a barcode asset tagging system that will work with BlackBaud fixed asset module?

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