Fixed assets

Fixed assets are the durable goods acquired for the company’s activity. Simon detects them from your invoices or your FEC, computes the depreciation schedule (straight-line or declining-balance) and posts the depreciation charges month after month. Ordinary expenses, on the other hand, stay in the usual invoice flow.

On a fixed asset, you validate the nature of the good, its account, the acquisition date, the amount excluding tax, the duration, the depreciation method, and — in case of an import — the depreciation already applied.

What is a fixed asset?

A good acquired for durable use (more than a year) and whose amount excluding tax exceeds the configured capitalization threshold is recorded as a fixed asset, in the classes:

Class	Nature	Examples
20	Intangible	Software, patents, goodwill
21	Tangible	Computer equipment, furniture, vehicles
23	In progress	Fixed assets under production

Note

Simon’s default threshold is the administrative tolerance carried by the reference data of the installed version. Below it, the expense can be charged directly to expenses if the treatment is appropriate.

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Automatic detection

Simon detects fixed assets from two sources.

From supplier invoices

When qualifying a supplier invoice whose amount excluding tax reaches the capitalization threshold, Simon analyzes:

• The proposed accounting account (classes 20, 21, 23)
• The designation of the good on the invoice
• The acquisition date (invoice date)

If the criteria are met, Simon automatically generates the corresponding fixed asset.

From a FEC import

When importing a FEC, Simon scans all the entries of the class 2 accounts and deduces the existing fixed assets. It groups the entries by account, computes the gross value (debit balance) and retrieves the accumulated depreciation in the corresponding 28 accounts.

Astuce

The FEC import also retrieves the depreciation already applied (28xx accounts). Simon deduces the remaining duration from it and generates the schedule only for future periods.

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Derived accounts (PCG convention)

From the fixed asset account, Simon automatically derives the depreciation and charge accounts:

Asset account	Depreciation account	Charge account	Type
2183	28183	68112	Tangible
2154	28154	68112	Tangible
205	2805	68111	Intangible

The rule: for tangible fixed assets (class 21), the depreciation account is 28 + the account suffix. For intangible ones (class 20), it is 280 + the suffix.

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Creating a fixed asset

Automatic (at posting)

When a document is posted and its qualification indicates a fixed asset, Simon:

1. Creates the fixed asset (being depreciated)
2. Generates the complete depreciation schedule
3. Links the fixed asset to the source document

Manual (via the agent or the UI)

The agent (or the user via the interface) can create a fixed asset directly. The required fields are:

Field	Description
Designation	Name of the good (e.g. “MacBook Pro M4”)
Acquisition date	Date of the invoice or of commissioning
Amount excl. tax	Acquisition price excluding tax
Duration	Depreciation duration in months (e.g. 36)
Account	PCG account (e.g. 2183 for computer equipment)

The optional fields include the residual value, the depreciation method (straight-line by default) and the link to the source document.

Note

The depreciation schedule is generated automatically after each creation or modification of a fixed asset.

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Depreciation schedule

Straight-line method

Straight-line depreciation spreads the depreciable amount uniformly over the useful life:

monthly_charge = (base - residual_value) / duration_in_months

The pro rata temporis is applied to the first month if commissioning does not fall on the 1st of the month. The last month absorbs the rounding difference so that the total depreciated is always exact.

Declining-balance method

Declining-balance depreciation applies a fiscal coefficient to the straight-line rate — a coefficient that increases with the depreciation duration. Each year, Simon compares the declining-balance rate to the straight-line rate over the remaining duration; as soon as straight-line becomes more advantageous, it automatically switches to straight-line for the remaining periods.

Attention

Declining-balance depreciation is not available for all goods. In practice, it mainly concerns industrial equipment and certain specific equipment. For computer equipment and furniture, straight-line depreciation is the norm.

Parameter validation

Before any calculation, Simon checks:

• Strictly positive amount
• Duration between 12 and 240 months
• Straight-line or declining-balance method
• Residual value less than or equal to 20% of the base
• Start date not in the future

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Posting the depreciation charges

The depreciation entries are generated for all instalments not yet posted up to a given date.

For each line of the schedule:

Direction	Account	Label
Debit	68112 (or 68111)	Depreciation charge [designation]
Credit	28xxx	Accumulated depreciation [designation]

The entries are posted in the IM journal (Fixed assets). Each line of the schedule is marked as posted to avoid duplicates.

Astuce

Posting the depreciation charges is typically triggered during the year-end closing: Simon posts all the financial year’s charges in a single pass.

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Disposal of a fixed asset

When a good is sold or scrapped, the fixed asset is disposed: you simply mark it as such, with the disposal date and amount.

The disposal entries are generated automatically:

• Removal from assets: credit of the fixed asset account (e.g. 2183)
• Reversal of depreciation: debit of the accumulated depreciation account (e.g. 28183)
• NBV (net book value): exceptional expense if NBV > 0
• Disposal price: exceptional income

Note

A fixed asset is in one of three states: being depreciated, disposed, or fully depreciated.

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Modification and recalculation

When the depreciation method or duration is modified, Simon automatically recalculates the schedule for the periods not yet posted. The entries already posted are kept — the recalculation only covers the amount remaining to be depreciated.