Guides

Migrate intangible assets from prior accounting system

When migrating to Manager from a prior accounting system, intangible assets must be carried forward at their book values from the previous system. Basic procedures for creating intangible assets in Manager are described in another Guide. Read it first.

Migration is accomplished in Manager in two steps:

  • Create the intangible asset.
  • Enter starting balances for purchase cost and accumulated amortization to date being carried over from your old account system. (Manager will automatically calculate book value.)

Create the intangible asset

Before you can enter any transaction related to an intangible asset, the intangible asset itself must be created in Manager. If the Intangible Assets tab has not already been enabled, click Customize below the left navigation pane. Check the box for Intangible Assets and click Update below the list:

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To migrate a fixed asset, return to the left navigation pane, click Intangible Assets, then New Intangible Asset:

Complete the entry:

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  • Name is the name that will appear for the intangible asset in reports and lists.
  • Code is an optional alphabetic or numeric designation for the intangible asset. Numeric entries will control the asset’s position in lists.
  • Description accepts detailed information about the intangible asset.

Click Create.

Enter starting balances

Original purchase cost and accumulated amortization to date from your old accounting system must be entered as starting balances. General procedures for entering starting balances are contained in this Guide. Read it first.

When migrating intangible assets, go to Starting Balances in the Settings tab. Click the blue balance figure for the Intangible assets account. Click Edit for the asset you are migrating and enter Purchase cost. Return to the Starting Balances list and click the blue balance for Intangible assets, accumulated amortization.

Example
Brilliant industries is migrating its accounting to Manager. It owns one intangible asset, the patent for an electronic controller. Following procedures described above, it creates the patent as an intangible asset, then enters starting balances:

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AND

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Results

The intangible asset, with starting balances carried over from your old accounting system, will show under the Intangible Assets tab. The purchase cost of the intangible asset will be combined with any other intangible assets’ costs and displayed under the Assets category on the Summary page. A contra account, Intangible assets, accumulated amortization, will record amortization to date for all intangible assets. The difference between the two account balances represents current book value of all intangible assets.

Example
After migrating its intangible asset, the patent, Brilliant’s intangible asset list and Summary show the results:



AND

Note
When migrating many intangible assets, consider using batch operations to accomplish the steps described above.

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