LA schools do not capitalise assets as this responsibility is carried by and accounted for by the local authority.
Academies are responsible for their own balance sheet and must ensure that they capitalise their fixed assets correctly:
Step 1 – Process Invoice. In order to easily identify fixed asset purchases within the trial balance, academies are advised to initially charge the cost of an asset to the 99998 code when processing the payment.
DR 99998-01 Fixed Asset Purchases
CR BQ501 Bank A/C (original cost)
Step 2 – Transfer to Balance Sheet. Debit the appropriate balance sheet code and credit the ledger and fund code orginally used when purchasing the item
DR BA004 Furniture & Equip (original cost)
CR 99998-01 Fixed Asset Purchases
Step 3 – Transfer to Restricted Fixed Asset Fund*
DR 99999-01 Fixed Asset Fund Transfer
CR 99999-04 Fixed Asset Fund Transfer
*Where the item was orginally purchased from a fund other than the Restricted Fixed Asset Fund.