Fixed assets and categories
The Fixed Assets module keeps a register of what the business owns and uses, such as vehicles, computers and furniture, and posts their depreciation every month.
Fixed Assets is part of some subscription plans. If you don't see Fixed Assets in the side menu, contact Exler IT Hub to add it.
How it works
- Create a category for each kind of asset, with its accounts and depreciation rules (this page).
- Add assets to the register: by buying them on a bill, or by hand (see Asset register).
- Run depreciation each month (see Running depreciation).
- Sell or write off an asset when it leaves the business (see Selling or writing off an asset).
Create a category
Open Fixed Assets›Asset Categories and click New Category.
| Field | What to enter |
|---|---|
| Name, Regional Name | For example Motor Vehicles, Computers, Furniture and Fixtures. |
| Asset Account | Where the cost is held (a fixed asset account). |
| Accumulated Depreciation | Where depreciation builds up against the cost. |
| Depreciation Expense | The expense account for the monthly charge. |
| Gain on Disposal, Loss on Disposal / Write-off | Where the profit or loss goes when an asset is sold or written off. |
| Method | Straight line: the same amount every month. |
| Useful Life (months) | For example 60 for a vehicle depreciated over 5 years. |
| Residual Value % | The value you expect it to have left at the end, as a percentage of cost. It isn't depreciated. |
| First Month | How the month the asset goes into service is charged: By days in use: only the days it was in use; Full month: the whole month; From next month: depreciation starts the month after. |
| One asset per unit on bills | A bill line for 5 laptops creates 5 separate assets instead of one. |
The defaults apply to assets added afterwards. Existing assets keep their own accounts and life.
Fixed asset items
To buy assets on a bill, create a Fixed Asset Item for each kind of asset you buy (see Item types) and link it to its asset category. When a bill with that item is posted, the cost goes to the category's asset account, and a draft asset is created in the register.
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