Adding a new Fixed Asset

• Note: Before starting, make sure you have activated the chart of accounts app in your account.

 

Assets are recognized as anything owned by a company or an individual in a particular project that has cash or economic value and is expected to provide future benefits. Moreover, anything that can secure future liquidity, reduce expenses, or enhance sales is considered an asset, whether it’s equipment or an owned patent.

It’s worth noting that assets come in various types, such as fixed assets, current assets, financial assets, and intangible assets.

1. Click on “Accounting” from the main menu.
2. Click on “Assets”.
3. Click on the button “Add Asset”.
4. Add Asset Details:
   • Code: The serial number for each asset, which is automatically added by the system. You can also modify it and change its sequence.
   • Name: The asset name as it appears in the chart of accounts and financial reports.
   • Purchase Date: The date the asset was purchased.
   • In Service Date: Specify the start date of the asset usage.
   • Category Account: Choose from several main accounts representing the nature of the asset.
     • Note: You can modify and add additional category asset accounts by adding a new account within the chart of accounts. For more details, refer to the guide “Adding a new account in the chart of accounts“.
   • Location: Write the address or location of the asset, used for non-movable assets such as lands and real estate.
     • Defining the useful life of the asset depends on the depreciation period found in the depreciation method data.
       • Example: If the depreciation period is chosen as “Month”, then the useful life of the asset is added in months. So, if the asset is going to be depreciated over 5 years, write “60” in the useful life field, which is the number of months for the depreciation duration.
   • Quantity: Specify the purchased quantity of the asset.
5. Employee: Choose an employee to be directly responsible for the asset and monitor its depreciation.
6. Description: Provide a general description of the nature and characteristics of the asset.
7. Attachments: Upload one or more files related to the asset, such as the purchase invoice, etc.
8. Add Pricing Details:
   • Purchase Amount: The asset value at the time of purchase.
     • Note: The system automatically determines the current value of the asset to be identical to the purchase value, with the possibility of modification. The current value of the asset is included in the next depreciation account from the date of addition.
   • Currency: The currency in which the asset was purchased.
   • Cash Account: Determine the account that represents the creditor side in the entry of possession of the asset.
   • Tax 1 and Tax 2: Add the applicable tax on the asset to calculate its value automatically.
9. Add Asset Depreciation Data:
   • Salvage Value: Determine the scrap sale value of the asset.
   • Depreciation Method: Specify the depreciation system followed for the asset and choose from:
     • Straight-Line: A fixed value is deducted from the asset when the depreciation time is due.
     • Declining- Balance (Percentage): The depreciation value is calculated as a percentage of the current value of the asset and deducted at the time of depreciation.
     • Units of Production: Specify the maximum number of units based on which the asset is depreciated.
   • Period: Determine, by day, week, or month, a fixed period for calculating depreciation.
   • Fixed Depreciation Value: Specify the depreciation value due for each depreciation period.
   • Depreciation End Date: Determine the end date of the asset depreciation.
   • Note: For more details about the methods and techniques of setting depreciation, consult the guide “Asset Depreciation“.
10. Click on the “Save” button.

Note: Immediately after saving, a subsidiary account for the asset will be added inside the Chart of Accounts listed under:

Assets > Fixed Assets > Transportation Means (for example).