Fixed assets and depreciation

Keep a register of laptops, machines, vehicles and furniture, with depreciation posted for you every month, and record a sale or scrapping with its gain or loss.

Standard plan and above.

Add an asset

1. Go to Accounting › Fixed Assets and click + (New fixed asset).
2. Enter the Asset name, choose a Category, and enter the Cost and the date it was Bought on.
3. Put to use on: depreciation starts from this day.

4. How was it paid for?

   • Bought on a purchase bill: choose the bill. The cost moves from Purchases to the asset account, so it isn't counted as an expense.
   • Paid from cash or bank: choose the account it was paid from.
   • Already in my books: for an asset you owned before. Enter the Depreciation already charged before these books.
5. Check the Method, Rate % a year and Value left at the end (scrap or resale value; depreciation stops there). They come from the category.
6. Optionally add a Location, Serial / registration no. and Notes, then click Save asset.

The starting categories use straight-line depreciation over a common useful life. Change them under Manage categories.

Depreciation every month

Depreciation is posted for you after each month ends, once, at about 6 AM. Each posting debits Depreciation and credits Accumulated Depreciation. Open an asset to see every month's depreciation and its value now.

Sell or scrap an asset

1. Open the asset and click Sell or scrap.
2. Choose Sold or Scrapped / written off, and the date.
3. For a sale, enter what it was Sold for and the account the Money went into.
4. Click Record it.

Depreciation up to that date is posted first. The difference between the price and the value left is posted as a gain or a loss on sale.

Reports

Reports › Fixed Asset Schedule shows, for each category and asset, the value at the start of the period, additions, depreciation, sales and the value at the end.