New Fixed Asset
A Fixed Asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets most commonly appear on the balance sheet as property, plant, and equipment (PP&E).
To create a new Fixed asset, go to Fixed Assets > New > Fixed Asset
Fixed Asset Popup window appear on the screen.
If no fixed asset categories found in the system, click Settings to add a fixed asset category, and it leads to Items and Inventory category adding section. It's also similar to the Inventory. Additionally, we need to input the Depreciation details. Let's know them in detail before choosing it.
The fixed asset has few depreciation types.
- Straight-Line
- Declining-Balance
- Sum of the year Digits
- One time
These 4 types we have in our system as of now. You can go through our blog posts to know more about the fixed assets and its types. This is not often used, so less spoken with formula's. There few other points.
- Depreciation Rate
- Start date,
- Last depreciated Date
- Depreciation Period
- Disposal account
The product initial value will be calculated based on the purchase cost without tax. after that the depreciation takes place to cut-off the material cost based on the period and finally it will be either disposed or sold to someone before its completely depreciated.
Purchase Fixed Asset
As of now, you can able to buy easily from the Fixed asset creation itself. Suppose if the fixed asset was already purchased, you can input it during the time of creating fixed asset. Just choose the date of the purchase, Supplier name and reference, Initial Value and Current value. Based on these factors the system will make the initial depreciations clear. And than you can connect with System types to process the auto depreciations and manual. Which will help you to continue the fixed asset depreciations easily with it.