A Fixed Asset is long-term physical property the firm owns and uses to generate income — not expected to be consumed or turned into cash within a year. On the balance sheet these appear as property, plant and equipment. This form registers one, correctly categorised for reporting, depreciation and tracking.
Where to find it
Go to Fixed Assets > Fixed Asset tab > New Fixed Asset, or Fixed Assets > New > Fixed Asset. Complete every mandatory field, then click Insert New Item.
General Settings
This section establishes the asset's identity and classification.
| Field | Description |
|---|
| Asset Code | A unique alphanumeric identifier. Pre-populated where auto-ID is configured. |
| Name | The asset's title as it appears on invoices, transactions, balance sheets and reports. |
| Description / Alternate Name | Extra context or an internal reference name. |
| Long Description | Specifications, technical notes or manufacturer details. |
| Category | Groups the asset for reporting, and carries the default tax type and GL accounts. See Categories. |
| Asset Class | Links to a Fixed Asset Class, which sets the base depreciation rate and the hierarchy for reporting. |
| HSN/SAC Code | Indian customers only — mandatory for GST compliance. |
| Item Tax Type | The tax percentage applied on purchase or sale. |
| Units of Measure | The unit used for counting — each, set, and so on. |
Purchase Details (For Existing Assets)
Use this section when registering something the company already owns, so its history and remaining value are correct from the start.
| Field | Description |
|---|
| Date of Purchase | When the asset was originally acquired. |
| Supplier | Who it was bought from — kept for audit and warranty. |
| Invoice Reference | The original invoice number, so the record cross-references to paper and bank statements. |
| Quantity | Units on this record. Total value is Initial Value × Quantity. |
| Initial Value Per Qty | Original purchase price of one unit, excluding tax. This becomes the cost on your balance sheet. |
| Current Value Per Qty | Book value of one unit today. |
| Location | Where the asset is currently held. |
How the System Processes These Details
Clicking Insert New Item triggers two automatic actions:
| Action | What happens |
|---|
| Automatic purchase recording | A historical purchase entry is created from the details supplied. |
| Depreciation catch-up | Where Current Value is below Initial Value, the difference is treated as accumulated depreciation and a first journal brings the book value up to date as at the depreciation start date. |
Enter Current Value carefully on an existing asset. It is what drives the catch-up journal — set it equal to Initial Value and the system records no historical depreciation at all, leaving the asset overstated on the balance sheet.
Depreciation Settings
| Field | Description |
|---|
| Depreciation Method | One of four models — see the table below. |
| Depreciation Rate | The percentage, or number of years, used for the periodic charge. |
| Rate Multiplier / Factor | Used with Declining-Balance to accelerate the rate. |
| Depreciation Start | When calculation begins. This cannot be changed once the asset has been depreciated. |
| Last Depreciation | Read-only — the most recent depreciation journal processed. |
The four methods
| Method | How it behaves |
|---|
| Straight-Line | Spreads cost evenly across the asset's useful life in years. |
| Declining-Balance | Accelerated — a constant rate applied to the remaining book value. |
| Sum of the year Digits | Fractional, based on the sum of the years of the asset's life. |
| One time | Writes off the full allowed value in a single period. |
GL Accounts
| Account | Role |
|---|
| Asset Account | The balance sheet account holding the asset's value. |
| Depreciation Cost Account | The expense account recording the periodic loss in value. |
| Depreciation / Disposal Account | Records discrepancies, and the final result when the asset is retired or sold. |
Others & Action Buttons
| Control | What it does |
|---|
| Item Status | Active for normal use, Inactive to retire it from selection menus. |
| Branch / Department | Assigns the asset to cost centres for departmental reporting. |
| Insert New Item | Saves the asset and creates any initial journals from the purchase details. |
| Clone This Item | Pre-fills a new form from this asset — fast entry for several similar items. Only appears on the edit form. |
| Custom Fields | An Add Fields button appears when "Show Add Custom field on Forms" is enabled in preferences. |
Related pages