Fixed Assets

The Fixed Assets tab in Manager.io enables businesses to efficiently track and manage long-term valuable items such as land, buildings, vehicles, or machinery. This guide explains how to create, record, manage, and dispose of fixed assets within the platform.

Creating a New Fixed Asset

To register a new fixed asset, follow these simple steps:

1. Click the New Fixed Asset button within the Fixed Assets tab.

2. Fill out relevant details for your asset such as name, code (asset identifier), description, depreciation rate, division (optional), and control account.
3. Click Create to save the new fixed asset.

Initially, the acquisition cost will be zero since no transactions have been allocated yet.

Recording the Purchase (Acquisition) of a Fixed Asset

Once the asset has been created, you must allocate a transaction representing its purchase cost:

• If purchased by cash:
  • Go to the Payments tab, click New Payment.
  • Allocate the payment to the account titled "Fixed assets, at cost", then select the specific fixed asset.

• If purchased on credit (via purchase invoice):
  • Go to the Purchase Invoices tab, click New Purchase Invoice.
  • Allocate the invoice item to account "Fixed assets, at cost", selecting your specific fixed asset.

Your acquisition cost field will automatically update once the transaction is recorded.

Managing Asset Depreciation

Use the Depreciation Entries to record the accumulated depreciation for each fixed asset. Manager.io accumulates depreciation entries over time and calculates the Book value (Acquisition cost minus Depreciation).

Disposing of a Fixed Asset

Every fixed asset will eventually be disposed of—either through being sold or written off. Follow these steps to correctly dispose of an asset:

1. Record the sale transaction:

   • Allocate the sale amount transaction to the account "Fixed assets, at cost" (same as original acquisition).

2. Mark the fixed asset as Disposed:

   • Within the Fixed Assets tab, click Edit for the specific asset.
   • Check the Disposed fixed asset checkbox, then enter the date of disposal (DateOfDisposal).

Upon marking an asset as disposed, Manager.io automatically creates transactions setting the asset's book value to zero. The difference between book value and disposal price will be posted as Fixed assets - loss on disposal within your Profit and Loss Statement.

Understanding Fixed Asset Columns

In the Fixed Assets tab, several columns are presented to help manage and monitor assets efficiently:

• Code: Unique identifier assigned to the fixed asset.
• Name: Title or name of your fixed asset.
• Description: Additional descriptive details about the asset.
• Depreciation rate: Rate used for calculating asset depreciation.
• Control account: The specific control account assigned; the default is "Control account - acquisition cost" if custom control accounts are not used.
• Division: Specifies the division associated with this asset (optional).
• Acquisition cost: Summarizes initial and additional purchases allocated to the asset.
• Depreciation: Summarizes depreciation entries recorded, representing total accumulated depreciation.
• Book value: Automatically calculated as Acquisition cost less Depreciation.
• Status: Indicates whether the asset is currently Active or Disposed.

By following this guide, you can efficiently track, record, and manage your business’s fixed assets within Manager.io.