The Fixed Assets tab helps you track and manage long-term physical assets your business owns and uses in operations.
Fixed assets are valuable items that last more than one year, such as buildings, vehicles, equipment, machinery, furniture, and computers.
Unlike inventory items you sell, fixed assets are used to run your business and generate revenue over multiple years.
From this tab, you can monitor acquisition costs, track depreciation, calculate book values, and manage asset disposals.
The system tracks each asset's acquisition cost, accumulated depreciation, and current book value automatically.
To create a new fixed asset, click the New Fixed Asset button.
When you create a new fixed asset, its acquisition cost will initially be zero since no transactions have been allocated to it yet.
To set up the acquisition cost, you must create a transaction that represents the purchase of this fixed asset.
For instance, if you bought a fixed asset with cash, navigate to the Payments tab and click the New Payment button.
To record your payment, allocate it to the Fixed assets — At cost account and then select the specific fixed asset.
If you bought this fixed asset on credit from a supplier (through a purchase invoice), navigate to the Purchase Invoices tab and click the New Purchase Invoice button.
Then categorize it in the same manner as you would a payment.
Every fixed asset will eventually be disposed of by either being sold or written off.
When a fixed asset is sold, allocate the sale transaction to the Fixed assets — At cost account just like when the fixed asset was originally purchased.
The second step is to mark the fixed asset as Disposed.
To mark a fixed asset as Disposed, click the Edit button on the fixed asset and check the Disposed fixed asset checkbox.
Then enter the Date of disposal.
This will make the system create an automatic transaction that sets the fixed asset book value to zero.
The difference is posted to the Fixed assets — Loss on disposal account on your Profit and Loss Statement.
The Fixed Assets tab includes several columns:
A unique code or reference number to identify this fixed asset.
Asset codes help with physical asset tracking, inventory counts, and maintenance schedules.
Common formats include department prefixes (IT-001) or asset type codes (VEH-2023-01).
The descriptive name of this fixed asset.
Use clear names that help identify the specific asset, like 'Dell Laptop - Marketing' or '2023 Toyota Forklift'.
Good naming helps when selecting assets in transactions and generating reports.
Additional details about the fixed asset such as serial numbers, specifications, or location.
Include information that helps identify and track the physical asset.
This field is useful for warranty information, maintenance notes, or technical specifications.
The annual depreciation rate as a percentage of the asset's cost or book value.
This rate determines how quickly the asset loses value for accounting purposes.
Common rates: Buildings (2-5%), Vehicles (15-25%), Computers (20-33%), Furniture (10-20%).
Shows which control account groups this asset on your Balance Sheet.
By default, all fixed assets appear under a single Fixed assets — At cost account.
Create custom control accounts to separate asset types like Vehicles, Equipment, or Buildings on financial statements.
Indicates which division or department owns or uses this fixed asset.
Assigning assets to divisions helps track costs and generate divisional reports.
This column only appears when the Divisions feature is activated in your business.
The total amount paid to acquire this fixed asset, including purchase price and related costs.
Acquisition cost includes the purchase price, delivery charges, installation fees, and any costs to make the asset operational.
Click the amount to see all transactions that contributed to this asset's cost.
The total depreciation expense recorded for this asset since acquisition.
Accumulated depreciation reduces the asset's book value and represents the portion of the cost allocated to expense over time.
Click the amount to see all depreciation entries posted for this asset.
The current accounting value of the fixed asset after depreciation.
Book value equals acquisition cost minus accumulated depreciation.
This represents the remaining value to be depreciated in future periods or recovered upon disposal.
Indicates whether the asset is currently in use or has been disposed of.
Active assets are still owned and used by the business.
Disposed assets have been sold, scrapped, or otherwise removed from service.