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Intangible Assets

The Intangible Assets tab helps manage and track your business's non-physical assets, such as intellectual property rights, patents, licenses, or goodwill.

You can enter detailed information for each intangible asset, monitor its amortization, and track its book value as it changes over time.

Intangible Assets

Getting Started

To create a new intangible asset, click the New Intangible Asset button.

Intangible AssetsNew Intangible Asset

When you create a new intangible asset, its acquisition cost will initially be zero. This is because no transaction has been linked to this intangible asset yet.

Recording Acquisition Cost

To set an acquisition cost, you need to record a transaction that represents the purchase of the intangible asset.

If you purchased an intangible asset with cash, navigate to the Payments tab and click New Payment. Record the payment by allocating it to the Intangible assets at cost account and select the specific intangible asset.

If you purchased the intangible asset on credit from a supplier, navigate to the Purchase Invoices tab and click New Purchase Invoice. Allocate the purchase invoice in the same manner as you would allocate a payment.

Understanding the Columns

The Intangible Assets tab displays the following columns:

Code
Code

A unique identifier code for the intangible asset. This optional field helps you track assets using your own coding system.

Name
Name

The name of the intangible asset.

Description
Description

A detailed description of the intangible asset.

Amortization rate
Amortization rate

The annual amortization rate as a percentage.

Control account
Control account

The control account associated with this intangible asset. If you haven't set up custom control accounts, it will default to Intangible assets at cost.

Acquisition cost
Acquisition cost

The total cost of acquiring the intangible asset, calculated from all transactions assigned to this asset.

Amortization
Amortization

The accumulated amortization amount, calculated from all amortization entries recorded for this intangible asset.

Book value
Book value

The current book value of the intangible asset, calculated by subtracting Amortization from Acquisition cost.

Status
Status

Shows whether the intangible asset is currently Active or has been Disposed.