Fixed Assets

Use Fixed Assets to record and manage your tangible long term assets, such as land, buildings, furniture, machinery or equipment and vehicles.

Note: Fixed assets are what you require to operate your business.

Depreciation and disposal of assets make postings to the Nominal Ledger.

Getting started with Fixed Assets

Before beginning to add and work with Fixed Assets you must:

• Have all the asset details to hand.

  You can create fixed asset records by adding some information initially and filling in the details later. Fixed assets don't become active until all the Depreciation details have been entered. An asset cannot be depreciated or disposed of until it is active.

• Understand which depreciation method you will select for which asset.

  There are two main depreciation methods to choose from: straight line Straight line depreciation is normally used if you forecast that the use of the asset is spread evenly across the time period of its use. The asset's value is reduced by a percentage value based on the initial value, the residual value and the asset life span in years or periods. The value of depreciation remains the same each time. or reducing balance Reducing balance depreciation is normally used if you expect an asset to wear out quickly. The asset's value is reduced by a percentage of the Net Book Value which reflects the asset's current worth, every year or period until it is reduced to a realistic scrap or write off value.. Each of these can be applied annually or each period.

You are now ready to begin day-to-day processing with Fixed Assets.

Note: You must have the correct access rights to use the Fixed Assets feature. If you cannot access any of the Fixed Assets options, please contact your company's system administrator.