Welcome to our guide on how to manage fixed assets in our system. Here's a step-by-step breakdown of how to add, edit, sell, dispose of, and manage depreciation for your fixed assets:


Adding an Asset

You can add a new asset by clicking the “+ Asset” button. This will redirect you to the Purchase Invoice window, where you can enter the purchase details of the fixed asset.

Once the purchase details are saved, the asset will appear in the Fixed Asset window under one of the relevant categories based on its nature:

  • Tangible Fixed Assets

  • Leased Fixed Assets

  • Intangible Fixed Assets

You can also enter assets through the Opening Balances section by inputting the cost value and accumulated depreciation. After entering these details, you can “explain” the asset.

Select Action Options


Edit / Explain

Use this option to update asset details such as:

  • Asset Name

  • Asset Account

  • Acquired Date

  • Cost / Price

  • Whether the asset is depreciable

You can also enter depreciation settings including:

  • P&L Account type

  • Depreciation Method (Straight Line / Reducing Balance)

  • Depreciation Rate (for reducing balance) or Useful Life in years (for straight line)

  • Depreciation Start Date

  • Auto Depreciation

Sell

Use this option if the asset is sold before the end of its useful life.
The system will display the asset summary and detail screen where you can enter:

  • Sale Date

  • Depreciation Charge

  • Account

  • Sale Price

  • VAT

  • Notes

  • Total Gain / Loss

Dispose

Use this option when the asset has no residual value and is disposed of.
In the disposal window, you can enter:

  • Disposal Date

  • Depreciation Charge

  • VAT

  • Notes

  • Total Loss

Depreciation

Click the Depreciation icon to charge depreciation.

Note: If accumulated depreciation is not allocated for brought-forward assets, the system will not allow depreciation to be posted.

Once all accumulated depreciation is explained, you can enter the relevant dates and calculate depreciation. After calculation, click Save.

Auto-Journal

When depreciation is posted, the system will:

  • Debit the selected Profit & Loss account (Administration / Cost of Sales / Selling & Distribution)

  • Credit the Balance Sheet account “Fixed Asset – Depreciation Charge for the Year”

Roll Back

If depreciation has been posted incorrectly, you can Roll Back and reprocess it.

Additional Options

  • Active – Activate the asset for depreciation posting.

  • Auto Depreciation – Tick this to allow the system to calculate depreciation automatically based on the client’s accounting periods.

  • Disposed – Once an asset is sold or disposed of, it will appear in the disposed assets section under the relevant asset category.

Disposed assets can be reactivated by selecting Activate.