Account Asset - Fixed Asset Management
Manage fixed assets with automatic depreciation, value tracking and detailed reports
The Account Asset module helps businesses manage fixed assets from purchase, periodic depreciation, maintenance to disposal, ensuring accounting standards compliance.
The system automatically calculates depreciation using straight-line or declining balance methods, creates periodic entries and provides real-time asset value reports.
Key Features
Key points
• Asset Tracking: Track assets from purchase to disposal
• Auto Depreciation: Automatic depreciation calculation by method
• Multiple Methods: Support straight-line, declining balance
• Depreciation Board: Detailed depreciation schedule by month/year
• Asset Categories: Categorize assets with custom configuration
• Disposal Management: Manage disposal, asset sales
• Asset Reports: Value, depreciation, disposal reports
• Integration: Integrate with Purchase, Accounting
Depreciation Methods
Method Comparison
| Method | Description | When to Use |
|---|---|---|
| Straight-line (Linear) | Equal depreciation per period = Cost / Periods | Assets with steady value decline (buildings, equipment) |
| Declining Balance (Degressive) | Higher early depreciation = Book Value × % | Assets with rapid value decline (computers, vehicles) |
| Units of Production | Depreciation by usage quantity | Production machinery by shifts |
Asset Management Process
Steps
1. Configure Asset Category: Go to Accounting → Configuration → Asset Types. Create category with Depreciation Method, Duration, Accounts. E.g., "Computers" - Linear, 3 years.
2. Purchase asset: Create Vendor Bill with product having Asset Category. System auto-creates Asset from Bill with cost = purchase price.
3. Confirm Asset: Go to Accounting → Assets, open newly created Asset. Check info, click Compute Depreciation to create depreciation schedule.
4. Auto depreciation: System auto-creates periodic depreciation entries (monthly/quarterly/yearly). Check Depreciation Board for schedule.
5. Track value: View Book Value (remaining value) = Cost - Accumulated Depreciation. Asset Report shows overview.
6. Dispose asset: When selling/damaged, click Sell/Dispose. Enter sale price (if any), system creates disposal entry and records gain/loss.
Asset Categories
Key points
• Computers & IT Equipment: Linear 3 years, Account 211, depreciation 214
• Vehicles: Degressive 5 years, Account 212, rapid early depreciation
• Buildings: Linear 20 years, Account 213, slow depreciation
• Production Machinery: Linear 10 years, Account 211, by capacity
• Office Furniture: Linear 5 years, Account 211
Asset Reports
Main Reports
| Report | Content | Purpose |
|---|---|---|
| Asset Report | Asset overview: cost, depreciation, book value | View total company asset value |
| Depreciation Board | Detailed depreciation schedule by month/year | Plan depreciation expenses |
| Asset Analysis | Analysis by category, location, department | Manage assets by department |
| Disposal Report | Disposal history, gain/loss on disposal | Evaluate asset investment efficiency |
Real-world Scenarios
Key points
• Buy laptop $3k: Create Bill → Auto Asset → Depreciate $1k/year × 3 years
• Buy car $50k: Degressive 5 years → Depreciate $20k year 1, $12k year 2...
• Sell old machine: Cost $5k, depreciation $4k, sell $1.5k → Gain $0.5k
• Damaged asset: Cost $2k, depreciation $1.5k, damaged → Loss $0.5k