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The Fixed Assets module allows fixed assets to be registered into your accounts; Assets are defined by classes, categories & location and uses a base depreciation rate with a rate multiplier for linear depreciation calculation.

Along with the Manufacturing, this module too can be hidden from the user interface in Setup => Company Setup.

Four depreciation methods are available:

  • Declining Balance
  • Straight Line
  • Sum of Year Digits &
  • One-Time.

Note: This module is native to FA 2.4.x whilst it is an external package addon in FA 2.3.x and earlier.

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Before you can create a fixed asset for the first time you will need to define:

  1. Setup -> Access Setup -> System Administrator -> Fixed Assets Configuration -> Tick -> Save Role -> Logout -> Login
  2. Add a Fixed Asset Class
  3. Add a Fixed Asset Category
  4. Add a Fixed Asset Location

This will allow you to create a Fixed Asset Item

And then you will be able to purchase your Fixed Asset

Examples

IT Equipment - depreciated over 5 years - nil value at end

  • Create Class, for Basic Depreciation Rate enter 20% (100% / 5 years = 20% per year)
  • Create a location for your asset
  • Create a Category - with the correct tax type and UOM - Modify relevant GL accounts
  • Add your fixed asset item
    • Choose the fixed asset class you created earlier
    • Depreciation Method: Declining balance
    • Base rate 20% - Rate multiplier 1
  • Purchase Fixed Asset

Example Two

To be written

Example Three

To be written

Example Four

To be written

Tips & Tricks

  • Checking the math, you know you canít depreciate past salvage value, so adding depreciation expense in all years equals original purchase value.