Register a fixed asset

An asset in WbizManager is one purchase. It has a credit account (where the money came from, such as a bank account or a supplier's payable account) and one or more asset items. Each item is one thing you own, such as a van or a laptop, with its own cost, scrap value, useful life and category.

When you save the asset, WbizManager posts it to the ledger and starts depreciating each item every month.

Steps

1. Open Fixed Assets › Asset

   In the menu on the left, select Accounts, then Fixed Assets, then Asset.

   

   1. Asset under Fixed Assets.
   2. Add New starts a new asset.
   3. Account to Credit on each asset.
   4. The ⋮ menu: View or Delete.

   Selecting Add New creates a draft asset straight away and opens it as New Asset. A draft you don't finish stays in the list with an amount of 0.00. Delete it from the ⋮ menu.

2. Fill in the asset information and items

   

   1. Select Edit on Asset Information, then choose the Credit Account Name: the account the purchase is paid from or owed to. Required.
   2. Date of the purchase.
   3. Description: for example the supplier and invoice number.
   4. Save keeps the asset information.
   5. For each item: Asset (its name), Asset Code (for example MV-001), Cost and Scrap Value (what it will be worth at the end of its life).
   6. Life Span (months), Asset Category, Effective Date (when depreciation starts) and Purchase Date.
   7. Add lines adds another item.
3. Save each line, then save the asset

   

   1. The tick saves the line. The bin removes it.
   2. Total Amount: the total cost of all items.
   3. Save posts the asset and starts its depreciation.

   Once saved, the asset shows Saved and can't be changed or deleted. To change its value later, revalue it.

4. See every asset item

   Fixed Assets › Asset Lines lists every asset item from every asset: its code, category, cost, scrap value, life span and dates. Use Export to download the list.

   

   1. Asset Lines under Fixed Assets.
   2. Export downloads the list.
   3. Cost, Scrap Value, Life Span, Effective Date and Purchase Date of each item.

What gets posted

When you save the asset (in your base currency, dated the day you save):

Account	Debit	Credit
Each item's asset account (the category's Asset Account, or the posting group's Acquisition account)	Item cost
The asset's Credit Account		Total cost

Every month after that, for each item:

Account	Debit	Credit
Depreciation expense (the category's Depreciation Account, or the group's Depreciation expense account)	Monthly charge
Accumulated depreciation (the category's Accumulative Depreciation Account, or the group's Accumulated depreciation account)		Monthly charge

How depreciation works

WbizManager uses straight-line depreciation:

Monthly charge = (Cost − Scrap Value) ÷ Life Span (months)

For example, a van costing 12,000,000 with a scrap value of 1,200,000 and a life of 60 months is charged 180,000 a month.

• The month of the Effective Date is charged in full, and each month after it once.
• Each month's charge is posted automatically early on the 1st of the next month.
• If the effective date is in an earlier month, the missed months are posted straight away when you save, each dated in its own month. A month that falls in a closed period is dated today instead.
• Depreciation stops at the end of the life span, or once the asset has been written down to its scrap value. The last charge takes any rounding difference.
• If the current period is closed, that month's charge waits until the period is open again.
• When you dispose of an asset, depreciation runs to the disposal date. See Dispose of a fixed asset.
• When you revalue an asset, depreciation restarts from the revaluation. See Revalue a fixed asset.

Rules to know

• Effective Date must be in the current year.
• Purchase Date can't be later than the Effective Date.
• Cost must be more than Scrap Value, and Life Span must be more than 0, or the asset can't be saved.
• A saved asset can't be deleted.

If something goes wrong

Message	What to do
Please select the account to be credited! / Credit account is required!	Select Edit on Asset Information and choose the Credit Account Name.
Effective date cannot be from a previous year!	Use a date in the current year. Assets you already owned before you started using WbizManager go in with your opening balances.
Purchase date cannot be in the future while effective date is in the past!	Make the purchase date the same as, or earlier than, the effective date.
Asset '…' has invalid depreciation settings.	Check the line: the cost must be more than the scrap value and the life span more than 0.
Purchase date is required for all asset items! / Effective date is required for all asset items!	Fill in both dates on every line.
Sorry you can't delete a Saved Asset(s)!	Saved assets stay. To take an asset off the books, dispose of it.
Asset '…': category '…' has no Asset Account.	The category is missing an account. Edit the category and choose it.
Asset '…': Fixed Asset Posting Group '…': Acquisition Account is not set.	The asset's posting group is missing an account. Fill it in under Fixed Assets › Posting Groups.

What's next

• Revalue a fixed asset
• Dispose of a fixed asset