Set up fixed assets

Every fixed asset belongs to an asset category, such as Motor Vehicles or Office Equipment. The category decides which accounts the asset posts to when you buy it, depreciate it, revalue it and dispose of it.

Where those accounts come from depends on your organisation's posting setup:

Your organisation takes its accounts from…	Fixed assets use…
Account settings (the usual starting point)	The three accounts on the asset category. The gain and loss on disposal come from default accounts.
Posting groups (after the switch-over)	The accounts on the category's fixed asset posting group.

All fixed asset screens are under Accounts › Fixed Assets.

Steps

1. Set up fixed asset posting groups (posting groups only)

   Skip this step if your organisation still takes its accounts from account settings. You can still pick a group on each category, ready for when you switch over.

   Go to Fixed Assets › Posting Groups. Each group names the accounts its assets post to. The Ready to post column lists any accounts a group is still missing.

   

   1. Posting Groups under Fixed Assets.
   2. New group adds a group.
   3. The acquisition, depreciation expense and accumulated depreciation accounts of each group.
   4. Ready to post: the accounts this group still needs.
   5. Edit a group. Deactivate takes a group out of use.

   The General group is your organisation's default: categories and assets without a group of their own use it.

2. Fill in the group's accounts

   Select New group and fill in the form. Select Create group at the bottom to save.

   

   1. Code (required) and Description, for example VEHICLES and Motor vehicles.
   2. Acquisition account (the asset account), Accumulated depreciation account and Depreciation expense account. All required.
   3. Revaluation increase account and Revaluation decrease account: used when you revalue an asset.
   4. Disposal account, Gain account and Loss account: used when you dispose of an asset.
   5. The warning lists accounts still missing. You can save now and add them later, but documents that need a missing account are refused until it's set.
3. Open Fixed Assets › Asset Category

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

   

   1. Asset Category under Fixed Assets.
   2. Add New adds a category.
   3. The three accounts each category posts to.
   4. The ⋮ menu: Edit or Delete.
4. Add an asset category

   Select Add New and fill in the form.

   

   1. Asset Category Name. Required, and each name can be used only once.
   2. Asset Account: the balance sheet account the asset's cost goes to. Lists your asset accounts.
   3. Accumulative Depreciation Account: where depreciation builds up against the asset. Lists your asset accounts.
   4. Depreciation Account: the expense account each month's depreciation goes to. Lists your expense accounts.
   5. Fixed Asset Posting Group: the group this category's assets use under posting groups. The warning shows if that group is missing accounts.
   6. Description: optional.
   7. Save.

   Under account settings, all three accounts are required. Under posting groups they're optional, because the accounts come from the group.

Rules to know

• An asset copies its category's posting group the first time it's saved, and keeps it. Changing the category's group later doesn't move assets that have already posted.
• A category's accounts are used for every asset in it, so choose the accounts with care before you register assets.

If something goes wrong

Message	What to do
Asset category name is required	Type a name.
Please kindly select all accounts!	Under account settings, choose all three accounts.
Fixed asset category '…' already exists!	Use a different name, or edit the existing category.
Choose the acquisition account. (and the other required group accounts)	Fill in the three required accounts on the posting group.
… the gain on disposal account is not set … (when disposing)	Add the Gain account to the posting group, or Gain on Asset Disposal in default accounts.

What's next

• Register a fixed asset
• Revalue a fixed asset
• Dispose of a fixed asset