Adding a fixed asset

The asset register keeps track of what your business owns, such as computers, vehicles, machinery and furniture: who uses each item, what it cost, and how it depreciates over its useful life.

Before you start

Add the vendor you bought the asset from. Every asset needs one.

Add the asset

1. Go to Accounting → Assets.
2. Click + New Asset.
3. You can also click the + next to Assets in the sidebar.
4. Enter an Assets ID (your own tag, such as LAP-014) and the asset's Name.
5. Asset IDs must be unique within your company
6. Choose the Department that owns the asset, and optionally the employee in Asset used by.
7. Choose the Vendor.
8. Enter the Purchase Cost and the Purchase Date.
9. Choose the depreciation Method: SLM (straight line) or WDV (written down value).
10. Enter the Useful Life in whole years.
11. Enter the Salvage Value for SLM, or the Depreciation Rate as a percentage for WDV.
12. Only the field your method needs is shown. An SLM asset's salvage value must be more than zero.
13. Optionally add photos under Upload Asset Images, in JPEG or PNG format.
14. Choose the Status: In Use, In Maintenance, Unused or Disposed.
15. Click Create Asset.

How depreciation is worked out

SmartLedger builds a schedule with one row per year of useful life, starting with the year of purchase:

• SLM charges the same amount every year: purchase cost minus salvage value, divided by the useful life.
• WDV charges the rate on the value at the start of each year, so the charge gets smaller each year.

To see the schedule, click View in the asset's Schedule column. For each year, Depreciation Amount is the charge for that year and Asset Cost/Value is the value left at its end. The register's Current Value column and the Asset Depreciated Value (This FY) card come from the same schedule.

If you later change an asset's cost, salvage value, useful life, purchase date or rate, the schedule is worked out again.

Edit, dispose of or delete an asset

• To edit an asset, open the actions menu at the end of its row and click Edit. Make your changes and click Save Changes.
• When you sell or scrap an asset, edit it and set its Status to Disposed.
• To remove an asset entered by mistake, click Delete in the actions menu. You can restore it from Settings → Deleted Items, on the Resources tab.

Tips

• The asset register doesn't post entries to your books. Record the purchase with a purchase invoice, and book depreciation, or any profit or loss when you sell or scrap an asset, with a journal entry.
• Use the date filter at the top of the page to change the period the overview and register cover.

Related articles

• Creating a journal entry
• Creating a New Purchase Invoice
• Creating a New Vendor