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Fixed Assets

Add a Fixed Asset

Fixed assets are long-term objects of high value that depreciate over time. Examples include cars, buildings, trademarks, land, and machines. You can track a fixed asset's attributes, account numbers, and actual values.

Here are a few things to keep in mind:
  • You must set up all fixed asset accounts in the COA Primary Information window. Assign a unique account number and name, and in the Account Type drop-down list, select Fixed Asset. The beginning balance is the purchase price of the asset.
  • After you set up the fixed asset account, set up an accumulated depreciation account in the COA Primary Information window. For this account, in the Account Type drop-down list, select Accumulated Depreciation. You can use one accumulated depreciation account for all your fixed assets, or you can create a separate account for each.
  • After you set up the accumulated depreciation account, set up a depreciation expense account and place this account with other expense accounts. You can use one expense account to hold all depreciation taken from all fixed assets, or you can create a separate depreciation expense account for each fixed asset.
  1. On the Other Information tab, click Fixed Assets.
  2. At the top, click Add Asset.
  3. Enter general information about the fixed asset.
    • Serial Number—Enter the manufacturer's identification number for the fixed asset. For buildings or land, use the lot number or address.
    • Category—Enter the type of asset. This is a keyword field and uses names from the Asset Categories keyword list.
    • Life Expectancy—Enter the useful life of the asset or the length of time that the asset is depreciated against.
    • Salvage Value—Enter the estimated value of the asset at the end of its useful life.
    • First Month Includes Prior Months—Select if the asset was purchased in the middle of the year to indicate that the depreciation for the first month includes what would have been depreciated for prior months of this year. If left clear, the yearly depreciation is based on the month of purchase.

      For example, an asset purchased for $12,000 in May depreciates at a rate of $200 per month ($2,400 per year) over five years. If you select First Month includes Prior Months, May's depreciation includes January through April, a total of $1,000. If you did not select this, the $200 depreciation is deducted each month based on a May-April fiscal year.

      The following fields update automatically as depreciation is recorded for this asset. You can enter this information manually if you are beginning to record depreciation in the middle of an asset's life. In that case, you need to make an adjusting journal entry to record the depreciation so far.
      • Last Depreciation—Displays the most recent amount depreciated.
      • Last Depreciation Taken—Displays the date that the last depreciation was recorded.
      • Year to Date Depreciation—Displays the total depreciation for the asset this year.
      • Total to Date Depreciation—Displays the total deprecation recorded for the asset.
      • Current Value—Displays the net value of the asset.
  4. If you have a picture of the asset, click the browse icon yellow folder, select the image from your computer, and click Open. If you need to remove an image, clear the file location and click Save.
  5. Under Depreciation Schedule, in the Depreciation Method drop-down list, select the method of depreciation. To use a method that is not in the list, select User-Defined and set up the percents and amounts in the Yearly Schedule grid.
  6. To upload additional documents related to the fixed asset, click Add Documents.
  7. To enter depreciation accounts associated with the fixed asset, in the navigation pane, click Depreciation Accounts.
  8. At the top, click Save.
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Last updated: October 29, 2024