๐ Recording Assets in the Accounting Module
This guide explains how to use the Accounting Module to create, record, and manage assets in the system.
๐น Video Walkthrough: Watch the video here
Overview
The Assets feature in the Accounting Module allows companies to:
Record purchases of company-owned assets (e.g., computers, machinery, vehicles).
Track the value of assets in the books.
Capitalize assets once they are put into use.
Automatically calculate and record depreciation, if applicable.
This ensures that all assets are properly documented and reflected in financial reports.
Step-by-Step Instructions
1. Accessing the Assets Section
From the dashboard, go to Accounting > Assets.
Click New to create a new asset record.
2. Creating a New Asset
When creating a new asset, you will need to provide the following information:
Asset Name โ A descriptive name (e.g., โDell Laptop โ Finance Teamโ).
Asset Category โ Select from available categories (e.g., IT Equipment, Office Furniture, Vehicles).
Each category may have default accounting rules and depreciation methods.
Company โ Choose the company that owns the asset.
Location โ (Optional) If your company tracks where assets are physically located.
Purchase Date โ The date the asset was bought.
Expected Useful Life โ Number of years or months the asset will be used.
Gross Purchase Amount โ The purchase price before taxes or deductions.
๐ After filling in all required fields, click Save.
3. Recording Asset Purchase
There are two ways to record an asset purchase:
Option A: Direct Purchase Entry
Open the asset record you created.
Click Create > Asset Purchase.
Enter details:
Supplier โ Vendor from whom the asset was purchased.
Purchase Invoice or Journal Entry Reference.
Purchase Amount (including taxes if applicable).
Payment Details (if already paid).
Click Save, then Submit to finalize.
Option B: Link to Existing Purchase Invoice
If the asset was already recorded in a purchase invoice, link the invoice to the asset record.
The system will automatically pull the purchase amount and supplier details.
4. Capitalizing the Asset
Once the asset is ready for use, it must be capitalized. This step moves the asset from a โtemporary holding accountโ into the balance sheet as a fixed asset.
Open the asset record.
Navigate to the Capitalization section.
Review the details:
Capitalization Date (usually the date the asset is put into use).
Capitalized Amount (this should match the purchase price).
Click Submit to finalize capitalization.
๐ After capitalization, the asset is officially part of the companyโs balance sheet.
5. Depreciation (if applicable)
If the asset category requires depreciation:
The system automatically generates a Depreciation Schedule based on:
Asset category rules (e.g., straight-line over 5 years).
Useful life entered at creation.
Capitalized value of the asset.
Open the Depreciation tab of the asset record to view the schedule.
The schedule shows:
Depreciation Amount per Period
Start Date and End Date
Posting Dates for Journal Entries
Confirm that depreciation entries are automatically posted to the General Ledger as scheduled.
Best Practices
Verify Asset Categories โ Ensure the selected category has the correct depreciation and accounting settings.
Attach Supporting Documents โ Upload invoices, receipts, or contracts to the asset record for future reference.
Review Before Capitalization โ Double-check purchase values and dates before submitting the capitalization entry.
Regular Monitoring โ Periodically review the Assets list to ensure records are up-to-date.
Troubleshooting
Depreciation Schedule Missing โ Confirm that the asset category has depreciation enabled.
Unable to Capitalize Asset โ Ensure that the purchase has been fully recorded and submitted.
Incorrect Amounts โ Re-check the linked purchase invoice or journal entry for errors.
System Blocking Submission โ Verify mandatory fields (e.g., Purchase Date, Amount, Supplier) are filled.
For persistent issues, escalate to the Accounting Support Team with the asset ID and error message.