Fixed asset setup

Purpose

  • Set up asset types (linked accounts) and register each fixed asset so KinraSoft can depreciate it.
  • Buying the asset (cash, bank, or hire purchase) is a separate posting. This page is the register: name, cost, start date, method, and rate.
  • Screen: General Ledger → Fixed Assets Management.
  • Asset types: Asset Type. Register: Fixed Assets. Run depreciation: Depreciation Journal. Cost, depreciation, and net book value: Depreciation Report.

Assistant

  • Fixed asset purchase — buy equipment, a vehicle, or machinery paid by cash or bank, not hire purchase. Type it. There is no empty-screen chip. Confirm the accounts, then Save. Still register the asset on this screen if you will run depreciation.
  • Hire purchase, or Buy a car on hire purchase — the hire-purchase journal in Payroll and hire purchase, then register here.
  • There is no wizard for Asset Type or the register form. Ask “how to setup fixed asset” or “how to setup asset type”.
  • Do not type “how to buy a fixed asset” if you want the live purchase wizard.

Before you start

  • On the chart of accounts: an Asset Account under Fixed Asset.
  • An Accumulated Depreciation Account under Fixed Asset, with special type Accumulated Depreciation Account.
  • An Expense Depreciation Account under Expenses.
  • For a new buy, the purchase is already posted (Assistant Fixed asset purchase, cash book, purchase invoice, or hire-purchase journal), or you will capture cost only on this register. Do not record the cost twice.
  • Date on or after conversion for new work. See Company.
  • Document numbers exist for the register if you use Next No.

Setup asset type

  • Do this first.
  • General Ledger → Fixed Assets Management → Asset Type.
  • Click New Asset Type.
  • Enter Name, for example Motor Vehicle.
  • Select Asset Account, Accumulated Depreciation Account, and Expense Depreciation Account.
  • Leave Enable ticked.
  • Click Save. Save As New copies to a new type with a new name.
  • The list icon returns to Asset Type Listing. PDF prints the type.

Register a fixed asset

  • General Ledger → Fixed Assets Management → Fixed Assets.
  • Click New Fixed Asset.
  • Enter Asset Name. Select Asset Type. The accounts come from the type.
  • Set Purchase Date and Depreciation Start Date.
  • Choose Depreciation Method: Straight Line, Reducing Balance, Reducing Balance (150%), or Reducing Balance (200%).
  • Enter Rate (%), or tick Effective Life (Years) and enter years.
  • Leave Bill No blank for Next No., or type a unique number.
  • Enter Purchase Price.
  • If the asset is carried forward from last year, enter Accumulated Depreciation until the end of last year. Leave it blank, or zero, for a new buy that starts depreciating from the start date.
  • Optional: Warranty Expire, Serial No, Description, Project.
  • Click Save.
  • Attach purchase documents with Upload Document if you need the file on the register.
  • The list icon opens Fixed Asset Listing. PDF prints the asset.

Dispose of an asset

  • Open the saved asset. Dispose Of This Asset appears after it is registered.
  • Click it. Enter Date Sold, Sales Account, Sale Price, and Description. Click Next.
  • Check Disposal Journal Entry: asset credit, accumulated depreciation debit, sale proceeds, and gain or loss. Pick the gain or loss account if shown.
  • Click Confirm Dispose Of Fixed Asset.
  • Undo Asset Disposal appears on a disposed asset (date sold and sale price are shown). Use it only to reverse that disposal.
  • Run depreciation up to the month you need before you dispose, from Depreciation Journal.

Register, purchase, or hire purchase

  • Paid cash or bank for equipment. Assistant Fixed asset purchase, or a cash book or bill, then this register. See Cash book payment and receipt.
  • Vehicle on hire purchase. The hire-purchase journal, then this register.
  • Cost already on the books from conversion or last year. This register only. Fill Accumulated Depreciation.
  • Monthly depreciation. Run Depreciation. Do not add another register row.
  • Adjust cost or accumulated depreciation after save. A journal linked with More… → Fixed Asset on Journal Entry, then the depreciation listing.
  • Do not register the same asset twice. Do not post the purchase price on the register and a second full-cost bill unless you reverse one of them.

If something goes wrong

  • Cannot pick accounts on Asset Type. Create the three chart accounts first. Accumulated depreciation needs special type Accumulated Depreciation Account.
  • The depreciation run created nothing. Depreciation Start Date and Rate or life must be saved. Then open Depreciation Journal.
  • Cost doubled. You posted a purchase and put the same cost on a bill or journal. Reverse one.
  • Chat opened hire purchase. You said hire purchase. For cash or bank only, say Fixed asset purchase.
  • Dispose is not shown. Save the asset first.
  • Brought-forward net book value is wrong. Enter Accumulated Depreciation to last year-end. Leave it zero only when the old books had no accumulated depreciation.

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