Fixed assets
Set up asset types
Create the asset categories your company owns, such as vehicles, machinery or computers, and link each one to the accounts its assets and their depreciation post to.
3 min readLast updated
In this article
An asset type groups similar assets and tells the system where to post them. Every asset you register belongs to one type, and it inherits that type's three accounts: where its cost sits, where its accumulated depreciation builds up, and which expense its monthly depreciation is charged to. Set up your types once, before you register the first asset.
Before you start
The accounts you need must exist in your chart of accounts for your branch: a group account for each class of fixed assets, an accumulated depreciation account and a depreciation expense account.
The pickers list the accounts of the branch you are working in. If your company has several branches, set up the types while you are signed in to the branch whose assets they will hold.
Create an asset type
Open Accounting › Assets › Asset Types. You can also select Asset types on the assets screen.
Select New asset type.
Enter the Name, and the Name (Arabic) if your team works in both languages.
In Asset account, choose the fixed-asset group account for this class, for example the group for vehicles.
In Accumulated depreciation account, choose the account that collects this class's accumulated depreciation.
In Depreciation expense account, choose the expense account that monthly depreciation is charged to.
Select Save.
All three accounts are required. The form does not save until each one is chosen.
How the three accounts are used
Account | What the system does with it |
|---|---|
Asset account | A group account, not a posting account. When you register an asset of this type, the system creates a new sub-account for that asset underneath it, so each asset has its own balance. |
Accumulated depreciation account | A posting account. Each depreciation run credits it, which reduces the asset's book value. |
Depreciation expense account | A posting account. Each depreciation run debits it, so the cost appears in your profit and loss. |
Edit or delete a type
Open the row's actions menu and select Edit to rename the type or change its accounts. The change applies to assets you register from then on. Assets already registered keep the accounts they were created with.
Select Delete to remove a type you no longer need. The system asks you to confirm. You cannot delete a type while any asset still belongs to it.
Common questions
Why can I not find my account in the Asset account list? The list shows group accounts under fixed assets only, because each asset gets its own posting account beneath the one you choose. Create the group first in the chart of accounts.
Can I change the type of an asset after registering it? No. The asset's account was created under its type's group account. Register the asset again under the correct type and dispose of the wrong one.
Where do I see depreciation by type? Use the depreciation reports.