Open the asset register
In the side menu, under Records, choose Assets. At the top you see Cost, Accumulated depreciation (how much of the cost has been spread so far) and Net book value (cost less accumulated depreciation).
The fourth card tells you whether the register Ties to the ledger. To register an asset press New asset (1).
Register the asset
- Asset and Category: its name and kind, like Vehicles.
- Asset account: its account in the chart.
- Acquired and Cost.
- Paid from: choose the bank to post the purchase now. Choose already in the books if a supplier bill or a journal already recorded it, so it is not doubled.
- Useful life in months, and Salvage value: what you expect to sell it for at the end, which must be below the cost.
- Method: Straight line (an equal amount each month) or Declining balance.
| Account | Debit | Credit |
|---|---|---|
| Asset (vehicles) | 120,000.00 | |
| Bank | 120,000.00 |
Post depreciation
Depreciation spreads an asset's cost over its life. For straight line: (cost less salvage value) ÷ number of months.
It posts by itself on the first of each month, for the month just ended and anything unposted before it. If you want it sooner press Post what is due (2), which posts everything owed up to the Month you choose, even several months in arrears.
| Account | Debit | Credit |
|---|---|---|
| Depreciation expense | 2,000.00 | |
| Accumulated depreciation | 2,000.00 |
Sell or scrap the asset
Press an asset row to see its schedule: posted months show a Journal link and the rest say forecast. From here press Dispose.
- Enter the date and the Proceeds (excluding VAT). Leave it empty to scrap the asset for nothing.
- For a sale choose the Buyer and Received into, or On credit.
The difference between the proceeds and the net book value is recorded as a gain or loss.
