Fixed asset register and depreciation

In one sentence

Register anything that will be used for years as a fixed asset; the system works out the straight-line monthly charge, and one click a month posts the depreciation journal for you.

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1. Registering an asset

Books → Fixed Assets → Asset Register, then click New asset.

图 01-fa-register

1

Enter the original cost in dollars

2

Useful life in months; monthly depreciation = cost ÷ months

图 02-fa-form

Field	Notes
Asset name	Be specific — this is how you will identify it at stocktake, e.g. "Reception laptop, ThinkPad X1"
Category	Your own grouping: IT equipment, office furniture, vehicles
Purchase date	The date on the supplier invoice
Original cost	Acquisition cost excluding claimable GST, entered in dollars
Useful life (months)	How many months it is expected to serve — 60 means five years

These fields lock once depreciation starts

After the first depreciation charge is posted, cost, purchase date and useful life can no longer be changed (the form says so). Changing them would leave the posted depreciation journals inconsistent with the asset. Getting the numbers right at registration is far cheaper than fixing it later.

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2. How the monthly charge is calculated

The system uses straight-line depreciation, charged monthly, from a single formula:

Monthly charge = original cost ÷ useful life in months

For a $12,000.00 server over 60 months:

$12,000.00 ÷ 60 = $200.00 per month

There is no residual value, no accelerated method and no pro-rating by day — the same amount every month until the asset is fully depreciated.

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3. Charging depreciation each month

Books → Fixed Assets → Depreciation.

图 03-depreciation

Pick the accounting period (a month) at the top and the page previews the charge for every asset: the monthly amount, the accumulated depreciation after this run, and the posting status.

When it looks right, click Post on the row. The system writes this journal:

Account	Debit	Credit
5600 Depreciation expense	200.00
1490 Accumulated depreciation		200.00

The journal carries the source Depreciation, so it is easy to spot when filtering the journal list by source — and you should never enter it by hand as well.

Once posted, the row moves from Unposted to Posted, shows the voucher number, and the button greys out: the same period cannot be charged twice. To run the next month, move the period forward and repeat.

Put depreciation in your month-end checklist

Skipping it overstates the month's profit. Make it part of the close: charge depreciation → review the trial balance → lock the period. See Period close and locking.

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4. The three asset states

Status	Meaning
In use	Active; depreciation continues each month
Fully depreciated	Accumulated depreciation equals cost; no further charge arises
Disposed	Sold or scrapped; out of the active register

Disposal

When an asset is sold or scrapped, click Dispose on its row and confirm. Afterwards the row offers neither Edit nor Dispose — it has reached its final state.

When deletion is still possible

The Delete button appears only while accumulated depreciation is zero — that is, the asset has never been depreciated.

The reasoning is direct: once depreciation has been charged, journals exist against the asset, and deleting it would leave them stranded. So:

• Registered by mistake, never depreciated → delete and re-register
• Already depreciated → dispose; deletion is not available

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Next: Inventory and costing →