Fixed assets and depreciation
A fixed asset is used over multiple periods and differs from goods held for sale. Record acquisition and accounting mappings before depreciation; inspect each resulting entry.
Last reviewed
Before you start
Select the correct company and verify permissions. Learn in a test workspace; posting or restoring can change actual data.
Workflow
- Open Fixed assets and create a record with name, category and acquisition date.
- Review cost, residual value and available life or method according to company policy.
- Set asset and depreciation account mappings; do not substitute a sales account for the asset account.
- For depreciation, choose the period and review amounts before authorized posting.
- Compare asset record, accumulated depreciation, entry and report; check the start date if amounts differ.
Watch this distinction
Depreciation method and life are accounting decisions; an application field does not determine the legally appropriate policy for your company.
Verify the result
Reopen the record and check saved values and state. For financial operations, compare the document with the relevant movement and report before continuing.