Skip to content

13. Fixed assets and leases

Module

Part of Fixed Assets & Leases. If your plan does not include it, these screens are not in your menus.

Fixed Assets. Vehicles, racking, equipment, and the leases that are capitalised alongside them.

Set up the classes first

Fixed Assets → Asset Classes. Every asset belongs to a class, and the class carries the default life, the residual percentage and the ledger accounts that depreciation and disposal post to.

The list shows mapped or not mapped — cannot post against each class. That warning is worth acting on immediately:

Watch out

An asset in a class with no accounts mapped can be created, and can then never be depreciated. The depreciation run refuses rather than posting a half-formed entry. Map the accounts before adding assets to a class.

A class marked Right-of-use is the one leases capitalise into, and it is not offered for an ordinary purchase.

Adding an asset

Fixed Assets → Asset Register → Add an asset.

Description, Class and Cost are required. In service defaults to today. Leave Life (years) blank to use the class default. For something bought part-way through its life elsewhere, fill in Opening accumulated and Opening as at.

Note

The whole depreciation schedule — every year to the end of the asset's life — is worked out and stored when you create it. That is why the forecast report is instant. Changing the life later regenerates only the years that have not yet been charged.

Running depreciation

Fixed Assets → Run Depreciation. The cadence is annual.

  1. Set the Fiscal year.
  2. Click Preview. Nothing is written.
  3. Read the charge, class by class.
  4. Click Post the charge.

Post the charge is not available until you have previewed. Preview and post calculate exactly the same figures; the only difference is whether the entry is written.

A year that has already been posted returns nothing rather than posting twice, so re-running is safe.

Disposing of an asset

Open the asset from the register. The Dispose panel appears at the bottom while it is still active.

  1. Set the Disposal date and the Proceeds.
  2. Click Preview. You will see cost, accumulated depreciation, net book value, proceeds and the resulting gain or loss.
  3. Click Post disposal.

As with depreciation, posting is not available until you have previewed.

Leases

Fixed Assets → Leases & Schedules → New lease.

  1. Fill in Description, Payment, the Term (months), the Frequency and whether payments are in advance or in arrears.
  2. Choose the RoU asset class.
  3. Click Price it to see the schedule and the liability without creating anything.
  4. Click Preview recognition to see what would be recognised.
  5. Click Recognise to create the lease and post it.

Every lease is capitalised — no short-term or low-value exemption is applied. The right-of-use asset it creates then depreciates through the ordinary asset engine.

Schedule on any lease row shows the full payment schedule with interest and principal split out, and marks which periods have been charged.

The asset reports

  • Asset register — everything, with cost, accumulated depreciation and net book value.
  • NBV by class — the same, summarised.
  • Depreciation forecast — the charge still to come, by year, for five years. This is a lookup of what is already on file rather than a projection, because the whole life of every asset was written down when it was created.
  • Disposals — what has gone, and the gain or loss on each.