Set up fixed assets

The settings switch the app on, decide whether depreciation runs by itself each month, and hold the categories that give each new asset its life, method and Books accounts.

Before you start

• Fixed assets must be part of your plan. See Pick your apps.
• Books must be switched on and set up first: depreciation, purchases paid now and sales are posted there.
• You need to be a manager or the owner.

Steps

1. Open Settings → Fixed assets.
2. Under General, tick Fixed assets on.
3. Leave Run each month by itself after the first run ticked, or untick it to run each month by hand.
4. Set Alert this many days before a warranty ends and Alert when a count stays open this many days.
5. Select Save.
6. Under Categories, check the five ready-made categories: Equipment and machines, Furniture and fittings, Vehicles, Computers and devices and the fit-out category for your premises.
7. To change one, select it. Set the Useful life, the Method (Straight line or Declining balance) and, for declining balance, the Declining rate (% a year).
8. Choose the Asset account, Accumulated depreciation account, Depreciation expense account and Gain or loss on disposal account, or leave The chart's own.
9. Select Save. Use New category to add your own.

Good to know

• While Fixed assets is on, Books cannot be switched off.
• The ready-made categories: equipment and machines 5 years straight line, furniture and fittings 7 years, vehicles 5 years declining balance at 40% a year, computers and devices 3 years, premises fit-out 5 years.
• A declining rate left empty means twice the straight-line rate.
• A category only gives a new asset its defaults. An asset keeps the account its cost sits in, so changing a category's account later does not move existing assets.
• Kluvan has no tax depreciation tables. The depreciation follows the life and method you set.
• The register is made for up to about 3,000 assets per organisation.
• With Run each month by itself on, each month's depreciation is posted the day after the month ends, once you have done the first run. See Run monthly depreciation.
• Two rights control access, under roles and rights: See fixed assets and Manage fixed assets and run depreciation.