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Set up fixed assets and read the register

Fixed assets are set up in three levels: a category, an asset (with its ledgers and depreciation rules), and one policy row for each serial-numbered unit you bought. The policy rows are the register: each unit has its book value, depreciation rules, location and disposal.

  • Accounting Fixed assets
  • 5 min read
  • Updated October 20, 2026

For Accountant Owner or manager

On this page

How the pieces fit

LevelWhat it isMade by
Fixed assets categoryA group such as vehicles or furniture, with the default life and depreciation daysYou, on the setup screen
Fixed assets (the asset)One kind of asset, for example "Delivery van", with its four ledgers and depreciation rulesYou, on the setup screen
Fixed assets policy (the register)One row for each unit with a serial number, with its Book value, rules, location and disposalThe system, when you buy the asset (Buy a fixed asset)

Open Fixed assets settings (menu Fixed Assets Setup). It has three tabs: Fixed assets category, Fixed assets and Fixed assets policy. A fixed asset is not entered as a stock item with a purchase of its own: you set the asset up here, then buy it with Purchase fixed assets.

Set up a category

  1. Choose Add on Fixed assets category
    Who
    Accountant
    Where
    Fixed assets settings > Fixed assets category > Add
    What changes
    Add fixed assets category opens.
  2. Fill it
    What changes
    Name, an optional Parent category, the default Assets life (In year), Depreciation start after days, Depreciation recurring days and Active. The list also shows No of assets.
  3. Save
    What changes
    "Fixed assets category saved successfully"

Set up an asset

  1. Choose Add on Fixed assets
    Who
    Accountant
    Where
    Fixed assets settings > Fixed assets > Add
    What changes
    Add fixed asset opens.
  2. Describe the asset
    What changes
    Fixed assets category, Name and Fixed assets SKU (all required), Description, Unit, Buy rate, the maker and brand details, the warranty (years, months, days) and up to 5 pictures (jpg, jpeg, png or bmp, up to 1 MB each).
  3. Choose its ledgers
    What changes
    Under Fixed assets related accounts: Fixed assets ledger (where its cost sits), Accumulated depreciation ledger, Loss on disposal and Gain on disposal. When the asset has none, the company's ledgers in Configuration > Fixed assets are used (Company settings that change buying and vouchers).
  4. Say how it depreciates
    What changes
    Assets life (In year), Depreciation method, Depreciation start after days (the days from the purchase date to the first depreciation), Depreciation recurring days (the gap between depreciations) and Depreciation applicable. VAT applicable says whether purchases of it carry VAT.
  5. Save
    What changes
    "Fixed assets saved successfully"

The list shows the Buy rate and the Stock on hand of each asset.

Read the register

Each unit you buy appears on Fixed assets policy, one row for each serial number. The list shows the Serial no, Voucher no (the purchase), Name, Fixed assets category, Stock in date, the two ledgers and the Assets life. Open a unit to see:

  • the Voucher no, the asset, the Serial no and the Book value, which is the unit's cost from the purchase, including the costs your purchase terms add to stock value;
  • Depreciation policy: Depreciation method, Assets life, Salvage value, Depreciation start after days and Depreciation recurring days. Choose Update to change them (Depreciate fixed assets);
  • Location details: Branch, Department, Building, Storey and Room. Choose Update and pick or add each; "Fixed assets location saved successfully";
  • Disposal details: choose it to dispose of the unit (Dispose of a fixed asset).
What the setup changes
AreaChange
LedgersNothing: set-up only. The purchase and the depreciation post to the ledgers you chose here
A purchaseEach unit bought gets a policy row with the rules of the asset
ReportsThe cost shows on the Fixed assets ledger of the balance sheet (Check the books with trial balance and ledger reports)

Common questions

I bought an asset but it is not on Fixed assets policy.

Only the Purchase fixed assets invoice creates the rows, one per serial number, and only once the invoice is saved and, where approval is on, approved (Approvals for purchases and vouchers).

The ledgers are empty on the purchase.

Fill them on the asset or in Configuration > Fixed assets. The purchase takes them from the asset first.

I changed the Book value on the policy and it did not change.

The Book value is the purchase cost and cannot be changed here. Correct it by correcting the purchase.

The Depreciation method list is empty.

The methods are a list kept in the system. Ask your support contact to add the methods you use.

Related guides

Buy a fixed asset Buying a machine, vehicle or furniture uses its own purchase invoice. The cost goes to the asset's ledger instead of purchases… Depreciate fixed assets Each unit's depreciation rules are kept on its policy, but in this release depreciation is not posted for you: post it yourself… Dispose of a fixed asset Disposing of a unit records the money received, takes the asset's value off its ledger and books the gain or loss. In this… Sell a fixed asset Selling a fixed asset uses its own invoice. You enter the asset's book value on each line, and the screen books the gain or loss… Return a fixed asset to the supplier Returning a purchased machine, vehicle or piece of furniture works like a purchase return, but the credit goes to the asset's own… Company settings that change buying and vouchers Configuration holds the ledgers and switches the purchase and voucher screens depend on, and Entry control decides which optional… Check the books with trial balance and ledger reports The trial balance lists every ledger's balance and should show equal debit and credit totals. The general ledger reports show the…