An Asset is any valuable Item owned by a Company.
Furniture, computers, mobile phones, printers, cars, manufacturing equipment are examples of assets. Generally, an asset is a tangible item that is located on the company premises or is carried by an employee. In some cases, an asset could be an intangible item.
An asset's useful life spans across multiple years and hence its economic value is spread over corresponding years from the accounting perspective. If you buy a printer for $300 and it is expected to be useful for three years, from the accounting perspective $100 is recorded as the expense for three years each instead of all the $300 in the first year. Most countries have rules for such calculations.
In OneOfficeERP, the Asset record is the heart of asset management module. All the transactions related to an Asset like purchasing, depreciation, maintenance, movement, scrapping, sales will be recorded against the Asset record.
To access the Asset list, go to:
Home > Assets > Assets > Asset
Before creating and using Asset, it is advised to create the following first:
An Item representing the asset should be created. The 'Maintain Stock' should be unchecked and 'Is Fixed Asset' must be checked.
You can configure OneOfficeERP to automatically create assets on submission of Purchase Receipt by enabling 'Auto Create Assets on Purchase' in Item.
If you have enabled auto asset creation for the item representing an asset, you will have to provide the asset location while submitting the Purchase Receipt.
A message confirming the creation of assets is displayed on submission of Purchase Receipt.
If you would like to create assets manually, create an Item with 'Is Fixed Asset' enabled and leave 'Auto Create Assets on Purchase' unchecked . On submission of a Purchase Receipt/Purchase Invoice with that Item a message is shown indicating that you need to create assets manually.
Follow below steps to create assets manually.
Please note you need create one asset record for each asset you have bought. If you have bought five computers and have created just one Purchase Receipt with quantity set to five then you will have to create five asset records manually.
When you move from a legacy system to OneOfficeERP, you will have to add details of all the assets your company has purchased previously along with depreciation details of each asset.
For an existing asset, you can create the asset record directly by checking "Is Existing Asset" checkbox and provide below details.
Based on these details the schedule for depreciation of remaining amount will be created automatically.
To know more, visit the Purchasing an Asset page.
On booking depreciations against this Asset, the Depreciation Schedule section will be visible. This table has columns for Finance Book, Schedule Date, Depreciation Amount, Amount Depreciated, and Journal Entry.
Note: The Finance Book column will only be visible if Enable Finance Book is checked in the Company Master. For more details, click here.
If Insurance has been taken for the Asset you're recording, you can store the following Insurance details:
On submission of an asset, "Capital Work in Progress" account will be credited and the asset account related to the asset will be debited. Submission is only possible after entering "Available-to-use Date". If "Available-to-use Date" is a future date, then accounting entry will be booked automatically on that date via the scheduler.
Ticking on Maintenance Required allows recording Asset Maintenance entries for this Asset. To know more, visit the Asset Maintenance page.
Once you create an Asset, you'll see options to transfer, scrap, or sell the asset. From the Make button, you can adjust its value and make a depreciation entry.