Fixed asset

Fixed assets, also known as tangible assets or property, plant and equipment (PP&E), is a term used in accounting for assets and property that cannot easily be converted into cash. This can be compared with current assets such as cash or bank accounts, which are described as liquid assets. In most cases, only tangible assets are referred to as fixed.
IAS 16 (International Accounting Standerd) defines Fixed Assets as assets whose future economic benefit is probable to flow into the entity, whose cost can be measured reliably. Fixed assets belong to one of 2 types: "Freehold Assets" – assets which are purchased with legal right of ownership and used, and "Leasehold Assets" – assets used by owner without legal right for a particular period of time.

Moreover, a fixed/non-current asset can also be defined as an asset not directly sold to a firm's consumers/end-users. As an example, a baking firm's current assets would be its inventory (in this case, flour, yeast, etc.), the value of sales owed to the firm via credit (i.e. debtors or accounts receivable), cash held in the bank, etc. Its non-current assets would be the oven used to bake bread, motor vehicles used to transport deliveries, cash registers used to handle cash payments, etc. While these non-current assets have value, they are not directly sold to consumers and cannot be easily converted to cash.

These are items of value that the organization has bought and will use for an extended period of time; fixed assets normally include items such as land and buildings, motor vehicles, furniture, office equipment, computers, fixtures and fittings, and plant and machinery. These often receive favorable tax treatment (depreciation allowance) over short-term assets.

  1. How to Create New Fixed assets?
  2. How to Edit Fixed asset?
  3. How to Delete Fixed asset?

How to Create New Fixed assets?

1. In the Master Information menu, select Fixed asset.
2. Click Add Button(+ Button).
3. Type Ledger Name, Select Date of Use, Type Quantity & Rate on (%).
4. Click Save.

5.  Select Opening.
6. Select Opening Date, type Initial Cost & Depreciation.
7. Click Save.

How to Edit Fixed asset?

1. Select Fixed asset which you want to edit.
2. Click Edit.
3. Type Update Ledger Name, Select Update Date of Use, Type Update Quantity & Rate on (%).
4. Click Save.

5. If you want to create new ledger then click + button.
6. Type Group Name, Ledger Name, Address, Phone Number, Email Address & Credit Limit.
7. Click Save.

8.  Click Opening.
9. Update Opening Date, Update Initial Cost & Depreciation.
7. Click Save.

How to Delete Fixed asset?

1. Click Delete button on the Fixed asset which you want to Delete.

2. Click Delete.