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Set up asset categories

Save the depreciation rules and accounts for a kind of asset once - such as vehicles over five years - and reuse them on every new asset.

Accounting 6 steps 1:13 video Accounting - Manager
Where to find it AccountingAssetsAsset Categories

Before you start

The Assets menu appears only when Enable Asset Management is switched on in Settings > Accounting. Decide, for each kind of asset, how long it lasts and how it should lose its value - your accountant can tell you.

Steps

  1. Open Accounting > Assets > Asset Categories and click New Category.
  2. Type the Name - the kind of asset, for example Delivery vehicles.
  3. Choose the Method (Straight line loses the same amount every period), how often it depreciates under Every, and the No. of periods. 60 monthly periods is 5 years.
  4. Check the three accounts: the Fixed asset account (where the cost sits), the Accumulated depreciation account and the Depreciation expense account. SiaOne fills them in; change them if this kind of asset uses other accounts. You can also choose a Journal for the depreciation entries.
  5. Choose the options. Pro-rata first period depreciates only the days after the start date in the first period. Create draft assets from posted vendor bills on this asset account makes a draft asset whenever a bill is posted to the fixed asset account. One asset per unit turns a bill line of 5 laptops into 5 assets. Leave Active ticked.
  6. Click Save. The category appears in the list below. When you register a new asset, choose it in Category and the method, the period and the number of periods fill in - see Register a fixed asset and run depreciation.

Tip

Make one category for each kind of asset you buy: vehicles, IT equipment, furniture. A new asset then needs only a name, a date and a cost.

Note

Changing a category later does not change assets that already use it - each asset keeps the rules it was saved with.

What happens next

Register your first asset with the category: Register a fixed asset and run depreciation.

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