Fixed Asset Module Fields

The Fixed Asset module serves as a vital tool for monitoring the warranty or expiration dates of assets that fall under maintenance contracts. Now, let's delve into the functionality and operation of this module within the XoroERP system.

Field	Description
Asset Name*	This allows you to type the name of the asset
Purchase Date*	This allows you to fill in the Date of Purchase of the asset.
Purchase Account*	This allows you to fill in the Account linked with the Purchases.
Purchase Entity	This allows you to fill in the Purchase Entity. This could be a Customer, a Vendor, or a Store related to the Asset.
Purchase Cost*	This allows you to fill in the Purchasing Amount of the Asset.
Asset Type	This allows you to fill in the Type of the Asset. You can Create different Fixed Asset Types by defining the “Asset Account” and the “Depreciation Method” from the Fixed Asset Type Module.
Asset Account*	This allows you to fill in the Asset Account defined in the system.
Depreciation Method*	This allows you to fill in the Depreciation Method.**
Exchange Rate*	This is applicable if the Purchase Account is not in the Home Currency.
Notes	This allows you to add any memo as notes.
Warranty Expire Date	Select the Expiry Date of the Asset
Serial Number	This allows you to fill in the Serial Number of the Asset
Store	This allows you to fill in the Store used to buy the inventory.
Location	This allows you to fill in the Location in the Store

Fields marked with an * are mandatory fields.

**Depreciation is a fundamental accounting concept utilized within XoroERP to distribute the cost of a tangible asset over its useful lifespan. Put simply, depreciation reflects the gradual decrease in the value of an asset over time, attributed to factors such as usage, wear and tear, and technological obsolescence.

Within XoroERP's Fixed Asset module, various depreciation methods are available to accommodate different business needs:

1. No Depreciation: This option signifies that the asset is not subject to any depreciation calculations. It may be applicable for assets that do not diminish in value over time or for which depreciation is not a relevant consideration.

2. Straight-Line Depreciation: This method represents one of the most straightforward approaches to calculating depreciation expense. With straight-line depreciation, the annual depreciation expense remains consistent throughout the asset's useful life. This method is suitable for assets that experience uniform depreciation over time.

3. Declining Balance Method: The Declining Balance Method is an accelerated depreciation approach wherein the depreciation expense decreases as the asset ages. This method reflects the recognition that assets often experience higher levels of wear and tear or technological obsolescence in their initial years of use, resulting in higher depreciation expenses upfront.

4. Full Depreciation at Purchase: In this scenario, the degree of asset utilization is disregarded when determining whether depreciation should be applied. Even if the asset is only utilized for a trial run or minimal usage initially, it is considered as being put to use, and depreciation is calculated accordingly. This method ensures that the asset's full depreciation is recognized from the time of purchase, irrespective of its immediate utilization level.

Fixe Asset Depreciation Header

Field	Description
Depreciation	This allows you to fill in Rate% or Effective Life (Years).
Accumulated Depreciation Account	This allows you to select an Account
Depreciation Start Date	This allows you to define the date from when the Depreciation of the Asset is applicable.
Depreciation Expense Account	This allows you to fill in the Account for deducting the amount if any Expenses are related to the Asset depreciation.
Averaging Method	This allows you to fill in the Depreciation to be calculated, either Month-wise, or by Actual days.
Salvage Value	This allows you to fill in the Salvage Value. Salvage value is the book value of an asset after all depreciation has been fully expensed.
Cost Limit	This allows you to fill in the Cost Limit.

After saving, proceed to register the asset within the system. Upon saving, the asset will be recorded in a draft state.

Following this, you can proceed to formally register the fixed asset within the system. Once registered, it will be accessible within the Fixed Asset Centre for viewing and editing purposes.