Account type: Fixed Asset

Account type Fixed Asset marks the ledgers that hold the original cost of assets: in the demo Land, Buildings, Plant and Machinery, Furniture and Fixtures, Office Equipment and Vehicles under 1110 - Property, Plant and Equipment, plus the Right-of-Use and Intangible groups. Only an account of this type can be chosen as the fixed asset account in an Asset Category, and a Purchase Invoice for a fixed asset item debits it instead of an expense. The balance is gross cost; the net value on the Balance Sheet is this balance less Accumulated Depreciation. Office Equipment - YFF holds the Rs 1,00,000 laptop and Furniture and Fixtures - YFF the Rs 40,000 furniture.

Fixed asset account balance = Sum of asset costs still owned; net book value = balance - Accumulated Depreciation

1. 01Go to Accounts Setup > Chart of Accounts and expand Assets > Non-Current Assets > Property, Plant and Equipment.
2. 02Open Office Equipment - YFF and confirm Account Type is Fixed Asset.
3. 03A Purchase Invoice for a fixed asset item posts the entry below here.
4. 04Click View Ledger to see each asset purchase and any disposal credit.
5. 05Compare the balance with the Assets list total to confirm every asset has a record.

Set on each fixed asset cost account under Property, Plant and Equipment in the chart.

Office Equipment - YFF holds the Rs 1,00,000 Dell laptop.