Asset

An Asset is the record of one item the business keeps for more than a year, such as a laptop, a van or a shelf unit, and it carries the cost, purchase date, useful life, salvage value and depreciation method. The cost reaches the ledger through the Purchase Invoice, which debits the fixed asset account (or Capital Work in Progress when that is enabled) instead of an expense. Submitting the Asset builds its Asset Depreciation Schedule, and from then on monthly Depreciation Entries spread the cost over its life. In the demo ACC-ASS-2026-00002 is the Dell laptop from ACC-PINV-2026-00005, Rs 1,00,000 under Office Equipment, straight line. Expensing an asset outright overstates this year's costs and understates the balance sheet.

Net book value = Cost - Accumulated depreciation; Monthly depreciation = (Cost - Salvage value) / Useful life in months

1. 01Go to Stock > Item and make sure the item has Is Fixed Asset ticked and an Asset Category.
2. 02Go to Buying > Purchase Invoice > New, pick the supplier and add the asset item with its cost.
3. 03Submit. The entry below posts and a draft Asset is created automatically.
4. 04Go to Assets > Asset and open the draft; check location, useful life and salvage value.
5. 05Submit the Asset. The Asset Depreciation Schedule is built and the asset locks.
6. 06Each month the schedule posts a Depreciation Entry; see it in the Asset's Activity list.

Create from a Purchase Invoice with Is Fixed Asset ticked, or Assets > Asset for existing assets. Submitted assets lock, cancel and amend instead.

ACC-ASS-2026-00002, Dell laptop, Rs 1,00,000, Office Equipment, straight line, from ACC-PINV-2026-00005.