Asset Category

An Asset Category groups similar assets and holds, per company, the three accounts every asset in the group uses: the fixed asset account that takes the cost, the Accumulated Depreciation account and the Depreciation expense account. It also sets the default depreciation method, total number of depreciations and frequency, so a new Asset only needs a cost and a start date. The demo has eight categories, from Land to Right-of-Use Assets, all straight line. The category itself never posts; it tells the Purchase Invoice and the Depreciation Entry where to post. A wrong account on the category silently sends every depreciation of that group to the wrong ledger, so set it once and check it.

1. 01Go to Assets > Asset Category > New and name it, for example Office Equipment.
2. 02In Finance Books, set depreciation method Straight Line, total depreciations and frequency in months.
3. 03In Accounts, pick the company, the fixed asset account, Accumulated Depreciation and the Depreciation expense account.
4. 04Save. The category is a master and posts nothing.
5. 05Go to Stock > Item and set this category on each fixed asset item.

Create under Assets > Asset Category before the first Asset; pick it on the Item and on the Asset.

Furniture and Fixtures: Fixed Asset, Accumulated Depreciation and Depreciation accounts, straight line.