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App guides · Fixed Assets

How to record and depreciate fixed assets

Fixed Assets is the register for things you buy to use in the business, like vans or laptops. It tracks cost, custody and depreciation. Buying an asset is not an expense: it swaps cash for equipment. The cost is spread over the years you use it through depreciation, which you review and post from this screen.

Checked against Orbit Finance · 6 November 2026

What is the Fixed Assets module for?

It records items bought to use, not sell. It holds cost, acquisition date, custody, and value used up. Buying an asset swaps one asset for another. The expense arrives slowly as depreciation over the years you use it, preventing the purchase month from looking artificially terrible.

How do I add a new asset?

  1. Press Add asset and type a recognisable Asset name.
  2. Pick the Category, which sets the depreciation rate.
  3. Set the Acquisition date to the day you took delivery.
  4. Enter the Cost in RM, including delivery, but excluding running costs.
  5. Enter the Residual value if you expect to sell it later.
  6. Choose the Method, such as Straight-line or Reducing balance.
  7. Set the location or staff holder and name the Person in charge.
  8. Attach Photos if handing it over, then press Save.

How do I run and post depreciation?

  1. Review the table for Rate, This year, and Net book value.
  2. Check for zero values that indicate a missing rate or full write-down.
  3. Press Run depreciation and choose Month or Whole year.
  4. Review the journal lines and account details.
  5. Post the journal to debit Depreciation & Amortisation (6110) and credit Accumulated Depreciation (1590).

How do I dispose of a sold or scrapped asset?

  1. Open the row menu and press Dispose.
  2. Set the Disposal date and Proceeds, entering 0 if scrapped.
  3. Fill in Disposed by and pick a Reason.
  4. Check the Net book value to see if there is a gain or loss.
  5. Review the journal lines and press Dispose to post the entry.

How do I fix a mistake on the register?

  1. Press Edit to correct details, which recomputes all depreciation.
  2. Use Delete only for duplicates or typos caught the same year.
  3. Do not use Delete for sold or scrapped assets, as it leaves no trail.

What this does to your books

Saving an asset posts the purchase for you: Dr Property, Plant & Equipment (1500), Cr Cash & Bank (1000), in the fiscal year of the acquisition date. Do not also key the payment into Cash In and Out, or the money leaves cash twice. A posted depreciation run debits Depreciation & Amortisation (6110) and credits Accumulated Depreciation (1590). Disposal writes one journal that removes the asset and records any gain or loss.
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Questions, answered

Is buying a van an expense in my accounts?

No, buying an asset is not an expense. It swaps cash for equipment. The expense is the depreciation charged over the years you use the van, which spreads the cost fairly across your profit and loss.

Why is my depreciation showing zero?

Check the Rate column. If it is 0 percent, the category may have no rate set. Also check if the asset has already been written down to its residual value, which stops further depreciation charges.

Can I delete an asset I sold last month?

No, do not use Delete for sold assets. Delete posts nothing and leaves no trail. You must use Dispose to record the sale, which posts a journal entry showing the gain or loss and removes the asset from the books.