Fixed assets can be created within the organization or purchased. The examples of fixed assets are equipment, machinesfurniture and fixtures, machinariry, or buildings, land. Also there are intangible assets, such as trademarks, copyrights, or goodwill that add value to your organization. An asset's  An asset’s useful life is the duration when it is used for your business. Generally, fixed assets are assets whose useful life exceeds one year. 

As a fixed asset is in use, its value will decline through its useful lifeover time. Depreciation is the process of allocating an asset's asset’s cost over the course of its useful life. Notice that generally most of tangible assets are depreciated except for land which is never depreciated. Some of the intangible assets are not depreciated because they may have unlimited useful life with their value not declining over time.

FirstBit ERP provides the functionality that allows you to account for the fixed assets from their purchase or construction to disposal.

Setting up the functionality

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If you are going to use the Preparation for Fixed Asset Sale or Conservation of Fixed Assets documents and the corresponding functionality of fixed asset accounting, select the Enable Preparation for Fixed Asset Sale and Enable Conservation of Fixed Assets options, respectively.

If your organization is able to create fixed assets and needs to track construction costs, you can select the Enable Construction in Progress for Fixed Assets option.

If you select the Enable Capital Improvements to  Fixed Assets option, this functionality will allow you to register any costs incurred while improvements are made to the fixed assets and to revise accordingly their useful lifes and gross costs.

For details, refer to Settings: Asset Management. 

Accepting Fixed Assets to Accounting

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