Problem: How to enter Intangible Asset?

Solution: Add asset with type 'Intangible Asset' following the steps:

1. Create the Intangible Asset as an Inventory Item.

    Initially it is considered as Inventory and in next step this inventory is transfer to Asset.

2. Record the purchase of the Intangible Asset with Invoice Received.    

    Record all the relevant details in the Main tab i.e. Company name, Warehouse and transaction type and date of the transaction:

Add created Inventory item in the Inventory tab of Invoice received. Fill the price box and all relevant fields as required:

 
3. Go to Accounting > Fixed Assets:

Create a new Asset choosing Type - Intangible Asset. Add description and Inventory number to identify the fixed asset

(same name can be used, therefore Inventory number is added to distinguish between the assets).

Edit GL Account as required:

4. As Intangible Asset saved, go to Accounting > Fixed Assets > Fixed Asset Entries to create Fixed Asset Entry:

 
or create Fixed Asset Entry directly through Fixed Asset list - choose document Accept For Accounting:

At the Main tab, enter the items Information as in the Invoice received:

At the Fixed Assets tab, enter:

• Initial Amount i.e. the cost of the asset.
• Useful life-period until when you want to Depreciate.
• Tick on the box of Depreciate and also in Depreciate in current month, if you want to depreciate it in the current month.
• Expense GL Account will be Depreciation of fixed asset, and you may choose the Expense Item from the list of Expense or create one for easy identification.

After filling all the details, Post and close the document.

5. Every time while Month end Closing executing, the Depreciation is calculated during the useful life according to Depreciation Method:

• Straight Line: to calculate depreciation in equal monthly amounts during the fixed asset useful life (Monthly Depreciation = Initial Cost / Useful Life (Months)).
• Units of Production: to calculate depreciation amounts proportionally to actual usage of the fixed asset.

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