The Asset Management module helps organizations track and manage the complete lifecycle of fixed assets from acquisition to disposal.
It enables:
Asset registration
Capitalization
Depreciation calculation
Maintenance tracking
Asset transfer between locations
Disposal and scrapping
Audit compliance
This module integrates with:
Purchase (asset acquisition)
Accounting (capitalization & depreciation)
Maintenance (preventive & breakdown tracking)
The typical lifecycle of an asset:
Purchase
→ Capitalization
→ Depreciation
→ Maintenance
→ Transfer (if required)
→ Disposal / Scrap
Asset Categories define:
Depreciation method
Useful life
Asset account mapping
Examples:
Machinery
Vehicles
Computers
Furniture
Office Equipment
Navigate to:
Assets → Asset Category → New
Define:
Depreciation Method
Total Number of Depreciations
Frequency (Monthly / Yearly)
Asset Account
Accumulated Depreciation Account
Depreciation Expense Account
Save.
Assets can be created:
Directly from Purchase Invoice
Manually
Navigate to:
Assets → Asset → New
Enter:
Asset Name
Asset Category
Purchase Date
Purchase Amount
Location
Custodian (Responsible person)
Company
Save and Submit.
Capitalization converts purchase cost into a fixed asset in books.
After Purchase Invoice:
Create Asset record
Link purchase document
Submit asset
System posts accounting entry:
Debit → Fixed Asset Account
Credit → Supplier / Payable
Common methods supported:
Equal depreciation each period.
Depreciation calculated on reduced balance.
When asset is submitted:
System generates:
Depreciation schedule
Future depreciation dates
System automatically or manually posts:
Debit → Depreciation Expense
Credit → Accumulated Depreciation
Asset Depreciation Schedule
Depreciation Expense Summary
Asset Value Report
Preventive Maintenance
Breakdown Maintenance
Define:
Maintenance frequency
Service intervals
Responsible department
System can generate maintenance alerts.
Record:
Issue description
Repair action
Cost incurred
Service provider
Helps track asset performance.
Used when asset moves between:
Departments
Branches
Warehouses
Employees
Navigate to:
Assets → Asset Movement
Select:
Asset
From location
To location
Transfer date
Submit.
System maintains movement history.
Asset may be:
Sold
Scrapped
Donated
Navigate to:
Assets → Asset Disposal
Enter:
Sale value (if applicable)
Disposal date
System calculates:
Gain or Loss on disposal
If sold:
Debit → Cash/Bank
Debit/Credit → Gain/Loss
Credit → Fixed Asset Account
Adjust asset value due to:
Market changes
Valuation updates
System records:
Increase or decrease in value
Updated depreciation schedule
Asset Register
Asset Movement History
Maintenance Log
Asset Value Report
Depreciation Summary
Capital Work-in-Progress
Asset Cost by Department
Maintenance Cost Analysis
Asset Utilization
Separate:
Asset creation
Depreciation posting
Disposal approval
Enable for:
Asset purchase above certain value
Asset disposal
Revaluation
System records:
Asset creation date
Depreciation history
Transfer history
Disposal details
Verify all assets created
Post all depreciation entries
Reconcile fixed asset account
Review asset register
Conduct physical asset verification
Conduct annual physical audit:
Verify asset tag
Confirm location
Validate condition
Update discrepancies using asset movement or adjustment.
Assign unique asset codes
Tag assets physically
Review depreciation monthly
Track maintenance cost
Reconcile asset ledger annually
Not linking asset to purchase invoice
Incorrect depreciation method
Skipping depreciation posting
Ignoring asset transfer updates
Disposal without accounting entry