Fixed assets and depreciation

Things you use for years (machines, vehicles, computers) are fixed assets. Their cost is spread over their useful life as depreciation, posted every month by itself.

Steps

1. Open Finance & Accounting, then Assets. It lists each asset with its cost, depreciation so far and book value.

   

2. Click New asset. Give it a Name and a Category (the category sets the accounts it posts to).

3. Enter the dates, cost and salvage value. In service from is when depreciation starts. Salvage value is what it will still be worth at the end; it isn't depreciated.

   

4. Choose the method and useful life. Straight line spreads the cost evenly; Declining balance takes more in the early years. Useful life is in months.

   

5. Click Save draft, then Confirm. The monthly plan appears in the Depreciation board.

   

6. Depreciation posts itself. Months already due are posted when you confirm; after that each month is posted by itself and the book value goes down. If months are waiting, Post up to today posts them at once.

   

7. Sell or dispose of it. Under Sell or dispose, enter the date and what you got for it. Any difference from the book value is booked as a gain or a loss.

Tip Bought it on a supplier bill? Open the bill and click Create asset on the line: the cost and dates are filled in.

Good to know

• Add it to the books on confirm is for an asset you already owned before using Owlvix: it posts the asset against Owner's Equity. Untick it when the purchase is already in your books.
• Asset register and Depreciation schedule are printable lists for your accountant.