How to Track Fixed Assets

You can use Versa to manage the fixed asset in your business.

Setup

Fixed asset shows up in your balance sheet and you need to create new GL account to tracle the current value of your fixed accounts.

First, Go to General Ledger menu, chart of accounts, All.

Choose to create new account by clicking on Add a new account

Create a new account for a fixed asset you want to track.  Give an account number, name and description if you like.  Select the Account Type to be asset, Account Subtype to be fixed asset. Save the new account.

Then create another account as a contra-asset to the asset account just created.  This will be used to depreciate the asset and hold the asset value that has been depreciated

The account type should be contra-asset.

Creating a Fixed Asset

Create a new Fixed Asset in General Ledger menu, Fixed Asset, New.

If you have already acquired this asset, enter the date you received it in acquisition date.  If you have not yet acquired the asset, leave the date blank.

You will than be asked to provide the fixed asset name, control accounts such as GL Asset account (created earlier), contra-asset (for depreciation and created earlier), Expense account (for recording depreciation expenses). Purchase Cost and Balancing Account is only needed if you already purchased the asset and would like to record the purchase cost at the time of creating the fixed asset. When you fill in a value there, the system will create a GL entry to debit Fixed Asset GL account, credit the balancing account. Accumulated Depreciation can also be provided if you want to record depreciated value for this fixed asset now.

Click on Create to save the new fixed asset.

Acquire Fixed Asset

When you do pay for the purchase of this new fixed asset, you will create a bill for that product. See here  for how to do it.

Amortization

If you need to deprecate an asset, you can go to general ledger, fixed assets, amortize assets.  Choose the fiscal period you would like to amortize for, then choose the asset, and give it the value you would like to apply deprecation for.