How to Add Old / New Fixed Assets?

Fixed assets are long-term assets that a company has purchased and is using for the production of its goods and services. 

Fixed assets can include buildings, computer equipment, software, furniture, land, machinery, and vehicles etc.

TO ADD 

1. Navigate to the Fixed Assets module.

2. Click on "New Fixed Asset" button
   

3. Enter the details for the asset:

   • Old Assets:

     • Include all historical details of the asset, such as acquisition cost, accumulated depreciation, book value, and salvage value.
     • Record the transaction directly in the Assets tab.

   • New Assets:

     • Only add the Item Name and relevant details in the asset list.
     • Record purchase transactions separately under the Purchase & Sale tab.

      4. Click   Save & Close   or  Save & New if you want to add another asset.

Key Terms

1. Unit Price:

   • The cost of a single unit of the fixed asset.

   • Example: If one desk costs PKR 5,000, then its unit price is PKR 5,000.

2. Quantity:

   • The total number of units being recorded for the fixed asset.

   • Example: If 5 desks are purchased, the quantity is recorded as 5.

3. Purchase Cost:

   • The total cost of the asset, calculated by multiplying the unit price by the quantity.

   • Formula: Purchase Cost = Unit Price × Quantity.

   • Example: If the unit price is PKR 5,000 and the quantity is 5, the purchase cost is PKR 25,000.

4. Salvage Value:

   • The estimated residual value of the asset at the end of its useful life.

   • Example: If a vehicle is expected to be worth PKR 10,000 after 5 years, its salvage value is PKR 10,000.

5. Useful Life:

    

   • The estimated duration (in years) during which the asset is expected to be operational and generate benefits.

   • Example: If a machine is expected to last for 10 years, its useful life is recorded as 10 years.