This article explains how to record a manual Journal Entry to add a fixed asset in Qoyod, with an overview of asset types and their accounting nature.
Path in Qoyod
Accounting › Manual Journal Entries › Create Manual Entry
Asset Classification
Fixed Assets
Property acquired for use rather than resale, with a productive life extending across several fiscal years and a form that does not change during that period. For example: land, buildings, machinery, vehicles. When sold, they move to the income statement.
Current Assets
These include cash and assets expected to be converted to cash, sold, or used within the fiscal year. For example: cash, short-term investments, customers, notes receivable, inventory, prepaid expenses, accrued revenue.
Intangible Assets
Property or rights that have no tangible physical form but hold value for the entity. For example: goodwill, patent rights. They are difficult to value precisely, and when sold they are added to the income statement.
- Asset accounts are debit by nature when increased, and credit when decreased.
Steps
- From the “Accounting” dropdown menu, click “Manual Journal Entries”.
- Click “Create Manual Entry” in the top-left corner of the page.
- Select the asset account from the accounts pre-configured in Qoyod (Land, Buildings, Equipment, Machinery, Furniture, etc.).
- Enter the asset value in the Debit field (because the account is debit by nature and has increased).
- Add the offsetting account (for example: bank or cash account) in the Credit field.
- Confirm that debit and credit are balanced.
- Click “Save”.
