How to Add Fixed Asset Classifications, Configure Depreciation Methods, Calculate Useful Life, and Link Related Accounts

Guidelines on how to create fixed asset categories and their settings.

Steps:

1. Access the Fixed Assets page:

   • From the Fixed Assets dropdown menu, select “Fixed Assets”.

2. Add a fixed asset category:
   

   • Click on “Asset Categories” from the top options.
   • Then click on “Add Asset Category +”.

3. Fill in the asset category data:

   • Asset category reference number: generated automatically.
   • Asset category name:
     • In English.
     • In Arabic.
   • Specify whether the asset is depreciable or non-depreciable.

4. Asset Settings:

   • If the asset is non-depreciable:
     • Select the Asset Account only.
   • If the asset is depreciable:
     • Depreciation method: Straight-line.
     • Useful life: calculated either in years or as a percentage.
     • Associated accounts:
       • Asset Account.
       • Depreciation Expense Account.
       • Accumulated Depreciation Account.
       • Depreciation type: Scheduled Depreciation (Recorded).
         If you want to add manual depreciation to the asset, you must enable the “Manual Depreciation” option.

5. Save the Category:

   • Click on “Save” or “Save and Create New”.
   • After saving, the category appears on the “Asset Categories” page.

Options After Saving:

• View: to view the details of the asset category.
• Edit: to update the data. (Note: Accounts cannot be changed after being linked to a fixed asset).
• Delete: allowed if the category is not linked to any fixed asset.