How to Create and Manage Fixed Assets in Qoyod: A Complete Step-by-Step Guide

Fixed Assets

Important Note: The Fixed Assets feature is available in the following plans: Advanced Plan, Advance Plan (legacy plan), Qoyod Plan.

First: Adding Fixed Asset Categories

What Are Asset Categories?

Instructions on creating and configuring fixed asset categories.

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 Asset Category Data

• Asset Category Reference Number: Generated automatically.
• Asset Category Name in English: Written in English.
• Asset Category Name in Arabic: Written in Arabic.
• Depreciable: Specify whether the asset is depreciable or non-depreciable.

4. Asset Settings Based on Depreciation

a) If the Asset is Non-Depreciable:

• Select Asset Account Only: Choose a non-current asset account from the dropdown list. Non-current assets at level three or higher will appear, and if the fixed asset account has branches, only the branches will be displayed.

b) If the Asset is Depreciable:

Depreciation Method:

• The only available method: Straight-Line Method.

Useful Life:

• Calculated either in years or as a percentage.
• After selecting the useful life in years or percentage, choose the number of years or percentage value in the field next to Useful Life.

Associated Accounts:

• Asset Account: Selected from the dropdown list.

• Depreciation Expense Account: An expense account that must be of type “Depreciation Expense”. The account type appears next to the account name in the chart of accounts. If the account has branches, the branches will be displayed.

• Accumulated Depreciation Account: A current liabilities account.

How to Add a New Depreciation Expense Account:

1. Go to the chart of accounts.
2. Navigate to the Operating Expenses account (must be of type Operating Costs).
3. Click the “+” button next to it.
4. Select the account type: Depreciation Expense.
5. Account nature: Expenses.
6. Enter the English and Arabic names.
7. Click Save.

How to Add an Accumulated Depreciation Account:

1. From the chart of accounts, navigate to Liabilities.
2. Click the “+” sign to expand Liabilities.
3. Click the “+” button next to Current Liabilities.
4. Enter the account data as follows:
   • Account Type: Accumulated Depreciation (required).
   • Account Nature: Creditors.
   • Account Name (Arabic): مجمع إهلاك.
   • Account Name (English): Accumulated Depreciation.
5. Click Continue to save the account.

Important Notes About Accumulated Depreciation Account:

• Selecting the account type “Accumulated Depreciation” is required.
• If the account is added outside of Current Liabilities or with a different type: the account will not appear when adding the asset.
• Placing accumulated depreciation within Liabilities is a systematic organization due to its creditor nature and does not change the accounting treatment of the asset.

Depreciation Type:

• Posted depreciation.
• If you wish to add manual depreciation for the asset, enable the “Manual Depreciation” option.

5. Save the Category

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

6. Options After Saving

• View: To view asset category details.
• Edit: To update data. ️ Alert: Accounts cannot be changed after being linked to a fixed asset.
• Delete: Allowed if the category is not linked to any fixed asset.

7. Note on Category and Asset Useful Life

• Category Useful Life: Can be modified unless an asset has been created under this category.
• Asset Useful Life: Can be modified unless a quantity has been recorded for the asset.

Second: Creating a New Fixed Asset

Description

Steps to create a new fixed asset and set up its basic data.

Steps:

1. Access the Fixed Assets Page

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

2. Add a New Asset

• Click on “Add Asset +”.

3. Enter Basic Asset Data

1. Arabic Name: Asset name in Arabic, for example: Mercedes Car 2025.
2. English Name: Asset name in English, for example: Mercedes car 2025.
3. Reference Number: The unique number for the asset, entered manually or generated automatically.
4. Asset Category: Specify the category associated with the asset (accounts are automatically loaded based on the category). You can click the “+” button next to “Asset Category” to quickly add a new category.
5. Description: Enter a description for the asset.
6. Unit of Measurement: The unit used to measure assets.
7. Barcode: Add if the product has a barcode, or you can generate a barcode.
8. Tax: Select the tax applicable to the asset from the dropdown list of pre-defined taxes.
9. Asset Image: If desired, you can add an image for the asset.
10. Asset Account: Auto-populated based on data added in the selected asset category.
11. Depreciable Option: Auto-populated based on data added in the selected asset category.
12. Depreciation Expense Account: Auto-populated based on data added in the selected asset category.
13. Accumulated Depreciation Account: Auto-populated based on data added in the selected asset category.
14. Asset Value: You must select an asset category for this to appear.
15. Useful Life: Enter the useful life for the asset.
16. Salvage Value: Enter if applicable.

Note on Asset Value: The depreciation value shown in the asset details when adding it is a default value to appear on invoices when purchasing the asset. You can modify it on the asset page at any time, and when creating a purchase invoice, you can adjust the value to the actual value.

4. Save the Data

• Click “Save” to complete the process, or “Save and Create New” to add another asset.

5. View the New Asset

• After saving, the asset is displayed on the Fixed Assets page.

Important Note: You can add multiple assets under the same category with different depreciation rates and values.

Third: Recording the Asset Purchase and Starting Depreciation

After adding the asset, you must record the asset purchase either through purchase invoices or opening balances for assets.

a) If recording the purchase through a purchase invoice:

After creating the purchase invoice, you must enter the depreciation start date, which is done in one of the following two ways:

First Method:

• When posting depreciation, a “!” mark appears in the options next to the asset.
• Click on it and add the “Depreciation Start Date” and salvage value if applicable.

Second Method:

1. Go to Fixed Assets.
2. Click on the asset name.
3. A list of active assets will appear next to it.
4. Click the “!” from the options next to it.
5. Enter the “Depreciation Start Date” and salvage value if applicable.

• Depreciation will be calculated from this date.

b) If recording the purchase through opening balances:

• Depreciation will start after the “Last Depreciation Date” added when creating the opening balance.

Fourth: Entering Posted Depreciation

• Posted depreciation must be entered (daily, weekly, monthly, annually).
• The system will automatically calculate depreciation for each asset and create depreciation entries automatically.
• You can view depreciation entries through Reports and then Journal Entries Report.

Fifth: Fixed Asset Search Options

You can search using:

1. Reference number.
2. Asset name.
3. Asset barcode or registered asset.
4. Asset purchase date.
5. Asset current location.
6. Asset current project.
7. Asset current custody.

Sixth: Asset Options After Adding

• View: To view asset data.
• Edit: To update asset data.
• Copy: To create a copy of asset data.
• Delete: Allowed if the asset is not linked to any transactions.

️ Important Note Regarding Deletion: The asset cannot be deleted due to existing related transactions. Please delete all related transactions first.

Seventh: Training Courses

Practical Explanatory Video

Learn about Fixed Assets and Financial Reports in Qoyod Integrated Accounting Software

Video Link

Course Topics:

• 4:35 – Adding a fixed asset category.
• 9:00 – Adding a fixed asset.
• 14:50 – Importing a fixed asset.
• 17:50 – Adding quantities through opening balances.
• 21:52 – Importing opening balances for assets.
• 25:25 – Editing information for a registered asset.
• 26:43 – Adding quantities through fixed asset purchase.
• 29:40 – Completing registered asset data with asset receipt date.
• 30:00 – Returning assets via debit note and displaying them as archived assets.
• 31:30 – Asset depreciation.
• 37:28 – Asset transfer.
• 42:36 – Impact of fixed assets on financial reports.

Here’s a practical tutorial video showing how to add a new asset:

https://app.storylane.io/share/vhuv4tz0auxm