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Fixed assets: register, depreciation, tax book and work in progress

Every van, cooler, rack, forklift and computer your distribution business owns sits in one register with its cost, depreciation and book value. Depreciation posts to your books each month, and income-tax depreciation is worked out by block beside it. A depot being built gathers its cost until it becomes an asset.

PLANSScale only

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The problem it solves

The fixed asset register is an Excel sheet the accountant updates once a year, and nobody trusts its figures.
Coolers and display racks are bought in dozens, but nobody can say which depot or which shop holds each one.
Depreciation for the books and depreciation for income tax are worked out in two different sheets that never agree.

How it works

Your accountant sets up the asset categories once: Computers and IT, Vehicles, Plant and Machinery and so on, each with its accounts, method and life. Load Country Pack makes a starting set for India, the UK, Australia or the UAE.
Assets come in by themselves. Posting a vendor bill on a category's asset account makes a draft asset, one per unit if you ask. A bill for 20 coolers makes 20 assets. Serial-numbered products received into a depot can also become assets, one per serial.
Open the draft, check the cost, the custodian and the place, and press Confirm. The depreciation board is worked out to the end of the asset's life.
When a van gets a new engine, a cooler is damaged or a rack is moved to another depot, press Change. Revaluing, impairing and changing the life go through your Asset change approval chain first.
When you sell or scrap an asset, press Dispose. The entry takes the asset off the books with its gain or loss, and a sale can raise the buyer's invoice.
Once a year, open Tax Depreciation, pick the year and press Work It Out to see the income-tax depreciation per block.

Everything it does

Depreciation

Methods: Straight Line, Written-Down Value, Declining to Straight Line, Units of Use, Manual Schedule, Not Depreciated (land)
First period: by days from the day in use (the default), or whole first month. Or from the next month, or half a year in the first year
Written-down value works on each financial year's opening value, so it follows your entity's financial year
Each month's line is Planned or Posted, with its journal entry. Depreciation Schedule shows every asset's lines as a list or pivot by category, year and entity

The asset

Code numbered FA/year/, name, serial number, category, cost, salvage value, Bought On and In Use From
Custodian (a user), Where (a depot, shop or room, typed) and the analytic account, such as the depot's
States: Draft, Running, Paused, Fully Depreciated, Disposed; book value always shown
From stock: the product, the serial and the stock location the serial is in now. Group the register by stock location to see asset value per depot

Changes and disposal

Add Value (Improvement), Revalue, Impair, Change Remaining Life, Pause, Resume, Move / New Custodian
Each change is kept on the Changes tab with the date, from, to and who made it. The board is worked out again from that day
A paused asset stops depreciating; resuming carries on with the months that were left
Dispose as Sold (Sold For, the buyer, Make the Invoice: on to start with) or Scrapped. Depreciation is posted up to the day, part month by days

Tax book

Tax blocks or pools beside the books; the tax book posts nothing
Methods: block on written-down value, pool on reducing balance, per asset diminishing value, prime cost or straight rate, or none
India pack: blocks at 40 % (computers and software), 15 % (plant and machinery, motor cars) and 30 % (vehicles for hire). Also 10 % (furniture, buildings), 5 % (residential buildings) and 25 % (intangibles). Half the rate for assets used under 180 days in their first year
Tax Cost on an asset when it differs from the book cost; opening tax value and date for blocks or assets moved from another system
The report per block: opening, added (full and half rate), sale money, depreciation, closing and any gain when sales exceed the block

Work in progress

A project such as a new depot or cold room: the category it becomes, its work-in-progress account, its analytic account and a budget
Cost So Far adds up the posted lines on that account with that analytic account; over budget is flagged
Capitalise makes one entry from work in progress to the asset account and a draft asset with that cost, put to use today
Cancel only while nothing is booked to it

Who uses it

Accountant (Asset Manager)Sets up categories and tax blocks, confirms assets, makes changes, disposes of assets and runs the tax report.

Depot or admin staff (Asset Incharge)Reads the register and where each asset is, gives assets out, takes them back and counts them. They also need an Invoicing role to reach the menu.

Every salesman and staff member (Asset User)Sees only the assets given to them, in With me in the SmartMy Distribution app.

Finance headApproves revaluations, impairments, life changes, sales and scrapping through the Asset change chain.

Where you use it

Web: Invoicing > Fixed Assets (Fixed Assets, Depreciation Schedule, Work in Progress, Tax Depreciation, Asset Requests)
Web: Invoicing > Configuration > Asset Categories (Asset Categories, Tax Blocks)
The SmartMy Distribution app: Find an asset for the Asset Incharge, and With me for anyone given an asset. The app is built and in testing, not in the app stores yet
Not in the app: adding or changing assets, and depreciation. Not on the dealer portal
Not linked to the vans of van sales: add each van to the register yourself

What you control

Settings

Per category: method, useful life (60 months to start with), rate, salvage share, first period (by days to start with)
Per category: Write Off Below, Make Assets from Bills (off), One Asset per Unit (on), Post Depreciation Each Month (on)
Per product category: the Fixed Asset Category its serial-numbered products become on receipt
Per tax block: rate, half rate below 180 days, first-year allowance, effective life, opening tax value
Asset change approval chain: the asset managers to start with, with levels you add

Approvals

Asset change: revaluing, impairing, changing the remaining life, selling or scrapping an asset waits for the chain. The asset managers approve to start with; levels by amount can be added. Improvements, moves, pause and resume go through at once.

Notifications

Approvers of the Asset change chain get a to-do for each request waiting

Questions

We buy coolers in batches. Do we enter each one?

No. Turn on Make Assets from Bills on the category. A bill line of 20 coolers makes 20 draft assets at one-twentieth of the cost each. Or name the asset category on the product category, and each serial received becomes an asset.

Does it follow Indian income-tax depreciation?

It keeps a tax book by block beside the books, with half the rate for assets used under 180 days in the first year. The India pack gives starting blocks and rates; your accountant checks them before the first tax year.

Can we see asset value per depot?

Yes. Give each asset its depot's analytic account, or group the register by Where or by stock location. Depreciation posts with the analytic account, so each depot carries its own charge.

Which plan has it?

Scale. The register, depreciation, the tax book and work in progress come with full accounting in that plan.

Related features

ASSETSAsset care, and assets issued and returnedGive a cooler, a display rack or a handheld to a retailer, a salesman or a depot. A salesman confirms in the app before the asset moves to them. Record its condition and any damage charge when it comes back. Keep each asset's warranty, maintenance contract and insurance, with a reminder 30 days before each one ends.ASSETSPhysical verification of assetsCount the coolers, racks, vehicles and computers at a depot by scanning their QR tags. See at once which were found, which are missing, which turned up somewhere else and which are not in the register. The count is kept with who saw each asset and when.ACCOUNTINGFull accounting with GST returnsDealer invoices, van bills, collections, claim and return credit notes all post into the same books, with the depot on every line. Scale adds the full accounting screens and reports, from ledgers with drill-down to cash flow, and GSTR-1 and GSTR-3B worked out for Indian entities.ACROSS SMARTMY DISTRIBUTIONApproval chainsNew dealers, orders over credit, claims, returns, new retailers, points and gifts go to the right people in the right order, set up without code. Every decision is kept with who, when and why.LARGE NETWORKSVan salesLoad a van from the depot in the morning, bill shops from it in the salesman app, and unload what is left in the evening. Each bill is a posted GST invoice paid by cash, UPI or credit, and the day ends with the cash counted against the bills.

See your market on it.

Tell us how many dealers and salesmen you have, and how orders and claims reach you today. We will set up your dealers, price lists and beats with you.

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