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

Every delivery van, forklift, rack and computer your business owns sits in one register with its cost, depreciation and book value. Depreciation posts each month, income-tax depreciation is worked out by block beside it, and a new godown gathers its cost until it becomes an asset.

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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 it.
Depreciation for the books and for income tax are worked out in two sheets that never agree.

How it works

Your accountant sets up the asset categories once: Vehicles, Plant and Machinery, Furniture and Fittings, Computers and IT and so on. Each has its accounts, method and life. Load Country Pack gives a starting set for India.
Assets come in by themselves. Posting a supplier bill on a category's asset account makes a draft asset, one per unit if you ask. Serial-numbered items received into a godown can also become assets.
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 or a rack moves godown, press Change. Revaluing, impairing and changing the life go through the Asset change chain first.
When you sell or scrap an asset, press Dispose. The entry takes it 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 income-tax depreciation per block.

Everything it does

Depreciation

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), the whole first month, from the next month, or half a year
Each month's line is Planned or Posted with its entry; Depreciation Schedule lists them by category, year and Entity

The asset

Code FA/year/, name, serial number, category, cost, salvage value, Bought On and In Use From
Custodian (a user), Where (a shop or godown, typed) and the analytic account, such as the shop's
States: Draft, Running, Paused, Fully Depreciated, Disposed; book value always shown
Changes: Add Value, Revalue, Impair, Change Remaining Life, Pause, Resume, Move, each kept with date and who
Dispose as Sold (Make the Invoice on to start with) or Scrapped; depreciation up to the day

Tax book

Tax blocks beside the books; the tax book posts nothing
India pack: blocks at 40 %, 15 %, 30 %, 10 %, 5 % and 25 %. Half the rate applies for assets used under 180 days in their first year
Tax Cost when it differs from the book cost; an opening tax value for older assets
The report per block: opening, added at full and half rate, sale money, depreciation and closing

Work in progress

A project such as a new godown: the category it becomes, its work-in-progress account, analytic account and budget
Cost So Far adds up the posted lines; over budget is flagged
Capitalise makes the entry to the asset account and a draft asset with that cost

Who uses it

Accountant (Asset Manager)Sets up categories and tax blocks, confirms assets, makes changes and disposals.

Shop or godown head (Asset Incharge)Reads the register and finds an asset by its tag in the SmartMy Trade app.

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

OwnerApproves revaluations, impairments, 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)
The SmartMy Trade app: Find an asset by scanning its tag, for the Asset Incharge (built and in testing, not in the app stores yet)

What you control

Settings

Per category: Write Off Below, Make Assets from Bills (off), One Asset per Unit (on), Post Depreciation Each Month (on)
Per item category: the asset category its serial-numbered items become on receipt
Asset change chain: the asset managers to start with
Roles: Asset User (every staff login), Asset Incharge (nobody at the start), Asset Manager (the administrator at the start)

Approvals

Asset change: revaluing, impairing, changing the life, selling or scrapping waits for the chain (the asset managers to start with). Improvements, moves, pause and resume go through at once

Notifications

Approvers of the Asset change chain are told of each request waiting

Questions

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

No. Turn on Make Assets from Bills on the category. A bill line of 10 racks makes 10 draft assets at a tenth of the cost each.

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; your accountant checks them first.

Related features

ASSETSAsset care, and assets issued and returnedKeep the warranty, maintenance contract (AMC) and insurance of your vans, forklifts and computers, and be told 30 days before each ends. Give an asset to a staff member, a customer or a shop, on the web or the phone. A staff member confirms it before it moves to them. When it comes back, record its condition and any damage charge.ASSETSPhysical verification of assetsCount the assets in each shop and godown by scanning their QR tags with the phone or a barcode scanner. Each asset is marked found, found elsewhere, missing or not in the register. Those found elsewhere move to where they were found in one step.ACCOUNTINGFull accounting with GST returnsEvery bill, return, receipt, supplier bill and cheque posts into your books as you work, with the shop on each bill. Growth adds accounting reports by shop. Scale adds the full accounting screens and Financial Reports, from ledgers to cash flow and consolidation, with GSTR-1 and GSTR-3B for India.ACROSS SMARTMY TRADEApproval chainsHeld sales, big purchase orders, write-offs and indents go to the right people in order before they go through. With no set-up the Trade Managers approve; you add levels, such as the owner for credit above an amount, without code.BILLING AND STOCKSeveral godowns, racks and transfers between shopsKeep stock in as many shops and godowns as you have, down to the rack and bin. Stock sent from one place to another leaves on a delivery, stays in transit at its value, and arrives on a receipt. What never arrives is written off as short on the transfer.

See your shop on it.

Tell us what you sell, how many shops and godowns you run and how you bill today. We will set up your items and parties with you and print your first bill.

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