Register the fixed assets you already own
Existing assets are recorded in the register with their accumulated depreciation, and Finday works out the following months' depreciation.
Before you start
- A chart of accounts with fixed asset, accumulated depreciation and depreciation expense accounts.
- The asset list from your old books: acquisition date and cost, useful life, residual value and accumulated depreciation at the cutover date.
- Inventory or finance management access.
Steps
Step 1: Create asset categories
In Master Data › Assets, click More, then Asset categories. Fill in New category name, for example Vehicles or Office equipment, then click Add.
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The Asset categories dialog with the New category name field and the Add button.
Step 2: Click New asset and fill in the basics
Fill in Asset name, choose the Category and the Fixed asset account. Asset code can stay blank; Finday creates one.
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The new asset form with Asset name, Category, Asset code and Fixed asset account.
Step 3: Choose Activate depreciation and fill in the acquisition
Under Activation, choose Activate depreciation for an asset already in use. Fill in Acquisition date and Acquisition cost from the old asset list.
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The Activation section with Activate depreciation, Acquisition date and Acquisition cost.
Step 4: Fill in the depreciation settings
Choose Straight line or Declining balance, fill in the full useful life and the Residual value. Fill in the Opening accumulated depreciation at the cutover date and the Depreciated through date. Choose the depreciation and accumulated depreciation accounts.
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The Depreciation settings section with method, useful life, residual value, opening accumulated depreciation and the depreciation accounts.
Step 5: Click Save asset
Finday shows Asset created and opens the asset's page. For many assets at once, use More › Import spreadsheet, fill in the template, then click Import ready assets.
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The asset detail page after saving, with its book value and depreciation schedule.
When you are done
- The asset is saved in the register and its detail page opens.
- Saving an asset posts no journal. Enter the total asset value and accumulated depreciation in the opening balance grid, then publish.
- Depreciation for months after the cutover date is run with Run depreciation. Earlier months show Covered by opening depreciation.
Common problems
A message says the opening accumulated depreciation is too high
Opening accumulated depreciation cannot exceed cost less residual value. Check the figures in the old asset list.
Is the useful life the remaining life or the full life?
Enter the full useful life since acquisition, not what is left. Finday works out monthly depreciation from cost less residual value over the whole useful life.
An asset bought through a purchase bill is a Draft
Assets from purchases need activating. Open the Draft tab on the Assets page and click Activate on that asset.
Something still unclear?
Ask us on WhatsApp. The Finday team replies during office hours and can walk you through it in your own account.