Overview

Effective asset management is vital for tracking fixed assets and their depreciation. This guide explains how to manage assets in ERPNext and automate the depreciation process.

Introduction to Asset Management

Fixed assets are long-term tangible assets used in the operations of a business. Proper tracking helps in financial reporting and asset utilization.

Setting Up Assets

Adding Assets

1. Navigate to Asset Module:
2. Go to the ERPNext dashboard and select the Asset module.
3. Create New Asset:
4. Click on "New Asset" and fill in the required details, such as asset type, purchase date, and cost.
5. Define Asset Category:
6. Assign the asset to a category for appropriate reporting.

Depreciation Methods

Selecting Depreciation Method

1. Navigate to Asset Settings:
2. Choose the desired depreciation method (e.g., straight-line, declining balance).
3. Set Depreciation Rate:
4. Define the rate based on the asset's useful life.

Generating Depreciation Schedules

1. Access Depreciation Schedule:
2. Go to the asset record and select "Depreciation Schedule."
3. Generate Schedule:
4. Click on "Generate" to create the depreciation schedule for the selected period.

Reporting

Accessing Asset Reports

1. Go to the Reports section in the Asset module.
2. View reports like "Asset List" and "Depreciation Report" for insights into asset performance.