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Fixed Assets

Setting Up Assets

Asset models

An asset model is a template for equipment you'll register more than once: "Commercial Freezer", "Delivery Bike", "POS Terminal". The model carries the defaults — depreciation method, useful life, account mappings — so registering the fifth freezer is a matter of serial number, price and date, not accounting decisions. Build models for your common equipment first; one-off assets can be entered directly.

The account wiring

Every asset (usually via its model) names four ledger accounts:

Account What it holds
Fixed asset account The asset's cost on the balance sheet.
Accumulated depreciation account Depreciation to date, offsetting the cost — the two together are book value.
Depreciation expense account Each period's depreciation charge on the P&L.
Expense account The write-off destination at disposal.

Set these once per model with your accountant, and every asset from that model posts consistently.

Registering an asset

An asset records: name and model, acquisition date and original value, its branch (location), a salvage value (the part that never depreciates), and the depreciation settings — method, useful life in months or years, and prorata handling (see Depreciation).

It enters as a draft: visible, editable, not yet in the books. Use drafts freely while gathering paperwork.

Activation — where the books begin

Activating a draft does two things atomically:

  1. Posts the acquisition entry — the asset's cost onto the fixed asset account.
  2. Generates the full depreciation schedule, period by period, from acquisition to the end of its useful life.

Activation refuses politely if the location or any account mapping is missing — an asset can't enter the books without knowing where its numbers go.

Existing equipment (bought before MahirRMS): register it with its real acquisition date and value; the schedule generates from that date, and the already-elapsed periods post as catch-up entries — so a three-year-old oven arrives with three years of accumulated depreciation, matching reality.

Last updated August 19, 2026