Asset

An Asset is any valuable Item owned by a Company.

Furniture, computers, mobile phones, printers, cars, and manufacturing equipment are examples of assets. Generally, an asset is a tangible item located on the company premises or carried by an employee. In some cases, an asset could be an intangible item.

An asset's useful life spans multiple years and hence its economic value is spread over corresponding years from the accounting perspective. If you buy a printer for $300 and it is expected to be useful for three years, from the accounting perspective $100 is recorded as the expense for three years each instead of all the $300 in the first year. Most countries have rules for such calculations.

All the transactions related to an Asset like purchasing, depreciation, and sales will be recorded against the Asset record.

How to Create an Asset

An Item representing the asset should be created. The 'Maintain Stock' should be unchecked and 'Is Fixed Asset' must be checked.