How to Setup Fixed Asset Types

Overview:

The Fixed Asset Type setup in QNE QCA allows you to classify and organize your company’s fixed assets under the Assets and Depreciation module. This feature streamlines asset tracking, simplifies depreciation management, and ensures accurate financial reporting. By defining asset types and linking them to specific expense accounts, you can automate depreciation postings and maintain consistent asset categorization.

Scenario:

Your company recently acquired several delivery vehicles. To manage these efficiently, you want to create a fixed asset type called “Delivery Vehicles” and assign it to an appropriate depreciation expense account. This ensures all future vehicles you register will automatically post depreciation to the correct account, reducing manual work and improving accuracy.

Solution:

1. Go to the Fixed Assets Module

• Go to General Ledger > Fixed Assets > Assets And Depreciation
   

2. Open Asset Type Setup

• In the Assets and Depreciation list view, click Add
   

3. Define the Asset Type

• In the Asset Type field, enter a descriptive name (e.g., Delivery Vehicles).
  

• In the Depreciation Expense Account dropdown, select the appropriate expense account from the Chart of Accounts. 
  Prerequisite: A fixed asset account and a depreciation expense account must already exist in the Chart of Accounts module. If these accounts have not been created, the dropdowns will appear blank.
   

4. Save the Setup

• Click Save to apply changes.
  

5. Verify the Setup

• Confirm that the newly added or updated asset shows the correct Asset Type and expense account.
  

Application:

The Fixed Asset Type setup helps businesses organize and track assets efficiently within the Assets and Depreciation module. Companies can use this feature in many ways, such as:

• Standardize Asset Classification – Ensure similar assets are grouped under consistent categories for clearer reporting.

• Simplify Depreciation Posting – Automatically link asset types to the correct depreciation expense accounts.

• Enhance Financial Accuracy – Reduce errors from manual journal entries and reclassifications.

• Support Audit and Compliance – Maintain structured, traceable records for asset management and reporting.

• Improve Decision-Making – Analyze costs and performance by asset type to guide future investments.

• Boost Operational Efficiency – Save time in setting up and managing multiple assets by reusing predefined types.