How to Use Fixed Assets Management

Overview:

The Fixed Asset module in QNE AI Cloud Accounting allows businesses to record, track, and depreciate assets systematically. This feature ensures that assets such as equipment, vehicles, or office furniture are managed accurately, from acquisition to depreciation, and reflected properly in the company’s books.

Scenario:

Your company has purchased a Kolin Aircon Inverter worth ₱30,000 for office use. To keep records accurate and maintain compliance, you need to add the item as a fixed asset, assign its useful life, and run monthly depreciation so that expense recognition aligns with accounting standards.

Solution:

1. Go to General Ledger > Fixed Assets > Asset Management.
 

2. Click Add to create a new fixed asset entry.
 

3. In a new screen, fill out all the required fields.

•  In the Asset Type, select the one that you created (eg,. Office Equipment) 
   

• Fill out the other required fields. Once done, click Save.
  

4. To calculate depreciation:

• Click Run Depreciation.
   

• Select months for Depreciation.
   

• This will generate automatic posting.
   

Sample Posting

Application:

• Asset Tracking: Record each office equipment purchase to maintain a centralized fixed asset register.

• Automated Depreciation: Ensure accurate expense recognition by letting the system calculate and post depreciation entries monthly.

• Financial Reporting: Keep balance sheets and income statements accurate by reflecting updated asset values and depreciation expenses.

• Audit Readiness: Maintain a clear trail of asset acquisition and depreciation postings for compliance and auditing purposes.