Fixed Asset Types

When your organisation uses multiple assets, managing them individually can be time consuming. To simplify this, you can create a fixed asset type to group similar assets together.

The fixed asset type acts as a template. It defines common values like depreciation method, computation type, frequency of depreciation, and more. Once you create a fixed asset type in Zoho ERP, each asset associated with it follows the same type of depreciation.

Scenario: Aaron runs a retail store and uses assets like barcode scanners, cash counters, display racks, and more. Since all these assets follow the same depreciation rules, he creates a fixed asset type as Store Equipment. It has common properties such as, the useful life is 5 years, Straight Line Depreciation, and monthly depreciation frequency. When he assigns this asset type to each asset, Zoho ERP automatically calculates depreciation for all of them in a consistent way.

Create Fixed Asset Types

You can create a fixed asset type in two ways:

Fixed Asset Type Creation Page

To create a fixed asset type:

Go to Accounting on the left sidebar.
Select Fixed Assets in the module bar.
Click Manage Asset Types in the top right of the page.
Click + New Fixed Asset Type in the top right corner.
Enter the required fixed asset type details.

Fields	Description
Fixed Asset Type Name	Enter the name of the fixed asset type.
Depreciation Method	Select the depreciation method for your asset. Straight Line Depreciation: The asset’s value is evenly depreciated until the end of the asset’s life. Declining Balance Depreciation: The asset’s value depreciates rapidly during the initial stage of its useful life slowly in the later stage. In this method, depreciation is calculated each year by applying a constant percentage to the asset’s current value.
Depreciation Percentage	Enter the percentage at which the asset should be depreciated every year. Note that this field appears only when you have selected the Depreciation Method as Declining Balance Method.
Depreciation Frequency	Select the frequency of depreciation. Monthly: Depreciation is calculated on a monthly basis. Yearly: Depreciation is calculated on a yearly basis.
Computation Type	Select the type of computation you want to apply and track the asset’s depreciation. Pro Rata: Depreciation is calculated based on the exact number of days the asset is used. Non Pro Rata: Depreciation is calculated based on the average number of months or years the asset is used.
Asset Life	Enter the asset life in months.
Depreciation Account	Select the account to track the asset’s depreciation over time.
Expense Account	Select the account to track the expenses associated with the asset’s depreciation.

Click Save.

Fixed Asset Creation Page

You can also create a fixed asset type on the fixed asset Creation page. Here’s how:

Go to Accounting on the left sidebar.
Select Fixed Assets in the module bar.
Click + New Fixed Asset in the top right corner of the page.
In the New Fixed Asset page, click + New Asset Type in the Fixed Asset Type dropdown.
In the pop-up that appears, enter the required details and click Save.

The fixed asset type is now created and associated with the new fixed asset. You can provide the other required details and proceed to save the fixed asset in your Zoho ERP organization.