Introduction - Fixed Assets

Fixed Assets are long-term tangible resources that your business owns and uses for its day-to-day business operations and generates revenue over time. Unlike cash or inventory, fixed assets aren’t meant for immediate sale. These assets are generally used for several years, and later sold when it can no longer support a business. Some of the examples include buildings, land, machinery, office equipment, and more.

In Zoho ERP, you can record fixed assets to track their depreciation throughout their useful life. It lets you manage the full life cycle of a fixed asset, right from creation to selling it.

Understanding Fixed Assets

When you record a fixed asset in Zoho ERP, the asset’s purchase cost, useful life, and its depreciation method determines how depreciation is calculated. Zoho ERP posts depreciation automatically at regular intervals, reducing manual effort. This helps you maintain accurate asset values, and ensures that the expenses match with the periods in which the assets were used.

You can dispose (sell or write off) a fixed asset in Zoho ERP when it reaches the end of its useful life (or, the asset is used completely). When you sell an asset, Zoho ERP also records the gain or loss incurred from it.

Enable Fixed Assets

The Fixed Assets module is not enabled by default in Zoho ERP. To enable it:

• Go to Settings.
• Under Organization Settings, select Configure Modules under Setup & Configurations.
• Scroll down to Accounting and select Fixed Asset.
• Click Save.

The Fixed Assets module will now be enabled in your Zoho ERP organisation.