Fixed assets are long-term resources that your business owns and uses to generate income. These include tangible items such as land, buildings, machinery, vehicles, and equipment. Unlike inventory or cash, fixed assets are not intended for immediate sale but are essential for the ongoing operations of your company.
LocalizeBook helps you track your fixed assets by recording their purchase value, monitoring depreciation, and maintaining lifecycle details. This ensures that your company’s financial records remain accurate and compliant with accounting standards.
Fixed Asset Setup and Usage
*Before using the Fixed Asset function, you need to activate it first.
Go to Settings → Preferences → Accounting, check Active Fixed Asset, then click Save.
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- Create Fixed Asset Group and Setup Default System
Go to Accounting → Fixed Assets, then click Add Fixed Asset Group.
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a. Code: Unique identifier for the fixed asset group (E.g., FA-001)
b. Name: Name of the fixed asset group (e.g., Office Building, Delivery Truck)
c. Asset Account: The general ledger account where the asset cost is recorded
d. Accumulated Account: The account used to track total depreciation over time
e. Depreciation Account: The account where periodic depreciation expenses are recorded
f. Depreciation Method: Select the depreciation method (e.g., Straight Line, Declining Balance, Units of Production etc.)
g. Averaging Method: Define how depreciation is calculated (e.g., Monthly, Yearly)
h. Useful Life (Years): The expected lifespan of the asset (e.g., 5 years, 20 years)
i. Description: A short description of the asset group (e.g., “Assets used for daily operations”)
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Fixed Asset Registration (Item / Register List)
Go to Registered, then click Add.
Fixed Asset Group: Category of the asset (e.g., Vehicles, Buildings, Equipment)
Code: Unique code for the fixed asset (e.g., FA-001)
Name: Name of the fixed asset (e.g., Office Building, Delivery Truck)
Use Tax Depreciation: Select this option to apply tax depreciation rules
Status: Current status of the asset (e.g., Draft, Registered, Retired)
Purchase Date: Date the asset was purchased (e.g., 22-01-2026)
Purchase Cost: Total cost of the asset at purchase (e.g., $15,000)
Depreciation Start Date: Date depreciation begins (usually the same as the purchase date)
Depreciation Method: Method used to calculate depreciation (e.g., Straight Line, Declining Balance)
Useful Life (Years): Expected lifespan of the asset (e.g., 5, 10, 20 years)
Residual Value: Estimated value at the end of its useful life (e.g., $1,000)
Averaging Method: How depreciation is calculated (e.g., Full Month, Full Year)
Opening Accumulated Depreciation: Total depreciation already recorded before using LocalizeBook
Vendor: Supplier or company where the asset was purchased
Bill No: Reference invoice or bill number
Tagging Code: Internal or physical tag used to identify the asset
Fixed Asset Location: Physical location of the asset (e.g., Phnom Penh Office)
Serial Number: Manufacturer’s serial number for tracking
Warranty Expiry Date: Date when the warranty ends
User: Person or department responsible for the asset
Remarks: Additional notes or comments
After Add Fixed Asset Already you can go to Journal Entry:
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