{"id":18047,"date":"2024-08-28T11:17:07","date_gmt":"2024-08-28T11:17:07","guid":{"rendered":"https:\/\/docs.daftra.com\/?post_type=user_manual&#038;p=18047"},"modified":"2026-04-14T12:42:01","modified_gmt":"2026-04-14T12:42:01","slug":"comprehensive-assets-guide","status":"publish","type":"user_manual","link":"https:\/\/docs.daftra.com\/en\/user_manual\/comprehensive-assets-guide\/","title":{"rendered":"Comprehensive Assets Guide"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1716274430844{margin-left: 200px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\">Managing assets and related operations is crucial to ensuring accurate accounting reports and financial statements. It also helps in managing expenses spent on purchasing and depreciating assets in various ways, considering changes that might require re-evaluation or sale of the asset, as well as tracking different asset statuses.<\/p>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;Adding a New Asset&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1716274458549{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text css=&#8221;.vc_custom_1776170425662{margin-left: 200px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\">Through the assets menu, you can view the registered fixed assets and know the status of each asset, such as being in service or depreciated, and modify or delete these assets as needed.<\/p>\n<p style=\"text-align: left;\">To add a new asset, click on &#8220;<strong>Assets<\/strong>&#8221; under &#8220;<strong>Accounting<\/strong>&#8221; in the main menu, then click the &#8220;<strong>Add Asset<\/strong>&#8221; button.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33923 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/fcsxz.png\" alt=\"\" width=\"1024\" height=\"449\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/fcsxz.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/fcsxz-300x132.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/fcsxz-768x337.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p>Enter the required information<\/p>\n<p><strong>Add Asset Details:<\/strong><\/p>\n<ul>\n<li><strong data-start=\"140\" data-end=\"149\">Name:<\/strong> The asset name as it appears in the chart of accounts and financial reports.<\/li>\n<li data-start=\"0\" data-end=\"453\"><strong data-start=\"0\" data-end=\"9\">Code:<\/strong> A unique identifier automatically generated by the system for each asset. You can edit it and customize its sequence as needed.<\/li>\n<li data-start=\"0\" data-end=\"453\"><strong data-start=\"284\" data-end=\"304\">In Service Date:<\/strong> Specify the date when the asset starts being used.<\/li>\n<li data-start=\"0\" data-end=\"453\"><strong data-start=\"358\" data-end=\"375\" data-is-only-node=\"\">Category Account:<\/strong> Choose from a list of main accounts that represent the nature of the asset.<\/li>\n<li data-start=\"0\" data-end=\"453\"><strong data-start=\"654\" data-end=\"667\">Physical Location :<\/strong> Enter the address or location of the asset. This is mainly used for non-movable assets such as land and real estate.<\/li>\n<li data-start=\"0\" data-end=\"453\"><strong data-start=\"787\" data-end=\"803\">Useful Life:<\/strong> The useful life of the asset depends on the depreciation period defined in the depreciation method settings.<\/li>\n<li><strong data-start=\"1294\" data-end=\"1314\">In Service Date:<\/strong> Specify the date when the asset starts being used, which is also the date from which depreciation begins.<\/li>\n<li data-start=\"0\" data-end=\"453\"><strong data-start=\"1158\" data-end=\"1176\">Serial Number:<\/strong> Enter the asset\u2019s serial number if available.<\/li>\n<li data-start=\"0\" data-end=\"453\"><strong data-start=\"1225\" data-end=\"1237\">Barcode:<\/strong> You can generate a barcode for easier asset tracking.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-49703 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-143149-1-e1776170152947.png\" alt=\"\" width=\"1098\" height=\"210\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-143149-1-e1776170152947.png 1098w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-143149-1-e1776170152947-300x57.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-143149-1-e1776170152947-1024x196.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-143149-1-e1776170152947-768x147.png 768w\" sizes=\"auto, (max-width: 1098px) 100vw, 1098px\" \/>[\/vc_column_text][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221;]<\/p>\n<blockquote><p>Example: If the depreciation period unit is &#8220;<strong>month<\/strong>,&#8221; then the useful life of the asset will be calculated in months.<\/p>\n<p>If the asset is to be depreciated over 5 years, enter &#8220;<strong>60<\/strong>&#8221; in the useful life field, representing the number of months for the depreciation period.<\/p><\/blockquote>\n<p>[\/vc_message][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221;]<\/p>\n<blockquote><p>You can modify these asset accounts or add a new main account to include the asset under it. For more information, refer to the chart of accounts guide.<\/p><\/blockquote>\n<p>[\/vc_message][vc_column_text css=&#8221;.vc_custom_1776168529987{margin-left: 200px !important;}&#8221;][\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1776170087918{margin-left: 200px !important;}&#8221;]<\/p>\n<ul>\n<li style=\"text-align: left;\"><strong>Quantity:<\/strong> Specify the quantity of the asset purchased.<\/li>\n<li data-start=\"1479\" data-end=\"2246\"><strong data-start=\"1479\" data-end=\"1514\">Define Individual Unit Details:<\/strong>\u00a0When enabled, the\u00a0<strong data-start=\"1533\" data-end=\"1552\">Custody Details<\/strong>\u00a0section will appear to allow entering data for each unit separately. Follow these steps:<\/li>\n<li data-start=\"1479\" data-end=\"2246\"><strong data-start=\"1644\" data-end=\"1662\">Serial Number:<\/strong>\u00a0Enter the serial number for each unit or click\u00a0<strong data-start=\"1710\" data-end=\"1726\">Generate All<\/strong>\u00a0to auto-generate them.<\/li>\n<li data-start=\"1479\" data-end=\"2246\"><strong data-start=\"1752\" data-end=\"1764\">Barcode:<\/strong>\u00a0Enter the barcode for each unit or click\u00a0<strong data-start=\"1806\" data-end=\"1822\">Generate\u00a0<\/strong>to auto-generate barcodes.<\/li>\n<li data-start=\"1479\" data-end=\"2246\"><strong data-start=\"1852\" data-end=\"1869\">Custody Type:<\/strong>\u00a0Select the custody type from the dropdown list (e.g., Employee, Department, or Location).<\/li>\n<li data-start=\"1479\" data-end=\"2246\"><strong data-start=\"1962\" data-end=\"1976\">Assign To:<\/strong>\u00a0Specify the responsible person or entity after selecting the custody type.<\/li>\n<li data-start=\"1479\" data-end=\"2246\"><strong data-start=\"0\" data-end=\"22\" data-is-only-node=\"\">Physical Location:<\/strong>\u00a0Select the actual location where the asset is stored or being used.<\/li>\n<\/ul>\n<p><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-49700 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-141750-1-e1776170079733.png\" alt=\"\" width=\"1082\" height=\"300\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-141750-1-e1776170079733.png 1082w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-141750-1-e1776170079733-300x83.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-141750-1-e1776170079733-1024x284.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-141750-1-e1776170079733-768x213.png 768w\" sizes=\"auto, (max-width: 1082px) 100vw, 1082px\" \/><\/strong><\/p>\n<p><strong>Add Pricing Details:<\/strong><\/p>\n<p><strong>Purchase Price:<\/strong> The value of the asset at the time of purchase and the currency of the amount.[\/vc_column_text][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221;]<\/p>\n<blockquote>\n<p style=\"text-align: left;\">The purchase value of the asset is considered its current value for calculating depreciation starting from the date of asset addition. However, you can adjust the current value of the asset when adding depreciation if the amount differs from the purchase amount.<\/p>\n<\/blockquote>\n<p>[\/vc_message][vc_column_text css=&#8221;.vc_custom_1776169234704{margin-left: 200px !important;}&#8221;]<strong>Cash Account:<\/strong> Specify the account representing the creditor from whom the asset was purchased.<\/p>\n<p><strong data-start=\"2566\" data-end=\"2584\">Purchase Date:<\/strong> Specify the asset purchase date.<\/p>\n<p><strong>First and Second Tax:<\/strong> Add the applicable taxes on the asset to calculate their values automatically.<\/p>\n<p style=\"text-align: right;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-49681 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-142008.png\" alt=\"\" width=\"543\" height=\"318\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-142008.png 543w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-142008-300x176.png 300w\" sizes=\"auto, (max-width: 543px) 100vw, 543px\" \/><\/p>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;Depreciation of Assets and Their Types&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1716277841949{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text css=&#8221;.vc_custom_1776170187534{margin-left: 200px !important;}&#8221;]<\/p>\n<div id=\"\" class=\"post-content-body-section\">\n<p style=\"text-align: left;\" data-sider-select-id=\"d0126f32-2a32-45e1-86cc-1827610e79ab\">Generally, an asset&#8217;s productive capacity decreases over its useful life until it is completely worn out. This necessitates distributing the cost of using the asset over its life as periodic expenses, making it easier to set aside the required amount for asset replacement after the end of its depreciation. This is the function of depreciation.<\/p>\n<\/div>\n<p style=\"text-align: left;\" data-sider-select-id=\"d0126f32-2a32-45e1-86cc-1827610e79ab\">Depreciation of assets is accounted for in three methods, which you can apply on the system.<\/p>\n<p style=\"text-align: left;\"><b>Depreciation Methods<\/b><\/p>\n<p><strong>Straight-Line Depreciation<\/strong><\/p>\n<p>In straight-line depreciation, the value of the asset is distributed as a fixed amount evenly over the productive period.<\/p>\n<p><strong>Depreciation data using the straight-line method:<\/strong><\/p>\n<div class=\"flex flex-col text-sm pb-25\">\n<section class=\"text-token-text-primary w-full focus:outline-none [--shadow-height:45px] has-data-writing-block:pointer-events-none has-data-writing-block:-mt-(--shadow-height) has-data-writing-block:pt-(--shadow-height) [&amp;:has([data-writing-block])&gt;*]:pointer-events-auto scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]\" dir=\"auto\" data-turn-id=\"request-WEB:2d8e28eb-9c60-454d-8727-fbf78bed7225-47\" data-testid=\"conversation-turn-44\" data-scroll-anchor=\"true\" data-turn=\"assistant\">\n<div class=\"text-base my-auto mx-auto pb-10 [--thread-content-margin:var(--thread-content-margin-xs,calc(var(--spacing)*4))] @w-sm\/main:[--thread-content-margin:var(--thread-content-margin-sm,calc(var(--spacing)*6))] @w-lg\/main:[--thread-content-margin:var(--thread-content-margin-lg,calc(var(--spacing)*16))] px-(--thread-content-margin)\">\n<div class=\"[--thread-content-max-width:40rem] @w-lg\/main:[--thread-content-max-width:48rem] mx-auto max-w-(--thread-content-max-width) flex-1 group\/turn-messages focus-visible:outline-hidden relative flex w-full min-w-0 flex-col agent-turn\">\n<div class=\"flex max-w-full flex-col gap-4 grow\">\n<div class=\"min-h-8 text-message relative flex w-full flex-col items-end gap-2 text-start break-words whitespace-normal outline-none keyboard-focused:focus-ring [.text-message+&amp;]:mt-1\" dir=\"auto\" tabindex=\"0\" data-message-author-role=\"assistant\" data-message-id=\"193bcdd4-30bf-4161-af10-e6b4018bb398\" data-message-model-slug=\"gpt-5-3\" data-turn-start-message=\"true\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden\">\n<div class=\"markdown prose dark:prose-invert w-full wrap-break-word light markdown-new-styling\">\n<p data-start=\"126\" data-end=\"225\"><strong data-start=\"126\" data-end=\"144\">Salvage Value:<\/strong> Enter the estimated residual value of the asset at the end of its useful life.<\/p>\n<p data-start=\"227\" data-end=\"351\"><strong data-start=\"227\" data-end=\"261\">Auto Depreciation Frequency *<\/strong>: Specify how often depreciation will be calculated automatically (e.g., every 1 month).<\/p>\n<p data-start=\"353\" data-end=\"465\"><strong data-start=\"353\" data-end=\"392\">Depreciation Amount \/ 1 Month(s) *<\/strong>: Displays the depreciation amount calculated for each selected period.<\/p>\n<p data-start=\"467\" data-end=\"567\"><strong data-start=\"467\" data-end=\"502\">Start Depreciation Auto Date *<\/strong>: Select the date from which automatic depreciation will begin.<\/p>\n<p data-start=\"569\" data-end=\"686\"><strong data-start=\"569\" data-end=\"599\">First Depreciation Amount:<\/strong> Displays the value of the first depreciation entry based on the selected start date.<\/p>\n<p data-start=\"688\" data-end=\"761\"><strong data-start=\"688\" data-end=\"714\">Depreciation End Date:<\/strong> Select the date when depreciation will stop.<\/p>\n<p data-start=\"763\" data-end=\"870\"><strong data-start=\"763\" data-end=\"800\">Accumulated Depreciation Account:<\/strong> Choose the account where accumulated depreciation will be recorded.<\/p>\n<p data-start=\"872\" data-end=\"962\" data-is-last-node=\"\" data-is-only-node=\"\"><strong data-start=\"872\" data-end=\"905\">Depreciation Expense Account:<\/strong> Select the account used to record depreciation expenses.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<p><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-49684 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-142216.png\" alt=\"\" width=\"560\" height=\"500\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-142216.png 560w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-142216-300x268.png 300w\" sizes=\"auto, (max-width: 560px) 100vw, 560px\" \/><\/strong><\/p>\n<p><strong>Declining Balance Depreciation (Percentage)<\/strong><\/p>\n<p>In declining balance depreciation, the depreciation amount is higher at the beginning of the asset&#8217;s useful life and gradually decreases over time as the productive efficiency decreases. The decreasing amount is adjusted by calculating a percentage rate.<\/p>\n<p><strong>Depreciation data using the declining balance method:<\/strong><\/p>\n<p data-start=\"159\" data-end=\"258\"><strong data-start=\"159\" data-end=\"177\">Salvage Value:<\/strong> Enter the estimated residual value of the asset at the end of its useful life.<\/p>\n<p data-start=\"260\" data-end=\"384\"><strong data-start=\"260\" data-end=\"294\">Auto Depreciation Frequency<\/strong>: Specify how often depreciation will be calculated automatically (e.g., every 1 month).<\/p>\n<p data-start=\"386\" data-end=\"504\"><strong data-start=\"386\" data-end=\"429\">Depreciation Percentage \/ 1 Month(s)<\/strong>: Enter the depreciation rate (%) to be applied for each selected period.<\/p>\n<p data-start=\"506\" data-end=\"606\"><strong data-start=\"506\" data-end=\"541\">Start Depreciation Auto Date<\/strong>: Select the date from which automatic depreciation will begin.<\/p>\n<p data-start=\"608\" data-end=\"734\"><strong data-start=\"608\" data-end=\"638\">First Depreciation Amount:<\/strong> Displays the value of the first depreciation entry based on the selected date and percentage.<\/p>\n<p data-start=\"736\" data-end=\"809\"><strong data-start=\"736\" data-end=\"762\">Depreciation End Date:<\/strong> Select the date when depreciation will stop.<\/p>\n<p data-start=\"811\" data-end=\"918\"><strong data-start=\"811\" data-end=\"848\">Accumulated Depreciation Account:<\/strong> Choose the account where accumulated depreciation will be recorded.<\/p>\n<p data-start=\"920\" data-end=\"1010\" data-is-last-node=\"\" data-is-only-node=\"\"><strong data-start=\"920\" data-end=\"953\">Depreciation Expense Account:<\/strong> Select the account used to record depreciation expenses.<\/p>\n<p>[\/vc_column_text][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221;]<\/p>\n<p style=\"text-align: left;\">Although the depreciation rate remains constant over time periods, the depreciation amount decreases. This is because the rate is applied to the asset&#8217;s value after subtracting the previous depreciations, meaning that the constant rate does not lead to a constant depreciation amount.<\/p>\n<p style=\"text-align: left;\"><strong>Example:<\/strong><\/p>\n<p style=\"text-align: left;\">Suppose a company purchases an asset for 5000 SAR and calculates depreciation monthly at a rate of 20%. The depreciation amounts would be as follows:<\/p>\n<ul>\n<li style=\"text-align: left;\"><strong>First Month:<\/strong> 5000 \/ 20% equals 1000 SAR<\/li>\n<li style=\"text-align: left;\"><strong>Second Month:<\/strong> The asset value after subtracting the first depreciation becomes 4000 SAR.<\/li>\n<\/ul>\n<p style=\"text-align: left;\">Dividing this amount by 20% results in the second depreciation of 800 SAR, a decrease of 200 SAR from the previous depreciation.<\/p>\n<p>[\/vc_message][vc_column_text css=&#8221;.vc_custom_1776170203462{margin-left: 200px !important;}&#8221;]<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-49688 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-142625.png\" alt=\"\" width=\"535\" height=\"479\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-142625.png 535w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-142625-300x269.png 300w\" sizes=\"auto, (max-width: 535px) 100vw, 535px\" \/><\/p>\n<p style=\"text-align: left;\"><b>Units of Production<\/b><\/p>\n<p style=\"text-align: left;\">In this method, the depreciation value is calculated based on the asset&#8217;s usage rate. As the asset&#8217;s productivity and usage increase, the depreciation amount for the corresponding period also increases.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Depreciation data using the units of production method:<\/strong><\/p>\n<div class=\"flex flex-col text-sm pb-25\">\n<section class=\"text-token-text-primary w-full focus:outline-none [--shadow-height:45px] has-data-writing-block:pointer-events-none has-data-writing-block:-mt-(--shadow-height) has-data-writing-block:pt-(--shadow-height) [&amp;:has([data-writing-block])&gt;*]:pointer-events-auto scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]\" dir=\"auto\" data-turn-id=\"request-WEB:2d8e28eb-9c60-454d-8727-fbf78bed7225-49\" data-testid=\"conversation-turn-48\" data-scroll-anchor=\"true\" data-turn=\"assistant\">\n<div class=\"text-base my-auto mx-auto pb-10 [--thread-content-margin:var(--thread-content-margin-xs,calc(var(--spacing)*4))] @w-sm\/main:[--thread-content-margin:var(--thread-content-margin-sm,calc(var(--spacing)*6))] @w-lg\/main:[--thread-content-margin:var(--thread-content-margin-lg,calc(var(--spacing)*16))] px-(--thread-content-margin)\">\n<div class=\"[--thread-content-max-width:40rem] @w-lg\/main:[--thread-content-max-width:48rem] mx-auto max-w-(--thread-content-max-width) flex-1 group\/turn-messages focus-visible:outline-hidden relative flex w-full min-w-0 flex-col agent-turn\">\n<div class=\"flex max-w-full flex-col gap-4 grow\">\n<div class=\"min-h-8 text-message relative flex w-full flex-col items-end gap-2 text-start break-words whitespace-normal outline-none keyboard-focused:focus-ring [.text-message+&amp;]:mt-1\" dir=\"auto\" tabindex=\"0\" data-message-author-role=\"assistant\" data-message-id=\"d684e435-59d3-4d93-bac7-d97e4b2a8054\" data-message-model-slug=\"gpt-5-3\" data-turn-start-message=\"true\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden\">\n<div class=\"markdown prose dark:prose-invert w-full wrap-break-word light markdown-new-styling\">\n<p data-start=\"134\" data-end=\"233\"><strong data-start=\"134\" data-end=\"152\">Salvage Value:<\/strong> Enter the estimated residual value of the asset at the end of its useful life.<\/p>\n<p data-start=\"235\" data-end=\"332\"><strong data-start=\"235\" data-end=\"255\">Cost Per Unit<\/strong>: Enter the depreciation cost assigned to each unit of production or usage.<\/p>\n<p data-start=\"334\" data-end=\"416\"><strong data-start=\"334\" data-end=\"348\">Unit Name:<\/strong> Specify the unit of measurement (e.g., hours, items, kilometers).<\/p>\n<p data-start=\"418\" data-end=\"520\"><strong data-start=\"418\" data-end=\"440\">Asset Total Units:<\/strong> Enter the total expected production or usage units over the asset\u2019s lifetime.<\/p>\n<p data-start=\"522\" data-end=\"594\"><strong data-start=\"522\" data-end=\"548\">Depreciation End Date:<\/strong> Select the date when depreciation will end.<\/p>\n<p data-start=\"596\" data-end=\"703\"><strong data-start=\"596\" data-end=\"633\">Accumulated Depreciation Account:<\/strong> Choose the account where accumulated depreciation will be recorded.<\/p>\n<p data-start=\"705\" data-end=\"795\" data-is-last-node=\"\" data-is-only-node=\"\"><strong data-start=\"705\" data-end=\"738\">Depreciation Expense Account:<\/strong> Select the account used to record depreciation expenses.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<p style=\"text-align: right;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-49692 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-143010.png\" alt=\"\" width=\"539\" height=\"461\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-143010.png 539w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/Screenshot-2026-04-14-143010-300x257.png 300w\" sizes=\"auto, (max-width: 539px) 100vw, 539px\" \/><\/p>\n<p>[\/vc_column_text][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-info&#8221; icon_fontawesome=&#8221;fas fa-book&#8221;]<\/p>\n<blockquote><p>For more details on multiple measurement units on the system and how to convert between them, refer to <a href=\"https:\/\/docs.daftra.com\/en\/user_manual\/multi-measurement-units-in-daftra-and-linking-them-to-products\/\">this guide<\/a>.<\/p><\/blockquote>\n<p>[\/vc_message][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221;]<\/p>\n<blockquote><p>The units of production depreciation system is not applied to the asset automatically. Calculating the depreciation value and adding it manually within the asset file is required. For more details, refer to the &#8220;<a href=\"https:\/\/docs.daftra.com\/en\/tutorial\/manual-depreciation-for-assets\/\"><strong>Manual Depreciation for Assets<\/strong><\/a>&#8221; guide.<\/p><\/blockquote>\n<p>[\/vc_message][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221;]<\/p>\n<p data-start=\"20\" data-end=\"101\"><strong data-start=\"20\" data-end=\"101\">For all types of depreciation, you can define these accounts yourself:<\/strong><\/p>\n<ul data-start=\"103\" data-end=\"181\">\n<li data-start=\"103\" data-end=\"135\">Asset Depreciation Account.<\/li>\n<li data-start=\"136\" data-end=\"181\">Asset Accumulated Depreciation Account.<\/li>\n<\/ul>\n<p>[\/vc_message][vc_custom_heading text=&#8221;Depreciation, Sale, and Revaluation of Assets&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1716281823680{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text css=&#8221;.vc_custom_1746516551749{margin-left: 200px !important;}&#8221;]<strong>Asset Depreciation:<\/strong> Fully depreciating the asset and converting its current value to zero.<\/p>\n<p>Click on &#8220;<strong>Assets<\/strong>&#8221; under &#8220;<strong>Accounting<\/strong>&#8221; in the main menu, then select the asset you want to fully depreciate (write-off), and click on the &#8220;<strong>Write-off<\/strong>&#8221; button.<\/p>\n<p>Before write-off, note that the current value of the asset is 2000 and its status is &#8220;<strong>In Service<\/strong>&#8220;.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33927 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/jklfcsz.png\" alt=\"\" width=\"1366\" height=\"597\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/jklfcsz.png 1366w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/jklfcsz-300x131.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/jklfcsz-1024x448.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/jklfcsz-768x336.png 768w\" sizes=\"auto, (max-width: 1366px) 100vw, 1366px\" \/><\/p>\n<p style=\"text-align: left;\">After writing off the asset, its status changes to &#8220;<strong>Depreciated<\/strong>&#8221; and its current value becomes zero.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33929 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/huijf.png\" alt=\"\" width=\"1180\" height=\"597\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/huijf.png 1180w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/huijf-300x152.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/huijf-1024x518.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/huijf-768x389.png 768w\" sizes=\"auto, (max-width: 1180px) 100vw, 1180px\" \/><\/p>\n<p style=\"text-align: left;\">You can sell the asset and document the sales transaction for accounting purposes, whether it results in a loss or profit.<\/p>\n<p style=\"text-align: left;\">Click on &#8220;<strong>Assets<\/strong>&#8221; from the dropdown menu under &#8220;<strong>Accounting<\/strong>&#8221; in the main menu. Then, select the asset you want to sell and click on the &#8220;<strong>Sell<\/strong>&#8221; button.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33931 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/agkflSC.png\" alt=\"\" width=\"1182\" height=\"597\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/agkflSC.png 1182w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/agkflSC-300x152.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/agkflSC-1024x517.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/agkflSC-768x388.png 768w\" sizes=\"auto, (max-width: 1182px) 100vw, 1182px\" \/><\/p>\n<div class=\"post-content-body-container\">\n<article class=\"post-content-body\">\n<div id=\"\" class=\"post-content-body-section\">\n<p>Enter the required information for selling the asset:<\/p>\n<p><strong>Sales Price:<\/strong> Enter the selling price of the asset.<br \/>\n<strong>Date:<\/strong> Select the date of the sale transaction.<br \/>\n<strong>Tax:<\/strong> Enter any applicable taxes on the asset from the available taxes in your account.<br \/>\n<strong>Cash Account:<\/strong> Select the debit party to whom you sold the asset.<\/p>\n<p>Then, click on the &#8220;<strong>Sell<\/strong>&#8221; button.<\/p>\n<\/div>\n<\/article>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-32352\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/28.png\" alt=\"\" width=\"1918\" height=\"637\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/28.png 1918w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/28-300x100.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/28-1024x340.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/28-768x255.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/28-1536x510.png 1536w\" sizes=\"auto, (max-width: 1918px) 100vw, 1918px\" \/><\/p>\n<p>After Selling the asset the message &#8220;<strong>Asset Sold Successfully<\/strong>&#8221; will appear and its status will change to &#8220;<strong>Sold<\/strong>&#8221; and its current value will become zero.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33933 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/gqefa.png\" alt=\"\" width=\"1008\" height=\"592\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/gqefa.png 1008w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/gqefa-300x176.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/gqefa-768x451.png 768w\" sizes=\"auto, (max-width: 1008px) 100vw, 1008px\" \/><\/p>\n<p style=\"text-align: left;\"><strong>Asset Revaluation:<\/strong> You can revalue the asset and manually enter a new value, based on which subsequent depreciation will be calculated.<\/p>\n<p>Click on &#8220;<strong>Assets<\/strong>&#8221; from the dropdown menu of &#8220;<strong>Accounting<\/strong>&#8221; in the main menu then select the desired asset and click on &#8220;<strong>Revaluate<\/strong>&#8220;.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33935 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/vdaSFfd.png\" alt=\"\" width=\"1187\" height=\"585\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/vdaSFfd.png 1187w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/vdaSFfd-300x148.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/vdaSFfd-1024x505.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/vdaSFfd-768x379.png 768w\" sizes=\"auto, (max-width: 1187px) 100vw, 1187px\" \/><\/p>\n<p style=\"text-align: left;\">Enter the new asset value and the revaluation date, then click the &#8220;<strong>Save<\/strong>&#8221; button.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-32354\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/29.png\" alt=\"\" width=\"1598\" height=\"436\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/29.png 1598w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/29-300x82.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/29-1024x279.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/29-768x210.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/29-1536x419.png 1536w\" sizes=\"auto, (max-width: 1598px) 100vw, 1598px\" \/><\/p>\n<p>After revaluation, you will see the message &#8220;<strong>Asset re-evaluated successfully<\/strong>.&#8221;<\/p>\n<p>The current value of the asset will change to the new value, which in this example is now 1700.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33937 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/afsd.png\" alt=\"\" width=\"1064\" height=\"594\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/afsd.png 1064w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/afsd-300x167.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/afsd-1024x572.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/afsd-768x429.png 768w\" sizes=\"auto, (max-width: 1064px) 100vw, 1064px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;Assets Reports&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1716291411905{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1746517407467{margin-left: 200px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\">To view asset reports, click on &#8220;<strong>Accounting<\/strong>&#8221; under the &#8220;<strong>Reports<\/strong>&#8221; section in the main menu, then click on &#8220;<strong>Assets<\/strong>.&#8221;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33939 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/azsf.png\" alt=\"\" width=\"1366\" height=\"597\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/azsf.png 1366w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/azsf-300x131.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/azsf-1024x448.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/azsf-768x336.png 768w\" sizes=\"auto, (max-width: 1366px) 100vw, 1366px\" \/><\/p>\n<p style=\"text-align: left;\">Click on &#8220;<strong>Show Report<\/strong>&#8220;<\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/09oijn.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-18104 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/09oijn.png\" alt=\"\" width=\"1183\" height=\"280\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/09oijn.png 1183w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/09oijn-300x71.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/09oijn-1024x242.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/09oijn-768x182.png 768w\" sizes=\"auto, (max-width: 1183px) 100vw, 1183px\" \/><\/a><\/p>\n<p style=\"text-align: left;\">You will find a complete asset report that you can download or print.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33941 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/sjkldsz.png\" alt=\"\" width=\"1181\" height=\"597\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/sjkldsz.png 1181w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/sjkldsz-300x152.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/sjkldsz-1024x518.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/08\/sjkldsz-768x388.png 768w\" sizes=\"auto, (max-width: 1181px) 100vw, 1181px\" \/>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"author":13,"template":"","categories":[2109,2108,2114],"tags":[6887,6891,6889,6888,6890,3214,5379],"class_list":["post-18047","user_manual","type-user_manual","status-publish","hentry","category-general-accounting","category-accounting","category-assets","tag-add-asset","tag-add-new-asset","tag-asset-depreciation","tag-assets","tag-assets-reports","tag---en","tag-5379"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Comprehensive Assets Guide - Daftra Knowledge Base<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/docs.daftra.com\/en\/user_manual\/comprehensive-assets-guide\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Comprehensive Assets Guide - Daftra Knowledge Base\" \/>\n<meta property=\"og:description\" content=\"[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1716274430844{margin-left: 200px !important;}&#8221;] Managing assets and related operations is crucial to ensuring accurate accounting reports and financial statements. It also helps in managing expenses spent on purchasing and depreciating assets in various ways, considering changes that might require re-evaluation or sale of the asset, as well as tracking different asset statuses. 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