Opening Fixed Assets Process

Opening Fixed Assets are the assets that a company owns before starting ERPNext. These must be brought into the system with correct values and depreciation so that the accounting and asset register are accurate from Day 1.

Steps:

Step 1:

1. Create Asset Categories: Go to: Assets → Asset Category
2. Set: Depreciation method, Depreciation rate, Asset account mapping

Step 2: Create Assets

1. Go to: Assets → Asset → New
2. Select:
   1. Item Code (or create item as "Is Fixed Asset")
   2. Purchase Date
   3. Net Purchase Amount
   4. Available-for-use Date
   5. Location

Step 3: Set Depreciation Schedule

1. Enable "Calculate Depreciation"
2. Opening Accumulated Depreciation
3. Opening Number of Booked Depreciations
4. Add Deprication Method, Frequency of Depreciation (Months),Total Number of Depreciations, Rate of Depreciation (%), Depreciation Posting Date.

Step 4: Submit the Asset

1. After reviewing values, click Submit.
2. ERPNext will automatically create depreciation entries moving forward.

Step 5: Record Opening Fixed Asset

Note: Use the Fixed Asset Register to get each asset’s opening value. Record this amount in the Opening Journal Entry to set the correct opening balance.

Use a Journal Entry:

1. Debit: Fixed Asset Account
2. Credit: Temporary Opening Account

Importance of Posting Date

1. Posting Date ensures values appear in the correct period.
2. Incorrect dates will distort the Balance Sheet and Asset Register.

Reports to Verify Balances

1. Asset Register: Check each asset’s value, depreciation, and book value.
2. General Ledger: Ensure the opening values match the Opening Entry.