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Fixed assets

Open Fixed Assets

Overview

A fixed asset is a capitalised purchase with a useful life longer than one accounting period — vehicles, equipment, buildings, improvements. Rather than expensing the full cost at purchase, the cost is recorded as an asset and expensed over time through depreciation.

The Fixed Assets register drives:

  • Capitalisation — the asset lives on the balance sheet at book value (original cost − accumulated depreciation).
  • Monthly depreciation JE — a cron posts the per-period depreciation on the 1st of each month.
  • Disposal — gain/loss on sale is computed against book value and posted as a disposal JE.
  • CCA compliance — CRA Capital Cost Allowance class and rate drive the depreciation calculation. Class 1 @ 4% for residential buildings post-1987 is the default.

Register layout

Toolbar: Search, category filter (vehicle / equipment / real-estate / real-estate-improvement / other), status (In use / Disposed), Add asset button.

Table: Name, Category, CCA class / rate, Acquired date, Cost, Accumulated depreciation, Book value, Status, Actions.

Fields

FieldNotes
NameFree-text label (e.g. “2022 Ford Transit”, “HVAC upgrade — 100 Main St”).
Categoryvehicle / equipment / real-estate / real-estate-improvement / other. Drives UI grouping and default CCA class.
CCA classCRA class number (e.g. 1, 6, 8, 10, 10.1, 13, 43, 50, 54).
CCA rateDeclining-balance rate per year (%). Pre-filled from class; editable.
Depreciation methoddeclining-balance (default) / straight-line.
Acquired dateWhen the asset was placed in service. Depreciation starts from this date (or the next month, per half-year rule if selected).
CostTotal capitalised cost.
Residual valueOptional salvage value used only by straight-line.
Asset accountBalance-sheet account the cost sits in.
Accumulated depreciation accountContra-asset account.
Depreciation expense accountExpense account the monthly JE posts to.
PropertyOptional — set for real-estate and real-estate-improvement assets so depreciation flows into Property P&L.

UI elements

Add asset

Opens the New Asset form.

Post depreciation now

Global action (in the page header menu). Runs the monthly depreciation cron on demand for the current client. Idempotent — assets already depreciated for the target month are skipped.

Dispose

Row action for In-use assets. Opens the Disposal dialog.

Properties integration

When a client enables the Properties module, buildings and improvements stop being standalone fixed assets — they become property-linked fixed assets that the Properties module manages alongside units, leases, mortgages, and tenants.

Convert-to-operating creates a FixedAsset

Clicking Convert to operating on a Construction-status property (see Property detail):

  1. Sums the accumulated WIP for that property.
  2. Creates a FixedAsset with category real-estate, CCA class 1 @ 4% (or user-specified), property set to the property.
  3. Posts the conversion JE: Dr Buildings + Dr Land / Cr WIP, all lines tagged with propertyId.

The asset appears in the register immediately and begins depreciating on the next monthly run.

Improvements after conversion

Post-conversion capital improvements (new roof, HVAC, major renovations) should be recorded as separate FixedAsset records with category: real-estate-improvement and the same property link. This keeps each improvement on its own CCA class-13 schedule without polluting the original building’s basis.

Monthly depreciation

The depreciation cron runs on the 1st of each month. For each in-use asset, it posts:

Dr Depreciation expense
Cr Accumulated depreciation

Lines are tagged with propertyId (and, when set, unitId) so depreciation lands on the correct Property P&L automatically. Assets that have reached UCC = 0 are skipped.

Actions

Add an asset

  1. Click Add asset in the toolbar.
  2. Pick a Category (drives default CCA class).
  3. Enter Name, Acquired date, Cost, and (for real-estate / real-estate-improvement) the linked Property.
  4. Verify CCA class and CCA rate; override if the client uses a different schedule.
  5. Pick the asset, accumulated-depreciation, and depreciation-expense accounts. For property-linked assets, the COA wizard will have pre-mapped buildings and depreciation — those are the defaults.
  6. Click Save. Depreciation begins on the next monthly run (or this month’s if acquired on or before the 1st).

Dispose an asset

  1. Click Dispose on the asset row.
  2. Enter Disposal date, Disposal price, and Method (sold / scrapped / traded / donated).
  3. If proceeds > 0, pick the Cash account the proceeds land in.
  4. Click Post disposal. Gain/loss is computed as proceeds − book value, a disposal JE is posted, and the asset status flips to Disposed.

For property-linked assets, dispose happens via the Property detail Dispose action instead — it disposes the FixedAsset and also cascades any active leases to ended. See Property detail → Dispose.