Documentation Index

Fetch the complete documentation index at: https://docs.dualentry.com/llms.txt

Use this file to discover all available pages before exploring further.

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How to Manage Fixed Assets

DualEntry’s fixed asset module tracks the full lifecycle of capital assets - from acquisition through depreciation to disposal. You create asset records, assign depreciation methods and books, run depreciation to generate journal entries, and record disposals or impairments when the time comes.

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Create an asset and assign a depreciation method

Each fixed asset in DualEntry is a record on the asset register, created either manually or via the API at /public/v2/fixed-assets/.

1. Navigate to Fixed Assets → Add Asset.
2. Enter the required fields: asset name, acquisition date, acquisition cost, and useful life (in months or units, depending on the depreciation method).
3. Assign the asset to a fixed asset account (the balance sheet account that holds the asset’s cost) and an accumulated depreciation account. Both must already exist in your chart of accounts.
4. Choose a depreciation method (see below).
5. Optionally, assign the asset to a department, location, or other classification for reporting.
6. Save. DualEntry creates the asset record and, if you posted an acquisition journal entry separately, links it.

DualEntry supports four depreciation methods. You select the method when you create the asset record or when you configure a depreciation book.

• Straight-line. Spreads the depreciable amount (cost minus salvage value) evenly over the useful life.
• Declining balance. Applies a fixed percentage to the remaining book value each period. You specify the declining-balance rate (for example, 200% for double-declining balance). DualEntry automatically switches to straight-line in the period where straight-line yields a higher charge, unless you disable the switch.
• Sum-of-years-digits. Accelerates depreciation by weighting earlier years more heavily. Each period’s fraction is the remaining useful life divided by the sum of all years’ digits.
• Units-of-production. Bases depreciation on actual usage rather than time. You enter the total estimated units and log units consumed each period. DualEntry calculates depreciation as (units consumed / total units) × depreciable amount.

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Depreciation books and running depreciation

A depreciation book represents a set of depreciation rules applied to an asset. Most organizations maintain at least two books: one for GAAP (book) reporting and one for tax reporting. You manage books at /public/v2/depreciation-books/. Each book has a book_code (for example, GAAP or TAX), a depreciation method, and its own useful life and salvage value overrides. When you run depreciation, you select which book to process. To create or edit a book:

1. Navigate to Fixed Assets → Depreciation Books.
2. Choose Add Book or select an existing book by book_code.
3. Configure the method, useful life, salvage value, and convention (mid-month, mid-quarter, or full-month).
4. Save.

Assets inherit default book settings, but you can override the method or useful life on individual asset records when a specific asset requires different treatment. For organizations that maintain separate GAAP and tax books, see Multi-Book for how DualEntry handles parallel ledger reporting. Running depreciation generates journal entries that debit depreciation expense and credit accumulated depreciation for every asset in the selected book and period:

1. Navigate to Fixed Assets → Run Depreciation.
2. Select the depreciation book and the period (month and year).
3. Preview the proposed entries. DualEntry shows each asset, the calculated depreciation amount, and the accounts that will be debited and credited.
4. Choose Post. DualEntry creates and posts the journal entries.

You can run depreciation for a single asset or for all assets in a book. If you’ve already run depreciation for a period and book, DualEntry warns you before creating duplicate entries. The resulting journal entries appear in the journal entry log with a source of Depreciation and a reference to the asset and book.

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Disposals, retirements, and transfers

When you sell, scrap, or retire an asset, record the disposal in DualEntry to remove the asset from the register and recognize any gain or loss.

1. Open the asset record and choose Dispose.
2. Enter the disposal date and disposal proceeds (zero for a scrapped asset).
3. DualEntry calculates the gain or loss: proceeds minus the asset’s net book value (cost minus accumulated depreciation through the disposal date).
4. Review the proposed journal entry. It debits accumulated depreciation, credits the fixed asset account, and records the gain or loss.
5. Post the entry.

After disposal, the asset’s status changes to Disposed and it no longer appears in future depreciation runs. The asset record remains on the register for historical reporting. If you operate multiple entities in DualEntry, you can transfer an asset from one entity to another. Open the asset record, choose Transfer, and select the destination entity. DualEntry creates a disposal in the source entity and an acquisition in the destination entity, both dated the transfer date. The destination entity inherits the asset’s remaining book value, useful life, and depreciation book settings. Intercompany journal entries are generated automatically - see Multi-Entity Consolidation for how these entries eliminate on consolidation.

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Impairment and reporting

When an asset’s recoverable amount drops below its carrying value, record an impairment loss.

1. Open the asset record and choose Record Impairment.
2. Enter the impairment amount - the difference between carrying value and recoverable amount.
3. DualEntry creates a journal entry that debits impairment loss (expense) and credits the asset account or a separate impairment allowance account, depending on your configuration.
4. The asset’s depreciable base is reduced by the impairment amount. Future depreciation is calculated on the new, lower base.

Impairments are irreversible in DualEntry’s default configuration. If your reporting framework requires reversal of previously recognized impairments, contact support to enable the reversal workflow. DualEntry provides several standard reports for fixed assets:

• Asset Register. Lists all assets with acquisition cost, accumulated depreciation, net book value, and status. Filterable by entity, department, asset class, and book.
• Depreciation Schedule. Shows period-by-period depreciation for each asset in a selected book. Useful for forecasting future expense.
• Disposal Report. Lists all disposals in a date range with gain/loss calculations.
• Impairment Report. Summarizes impairments recorded in a date range.

Export any report to CSV or PDF from the report viewer. For programmatic access, query assets via the API at /public/v2/fixed-assets/ with filters for status, entity, and date ranges. For related workflows, see Journal Entries and Period Locking.