Assets Module - ERPNext

Overview

The Assets module helps you manage your organization’s fixed assets throughout their lifecycle. Track asset acquisition, calculate depreciation, schedule maintenance, record movements, and handle disposal.

Key Features

Asset Lifecycle Management

Comprehensive tracking from acquisition to disposal:

Acquisition

Purchase-based
Direct entry
Asset capitalization
Initial valuation

Disposal

Sale of asset
Scrapping
Gain/loss calculation
Accounting entries

Core Doctypes

Asset

The main record for fixed assets.

# From asset.py
class Asset(AccountsController):
    status: Literal[
        "Draft",
        "Submitted",
        "Partially Depreciated",
        "Fully Depreciated",
        "Sold",
        "Scrapped",
        "In Maintenance",
        "Out of Order",
        "Issue",
        "Receipt",
        "Capitalized",
        "Decapitalized"
    ]
    asset_owner: Literal[
        "Company",
        "Supplier",
        "Customer"
    ]

Asset Information:

Asset name and category
Item code linkage
Location tracking
Custodian assignment
Purchase details
Available for use date
Gross purchase amount
Asset quantity

Depreciation:

Multiple finance books
Depreciation method
Frequency and schedules
Accumulated depreciation
Net book value

Assets can be linked to purchase invoices for automatic creation from purchased items.

Asset Category

Define asset classifications and default settings.Category Settings:

Depreciation method (Straight Line, Double Declining Balance, Written Down Value, Manual)
Total number of depreciations
Frequency of depreciation (Monthly, Quarterly, Half-Yearly, Yearly)
Default accounts (asset, depreciation, accumulated depreciation)
Cost center allocation

Account Mapping:

Company-wise account setup
Asset account
Accumulated depreciation account
Depreciation expense account
Capital work in progress account

Asset Depreciation Schedule

Automated depreciation calculation and posting.Schedule Features:

Auto-calculated depreciation
Date-wise schedule
Posted vs draft entries
Depreciation amount
Accumulated depreciation
Net book value

Posting:

Automatic journal entry creation
Scheduled posting
Batch depreciation posting
Finance book support

Asset Maintenance

Schedule and track maintenance activities.Maintenance Planning:

Preventive maintenance tasks
Maintenance frequency
Start and end dates
Maintenance team assignment
Certificate required

Maintenance Log:

Actual maintenance date
Completion status
Task description
Actions performed
Certificate attachment

Depreciation Methods

Support for multiple depreciation calculations:

Straight Line Method

Annual Depreciation = (Purchase Amount - Salvage Value) / Useful Life
Monthly Depreciation = Annual Depreciation / 12

Characteristics:

Equal depreciation each period
Simple calculation
Most common method

Double Declining Balance

Depreciation Rate = (2 / Useful Life) × 100%
Period Depreciation = Net Book Value × Depreciation Rate

Characteristics:

Accelerated depreciation
Higher depreciation in early years
Asset value declines faster

Written Down Value

Depreciation = Net Book Value × Depreciation Rate

Characteristics:

Similar to declining balance
Percentage of book value
Never fully depreciates to zero

Manual Method

Manually enter depreciation amounts for each period.

Choose depreciation method based on asset type, tax requirements, and accounting standards.

Asset Acquisition

Multiple ways to acquire assets:

Purchase-Based Acquisition

Purchase Item

Create purchase invoice for capital item

Auto Asset Creation

System creates asset automatically if item is capital asset

Set Available Date

Specify when asset is available for use

Start Depreciation

Depreciation begins from available-for-use date

Asset Capitalization

Create asset from multiple components:

Stock items: Consume inventory items
Service items: Add service costs
Existing assets: Combine multiple assets
Total capitalization: Sum of all components

Use Cases:

Building construction
Machine assembly
Equipment upgrades

Asset Movement

Track asset location and custody changes:

Movement Types

Transfer

Location change
No change in value
Update location field

Issue/Receipt

Issue to employee/customer
Return receipt
Track custodian

Movement Workflow

Create Asset Movement: Specify movement type and target location
Add Assets: Select assets to move
Set Date: Effective date of movement
Submit: Execute movement and update asset records

Asset movements maintain complete history of location changes for audit purposes.

Asset Maintenance Management

Preventive Maintenance

Schedule regular maintenance: Setup:

Define maintenance tasks
Set frequency (Weekly, Monthly, Quarterly, Yearly)
Assign maintenance team
Set start and end dates

Execution:

System generates maintenance schedule
Email reminders before due date
Record maintenance logs
Attach certificates

Maintenance Team

Organize maintenance resources:

Team name: Maintenance crew identifier
Team members: Assign employees
Manager: Team lead
Maintenance schedule: Track assigned tasks

Asset Repair

Record breakdown repairs: Repair Details:

Failure date
Error description
Repair cost
Downtime duration
Actions taken
Completion status

Cost Tracking:

Parts/items consumed
Link purchase invoices
Capitalize major repairs
Expense minor repairs

Asset Value Adjustment

Adjust asset value for various reasons: Adjustment Types:

Revaluation
Impairment
Write-up
Correction

Process:

Create Asset Value Adjustment
Enter current and new value
Provide reason for adjustment
Submit to create journal entry

Accounting Impact

# For revaluation increase
Asset Account Dr.
    To Asset Revaluation Reserve Cr.

# For impairment
Impairment Loss Dr.
    To Accumulated Depreciation Cr.

Asset Disposal

Handle asset retirement:

Disposal Methods

Sale: Sell asset to third party
Scrap: Dispose as scrap
Write-off: Remove obsolete asset

Disposal Process

Record Disposal

Set disposal date in asset record

Calculate Gain/Loss

System calculates based on sale value vs book value

Journal Entry

Automatic accounting entry for disposal

Update Status

Asset marked as sold/scrapped

Disposal Accounting

# For asset sale
Gain/Loss = Sale Value - Net Book Value

# Journal Entry
Bank Account Dr. (Sale Value)
Accumulated Depreciation Dr.
Loss on Disposal Dr. (if loss)
    To Asset Account Cr.
    To Gain on Disposal Cr. (if gain)

Asset Shift Management

Manage assets used in multiple shifts:

Shift Configuration

Shift name: Shift identifier
Start and end time: Shift hours
Shift factor: Depreciation multiplier

Shift Allocation

Assign asset to shifts
Calculate depreciation per shift
Track usage intensity
Accelerated depreciation for multi-shift

Assets used in multiple shifts depreciate faster due to higher utilization.

Asset Reports

Fixed Asset Register

Complete asset listing:

All active assets
Purchase details
Current value
Accumulated depreciation
Net book value
Location and custodian

Asset Depreciation Ledger

Depreciation history:

Period-wise depreciation
Posted entries
Pending entries
Finance book-wise view

Asset Maintenance Report

Maintenance tracking:

Scheduled maintenance
Completed maintenance
Overdue maintenance
Maintenance cost

Asset Activity Report

Complete asset transaction history:

All movements
All adjustments
All repairs
Complete audit trail

Finance Books

Maintain multiple depreciation schedules: Use Cases:

Tax book: For tax purposes
IFRS book: For financial reporting
Management book: For internal purposes

Features:

Different depreciation methods per book
Different useful lives
Independent schedules
Separate GL entries

Use multiple finance books to comply with different accounting standards simultaneously.

Asset Insurance

Track insurance coverage: Insurance Details:

Policy number
Insurer name
Insured value
Comprehensive insurance
Start and end dates
Premium amount

Benefits:

Insurance expiry alerts
Coverage tracking
Claim management

Asset Location Management

Location Tracking

Hierarchical location structure
GPS coordinates
Physical address
Location description
Linked locations (parent-child)

Benefits

Quick asset location
Physical verification
Movement tracking
Stock take organization

Asset Settings

Configure asset management:

Setting	Description
Asset Depreciation Posting	Accounting entry on depreciation
Schedule Depreciation	Auto-post scheduled depreciation
Default Finance Book	Primary finance book
Enable Capital Work in Progress	Track CWIP
Enable Asset Maintenance	Activate maintenance module

Key Workflows

Standard Asset Lifecycle

Depreciation Workflow

Asset Available for Use

Set available-for-use date

Generate Schedule

System creates depreciation schedule

Review Schedule

Verify depreciation amounts

Post Depreciation

Manual or automatic posting

Update Asset Value

Net book value updated automatically

The Assets module ensures accurate asset tracking, proper depreciation calculation, and compliance with accounting standards.

Getting Started

Core Modules

Setup & Configuration

Features

​Overview

​Key Features

​Asset Lifecycle Management

Acquisition

Disposal

​Core Doctypes

​Depreciation Methods

​Straight Line Method

​Double Declining Balance

​Written Down Value

​Manual Method

​Asset Acquisition

​Purchase-Based Acquisition

​Asset Capitalization

​Asset Movement

​Movement Types

Transfer

Issue/Receipt

​Movement Workflow

​Asset Maintenance Management

​Preventive Maintenance

​Maintenance Team

​Asset Repair

​Asset Value Adjustment

​Asset Disposal

​Disposal Methods

​Disposal Process

​Disposal Accounting

​Asset Shift Management

​Shift Configuration

​Shift Allocation

​Asset Reports

​Finance Books

​Asset Insurance

​Asset Location Management

​Location Tracking

​Benefits

​Asset Settings

​Key Workflows

​Standard Asset Lifecycle

​Depreciation Workflow

Build docs developers (and LLMs) love

Overview

Key Features

Asset Lifecycle Management

Core Doctypes

Depreciation Methods

Straight Line Method

Double Declining Balance

Written Down Value

Manual Method

Asset Acquisition

Purchase-Based Acquisition

Asset Capitalization

Asset Movement

Movement Types

Movement Workflow

Asset Maintenance Management

Preventive Maintenance

Maintenance Team

Asset Repair

Asset Value Adjustment

Asset Disposal

Disposal Methods

Disposal Process

Disposal Accounting

Asset Shift Management

Shift Configuration

Shift Allocation

Asset Reports

Finance Books

Asset Insurance

Asset Location Management

Location Tracking

Benefits

Asset Settings

Key Workflows

Standard Asset Lifecycle

Depreciation Workflow