Managing Assets/Items that can be sold or used by the company?

Suppose the business has products that can either be used by the company, itself, or sold to the company.

We’re a systems integration company. We maintain an inventory of hardware that we either rent, loan (as in for free), or sell to our customers. For example, we keep Cisco switches in the warehouse. We might put one of those Cisco switches in our own office, or we might install it at a customer’s location, or sell it to the customer as a product.

We’d like to keep all of the equipment as Inventory Items, but in the event that we use it for ourselves, or rent it to a customer, we’d like to convert one to a Fixed Asset.

Is there a way to convert an Item in inventory to a Fixed Asset? Or do you have to manually adjust the inventory, and then manually add the Fixed Asset?


Keep all items as stock items and whenever you use material for your own office or rent to a customer, issue the material from stock using Stock Entry and select Issue Type Material Issue. In an Expense Account choose the Fixed Asset account. After that Manually Create the Asset in the Fixed Asset Module to start the Depreciation.


Divyesh Mangroliya