What’s the proper way to track the purchase of a fixed asset in ERPNext?
Am I supposed to create a new item with a new item code for every fixed asset? What if I own multiple assets of the same item (for instance, suppose I own multiple office chairs that are the same make and model, but purchased at different dates/times)?
You just need to create a single item master for one type of fixed asset. Then check the “auto create fixed asset during Purchase Receipt”.
This way, each qty of the asset item you purchase, will be created as a unique asset within the system with the purchase details mapped against each asset.
You might want to look into Asset Management for the tracking of asset depreciation and maintenance.
The issue I’m running into with this is that the “Item” is also an item I sell. For instance, I might buy a Ubiquiti U7 WiFi Access Point to add to inventory (to sell to a customer), and I might buy one to use in the office, and I might buy one that I lease to a customer (though it would still be a fixed asset that I depreciate).
If I create “Ubiquiti U7” as a Fixed Asset item, I can’t maintain inventory of them to sell.
Does this mean I would have to have 2 Ubiquiti U7 Documents (with different Item Codes, obviously)? One for “is_fixed_asset” and one for regular inventory?
If you’re going to maintain depreciation for both types of items, then the best thing to do would be to use asset transfers and invoice the same to the customer as a service item (maybe add the asset as a custom field to be tagged?) if you’re going to lease it.
Or if you’re going to sell it, then assets can be sold I believe.
I’m not particularly knowledgeable with the Asset module to give a solution with certainty, so if someone could chime in that would be great.
Hi,
If you are selling the products, let’s say Laptops and sometime you keep one laptop as fixed asset for your own use; you should create the the Item Code as Stock Item only and not as fixed asset item. Your major activity is purchase and sell of that item and you need to manage and maintain the stock level of that items.
When you use the stock item for your own need, you can issue the material via stock entry by debiting the Capital work in progress account and later you can capitlize the same start the depreciation in the Fixed Asset Module.
Thanks,
Divyesh Mangroliya
