Assets

Here is a support article in Markdown format that documents the Asset Management functionality of your accounting application, Bench, based on the provided backend source code:

Managing Fixed Assets in Bench

Bench provides robust functionality to manage and track the lifecycle of fixed assets. This includes recording purchases, tracking depreciation, and processing asset disposals. This guide explains how the asset module works and how to use it effectively.

What Is an Asset?

An asset in Bench is a long-term resource controlled by your organization, expected to bring future economic benefits. Common examples include equipment, buildings, and vehicles.

Creating a New Asset

To create a new asset, navigate to:

Accounting > New Asset

You will be required to enter the following key fields:

Field	Required	Description
Name	Γ£à	A descriptive name for the asset.
Asset Number	Γ£à	A unique internal identifier.
Serial Number	Γ£à	ManufacturerΓÇÖs serial number.
Category	Γ£à	Grouping of the asset for accounting and depreciation.
Location	Γ£à	Where the asset is located.
Initial Value	Γ£à	Purchase cost of the asset.
Salvage Value	Γ£à	Estimated value at end of useful life.
Depreciation Period	Γ£à	Number of months the asset will be depreciated.
Date of Purchase	Γ£à	When the asset was acquired.
Photo	Γ¥î	Upload an image of the asset.
Credit Account	Γ£à	Where funds for the purchase came from (e.g., Bank or Payables).
Asset Account	Γ£à	Where the assetΓÇÖs cost is recorded.
Depreciation Account	Γ£à	Expense account for depreciation.
Accumulated Depreciation Account	Γ£à	Asset account that holds accumulated depreciation.

Asset Lifecycle

1. Opening Entry

When an asset is created, Bench can automatically generate a journal entry:

Credit: Source of funds (e.g., Bank)
Debit: Asset cost account

This can be done manually via "Create Opening Entry" in the assetΓÇÖs action menu.

2. Monthly Depreciation

If Automate Depreciation Entries is enabled, Bench will:

Calculate depreciation using the Straight Line Method.
Post monthly depreciation entries:
Debit: Depreciation Expense
Credit: Accumulated Depreciation

This can also be done manually using the "Record Depreciation Entry" option.

3. Asset Disposal

When an asset reaches the end of its useful life or is sold, Bench creates a disposal journal entry:

Credit: Asset Account (full cost)
Debit: Accumulated Depreciation
Debit (optional): Cash/Bank (for salvage value)

Use the "Record Disposal Entry" to initiate this process.

Statuses

Each asset moves through the following statuses:

Purchased: Asset has been recorded, but depreciation hasn't started.
Depreciating: Asset is actively being depreciated.
Fully Depreciated: Asset has completed its useful life.
Disposed Of: Asset has been sold or written off.

Bench updates this status automatically as journal entries are posted.

Reporting Fields

Bench calculates and updates several fields automatically:

Net Book Value: Initial Value - Accumulated Depreciation
Current Month Depreciation
Remaining Useful Life
Total Depreciation
Annual and Daily Depreciation Rates
Depreciation for Any Month

These values are recalculated every time the asset is saved or a new depreciation entry is posted.

Asset Categories

Asset Categories allow you to define default accounts for groups of assets. When assigning a category to an asset, the following are inherited:

Asset Account
Depreciation Account
Accumulated Depreciation Account

Navigate to:

Accounting > Asset Categories

to configure and manage these.