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A field-by-field reference for setting up the Assets module in ERPNext — from flagging a fixed-asset Item to posting depreciation, capitalisation, maintenance and disposal — so your books and your asset register always agree.
42 checks · 7 sections
Fixed assets are where accounting and operations meet: a wrong GL account or depreciation method quietly distorts your balance sheet for years. This reference walks the real ERPNext setup in order — the fixed-asset Item, the Asset Category and its per-company accounts, the Asset Finance Book that drives depreciation, then buying, posting, maintaining and disposing of the asset. Use it to sanity-check a new company setup or to review an existing one; each line names the actual doctype or field so your team can find it in the system. Nothing here prescribes a depreciation rate or useful life — those follow your accounting policy and the Companies Act / Income Tax rules your auditor applies.
Enable 'Is Fixed Asset' on the Item + 5 more
Create an Asset Category per asset class + 6 more
Add a Finance Book row on the Asset Category + 6 more
Buy via Purchase Receipt or Purchase Invoice + 6 more
Review the Asset Depreciation Schedule + 4 more
Set up an Asset Maintenance schedule + 4 more
Build an asset with Asset Capitalization + 4 more
All 42 checks across 7 sections as a clean branded Excel — each item with the guidance for why it matters, ready to share with your team. Free, no email required.
Yes. Add more than one row to the Finance Books table (one per Finance Book) on the Asset Category or the Asset, each with its own depreciation method, useful life and rate. ERPNext then generates a separate Asset Depreciation Schedule per book, so you can maintain book depreciation (Companies Act) and tax depreciation (Income Tax WDV block rates) in parallel. Your accountant sets the actual rates and lives.
The Asset Finance Book supports Straight Line, Written Down Value, Double Declining Balance and Manual. Straight Line spreads cost evenly over the useful life; Written Down Value and Double Declining Balance apply a rate to the reducing book value (closer to the WDV method commonly used for Indian tax); Manual lets you enter each period's amount yourself.
No. Tick Is Fixed Asset and Auto Create Assets on Purchase on the Item, and set an Asset Naming Series. When you submit a Purchase Receipt or Purchase Invoice for that Item, ERPNext creates the draft Asset records automatically — one per quantity, or a single grouped Asset if Is Grouped Asset is set. You then fill in details like Available For Use Date and submit.
Common causes: Calculate Depreciation is not ticked on the Asset; the Asset Category is marked Non Depreciable; the Finance Book row is missing a method, number of depreciations or frequency; or Available For Use Date is blank. Depreciation starts from Available For Use Date, not Purchase Date, so an unset or future date also delays the schedule.
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Kochi (Kadavanthra & Infopark) · Thiruvananthapuram · across India & overseas · In business since 2011