Introduction to the Fixed Assets Module

There are legal and practical reasons for registering assets in a separate system.

The law has made it compulsory for companies to keep detailed accounts of fixed assets and depreciation. The various transactions that are made during the life of some assets have direct effect on the year-end result, which is why they must be properly documented. Therefore, entries regarding fixed assets should not be deleted until the asset is no longer in use and the audit documentation retention period has run out. By using the Fixed Assets module, you can keep structured, thorough control of your fixed assets.

Companies have a basic legal duty to register assets purchased for long-term usage. These assets are known as fixed assets, for which accounting laws set out precise and comprehensive rules for depreciation, write-ups, write-downs and other transactions.

Assets of similar character or purpose are sorted into asset groups. The law has defined various asset groups for the purpose of reporting year end results, but there are no legal hindrances for companies to categorize their assets in greater detail.

Once the assets are registered in the system, they are depreciated over a number of years, that is, the life span of an asset. Maconomy depreciates the assets automatically, whereas transactions, such as write-ups and write-downs, are entered manually. As long as the asset is not sold or otherwise cast off, its records are kept in the system, as required by law.

The law also requires full documentation of all transactions made in the life of an asset. The system keeps a record of every transaction made, and it cannot delete these records before the legal requirement for documentation is relieved.