Register a Fixed Asset and Set Up Depreciation

Last updated: 2026-07-09 Summary:

• An asset belongs to a category, which supplies its default method, useful life, salvage rate, and GL accounts — so set the category up first.
• eKapital assigns each asset a running number (FA-0001, FA-0002, …) and depreciates it from the details you enter.
• The “Post acquisition journal entry” choice is the one to get right: leave it off when the cost was already booked through a bill, or you will double-count the asset.

Fixed Assets is available on plans that include Fixed Assets. If the menu is missing or you see an “Upgrade required” message, your plan does not include the module.

Set up a category first

Categories carry the sensible defaults every asset in that class should inherit.

1. Go to Fixed Assets → Categories and add a category (for example “Office Equipment” or “Vehicles”).
2. Set its default method, default useful life (months), default salvage rate, and the three GL accounts it should post to — asset cost, accumulated depreciation, and depreciation expense.
3. Save. You can now register assets against it.

If you open the register form before any category exists, eKapital blocks you with a “No asset categories are set up” notice and a Set up categories shortcut.

Register the asset

1. Go to Fixed Assets → Asset Register and click New Asset.
2. Under Asset Information, enter the Asset Name and pick the Category. Selecting the category prefills the method, useful life, salvage, and GL accounts below. Optionally add a Serial / Tag Number and Location for your audit-ready register.
3. Under Financial Details, set the Acquisition Date, the Placed In Service Date (defaults to the acquisition date if left blank — depreciation starts from when the asset is placed in service), the Acquisition Cost, and the Salvage Value (the residual you don’t depreciate).
4. Under Depreciation, confirm the Method (Straight-Line or Declining Balance) and Useful Life (months). For Declining Balance you can enter a Declining Balance Rate; leave it blank to use the 200% double-declining default. See How eKapital calculates depreciation.
5. Under Classification, choose Ordinary Depreciable (the default) or Capital Asset. This drives BIR reporting and disposal treatment — see Depreciation caps and the lapsing schedule.
6. Confirm the GL Accounts (already filled from the category; override only if this asset posts elsewhere).
7. Click Register Asset. eKapital assigns the next asset number automatically.

Decide on the acquisition entry

The Acquisition card (create mode only) has a Post acquisition journal entry checkbox. This is the double-post control:

• Leave it unchecked when you already recorded the purchase through an AP bill (see Add a vendor and record a bill). The cost is on your books already — registering the asset just links it for depreciation, without a second entry.
• Check it only when the cost was not already booked. eKapital then posts an opening entry (debit the asset cost account, credit the Funding Account you pick — cash, bank, or AP). The funding account becomes required.

Posting the opening entry into a closed period is rejected with a “Period closed” error; choose an open period. See Close an accounting period.

Where people get tripped up

• Double-counting the cost. Checking “Post acquisition journal entry” for an asset whose bill you already entered books the cost twice. When in doubt, leave it off.
• Editing a depreciated asset. Once the first depreciation period is posted, the cost, salvage, dates, method, and useful-life fields lock. Only name, description, serial, location, category, and the tax-cap fields stay editable. Fix these before the first run.
• Missing category defaults. No categories means no method, life, or accounts to inherit — the register form is a dead end until an admin sets one up.

See also

• Run monthly depreciation
• Dispose of a fixed asset
• How eKapital calculates depreciation
• Fixed asset reports