Add a fixed asset, including adding it to a pool
Manually add a fixed asset you've just acquired to your fixed assets register. If you have the Adviser user role, you can register the asset which then allows you to depreciate it. If you use tax reporting, you can add tax depreciation information including adding the asset to a pool.
Use these procedures instead to:
Before you start
- If you're adding a fixed asset for the first time, check you've completed the set up steps in Xero.
- If you want to use tax reporting, make sure you've turned on tax reporting.
- If you want to add the asset to a pool, make sure you've created your pool.
- Check that there are no lock dates set which will prevent you registering the asset.
- If you've purchased the asset through a bill, spend money transaction or expense claim, and have used a fixed asset account code, the asset will already be added to your fixed asset register as a draft asset. You only need to register the asset to start depreciating it.
Add an asset
- On the Accounts menu, select Fixed Assets.
- Click New Asset.
- Enter the asset's details.
- Change the Book Value depreciation options if you want to use different options from your asset type defaults. Click Show more options if you want to add a Cost Limit and/or Residual Value amount.
If you're using tax reporting, change the Tax Value depreciation options if you want to use different options from your asset type defaults.
- Click Save as Draft. If you have the Adviser user role, you can select Register instead.
Some asset fields explained
Asset Name and Asset Number - These are the only fields you need to complete to save a draft asset.
You can change the asset numbering convention to suit your organisation.
Warranty Expiry - Enter when the asset’s warranty expires if needed. This information does not affect depreciation or the effective life of the asset.
Serial Number - Enter information that could help you identify the asset. This information does not affect depreciation.
Cost Limit - The value of the asset you want to depreciate, if this is less than the cost of the asset. For example, an asset costs 20,000 but you only want to depreciate 15,000. Enter 20,000 in the Purchase Price field and 15,000 in the Cost Limit field. Xero will calculate depreciation on 15,000.
Residual Value - The value of the asset remaining when you've fully depreciated it. Xero will depreciate the asset to nil value if a residual value isn't entered. For example, you believe that your asset will be worth 500 at the end of its depreciable life. Enter 500 in the Residual Value field. Xero will stop depreciating the asset when its book value reaches 500.
Pooled Amount - (If you're adding the asset to a pool) The value of the asset you want to add to your pool if it's less than the full value of the asset. You might choose a lower value if the asset has less than 100% business use.