Add a fixed asset

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.

Before you start

  • If you're adding a fixed asset for the first time, check you've completed the set up steps in Xero.
  • 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.
We recommend you have no more than 500 registered fixed assets in Xero.

Add an asset

  1. On the Accounts menu, select Fixed Assets.
  2. Click New Asset.
  3. Enter the asset's details.
  4. 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.
  5. If you select a depreciation start date before the organisation's last depreciation date, Xero automatically calculates catch-up depreciation for the asset. See the catch up depreciation in the asset's History & Notes.
  6. Click Save as Draft. If you have the Adviser user role, you can select Register instead.
When you add an asset directly to the fixed assets register, you won't see any journals posted to accounts, and the asset will not display in your Balance Sheet. You'll need to enter the appropriate Expense Claim, Bill, Spend Money or Manual Journal transaction to add the asset to your Balance Sheet.

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.