Most companies know what they bought and almost none know what they still have. Vehicles, laptops, workshop machines, furniture and fit-out are paid for once, then drift out of the books and out of sight. A fixed assets register fixes this by giving each asset an identity, a cost, a life and a location. It also feeds the depreciation that appears in your accounts and your corporate tax work. This guide shows how to set one up in an ERP without turning it into a second job.
What belongs in the register
Set a capitalisation limit in writing, for example that items above a chosen amount with a life beyond one year are capitalised, and everything else is expensed. The right amount depends on your size, and your auditor can confirm it. Below the limit, keep a simple issue log for items such as keyboards and phones so they are not lost.
Fields that make a register useful
| Field | Why it matters |
|---|---|
| Asset tag or number | A printed label that can be scanned during the yearly check |
| Category | Drives the useful life, depreciation method and the ledger accounts |
| Purchase date, supplier, invoice | Links back to the purchase record for audit |
| Cost, including import and installation | Everything needed to bring the asset into use |
| Location and custodian | Who is responsible and where it should be found |
| Warranty and service dates | Reminders for claims and maintenance |
Categories, lives and methods
Create a short category list: buildings and fit-out, vehicles, machinery, computers, furniture and software. Give each a useful life and a method, most commonly straight line. Keep the policy consistent and documented. Tax depreciation rules can differ from accounting depreciation, so the register should be able to carry both figures where your adviser needs them. See the corporate tax checklist for the wider picture.
The monthly routine
- New purchases flagged as capital are converted into assets from the supplier bill, not typed twice.
- The depreciation run posts one journal per category, and the report shows cost, accumulated depreciation and book value.
- Disposals and write-offs are recorded with date, proceeds and approval, and the system calculates the gain or loss.
- Transfers between branches or custodians update the location.
Include the register in the month-end close so it never falls a year behind.
The yearly physical check
Once a year, print or scan by location and tick off each tag. Missing items are investigated, not silently deleted, and surplus items without a tag are added. A scanner-based check takes hours rather than days. The result is a register you can show an auditor, a lender or a buyer with confidence.
Want this inside your own system? Tell us about your assets or review the ERP guide.