Fixed Assets
This page is the conceptual reference for fixed-asset management in NexWave: what a fixed asset is, the depreciation methods supported, and how the asset records relate to other doctypes. For step-by-step instructions, follow the User Guide pages linked at the bottom.
Looking for a step-by-step walkthrough? See the Fixed Assets user guide.
What is a fixed asset
A fixed asset is any valuable item the company owns and expects to use over multiple years. Furniture, computers, mobile phones, printers, vehicles, and manufacturing equipment are typical examples. Fixed assets can also be intangible (software licences, patents).
Because the asset's economic value is consumed over its useful life, the cost is spread across multiple periods rather than expensed in the year of purchase. For example, a $300 printer with a three-year useful life is recorded as $100 of depreciation expense each year. Most jurisdictions have specific rules for these calculations.
In NexWave, the Asset record is the heart of the assets module. Every transaction relating to an asset, including purchase, depreciation, maintenance, movement, scrapping, and sale, is recorded against the Asset record.
To access the Asset list, go to Assets > Assets > Asset.
How the asset records fit together
The Assets module spans several related doctypes:
Doctype | Role |
|---|---|
Item (with | Defines the kind of thing being purchased. Drives whether NexWave creates Asset records on Purchase Receipt submission. |
Asset Category | Classifies assets and carries default depreciation methods, periodicity, and the GL accounts that depreciation posts against. |
Asset Location | Where an asset physically sits. Tracks latitude/longitude for map display. |
Asset | The asset record itself. Captures purchase, depreciation schedule, custodian, and links to maintenance and movement. |
Asset Movement | Records moves between locations, between custodians, or to/from employees. |
Asset Maintenance Team | Group of employees responsible for maintenance activities. |
Asset Maintenance + Maintenance Log | Schedules and records routine maintenance against an asset. |
Asset Repair | One-off repairs outside the maintenance schedule, with optional stock consumption. |
Asset Value Adjustment | Adjusts an asset's recorded value in response to damage, revaluation, or correction. |
Asset Capitalisation | Builds a composite asset from purchased component items. |
Most users only touch the Asset, Asset Category, and Asset Location records directly. Maintenance, Movement, Repair, and Value Adjustment are operations launched from the Asset record's Manage and Create menus.
Depreciation methods
NexWave supports four depreciation methods, configurable per Asset (or as a default per Asset Category):
Straight Line
The asset's value drops uniformly over its useful life until it reaches the salvage value.
For example, an asset worth $1,000 with a salvage value of $500 over 5 years depreciates by $100 per year. Use this when there is no specific pattern to value loss over time. It's the most common method.
Written Down Value (WDV)
A fixed rate is applied each period to the current written-down value. Either set the rate explicitly, or let NexWave compute it from purchase amount, salvage value, and useful life.
For an asset worth $1,000 at 10% WDV over 5 years:
Current Value | Depreciation | Booked Value |
|---|---|---|
1,000.00 | 100.00 | 900.00 |
900.00 | 90.00 | 810.00 |
810.00 | 81.00 | 729.00 |
729.00 | 72.90 | 656.10 |
656.10 | 65.61 | 590.49 |
Use WDV when the asset depreciates faster in early years (most electronics).
Double Declining Balance (DDB)
A 200% accelerated declining balance. Useful when an asset depreciates very quickly at the start.
For an asset worth $100,000 with $11,000 salvage value over 8 years:
Current Value | Depreciation | Booked Value |
|---|---|---|
100,000.00 | 25,000.00 | 75,000.00 |
75,000.00 | 18,750.00 | 56,250.00 |
56,250.00 | 14,063.00 | 42,187.50 |
42,187.50 | 10,547.00 | 31,640.62 |
31,640.62 | 7,910.00 | 23,730.46 |
23,730.46 | 5,933.00 | 17,797.84 |
17,797.84 | 4,449.00 | 13,348.38 |
13,348.38 | 2,348.00 | 11,000.00 |
Manual
NexWave generates a Straight Line schedule as a starting point, but every period's date and amount can be edited individually. Use this for assets with bespoke depreciation patterns (sometimes required for tax purposes).
Accounting model
On purchase / submission
When the asset is submitted, NexWave posts an entry that depends on whether the Asset Category has Capital Work in Progress enabled:
Scenario | Debit | Credit |
|---|---|---|
Available-for-use Date is today or past, CWIP off | Fixed Asset Account | Cash / payable / CWIP source |
Available-for-use Date is in the future, CWIP on | Capital Work in Progress | Source |
Available-for-use Date arrives (CWIP scenario) | Fixed Asset Account | Capital Work in Progress |
On each scheduled depreciation
Debit | Credit |
|---|---|
Depreciation Expense | Accumulated Depreciation |
Both accounts are configured on the Asset Category (and can be overridden on the Company master).
On disposal (Scrap)
Debit | Credit |
|---|---|
Accumulated Depreciation (full balance) | Fixed Asset Account (full purchase amount) |
Gain/Loss on Asset Disposal (current book value) | (balancing entry) |
On disposal (Sell)
NexWave creates a Sales Invoice. On submission of that invoice:
Debtors: debited by the sale amount.
Fixed Asset Account: credited by the original purchase amount.
Accumulated Depreciation: debited by the depreciation booked to date.
Gain/Loss Account on Asset Disposal: credited or debited for the gain/loss vs. book value.
The Gain/Loss account is configured on the Company record.
On Asset Value Adjustment
Posts a Journal Entry against the Accumulated Depreciation account, with the offset hitting the "Gain/Loss on Asset Revaluation" account.
Capital Work in Progress (CWIP)
Capital Work in Progress is a temporary balance-sheet account used to hold the cost of an asset that has been purchased but is not yet in service.
CWIP is enabled per Asset Category. When on, the purchase posts to CWIP at submission, and shifts to the proper Fixed Asset account on the Available-for-use Date. When off, the purchase goes straight to the Fixed Asset account.
Use CWIP for assets that take time between purchase and commissioning (factory equipment, build-to-order machines). Skip it for assets that are usable on day one (laptops, vehicles).
Composite assets
A composite asset is one built from multiple component items (for example, a "Workstation" composed of a Monitor, Keyboard, Tower, and Mouse).
Tick Is Composite Asset on the parent Asset, then tag this asset in the WIP Composite Asset field on Purchase Receipts/Invoices for each component. Once all components are received, use Asset Capitalisation to roll the component costs into the parent asset.
This pattern keeps individual receipts traceable while ending up with one Asset record for the assembled item.
Automatic depreciation entries
The Automatic Depreciation Entries setting on Accounts Settings controls whether scheduled depreciation entries post on their own.
On: NexWave's scheduler posts each depreciation Journal Entry on its scheduled date. Hands-off.
Off: Each scheduled depreciation must be posted manually from the Depreciation Schedule on the Asset record (click Make Depreciation Entry on the row).
Most customers run with Automatic Depreciation Entries on. Manual posting is useful if you need to review and approve each entry before it hits the GL.
Where to look next
For step-by-step operations, follow the User Guide pages:
Create and manage a Fixed Asset: the canonical creation walkthrough, with depreciation setup and submission.
Asset Category: set up the categories that group assets and carry default depreciation settings.
Asset Revaluation: adjust the recorded value of an asset.
Repairing an Asset: record repairs against an asset.
Selling an Asset: dispose of an asset via Sales Invoice.
Transfer Asset to a new Employee: record asset movements between locations and custodians.
Related documentation
Accounting: financial management overview.
NexWave Modules: all NexWave modules.