# Fixed Assets

Use this guide to create, depreciate, review, and maintain fixed assets in NexWave. It is for assets such as equipment, vehicles, furniture, tools, and other items the business keeps for more than one accounting period.

For the conceptual background, depreciation methods, and accounting model, see the [Fixed Assets module reference](/doc/da29ab4e-441f-47a2-9cfd-afc6037959f6).

## When to use this guide

Use this workflow when you need to:

* buy a new fixed asset and link it back to the purchase document;
* bring existing assets into NexWave at go-live;
* set up, review, or manually post depreciation;
* reconcile the fixed asset balance to the General Ledger and Balance Sheet; or
* prepare an asset for repair, transfer, sale, or scrap.

If a purchase should be expensed immediately, process it as a normal purchase expense instead of creating an Asset record.

## Before you start

Confirm these records and settings before creating assets:

* An **Item** with **Maintain Stock** unticked and **Is Fixed Asset** ticked. This represents the type of asset being purchased, such as a laptop, vehicle, or packaging machine.
* An **Asset Category** with the correct **Fixed Asset Account**, **Accumulated Depreciation Account**, **Depreciation Expense Account**, and, where needed, **Capital Work In Progress Account**. The category also carries default depreciation settings. See the [Asset Category guide](/doc/4d1326cb-98f1-42c9-960e-6f6f95542b97) if you need to create or check one.
* A clean **Location** for each asset. Location is required when NexWave creates asset records automatically from a purchase.
* A decision on whether depreciation entries should post automatically. The setting is **Book Asset Depreciation Entry Automatically** in Accounts Settings.

 ![Item record with Is Fixed Asset and Auto Create Assets on Purchase ticked](https://docs.nexwaveapp.com/api/files.get?sig=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJrZXkiOiJ1cGxvYWRzL2YxMTg5ZTEzLTdlMTQtNDA1ZC04MDI1LWMxZmI0Y2Y2MTg0ZC8xOGM1MGIyZS1kN2I5LTQ1NTktYmEwOS02YzkyYWM4ZGUzZjUvMDEtZml4ZWQtYXNzZXQtaXRlbS5wbmciLCJ0eXBlIjoiYXR0YWNobWVudCIsImlhdCI6MTc5MjYyMDkwMCwiZXhwIjoxNzkyNzA3MzAwfQ.fQcZ8YIpzJTlIUZ-kQTTWhmpY3zVizDgEoqghAbilXA)

## Step 1: Decide how the Asset record will be created

There are three common paths.

| Path | Use it when | Result |
|------|-------------|--------|
| Auto-create from a Purchase Receipt or Purchase Invoice | The asset Item has **Auto Create Assets on Purchase** ticked. | NexWave creates one Asset record per purchased quantity when the purchase document is submitted. |
| Create by hand from a purchase document | The purchase exists, but the Item is not set to auto-create assets. | You create the Asset record and link it to the relevant Purchase Receipt or Purchase Invoice. |
| Create as an existing asset | The asset was already in service before you started using NexWave. | You enter the purchase value, past depreciation, and remaining schedule so future reporting starts from the right book value. |

Create one Asset record for each physical asset. If a Purchase Receipt has quantity 5 of the same laptop Item, you should end with 5 Asset records.

## Step 2: Set up the fixed asset Item

Open the Item and check these fields:


1. Untick **Maintain Stock**. Fixed assets are tracked through Asset records, not stock balances.
2. Tick **Is Fixed Asset**.
3. Select the correct **Asset Category**.
4. Tick **Auto Create Assets on Purchase** if you want NexWave to create the Asset records automatically when the purchase is submitted.
5. Save the Item.

Use **Auto Create Assets on Purchase** for repeatable purchases where the purchase team knows the asset Location at receipt time. Leave it unticked when finance prefers to review or complete the Asset record before submission.

## Step 3: Auto-create assets from a purchase

When the Item has **Is Fixed Asset** and **Auto Create Assets on Purchase** ticked:


1. Create the Purchase Receipt or Purchase Invoice with the fixed asset Item.
2. Enter the asset **Location** in the item row before submitting.
3. Submit the purchase document.
4. Review the confirmation message. NexWave creates one Asset record per quantity.
5. Open **Assets > Assets > Asset** and filter by the Purchase Receipt or Purchase Invoice to review the created records.

 ![Asset list filtered to assets created from a Purchase Receipt](https://docs.nexwaveapp.com/api/files.get?sig=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJrZXkiOiJ1cGxvYWRzL2YxMTg5ZTEzLTdlMTQtNDA1ZC04MDI1LWMxZmI0Y2Y2MTg0ZC9lYWIyZGMyNC04ZWRkLTQyNDMtOGM3ZC03ZThmNzEzODQzMGUvMDItcHItbGlua2VkLWFzc2V0cy5wbmciLCJ0eXBlIjoiYXR0YWNobWVudCIsImlhdCI6MTc5MjYyMDkwMCwiZXhwIjoxNzkyNzA3MzAwfQ.WTn64ZduJvyPagfwukuQTYIoDxce1M3kh_J8nXlqwtU)

After auto-creation, open each Asset record and check the owner, location, available date, purchase value, and depreciation settings before submitting it.

## Step 4: Create or review the Asset record

Use this step for manually created assets and for checking auto-created assets.


1. Go to **Assets > Assets > Asset > New**, or open the auto-created Asset record.
2. Enter a clear asset name, such as **Laptop - Auckland Office - 03** or **Delivery Vehicle - 2026**.
3. Select **Item Code**. NexWave fills the Item Name and Asset Category from the Item.
4. Set **Asset Owner** and, when required, **Asset Owner Company**.
5. Link the source **Purchase Receipt** or **Purchase Invoice** if the asset came from a purchase document.
6. Check **Purchase Date** and **Net Purchase Amount**. These values usually come from the linked purchase document.
7. Set **Location**.
8. Set **Available-for-use Date**. Depreciation and the fixed asset accounting entry are based on this date.
9. Save the Asset.

 ![Asset record showing Item Code, Asset Category, Location, and Asset Owner](https://docs.nexwaveapp.com/api/files.get?sig=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJrZXkiOiJ1cGxvYWRzL2YxMTg5ZTEzLTdlMTQtNDA1ZC04MDI1LWMxZmI0Y2Y2MTg0ZC9mNmVlMTBjMy02ZDE5LTRhODEtOWY3Ni1mOGFhOGRlMDkxZmQvMDMtYXNzZXQtZm9ybS5wbmciLCJ0eXBlIjoiYXR0YWNobWVudCIsImlhdCI6MTc5MjYyMDkwMCwiZXhwIjoxNzkyNzA3MzAwfQ.gPcUPGX6g_5laEoEmjPPVGxdGLyUOiUqImzsZcQjCWI)

Do not submit the Asset until the purchase link, dates, category, accounts, and depreciation settings have been checked.

## Step 5: Bring in existing assets

Use **Is Existing Asset** when the asset was already in use before NexWave became your finance system of record.

Enter:

* **Net Purchase Amount**: the original asset value to carry into NexWave.
* **Purchase Date**: when the asset was originally acquired.
* **Available-for-use Date**: when depreciation should start from.
* **Opening Accumulated Depreciation**: depreciation already booked before NexWave.
* **Opening Number of Booked Depreciations**: the count of depreciation entries already recognised.
* **Is Fully Depreciated**: tick this only when the remaining book value is already nil or at residual value.

The most common migration error is entering the original purchase value but not the accumulated depreciation. That overstates the Balance Sheet value and creates a future schedule that is too high.

## Step 6: Configure depreciation

Tick **Calculate Depreciation** when NexWave should calculate and post depreciation over the asset's useful life.

Review the **Finance Books** table:

| Field | What to check |
|-------|---------------|
| **Finance Book** | Leave blank for the default book, or select a Finance Book when tax and management reporting need separate schedules. |
| **Depreciation Method** | Choose Straight Line, Written Down Value, Double Declining Balance, or Manual. |
| **Total Number of Depreciations** | Enter the total number of future depreciation entries. For existing part-depreciated assets, use the remaining count. |
| **Frequency of Depreciation (Months)** | Use 1 for monthly depreciation, 3 for quarterly, or 12 for annual. |
| **Depreciation Posting Date** | The first scheduled depreciation date. Later dates follow the frequency. |
| **Expected Value After Useful Life** | The residual value that should remain at the end of the schedule. |
| **Salvage Value Percentage** | Use this instead of a fixed residual value if the residual should be calculated as a percentage. |
| **Rate of Depreciation (%)** | Required for Written Down Value when you set the rate directly. |
| **Depreciate based on daily pro-rata** | Tick when partial first or final periods should use the number of days in the period. |
| **Depreciate based on shifts** | Tick for assets where depreciation depends on production shifts. |

 ![Depreciation section with Finance Books and the generated Depreciation Schedule](https://docs.nexwaveapp.com/api/files.get?sig=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJrZXkiOiJ1cGxvYWRzL2YxMTg5ZTEzLTdlMTQtNDA1ZC04MDI1LWMxZmI0Y2Y2MTg0ZC9lYjQzNjk3Zi0wZWIzLTRjYzUtYWIyYy0zNDU1MWNmZDM0ZTYvMDQtZGVwcmVjaWF0aW9uLWJsb2NrLnBuZyIsInR5cGUiOiJhdHRhY2htZW50IiwiaWF0IjoxNzkyNjIwOTAwLCJleHAiOjE3OTI3MDczMDB9.1e_z-QjwnLd6sTpgUsIj-MjhJkA5qT1YJk9ErOhq2qg)

For most office assets, the defaults from Asset Category are a good starting point. Finance should still review the useful life, residual value, and first posting date before submission.

## Step 7: Submit the asset

Submit the Asset when:

* **Available-for-use Date** is set;
* the linked purchase document and purchase value are correct;
* the Asset Category has the correct accounts for the company;
* depreciation settings are correct, if depreciation applies; and
* finance is ready for the asset to appear in the fixed asset balance.

On submission, NexWave posts the opening fixed asset accounting entry. If Capital Work in Progress applies, the asset remains in that account until the **Available-for-use Date**. If the date is in the future, the entry posts when that date is reached.

The submitted Asset record then becomes the source for depreciation, repair, movement, revaluation, sale, and scrap transactions.

## Step 8: Post or monitor depreciation

After an asset is submitted with **Calculate Depreciation** ticked, the **Depreciation Schedule** section shows each scheduled date, amount, accumulated depreciation amount, and Journal Entry link once posted.

If **Book Asset Depreciation Entry Automatically** is on, NexWave posts depreciation entries on schedule. If it is off, open the schedule row and click **Make Depreciation Entry** for each period after review.

Each posted depreciation entry:

* debits the **Depreciation Expense Account**; and
* credits the **Accumulated Depreciation Account**.

Review the schedule after posting to confirm the Journal Entry is linked and the accumulated depreciation amount is correct.

## Month-end review checks

Use these checks before closing a month:

* **Asset list**: no draft assets that should already be submitted.
* **Fixed Asset Register**: asset values reconcile to the relevant fixed asset accounts.
* **General Ledger**: depreciation expense and accumulated depreciation posted through the month-end date.
* **Balance Sheet**: fixed asset, accumulated depreciation, and Capital Work in Progress balances match the assets you expect to be in service.
* **Purchase documents**: fixed asset purchase lines have matching Asset records, especially when auto-creation was not used.
* **Capital Work in Progress**: balances are reviewed for assets still waiting for their available date or commissioning.
* **Disposals**: sold, scrapped, or transferred assets have the correct status and linked accounting entries.

These checks are especially important after a migration, after a large asset purchase, or before sending fixed asset balances to an accountant.

## Routine operations after submission

Use the **Manage** and **Create** menus on a submitted Asset record for the day-to-day lifecycle:

* **Adjust value** when an asset is damaged or revalued: see [Asset Revaluation](/doc/53119805-4cf0-4479-858f-0331d50995da).
* **Repair an asset**: see [Repairing an Asset](/doc/e9c5217b-8985-4d40-bb92-c972b986d661).
* **Move an asset** between locations or assign it to a custodian: see [Transfer Asset to a new Employee](/doc/14736091-dd51-4852-b462-c7b3f4fc5e93).
* **Sell an asset**: see [Selling an Asset](/doc/51b8ecee-365a-4fd2-8c53-25a309978185).
* **Scrap an asset** when it is no longer usable: open the asset and click **Manage > Scrap Asset**.

 ![Manage menu on a submitted Asset showing Transfer, Scrap, Sell, Repair and other actions](https://docs.nexwaveapp.com/api/files.get?sig=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJrZXkiOiJ1cGxvYWRzL2YxMTg5ZTEzLTdlMTQtNDA1ZC04MDI1LWMxZmI0Y2Y2MTg0ZC84MGU5MzZiOS02YmNmLTRhNTItOTJhMi0zOTAyODcyMzc3NjYvMDUtbWFuYWdlLW1lbnUucG5nIiwidHlwZSI6ImF0dGFjaG1lbnQiLCJpYXQiOjE3OTI2MjA5MDAsImV4cCI6MTc5MjcwNzMwMH0.zw9npNJXjcnoC9J2fRYwiJ5V6d61tWver8iN7xQ1eeo)

Do not edit accounting values directly on a submitted Asset to fix lifecycle changes. Use the relevant action so NexWave creates the linked transaction and audit trail.

## Troubleshooting

| Issue | What to check |
|-------|---------------|
| No Asset was created from the purchase | Check that the Item has **Is Fixed Asset** and **Auto Create Assets on Purchase** ticked, then confirm the purchase document was submitted with a **Location** on the item row. |
| The asset cannot be submitted | Check **Available-for-use Date**, Asset Category accounts, company, location, and purchase value. |
| Depreciation did not post | Check **Calculate Depreciation**, **Depreciation Posting Date**, **Book Asset Depreciation Entry Automatically**, and whether the scheduled date has passed. |
| The depreciation amount looks wrong | Review **Net Purchase Amount**, residual value, useful life, frequency, depreciation method, and any opening accumulated depreciation entered for an existing asset. |
| Fixed asset balances do not match the Balance Sheet | Compare the Asset list and Fixed Asset Register to the General Ledger for the same company and date range. Check draft assets, unposted depreciation, recent disposals, and Capital Work in Progress balances. |
| An old asset was migrated at the wrong value | Correct the opening value and depreciation history before relying on future schedules. If entries have already posted, speak to finance before cancelling or reversing accounting entries. |
| A physical item was created as one asset instead of many | Create one Asset record per physical item. If accounting entries were already submitted, correct the records with finance review so the asset register and General Ledger stay aligned. |

## Related documentation

* [Fixed Assets module reference](/doc/da29ab4e-441f-47a2-9cfd-afc6037959f6): concepts, depreciation methods, and accounting model.
* [Asset Category](/doc/4d1326cb-98f1-42c9-960e-6f6f95542b97): set up the categories that group assets and carry default depreciation settings.
* [Asset Revaluation](/doc/53119805-4cf0-4479-858f-0331d50995da): adjust the recorded value of an asset.
* [Repairing an Asset](/doc/e9c5217b-8985-4d40-bb92-c972b986d661): record repairs against an asset.
* [Selling an Asset](/doc/51b8ecee-365a-4fd2-8c53-25a309978185): dispose of an asset through a Sales Invoice.
* [Transfer Asset to a new Employee](/doc/14736091-dd51-4852-b462-c7b3f4fc5e93): record asset movements between locations and custodians.