Managing Fixed Assets

Fixed assets are long-term items your business owns, such as vehicles, machinery, computers, and office furniture.

Adding a Fixed Asset

1. Navigate to Accounting > Fixed Assets
2. Click Add Asset
3. Fill in the asset details:
   • Name \u2014 Descriptive name (e.g. "Dell Laptop - Office")
   • Category \u2014 Select the asset category
   • Acquisition Date \u2014 When you purchased it
   • Acquisition Cost \u2014 The purchase price
   • Depreciation Method \u2014 Straight-line or Reducing balance
   • Useful Life \u2014 Expected lifespan in years
   • Residual Value \u2014 Expected value at end of life
4. Link to the appropriate accounts (Asset, Depreciation Expense, Accumulated Depreciation)
5. Save

Depreciation Methods

Straight-line: Spreads the cost evenly over the asset's useful life. Best for assets that provide consistent value.

Reducing balance: Applies a percentage to the remaining book value each period. Front-loads the depreciation expense.

Depreciation Schedule

Once an asset is created, dynamik.app generates a full depreciation schedule showing:

• Period-by-period depreciation amounts
• Accumulated depreciation to date
• Net book value at each point

Recording a Disposal

When you sell or scrap an asset:

1. Open the asset record
2. Click Dispose
3. Enter the disposal date and any proceeds received
4. The system calculates any gain or loss on disposal
5. Journal entries are created automatically

Journal Entries

All fixed asset transactions generate automatic journal entries:

• Purchase: Debit Asset account, Credit Bank/Creditor
• Depreciation: Debit Depreciation Expense, Credit Accumulated Depreciation
• Disposal: Reverses the asset and accumulated depreciation, records gain/loss