# 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