Adding an Asset Account to your Chart of Accounts

Adding an Asset Account to your Chart of Accounts

These instructions relate to adding an Asset account to your Chart of Accounts. Also have a look at the post on Entering Asset Purchases.

Step 1. Select Chart menu option on the toolbar

Click on the Add button

Step 2. Fill out the Required Information

  1. Account Code not already in use.
  2. Description of the asset.
  3. Account Type - 'Asset'.
  4. GST Category - '08. Capital Acquisitions'.
  5. Check with your accountant or advisor about assigning the optional Reporting Group and Accountant's Link Code.
  6. Click on the OK button.

Step 3. Create an expense account for the purchase of the asset

  1. Account Code and Description (eg Purchase - Item).
  2. Account Type - 'Other Expense'.
  3. GST category - '08. Capital Acquisitions'.
  4. Register Link - 'Fixed Assets'.
  5. Balance Sheet Link - this will be the Asset account created in Step 2, i.e. 410 Plant & Equipment at Cost.
  6. Click on the OK button to save.

Step 4. Create an income account for the sale of the asset

  • Account Code: determined by your Chart setup.
  • Description: eg. Sales - Plant & Equipment.
  • Account Type: 'Other Income'.
  • GST Category: '09. Capital Disposal'.
  • Register Link: 'Fixed Assets'.
  • Balance Sheet Link: this will be the Asset account created in Step 2, i.e. 410 Plant & Equipment at Cost.

CSC Article ID 715