A Step by Step Guide to Fixed Asset

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Note.gif Note:

DISCLAIMER - This is an implementation guide written by Kittiu, from Ecosoft Bangkok, Thailand for the purpose of teaching himself about fixed asset. It is not an official guide nor meant to be comprehensive yet. Other contributors are welcome to discuss on improving it.

This document is in DRAFT stage, do not use!




Cases in Fixed Asset Management

First Simple Case

  1. Requisition to purchase a fixed asset, i.e., a car, amount x,xxx,xxx.
  2. Generate PO from approved requisition.
  3. Send approved PO to supplier, may or may not have the product key. (we are not buying them often)
  4. Receive car as fixed asset and assign location and assign tag number of the asset.
    • New asset should be created here, instead of invoice
    • Accounting Fact: Dr. Fixed Asset Intransit, Cr. ???
  5. Receive AP Invoice for that fixed asset.
    1. Accounting Fact: Dr. Fixed Asset, Cr. Account Payable
  6. Further Tasks
    1. Make payment for this Fixed Asset as normal.
    2. Create asset detail, more information such as,
      • Core Info: Depreciation Method, % Depreciation, Account Code setup for depreciation and accumulate depreciation, Useful Life, Location, Acquisition Date, Residual Value, Time interval to depreciation calculation
      • Related Info: Insureance, Leasing, Maintenance (may complete with Maintenance Management Module), Account Code for maintenance charge, etc.
    3. Create fix asset registration

Existing Windows in ADempiere Fixed Assets Module

Step by Step Case Studies


  • Ability to track asset's location as in EAM system.
    • In AD, location of items are identified by Warehouse / Locator. In Asset Management, location are more varied, i.e., in building, room, laboratory, etc. (this also important for Asset Maintenance Management). Not necessarily in Warehouse only.
    • In Asset Management, locations are hierarchical in nature, i.e., many spaces in a room, many rooms in a building. And to track asset, we should be able to sum up all assets in a building (Asset Management System).


  • Ability of the software to determine which purchase is to be Capitalized or just an Expensed. I.e., a company rule saying the buying of stuff, cost > 5,000 baht and will be used > 1 years, will always be Capitalized