Expense Tracking

The Fixed Asset module tracks only recurring expenses, not acquisition expenses. Also, it does not perform the accounting associated with disposal of assets. It is assumed that the expense calculation and posting program will be run on a monthly basis.

Four kinds of expenses are tracked:

  • Depreciation
  • Insurance
  • Interest
  • License

Not all of these expenses will be applicable to every asset. For example, interest is charged only to assets purchased with an outstanding loan or mortgage, insurance is charged only to assets that are insured (usually buildings and equipment), and license fees apply only to vehicles used on public roads (i.e. some but not all equipment). Even depreciation may not apply to land, although you can use the depreciation mechanism to effect depletion of land used for mining or quarrying.