Assets and Depreciation
Quasar’s fixed asset module tracks the equipment, vehicles, furniture, software licences, and other long-lived property your business owns. It records purchase details, calculates depreciation, posts journal entries to the General Ledger, and tracks which employee has each asset deployed.
How the Asset System Works
The asset system is built on three layers:
| Component | Where | Purpose |
|---|---|---|
| Depreciation Methods | Depreciation Master | Defines how an asset loses value over time (calculation formula and useful life) |
| Asset Types | Asset Type Master | Categories that group assets with shared depreciation methods and GL accounts |
| Assets | Asset Master | Individual asset records with purchase details, warranty, licence info, and deployment history |
Step 1: Define Depreciation Methods
Before creating asset types or assets, set up your depreciation methods in the Depreciation Master (Setup → Depreciation).
Depreciation Method Fields
| Field | Purpose |
|---|---|
| Number | Short identifier (up to 5 characters) |
| Name | Display name (e.g., “5-Year Straight Line”) |
| Description | Longer description |
| Type | Calculation method (see below) |
| Units | Total production units (only for Units of Production method) |
| Life | Useful life in years |
Depreciation Types
| Type | Formula | Best For |
|---|---|---|
| Straight Line | Cost ÷ Life × Days elapsed | Assets that lose value evenly over time (furniture, leasehold improvements) |
| Declining Balance | (1 ÷ Life) × 2 × Book Value × Days elapsed ÷ 365 | Assets that lose value quickly early on (vehicles, electronics, computers) |
| Units of Production | Manual calculation based on actual units produced | Manufacturing equipment where wear depends on usage |
| None | No depreciation calculated | Land or assets held at cost |
- “5-Year SL” — Straight Line, Life = 5 (computers, electronics)
- “10-Year SL” — Straight Line, Life = 10 (furniture, fixtures)
- “5-Year DB” — Declining Balance, Life = 5 (vehicles)
- “No Depreciation” — None (land)
Step 2: Create Asset Types
Asset types group assets with the same depreciation method and GL accounts. Open the Asset Type Master (Setup → Asset Types).
Asset Type Fields
| Field | Purpose |
|---|---|
| Number | Short identifier |
| Name | Category name (e.g., “Computer Equipment”, “Vehicles”, “Software Licences”) |
| Description | Longer description |
| Depreciation | The depreciation method to use for all assets of this type |
| Asset Account | GL account where the asset value is recorded (e.g., “1400 Equipment”) |
| Accumulation Account | Contra-asset GL account for accumulated depreciation (e.g., “1490 Accum Depreciation”) |
| Expense Account | GL expense account where depreciation is charged (e.g., “5300 Depreciation Expense”) |
| Is License? | Check this for software licence types — changes the Asset Master to show licence-specific fields instead of warranty fields |
Step 3: Register Assets
Create individual asset records in the Asset Master (Assets → Assets).
Asset Master Fields
| Field | Purpose |
|---|---|
| Number | Asset tag number |
| Name | Description (e.g., “Dell OptiPlex 7020 — Accounting Dept”) |
| Asset Type | Selects the type, which sets the depreciation method and GL defaults |
| Depreciation | Read-only — inherited from the asset type |
| Created By | Employee who registered the asset |
| Store | Location where the asset resides |
| Manufacturer | Manufacturer name |
| Model | Model number |
| Serial # | Serial number for identification |
| Replacement Item | Optional link to an inventory item for reordering |
| Vendor | Supplier the asset was purchased from |
| Purchase Date | Date acquired — used as the starting point for depreciation |
| Asset Cost | Original purchase cost |
| Last Depreciation | Date of the most recent depreciation posting |
| Accum Depreciation | Total depreciation posted to date |
| Starting Depreciation | Pre-existing depreciation when migrating from another system |
| Asset Account | GL asset account (defaults from type) |
| Accumulation Account | GL accumulated depreciation account (defaults from type) |
| Expense Account | GL depreciation expense account (defaults from type) |
Asset Master Tabs
| Tab | Contents |
|---|---|
| Main | Free-form notes about the asset |
| Warranty | Warranty start/end dates and terms (hidden for licence types) |
| License | Licence expiry date, number of seats, annual support fees, whether the licence can be reassigned, and licence notes (shown only for licence types) |
| Deployment | History of which employee has the asset, assignment dates, return dates, and location |
Deployment Tracking
The Deployment tab on the Asset Master tracks who has each asset and where. Click Add Deployment to assign an asset to an employee:
| Field | Purpose |
|---|---|
| Assigned Employee | The employee receiving the asset |
| Deployment Location | Where the asset is physically located (e.g., “Head Office — Room 204”) |
| Deploy Date | When the employee received the asset |
| Return Date | When the asset was returned (blank if still deployed) |
Use Edit Deployment or double-click a row to update an existing assignment (e.g., recording a return date when an employee gives back a laptop).
Running Depreciation
To calculate and post depreciation, open Depreciate Assets (Assets → Depreciate Assets).
Depreciation Process
- Optionally filter by Asset, Depreciation method, or Store
- Set the Post Date — depreciation is calculated from the last depreciation date (or purchase date) to this date
- Set the Store and Employee for the journal entries
- Select assets in the list (use Select All Assets to select everything)
- Click Depreciate Assets
For each selected asset, Quasar:
- Calculates the depreciation amount based on the method and elapsed days
- Creates a General Journal entry debiting the Expense Account and crediting the Accumulation Account
- Updates the asset’s accumulated depreciation and last depreciation date
- Skips fully depreciated assets (where cost equals accumulated depreciation)
Final Fiscal Depreciation
Check Final fiscal depreciation? when running year-end depreciation. This sets the Starting Depreciation on each asset to its current accumulated depreciation, establishing a new baseline for the next fiscal year. This is important for Declining Balance calculations, which use the starting amount as their base.
Viewing Assets
Use the Asset List (Assets → Asset List) to view, search, and manage all registered assets. Double-click any asset to open it in the Asset Master.
Asset Setup Checklist
- Create GL Accounts: Asset, Accumulated Depreciation, and Depreciation Expense accounts
- Define Depreciation Methods in the Depreciation Master (Straight Line, Declining Balance, etc.)
- Create Asset Types linking depreciation methods to GL accounts
- Register individual Assets with purchase details, manufacturer, model, and serial number
- Record Deployments to track which employees have which assets
- Run Depreciate Assets monthly or at fiscal year-end
- Check Final fiscal depreciation? at year-end to reset the starting base
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