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Fixed Assets & Depreciation

Register fixed assets, run automatic depreciation schedules, and handle improvements, transfers, and disposals — all posted to the ledger.

Updated March 22, 2026

Assets tracks everything you own that depreciates — vehicles, equipment, fit-out, IT — from acquisition to disposal. Define classifications once, and XO runs the depreciation schedules and posts every entry so your balance sheet and asset register always agree.

Concepts

  • Asset classification — a group (e.g. Vehicles) that sets the default depreciation method and useful life.
  • Depreciation method — straight-line, or manual schedules.
  • Accumulated depreciation — the contra-asset account that builds up over the asset’s life.
  • Net book value (NBV) — cost minus accumulated depreciation.

Set up asset classifications

  1. Go to XO Books → Assets → Classifications → New.
  2. Name the class (e.g. Computers & IT).
  3. Set the depreciation method (straight-line) and useful life (e.g. 4 years).
  4. Map the asset, accumulated-depreciation, and depreciation-expense accounts.
  5. Save. New assets in this class inherit these defaults.

Add a fixed asset

XO offers three routes — pick what matches how the asset entered the business.

  1. When recording the purchase in Purchasing, mark the line as a fixed asset.
  2. XO creates the asset, capitalizes the cost, and links it to the invoice.

Manually

  1. Go to Assets → New asset.
  2. Choose the classification, enter name, acquisition date, and cost.
  3. Confirm the useful life and salvage value.
  4. Click Save — XO generates the depreciation schedule.

Via opening balances

When going live, add existing assets under Assets → Opening balances with their cost and accumulated depreciation to date, so NBV is correct from day one.

📷 Screenshot: an asset card showing cost, the depreciation schedule, and current NBV.

Run depreciation

  1. Open Assets → Depreciation run.
  2. Select the period.
  3. Review the proposed depreciation per asset.
  4. Click Post — XO debits depreciation expense and credits accumulated depreciation for each asset, in one batch.

Tip: schedule the run as a recurring month-end task so it never slips.

Improvements, transfers, and revaluation

  • Improvement / capitalization: add cost to an existing asset (e.g. an engine rebuild). Link a purchase invoice or post a manual addition — XO recalculates remaining depreciation.
  • Transfer: move an asset between locations, projects, or employees (custody) without changing its value.
  • Revaluation: adjust an asset’s carrying value and let XO post the difference.

Dispose or scrap an asset

  1. Open the asset → Dispose.
  2. Choose sale or scrap.
  3. For a sale, enter the proceeds; XO calculates the gain or loss vs NBV and posts it.
  4. The asset is derecognized and removed from the active register (kept for audit).

Best practices

  • Standardize classifications so depreciation policy is consistent and audit-defensible.
  • Run depreciation before closing each period.
  • Use transfers (not new assets) when equipment moves between branches — keeps history intact.

Troubleshooting

  • Depreciation looks wrong. Check the useful life and acquisition date; a mid-month start prorates the first period.
  • Loss account missing on scrap. Map a gain/loss on disposal account in the classification.
  • Asset value field greyed out. Cost is locked once depreciation has posted — reverse the run or use an improvement to adjust.