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Fixed Assets

The Fixed Assets module maintains your fixed asset register, calculates depreciation using TRA-compliant methods, tracks asset disposals with gain/loss reporting, and posts depreciation journals to the General Ledger.

Prerequisites

Set up your Chart of Accounts and assign GL accounts to each asset for automatic depreciation posting.

Status lifecycle​

Active → Disposed
   ↓
Under Maintenance
   ↓
Written Off
StatusMeaning
ActiveIn use and depreciating normally
Under MaintenanceTemporarily out of service — still depreciates
DisposedSold, donated, or scrapped — no further depreciation
Written OffFully impaired — removed from the active register

TRA Depreciation Classes​

Tanzania's Income Tax Act defines four depreciation classes for tax purposes. Select the appropriate class when registering an asset — the system auto-fills the depreciation method and rate.

ClassRateTypical assets
Class 137.5% DBComputers, automobiles, buses & minibuses
Class 225% DBTrucks, trailers, plant, machinery & equipment
Class 312.5% DBRailways, pipelines, industrial buildings
Class 45% DBOther buildings and structures

All TRA classes use the Declining Balance method. For non-TRA assets (e.g. leasehold improvements), use Straight-Line with a custom useful life.

caution

This documentation provides general guidance. Always confirm your specific TRA depreciation obligations with a qualified tax advisor.

Registering an asset​

  1. Go to Accounting → Fixed Assets
  2. Click + New Asset
  3. Fill in the details across four sections:

Asset Details​

  • Name (required) — descriptive name (e.g. "MAN TGX 26.540 Truck")
  • Category — Fleet & Vehicles, Plant & Equipment, Buildings, Furniture, IT Equipment, Office Equipment, Other
  • TRA Class — click a class to auto-fill the depreciation method and rate
  • Serial No, Location, Assigned To — optional tracking fields

Acquisition​

  • Acquisition Date (required)
  • Acquisition Cost (required) — original purchase price
  • Currency — TZS, USD, EUR, GBP, KES, ZAR, ZMW
  • Residual Value — estimated value at end of useful life (default: 0)
  • Supplier Name and Purchase Reference — for records

Depreciation​

  • Method: Straight-Line, Declining Balance, or None
  • Useful Life (years) — required for Straight-Line
  • Rate (%) — required for Declining Balance; auto-filled from TRA Class
  • Depreciation Start Date — defaults to acquisition date

A live preview shows the annual and monthly depreciation amounts as you type.

Link three accounts to enable automatic journal posting:

  • Asset Account — where the original cost sits on the Balance Sheet
  • Depreciation Expense Account — P&L charge per period
  • Accumulated Depreciation Account — contra-asset on the Balance Sheet

FactBox​

Click any row in the Fixed Assets list to open the FactBox — a summary panel showing cost, accumulated depreciation, net book value, monthly depreciation amount, and TRA class. Click Open Asset → to navigate to the full detail page.

Asset detail page​

The detail page has three tabs:

TabContents
Asset InfoFull acquisition, depreciation, GL, and disposal details
Depreciation ScheduleProjected year-by-year table — opening NBV, annual charge, closing NBV
Maintenance LogChronological service history — date, description, cost, vendor

Running depreciation​

The monthly depreciation run updates all active depreciable assets at once and optionally creates a GL journal.

  1. Click Run Depreciation (from the list or an asset detail page)
  2. Select the period (YYYY-MM)
  3. Review the preview table — all active assets with their monthly depreciation amount
  4. Tick Create Draft Journal to generate a GL entry (requires GL accounts configured on each asset)
  5. Click Run

The system:

  • Increments each asset's Accumulated Depreciation by the monthly amount
  • Updates the Last Depreciation Date
  • Creates a Draft journal entry named DEP-YYYY-MM

The draft journal follows this structure:

DR  Depreciation Expense Account    [amount per asset]
CR  Accumulated Depreciation Account [amount per asset]

Review the draft in Accounting → Journal Entries, then Post to lock it into the GL.

info

Assets with no GL accounts configured are still updated in the register — only the journal creation is skipped for those assets.

Depreciation schedule​

The Depreciation Schedule tab shows the full projected lifecycle of an asset:

YearOpening NBVAnnual DepreciationClosing NBV
202545,000,000(11,250,000)33,750,000
202633,750,000(8,437,500)25,312,500
…………

The schedule is calculated from the acquisition date using the asset's depreciation method and rate. It is a forecast — actual accumulated depreciation may differ if runs were skipped or the asset was revalued.

Asset disposal​

When an asset is sold, donated, or scrapped:

  1. Open the asset → click Dispose
  2. Enter the Disposal Date, Method, and (for sales) the Proceeds
  3. The system calculates Gain or Loss on Disposal = Proceeds − Net Book Value
  4. Confirm
MethodWhat happens
SaleAsset status → Disposed; gain/loss calculated
Write-offAsset status → Written Off; full loss recognised
DonationAsset status → Disposed; no proceeds
ScrappedAsset status → Disposed; no proceeds
TRA note

A gain on disposal (proceeds > book value) is taxable income — report it in your TRA income tax return. A loss on disposal (proceeds < book value) is generally tax-deductible.

Maintenance log​

Log maintenance events directly on each asset:

  1. Open the asset → Maintenance tab → click + Log Entry
  2. Enter date, description, cost (optional), and vendor/workshop name
  3. Save

Maintenance records do not affect depreciation. They exist for asset history and insurance purposes.

Permissions​

PermissionWhat it allows
asset.viewView the asset list and detail pages
asset.createRegister new assets
asset.editEdit asset details and add maintenance records
asset.deleteArchive (soft-delete) assets
asset.depreciateRun monthly depreciation
asset.disposeRecord asset disposals and write-offs

Assign these in Settings → Access → Roles.