Buy a capital asset

You record buying an asset the same way you record any other spending - the only difference is the category you pick. Choose a capital asset category, such as Computer Equipment or Motor Vehicle, and Kontala capitalises the purchase and adds the asset to your register automatically.

Three ways to record the purchase

• A bill - for a supplier invoice you will pay later. Add a line with a capital asset category; each capital line on the bill becomes its own asset. See Create a bill.
• An expense claim - when you or an employee paid personally. Pick the capital asset category on the claim; the asset is created when the claim is approved. See Create an expense claim.
• A bank explanation - when the payment is already in your bank account. Explain the transaction as a Purchase of Capital Asset - see Explain asset purchases and disposals.

Choose the depreciation

Whichever route you use, the form asks for a Depreciation method:

• Straight line, with an Asset life of 1 to 25 years.
• Reducing balance, with a Depreciation rate percentage.
• No depreciation.

See Depreciation for how each method behaves.

After you record it

The asset appears in the register at its cost, and depreciation starts from the purchase month. Open the asset and choose Edit asset details if you want to give it a clearer name than the default.