Glossary
What is a fixed asset register?
What a fixed asset register records, why auditors ask for it, and what a small manufacturer's register looks like with book values.
Updated
In short
A fixed asset register lists every long-term asset with its cost, purchase date, depreciation, book value and holder. SimpleERP keeps one in the Assets module and posts depreciation to the ledger each month.
A fixed asset register is the list of every long-term asset a business owns, such as machines, vehicles, computers and furniture, with each one's purchase date, cost, supplier, depreciation method, accumulated depreciation, book value and location or holder. Its totals must agree with the fixed asset and accumulated depreciation accounts in the ledger. Auditors use it to verify assets physically.
Fixed asset register: a worked example
Lakshmi Steel Furnitures' fixed asset register on 30 September 2026, straight-line depreciation.
| Asset | Category | Cost | Accumulated depreciation | Book value |
|---|---|---|---|---|
| AST-0001 Welding machine | Plant and machinery | ₹1,20,000 | ₹70,000 | ₹50,000 |
| AST-0002 Desktop computer | Computers and equipment | ₹62,000 | ₹42,000 | ₹20,000 |
| AST-0003 Laser cutting machine | Plant and machinery | ₹6,40,000 | ₹30,000 | ₹6,10,000 |
| Total | ₹8,22,000 | ₹1,42,000 | ₹6,80,000 |
FAQ
Questions, answered
Is a fixed asset register mandatory?
Companies must keep proper records of fixed assets showing quantity, situation and particulars, and auditors report on them under CARO where it applies. For any business, a register is the only practical way to support depreciation and the balance sheet figure.
What should a fixed asset register contain?
An asset number, description, category, purchase date and supplier, cost, depreciation method and life, accumulated depreciation, book value, location or holder, and disposal details when it leaves. Serial numbers and warranty dates help with physical checks.
How does the register stay in step with the books?
In SimpleERP each asset's depreciation posts a journal to its category's accounts, and disposals post their own journal, so the register totals and the ledger accounts move together. No year-end adjustment is needed to make the two agree.
Can I add assets I bought before using SimpleERP?
Yes. Create the asset with its original cost and date, and activate it as an opening balance with the depreciation already charged. It posts against Opening Balance Equity, and future months depreciate from the correct book value.
Related
Keep reading
Depreciation
Spreading an asset's cost over the years it is used.
Read moreAsset disposal
Removing a sold or scrapped fixed asset from the books and recording the gain or loss against its book value.
Read moreFixed assets
An asset register with monthly depreciation, custodians, maintenance and disposal.
Read more
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