Glossary
Fixed asset
Definition
A fixed asset is an asset the company keeps for more than one year, such as equipment, a vehicle or a computer. Its cost is spread over its useful life through depreciation, rather than paid out in one year.
Example. A computer bought for €1,800 and used for three years is a fixed asset that is written off over those years.
Why it matters for your company
Buying a fixed asset is not the same as an expense. Recording it as a fixed asset and depreciating it gives a fair profit for each year.
Where you see it in Sapita
On a purchase line above the amount you set for fixed assets, and in the fixed asset list.