Moving Asset from Stock Item to Fixed Asset Item

Question: We have added Asset Item as a Stock / consumable Item. How to move this item to Fixed Asset register, so that Depreciation can be applied on it?

Answer: To move a stock or consumable item to the Fixed Asset Register in ERPNext, follow these steps:

1. Create a Fixed Asset Item:

   • Go to the "Item" list and create a new item, making sure to set its type as "Fixed Asset."
   • Ensure the relevant details for depreciation and asset management are filled out.

2. Create a Fixed Asset from the Existing Item:

   • Navigate to the "Asset" module.
   • Click on "New" to create a new Fixed Asset record.
   • Enter the details of the asset, including its asset type and the item code from the stock/consumable item.

3. Update Asset Details:

   • In the Fixed Asset record, update details such as purchase date, purchase amount, and other relevant information.
   • If you need to apply depreciation, set up the depreciation rules accordingly.

4. Transfer Stock to Asset:

   • If the item is already in stock, you’ll need to adjust the stock and record the transfer:

     • Create a Stock Reconciliation or Stock Entry to adjust the inventory.
     • Move the item from stock to a fixed asset account if needed.

5. Set Up Depreciation:

   • Go to the "Depreciation Schedule" in the Fixed Asset module.
   • Create a depreciation schedule for the asset based on your company's policies.

Make sure to follow your company's accounting and inventory policies when making these changes.