Handle assets and investments correctly
Use this guide to decide when a purchase is a normal expense and when it should be recorded as an asset.
When is something an asset?
An asset is a purchase you use beyond the current month or project.
Think of tools, machines, a laptop, scaffolding, inventory or other business equipment that lasts multiple years. Small consumables and materials used directly on a job usually remain normal expenses.
Step by step
How to process an investment without bookkeeping stress.
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1Review the purchase first
Look at the purpose of the purchase. If you use the item for multiple years, it is probably an asset. If it is material for a specific job, it is usually a direct expense.
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2Enter the expense normally
Create a new expense with date, supplier, category, title, amount and VAT. Add the receipt or invoice where possible.
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3Read the smart check
From EUR 450, or with words such as machine, tools or laptop, UurKlus shows a reminder to check whether fixed assets should be used.
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4Enable Asset when appropriate
Tick fixed assets and enter the first-use date, expected useful life and residual value. Editing the expense preserves this residual value.
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5Finish payment and posting
Indicate whether the expense has already been paid. Paid posts against bank or cash; unpaid remains open under creditors.
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6Check the overview
Open Assets to track acquisition cost, depreciation and book value. Missed monthly depreciation is updated automatically when you open the overview.
What is shown in the overview?
The overview helps you review investments calmly.
The fiscal value used to create the asset: net amount plus non-deductible VAT.
UurKlus posts after month-end. Straight-line depreciation is limited to 20% of acquisition cost a year, prorated in the first year. The first partial month is prorated by calendar days. Depreciation stops at residual value. A warning highlights higher previous depreciation; posted amounts are not automatically corrected.
What is administratively left of the asset: acquisition cost minus booked depreciation.
For older assets, UurKlus can store scheduled corrections. Once the depreciation workflow runs, those entries are posted and the schedule disappears.
An asset created from an expense links back to that expense. A manually created asset may not have this link; retain its purchase evidence too.
For a sale, select one finalized sales invoice covering only the entire asset. UurKlus takes the net proceeds from it, updates depreciation through the disposal date and records the difference from book value as a gain or loss. VAT and payments remain linked to the invoice. Review the calculation before posting disposal.
Add an older or manual asset
Use New asset when the purchase was not recorded through a recent expense.
The form stays short. UurKlus only asks how to handle previous depreciation when first use was before the current month.
Enter the name, category, acquisition cost, acquisition date, first-use date, useful life and residual value. The acquisition date is suggested as the start date; you can enter a later first-use date.
UurKlus stores the correction as a scheduled amount on the asset. The journal entry is created when monthly depreciation runs or when you open the overview after that month.
Depreciation that belongs to prior years is processed as an opening correction through equity. Only the current-year part is booked as depreciation expense.
Enter the book value at the end of the previous month. UurKlus records previous depreciation as an opening correction and continues depreciation from the current month.
Examples
Use these as a quick check when in doubt.
Used for multiple years and above the threshold. Usually recorded as an asset with depreciation.
A business asset for multiple years. For mixed use, review the VAT deduction percentage.
Material for a job. This is normally a direct expense, not an asset.
May be an asset, but review business use and VAT deduction carefully.