6 min read
Fixed Assets and Depreciation: Tracking Shop Equipment in Your Books
Why Nepali shops should keep fridges, shelves, and counters out of sellable stock, and how depreciation belongs with your accountant rather than in the product list.
Shops buy two kinds of things: goods you sell, and equipment you use to sell them. Shelves, billing computers, fridges, and delivery vehicles stay with you. They should not sit in the same quantity list as soap and rice.
Depreciation is how the cost of that equipment is spread over the years you use it. The rate and the method are tax and accounting choices. Confirm them with your accountant. Do not invent a percentage in the POS.
Keep equipment out of the product catalog
If a fridge is received as a product, it inflates stock value and can be “sold” by mistake. Record merchandise in Sajilo IMS. Keep an asset list elsewhere: what you bought, the date, the supplier, the cost, and where it sits.
Spare parts you might sell are stock. The same part, if it is only for your own machine, is not a retail SKU. Decide before you receive it.
What the asset list needs
Name, cost, purchase date, and location are enough for a small shop. Add a serial number for computers and vehicles. When you sell or scrap the item, record the date and any money received so it leaves the list.
Repairs that keep an asset running are usually expenses. A major upgrade that extends its life may be added to the asset. That distinction is your accountant’s, but they can only make it if you kept the bill.
Depreciation is a year-end entry, not a daily stock adjustment
Do not reduce “qty” on a fridge each month to represent depreciation. Quantity is physical. Depreciation is a value entry in the accounts.
Once a year, hand the asset list and the year’s additions and disposals to your accountant with the stock valuation from Sajilo IMS. Those are different schedules and should stay different.
Frequently asked questions
- Should we barcode the furniture?
- A label helps you find it during a count of equipment. It should not make the furniture a sellable product with on-hand quantity.
- What about a vehicle used for delivery?
- Treat it as an asset: cost, date, and later sale or scrap. Fuel and service are expenses. Do not receive the vehicle into warehouse stock.
Ready to tighten inventory control?
Register for Sajilo IMS or talk to our Nepal-based team about warehouses, stock, and reporting for your business.