Mifumo

Asset management

Keep a fixed asset register, charge depreciation, track who has each asset, and record disposals with the right journal entries.

Getting started

The Asset Register link appears in the menu when your plan includes the Asset Management module.

  1. Check your chart of accounts has three accounts for each kind of asset: the asset account (balance sheet), accumulated depreciation (balance sheet) and depreciation expense (profit and loss).
  2. Open Asset Register, then the Asset Register tab, and click More, then Categories. Click Add TRA wear and tear classes, or add your own categories with their accounts and depreciation.
  3. Add your assets one by one with Add Asset, or bring in your existing register with Import.
  4. If you bought assets on a supplier bill booked to an "Assets in transit" account, open More, then Assets in transit to turn each one into an asset.
  5. Each month, post depreciation in Mifumo or export it with Depreciation journal if your books are kept in another system.

How to

Register a new asset

  1. Open Asset Register, then the Asset Register tab.
  2. Click Add Asset.
  3. Fill in Asset Name, Asset Code, Category, Purchase Date and Purchase Cost (TZS). Serial Number, Location, Custodian, Cost Centre and Salvage Value (TZS) are optional.
  4. Choose the Depreciation Method. Straight Line needs a Useful Life (Months) or a Rate % per Year. Reducing Balance needs a Rate % per Year.
  5. Check the Asset Account (Balance Sheet), Accumulated Depreciation (Balance Sheet) and Depreciation Expense (P&L) accounts. Mifumo picks the usual ones and lists only accounts of the right kind.
  6. Under How was it paid for?, choose Post it now and the bank, cash or supplier account it was paid from or owed to, or Already in the books if a bill, journal or opening balance already holds the cost.
  7. For an older asset, enter Depreciation to date and Up to if that depreciation is already in your books. Leave them blank and Mifumo posts the months since purchase.
  8. If the asset already has a barcode or RFID tag, enter it now. Leave it blank and Mifumo makes a label for you.
  9. Click Register Asset.

Find, correct or delete an asset

  1. Open Asset Register, then the Asset Register tab.
  2. Search by name, code or serial number, or filter by Status, Category, Location or Cost centre. Click a column heading to sort. The last row totals cost, depreciation and book value for the assets shown.
  3. Open the asset with Manage, then click Edit asset.
  4. Change the details and click Save changes.

The cost, dates, method and accounts can be changed only until something is posted or exported for the asset. After that, reverse the entries first. Delete asset is there only while nothing is posted, exported, costed or attached for the asset.

See the depreciation schedule

Open the asset with Manage and scroll to Depreciation schedule. Each month still to come shows the charge, the depreciation to date and the book value after it, until the asset reaches its residual value.

Turn an asset in transit into a register entry

  1. Open Asset Register, then click More, then Assets in transit.
  2. The page lists supplier bill lines booked to an "Assets in transit" account, with the amount still to capitalize.
  3. Click Capitalize Asset on the line and complete the asset details.
  4. When you click Register Asset, Mifumo posts the entry that moves the cost from the transit account to the asset account.

One line can become several assets. Set Quantity to make that many identical assets sharing the cost (10 laptops on one line), or enter a lower Purchase Cost and come back for the rest. The line leaves the list once its whole amount is used.

Bring in a batch of trucks or machines (asset shipments)

Use this when a batch arrives on one supplier bill, for example 10 horses and 10 trailers CIF Dar es Salaam, with the duty paid on one control number and each unit registered on its own later.

  1. Post the supplier's bill, the duty and the clearing charges to an "Assets in transit" account as usual.
  2. Open Asset Register, then More, then Asset shipments, and click New shipment.
  3. Choose what the shipping line charged by, Volume (m³) or Weight (kg). Then enter one row per kind: how many, the category, horse or trailer, and the volume or weight per unit.
  4. On the shipment, click Link transit lines and tick the bill, duty and clearing lines.
  5. Click Split on each line and enter how much of it is for each category. For example, on a CIF bill of $140,000 put the horses' $100,000 and the trailers' $30,000. On a duty payment with one control number, put the horses' TZS 100m and the trailers' TZS 50m. Whatever you leave out, such as $10,000 shipping for both, is shared by volume or by weight, whichever the shipping line charged by, when every unit has that figure, or equally otherwise.
  6. Every unit in a category costs the same. The Cost per category row shows each category's total and cost per unit. At 2,500 TZS to the dollar, the example above gives TZS 36,250,000 per horse and TZS 13,750,000 per trailer.
  7. Type each unit's chassis number, stock id and registration number as the papers arrive, then click Save units.
  8. Click Capitalize on a unit to open the asset form with its numbers, category and cost filled in. Or click Capitalize with a reg. no. to move every unit that has its registration number in one go, each with its own category's accounts and depreciation.

Each unit posts Dr the asset account and Cr each "Assets in transit" account for what that account holds for its category. Costs linked later are spread over the units of that category still in transit, and the last one takes whatever is left, so the shipment clears to zero. Lines on a shipment leave the Assets in transit list. A line can come off a shipment only until the first unit is capitalized, and a split can't take from a category less than its capitalized units already used. Once a unit is capitalized, the volumes, weights and what shipping is shared by are fixed.

Import an existing asset register

  1. Open Asset Register, then the Asset Register tab.
  2. Click Import and download the CSV or Excel template.
  3. Fill in one row per asset. Asset code must not already be in the register.
  4. Give the depreciation already charged, as accumulated depreciation or net book value, as at a date you choose on the upload form.
  5. Upload the file, check the preview for problems on each row, then save.

Nothing is posted to the books by an import. The cost and accumulated depreciation come into the ledger through your opening balances. You can undo an import until other work, such as maintenance, has been recorded on the assets.

Export the register

  1. Open Asset Register, then the Asset Register tab.
  2. Click Export and choose the format.

The Asset Movement tab also exports a movement schedule by category to Excel and PDF, showing cost, accumulated depreciation and net book value for the period.

Post depreciation for one asset

  1. Open the asset from the register with Manage.
  2. On the Overview & tags tab, find Post Depreciation.
  3. Check the Date and Amount (TZS). The amount is filled in with this month's charge from the asset's method.
  4. Click Post Depreciation.

Mifumo refuses a month that was already exported for posting in another system, so nothing is charged twice.

Post a month's depreciation for every asset

  1. Open Asset Register, then the Asset Register tab, and click More, then Monthly depreciation.
  2. Choose the month in Up to the end of and click Show what will be posted. Each asset shows the months and amount it will get, including any months missed before.
  3. Click Post depreciation and confirm. Each asset gets its own entry, so one can be reversed without touching the rest.

Running the same month again posts nothing, because months already posted or exported are skipped. Months in closed books go in one entry on the first open day. Assets whose depreciation you export for another system are left out.

To have Mifumo do this for you, tick Post each month's depreciation automatically on the same page and click Save. Early each month it posts the month before.

Export depreciation as a journal for another system

Use this when your main books are in Sage, QuickBooks, SAP, Xero or another system. Nothing is posted in Mifumo.

  1. Open Asset Register, then click More, then Depreciation journal.
  2. Choose From month and To month.
  3. Under Lines, choose Expense account and cost centre, Expense account and category or One line per asset.
  4. Under Layout, choose Mifumo standard, Sage (journal import), QuickBooks Online (journal entries), SAP-style line items or Xero (manual journal).
  5. Click Show the journal and check the figures.
  6. Set the Journal date, Reference and Narration, choose Excel or CSV under File, then click Record and download.

Each export is recorded under Exports so far and you can download it again. If an export was never posted in the other system, open it and click Cancel this export so its months can be exported or posted again.

  1. Open Asset Register, then click More, then Print asset labels.
  2. Tick the assets, choose the Paper (A4 with 8 labels, or a 100 x 65 mm label printer) and Copies per asset.
  3. Click Preview labels, then print at 100% scale with no margins.

To find an asset later, click the scan icon (Find by tag) beside the filter icon, choose Barcode or RFID tag, scan or type the tag, and click Find asset. To change an asset's tags, open it and use Manage asset tags on the Overview & tags tab.

Record a handover or state change

  1. Open the asset and go to the Tracking & history tab.
  2. Use Record assignment / handover to give the asset to a new custodian or location, or Change operational state to mark it Operational, Under maintenance, Out of service, Lost or Retired.
  3. Enter the reason and save.

These do not post journals. A Retired state alone does not dispose of the asset in the books.

Dispose of an asset

  1. Open the asset and go to the Disposal tab.
  2. Choose the Disposal method: sale, retirement, recycling, scrap or write-off.
  3. Fill in Buyer / recipient / recycler, Approval / certificate / sale reference and Reason and disposal notes.
  4. Enter the Disposal Date and Sale Proceeds (TZS) (0 for a write-off).
  5. Choose the Deposit to Account and the Gain/Loss Account.
  6. Click Record Disposal. If your company requires approval, the button is Submit for Finance approval instead.

Mifumo posts one entry that removes the cost and accumulated depreciation, records the proceeds and books the gain or loss.

To sell to a customer with VAT or on credit, choose the buyer in Invoice the buyer and the VAT on the sale. Mifumo raises a posted sales invoice for the proceeds plus VAT, and the buyer owes it like any other invoice. To undo such a sale, void the invoice first, then reverse the disposal. Attach the sale receipt or certificate under the Documents tab.

Write an asset down (impairment)

  1. Open the asset with Manage.
  2. On Overview & tags, open Write down the value (impairment).
  3. Enter the Date, the amount to Write down by, the Loss account (P&L) and the Reason.
  4. Click Post write-down.

The book value can't go below zero. Straight-line depreciation after the write-down spreads what is left over the months left of the asset's life.

Write off a lost, stolen or destroyed asset

Dispose of it with Disposal method set to Write-off and Sale Proceeds of 0. The whole book value goes to the gain or loss account.

Record running costs, warranties and leases

  1. Open the asset and go to the Costs tab.
  2. Click Record fuel / driver / asset cost, choose the category, amount, expense account and the account it was Paid from, then click Record cost. This posts a balanced expense entry tagged to the asset.
  3. For a warranty, SLA or lease, go to the Warranties & leases tab and add the contract with its dates, the member to remind and, for a lease, the payment schedule. Click Save contract and schedule.
  4. When a lease instalment is paid, open Record payment to GL on it and click Post payment.

Use an asset as a truck or trailer

With the Transport jobs module, a horse (truck head) or trailer is an asset like any other.

  1. Open the asset and click Edit, or register a new one.
  2. Set Used in Transport as to Horse (truck head) or Trailer, and enter the Registration no.
  3. Save.

Transport jobs then offer it, and the asset gets a Trips tab with every delivery it made and what each earned and cost. When you record a fuel, driver or maintenance cost on it, choose the Delivery it was for. See /help/transport#put-a-cost-on-a-delivery.

Settings

Questions

Why did registering an asset not change my balance sheet?

You chose Already in the books, so Mifumo expects the cost to arrive through the supplier bill, a journal or your opening balances. Choose Post it now to have Mifumo post the purchase. Imported assets come in through your opening balances.

Can I undo a disposal?

Yes. Open the asset, go to Disposal, open Reverse this disposal, give the date and reason, and click Reverse disposal. Mifumo posts a reversing entry and puts the asset back in use. The next monthly depreciation run posts the months since. Maintenance plans and work orders closed at disposal stay closed.

Why is a month missing from the depreciation journal?

Assets already depreciated for that month in Mifumo, fully depreciated, or bought later are left out, so nothing is charged twice. Open the left out for some months note under the journal preview to see which ones.

Do lease payments follow IFRS 16?

No. Record payment to GL posts each instalment as an expense. It does not create a right-of-use asset or a lease liability.

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