If there are non-tangible assets, let’s say, for example, software, then we will calculate its amortization in the depreciation column.
Enter the start date, when you are first legally allowed to use the software. Or the first day of the subscription period. Amortization expense will start from that date.
Enter its useful life, meaning in a non-tangible asset we will consider its estimated duration, like how much time the software will be used effectively in business, but let’s say, as an example, software does not have a certain limit of its useful life, so in that case, the user can enter a year for data as per their requirement.
After that period, the asset is either obsolete, fully amortized, or replaced because useful life is measured in years. But for example, a software license case may vary in duration; after the duration, the buyer has to buy it again. So, in this case, we enter an expiry date of the the license in our books.
Enter its depreciation/amortization rate. There is no universal fixed rate. It is always based on useful life or license period. E.g., the software license has been purchased for 1 year.
Enter the targeting profit and loss account, meaning under which head it will be added. E.g., amortization expense.
Click and choose the frequency of amortization on that base. We calculated amortization on a non-tangible asset. E.g., Here we calculate amortization on a yearly basis for accurate records.
Now your non-current assets would be created and will display under the head of their accounting head on the front page of non-current assets.
If you want to remove the asset from its specific head, click on the asset name; it shows you its details, and you can see there is a Delete button located on the top right side of the page. Click on it and delete the asset information, and your asset will be deleted from the list.
In this way you can add more products under their specific heads one by one.
