Guide Categories

Intangible Assets

The Intangible Assets tab in Accounter.co.za helps users manage and track non-physical assets like intellectual property rights, licenses, patents or goodwill. In this guide, we cover creating and monitoring intangible assets and handling their amortization.

Creating a New Intangible Asset

  1. Navigate to the Intangible Assets tab.
  2. Click on the New Intangible Asset button.
  3. Fill in the requested details:
    • Code: Enter an asset code.
    • Name: Clearly label your intangible asset.
    • Description: Provide details describing the asset.
    • Amortization rate: Input your chosen amortization rate for the asset.
    • Control account: Select an associated control account. If no custom accounts are set up, the default is Control account - acquisition cost.
  4. Finally, save the asset information by clicking Create.

Upon creation, your intangible asset acquisition cost will initially appear as zero. This is expected, as no transactions have been linked to it yet.

Recording Acquisition Cost for an Intangible Asset

To record the cost:

  1. Create a payment or purchase invoice that includes the acquisition of the intangible asset.
  2. Allocate the invoice transaction similarly to Intangible assets, at cost.
  3. Select your specific intangible asset in the allocation.

Once recorded, the acquisition cost in the Intangible Assets tab will update to reflect the recorded transaction amounts.

Intangible Assets Data Columns Explained

Accounter.co.za organizes intangible assets using the following columns:

ColumnDescription
CodeAsset identification code.
NameIntangible asset name.
DescriptionDetailed information about the asset.
Amortization rateRate at which the intangible asset amortizes.
Control accountAssociated control account (default is 'Control account - acquisition cost' unless custom accounts created).
Acquisition costTotal value derived from recorded transactions for the intangible asset.
AmortizationAccumulated amortization entries to date.
Book valueCalculated as Acquisition cost minus Amortization amount.
StatusShows current state of asset: Active or Disposed.

Monitoring Intangible Assets and Amortization

Accounter.co.za automatically calculates amortization amounts according to your entered amortization rate. Regularly check the following columns to monitor asset value over time:

  • Acquisition cost: Total amount invested in the intangible asset.
  • Amortization: Aggregate amortization amounts recognized over the asset's life.
  • Book value: Current carrying amount (Acquisition cost minus Amortization value).

Using the Intangible Assets tab provides you with essential insights and effective management of your organization's non-physical assets.