Assets (fixed assets, inventory, depreciable asset tax)

The six Asset menus

The Assets area of a work space has one menu per asset class. Each menu is an independent ledger: it produces its own journal entries and hands them to Accounting.

Menu	Tabs	What it does
Low-value assets	Low-value assets / Guide	Record small-value purchases and track the SME annual cap
Fixed assets	Asset ledger / Depreciation / Guide	The tangible fixed asset register and per-year depreciation posting
Intangible assets	Ledger / Amortization / Guide	Software, patents, goodwill and the like, plus their amortization
Lease assets	Ledger & monthly processing / Guide	Lease contracts and their classification (operating / finance)
Inventory	Stocktake records / Item master / Guide	The item master and physical stocktake records
Depreciable asset tax	Aggregation & filing / Guide	Valuation totals aggregated from the fixed asset ledger, for filing

Every menu has a "Guide" tab summarising how that screen thinks and what the key operations are. Tabs you do not use can be hidden from the settings on the tab bar.

Depreciation is posted here, not in Accounting

The asset menus create the journal entries; Accounting receives them. There is no fixed-asset tab in the Accounting menu. Keeping posting in exactly one place is what prevents the same depreciation from being booked twice.

• Depreciation, retirement, sale, and impairment entries are all posted from the relevant asset menu
• Once posted, the entries appear in the Accounting journal and general ledger as normal
• You cannot post into a fiscal year that has already been closed

Low-value assets

The tax treatment depends on the acquisition cost. These brackets are set by law.

Acquisition cost	Classification	Treatment
Under ¥100,000	Under ¥100k lump-sum expense	Expensed in full in the current period
¥100,000 – ¥199,999	Bulk depreciation asset (3-year even)	Depreciated evenly over three years
¥200,000 – ¥299,999	SME special exception (under ¥300k)	Fully deductible (up to ¥3,000,000 per year)
¥300,000 and above	—	Register it in the Fixed assets ledger instead

How to register one

1. Press "Add low-value asset"
2. Enter the name, acquisition date, and acquisition cost
3. As soon as you enter a cost, the recommended classification appears, and the classification dropdown narrows to the options that are valid for that amount
4. If no classification applies (¥300,000 or more, or not eligible for the SME exception), the form tells you to manage the item in the fixed asset ledger and will not let you save

The list supports keyword search plus filters for fiscal year and classification. "Show this period's summary" in the bulk actions menu opens a breakdown by classification together with a meter showing how much of the ¥3,000,000 annual SME cap has been used.

Fixed assets

Registering an asset

On the Asset ledger tab, "Register asset" asks for the asset number, asset name, account, acquisition date, acquisition cost, useful life, depreciation method (straight-line / declining-balance), residual value (defaults to the ¥1 memorandum value), and a note.

You can search the list by asset number and asset name, and filter by status (in use / retired / sold) and depreciation method.

The asset detail page

Clicking an asset number opens its detail page. The header shows the book value, acquisition date, and accumulated depreciation, and there are two tabs.

• Depreciation schedule: opening book value, depreciation, and closing book value for every year from acquisition to full depreciation, each marked as past / current / planned. This is a projection calculated from what you registered; actual posting happens on the Depreciation tab
• Asset details: the basis of calculation (acquisition cost, useful life, method, residual value, account, acquisition date), plus a valuation basis / notes field. Use it to record things like why an estimated useful life was applied to a used asset, or which appraisal you relied on, so the reasoning survives

Posting depreciation

On the Depreciation tab, one row is one fiscal year. Clicking a year opens the detail page for it. There are four states.

State	Meaning
Editing depreciation amount	No journal entry has been created yet
Journal draft	A draft entry exists (it can be discarded)
Posted	Reflected in the general ledger
Finalized	Posted, and the fiscal year is closed as well (view only)

The "Detail" tab of that page lists each asset's opening book value, depreciation limit, current depreciation, and closing book value. The "Journal entry" tab lets you review the entry that will actually be created (debit Depreciation expense / credit Accumulated depreciation — the indirect method) before you commit.

The buttons at the top drive the flow: Create journal draft → Post. Even after posting, as long as the fiscal year is not closed you can Repost (reverse and redo) to recalculate.

Corporations and sole proprietors work differently

• Corporations (voluntary depreciation): each asset's current-period depreciation can be adjusted individually, up to the depreciation limit. Values above the limit cannot be entered
• Sole proprietors (mandatory depreciation): the limit is posted as calculated, and the amount field is not editable

This switches automatically from the business type registered for the space — there is nothing to choose on screen.

Retirement, sale, and impairment

"Dispose (retire / sell / impair)" in the row menu posts the entry once you pick a type and a disposal date.

Type	What happens
Retirement	The remaining book value is posted as a loss on retirement of fixed assets
Sale	You enter the sale proceeds, and the difference against book value is posted as a gain or loss
Impairment	The book value is written down to the recoverable amount you enter, and the difference is posted as an impairment loss (the asset stays on the ledger)

Disposals cannot be posted into a closed fiscal year either.

Intangible assets

The Ledger tab manages software (in-house use / for sale), patents, trademarks, design rights, copyrights, goodwill, and other intangibles. "Add intangible asset" takes the asset number, type, name, acquisition date, acquisition cost, and useful life; you can filter by type and by status (in use / retired / impaired).

Amortization works differently from tangible assets. Intangibles are amortized straight-line down to zero residual value, reducing the asset itself directly — there is no accumulated-depreciation contra account as there is for tangible assets.

On the Amortization tab, open "Post amortization…" from the bulk actions menu and choose the target fiscal year there (independently of the year you are viewing in the list). The dialog shows each asset's opening book value and amortization plus the total before you commit, and running it again for the same year replaces what was posted. Choosing a closed year tells you that posting is not possible.

"Show amortization schedule" in the row menu shows the full-life projection for a single asset.

Lease assets

Register lease contracts and manage how each one is treated. Japanese GAAP recognises two classes.

• Operating lease: treated as rent expense, with nothing capitalised on the balance sheet (the default)
• Finance lease: capitalised as a lease asset and a lease liability. A lease qualifies if it meets criteria such as an ownership transfer clause, being non-cancelable, or covering 75% or more of the asset's economic useful life

"Add lease contract" takes the lease number, type, name, lessor, start date, end date, term in months, and monthly payment. Only when you choose Finance do the present value (acquisition equivalent) and annual interest rate fields appear. The list shows each contract as active, expired, or terminated. You can search by lease number, name, or lessor, filter by type and status, and page through the list; delete from the row menu or select rows and use bulk actions (the same controls as fixed assets).

Inventory

Item master

Register the items a stocktake will cover: item code, name, unit, valuation method, and standard unit cost, plus optional lead time and safety stock. The valuation methods are moving average, periodic average, FIFO, LIFO, specific identification, retail, and last purchase cost (LIFO is permitted for accounting purposes only — it cannot be used for tax). Besides searching, the list can be filtered by valuation method.

Stocktake records

"Create inventory count" sets the count date and the target. Open the count and enter the book quantity, actual quantity, and unit cost for each item; the difference amount is calculated for you, and the list shows the book total, actual total, and shrinkage loss. When the entry is done, "Mark complete" finalises it (you can select several counts and complete them together). Besides searching, the list can be filtered by status (draft / in progress / completed).

Based on the completed count, the transfer that fixes cost of goods sold from closing inventory is made in the year-end adjustments of Accounting. The Inventory menu's job is to establish the quantities and amounts as fact.

Depreciable asset tax

There is nothing to enter in this menu. It is a read-only screen aggregated automatically from the fixed asset ledger.

Choose the year of the assessment date (1 January) and the valuation as of that date is calculated.

• The header shows the total valuation, taxable base, and tax amount. When the taxable base is below the ¥1,500,000 exemption threshold, "Exempt (below threshold)" is shown in place of a tax amount
• The table below lists each asset's acquisition date, acquisition cost, useful life, depreciation rate, and valuation
• The valuation uses a different calculation from accounting depreciation, and an asset becomes subject to valuation from the year after it was acquired

The tax itself is assessed by your municipality, so the figure here is a reference. Confirm with your tax advisor or your municipality before filing.