Adding a Vehicle Asset
Step-by-step guide to registering a new vehicle as a financial asset.
This guide walks you through the process of registering a vehicle as a financial asset. Once registered, the system will track purchase costs, depreciation, revenue, and ROI for that vehicle.
Before You Begin
Make sure the vehicle you want to register has already been added to the system under vehicle management. Only vehicles that are not yet registered as assets will be available for selection.
Only vehicles not already registered as assets will appear in the vehicle dropdown. If you do not see a vehicle listed, it may already have an asset record or it may not yet be added to the system.
Steps to Add a Vehicle Asset
1. Navigate to Vehicle Asset Management
Go to Finance > Vehicle Asset Management in the sidebar. Click the "Add Vehicle Asset" button in the top-right corner of the page.
2. Select a Vehicle
Choose the vehicle you want to register from the dropdown list. The dropdown displays each vehicle's:
- Plate number
- Brand and model
- Year
Select the vehicle that corresponds to the asset you want to track.
3. Enter Purchase Details
Fill in the financial details of the vehicle purchase:
| Field | Required | Description |
|---|---|---|
| Purchase Value (excl. VAT) | Yes | The amount paid for the vehicle before tax, in AED |
| VAT Percentage | No | The applicable VAT rate. Defaults to 5%. The system automatically calculates the VAT amount |
| Dealer Company | No | The name of the dealership or seller |
| Purchase Date | No | The date the vehicle was purchased |
The system automatically calculates the VAT Amount and Total Purchase Cost based on the purchase value and VAT percentage. For example, a vehicle purchased for AED 100,000 at 5% VAT results in a VAT amount of AED 5,000 and a total cost of AED 105,000.
4. Configure Funding Source
Select how the vehicle was financed:
| Option | Description |
|---|---|
| Cash | Paid in full with cash or company funds (default) |
| Bank Loan | Financed through a bank loan |
| Lease | Vehicle is leased rather than owned outright |
| Other | Any other financing arrangement |
5. Configure Depreciation
Set up how the vehicle's value decreases over time:
| Field | Default | Description |
|---|---|---|
| Depreciation Method | Straight Line | How depreciation is calculated. Options: Straight Line, Declining Balance, or None |
| Useful Life (Years) | 5 | The expected number of years the vehicle will be in service |
| Residual Value | 0 AED | The estimated value of the vehicle at the end of its useful life |
For a detailed explanation of each depreciation method and how calculations work, see Understanding Depreciation.
6. Set Commission Rate
Enter the commission rate as a percentage. This is the share of revenue paid to drivers operating the vehicle. The default is 20%.
For example, if a vehicle generates AED 10,000 in revenue and the commission rate is 20%, AED 2,000 is allocated as driver commission.
7. Upload Documents (Optional)
You can attach supporting documents to the asset record:
| Document | Description |
|---|---|
| Purchase Invoice | A copy of the purchase invoice or receipt |
| Registration Documents | Vehicle registration certificate or ownership documents |
Click the upload area or drag and drop files to attach documents.
8. Save the Asset
Review all the information you have entered, then click "Save" to create the vehicle asset record.
Once saved, the vehicle will appear in the Vehicle Asset Management list and the system will begin tracking its financial performance.
What Happens After Creation
- The vehicle asset appears in the list with an Active status by default
- Depreciation calculations begin based on your configured method and dates
- Revenue and expenses associated with the vehicle will be tracked automatically
- You can view the asset detail page by clicking on the vehicle in the list