# How to track Capital Cost Allowances? **URL:** \ **Category:** Uncategorized\ **Created:** [October 9, 2016, 1:04am UTC](https://forum.manager.io/t/how-to-track-capital-cost-allowances/7306 "2016-10-09T01:04:45Z")\ **Posts on this page:** 1\ **Showing post:** 3
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [October 9, 2016, 3:56am UTC](https://forum.manager.io/t/how-to-track-capital-cost-allowances/7306/3 "2016-10-09T03:56:15Z")
Read the Guides: > [@Purchasing fixed asset](https://forum.manager.io/t/purchasing-fixed-asset/5504): > > To enter a fixed asset you purchased, firstly you need to create the fixed asset. Go to Fixed Assets tab. Click New Fixed Asset button. Enter details of the fixed asset. Click Create button. Once you create the fixed asset, you will notice the purchase cost is zero. This is because under double-entry accounting you cannot simply enter the purchase cost without entering the actual purchase or payment transaction. Purchase of the fixed asset can be recorded under following tabs: Cash Account… > [@Depreciating fixed asset](https://forum.manager.io/t/depreciating-fixed-asset/5505): > > To depreciate a fixed asset, go to the Fixed Assets tab. Click on the figure in the Accumulated Depreciation column. This will transfer you to the depreciation register for the selected asset. You can now use the New Depreciation Entry button to enter the depreciation expense amount. What @Brucanna addressed was calculation of depreciation, which Manager does not do. Manager only records purchase costs and depreciation to determine book value. His comment about depreciating groups refers to grouping assets of similar type and depreciation schedule to perform common calculations. In Manager, you cannot actually apply depreciation to a group unless the assets are being treated as a single piece of property. Your statement that you have hundreds of items per year makes me wonder whether you really need to capitalize all of them. Check local tax laws to see whether they can be expensed. Even if they must be capitalized, you may be able to claim the full value in one year through some accelerated depreciation scheme. Again, check with a local accountant about this. But if you can, see this Guide: > [@Expense fixed assets](https://forum.manager.io/t/expensing-fixed-assets/7277): > > The cost of a fixed asset is normally recovered through depreciation over its economic life. Only current depreciation is treated as an expense each accounting period, even though the full cost of the asset might have been paid when it was purchased. However, some local tax authorities allow fixed assets to be treated as current expenses under exceptions to normal practice for various reasons, including: Promoting business investment Reducing administrative burdens Encouraging small business … --- _[View the full topic](https://forum.manager.io/t/how-to-track-capital-cost-allowances/7306)._