diff --git a/erpnext/accounts/doctype/asset/__init__.py b/erpnext/accounts/doctype/asset/__init__.py
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/erpnext/accounts/doctype/asset/__init__.py
diff --git a/erpnext/accounts/doctype/asset/asset.js b/erpnext/accounts/doctype/asset/asset.js
new file mode 100644
index 0000000..e961b7d
--- /dev/null
+++ b/erpnext/accounts/doctype/asset/asset.js
@@ -0,0 +1,23 @@
+// Copyright (c) 2016, Frappe Technologies Pvt. Ltd. and contributors
+// For license information, please see license.txt
+
+frappe.provide("erpnext.asset");
+
+frappe.ui.form.on('Asset', {
+	refresh: function(frm) {
+		cur_frm.add_custom_button("Scrap", function() {
+			erpnext.asset.scrap_asset(); 
+		});
+	},
+});
+
+erpnext.asset.scrap_asset = function() {
+	frappe.confirm(__("Do you really want to scrap this asset?"), function () {
+		frappe.call({
+			args: {
+				"asset_name": frm.doc.name
+			},
+			method: "erpnext.accounts.doctype.asset.depreciation.scrap_asset"
+		})
+	})
+}
\ No newline at end of file
diff --git a/erpnext/accounts/doctype/asset/asset.json b/erpnext/accounts/doctype/asset/asset.json
new file mode 100644
index 0000000..760e00d
--- /dev/null
+++ b/erpnext/accounts/doctype/asset/asset.json
@@ -0,0 +1,462 @@
+{
+ "allow_copy": 0, 
+ "allow_import": 1, 
+ "allow_rename": 1, 
+ "autoname": "field:asset_name", 
+ "creation": "2016-03-01 17:01:27.920130", 
+ "custom": 0, 
+ "docstatus": 0, 
+ "doctype": "DocType", 
+ "document_type": "Document", 
+ "fields": [
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "asset_name", 
+   "fieldtype": "Data", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Asset Name", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "asset_category", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Asset Category", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Asset Category", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "default": "Available", 
+   "fieldname": "status", 
+   "fieldtype": "Select", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Status", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Available\nSold\nScrapped", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "column_break_3", 
+   "fieldtype": "Column Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "purchase_date", 
+   "fieldtype": "Date", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Purchase Date", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "supplier", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Supplier", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Supplier", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "company", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Company", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Company", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "section_break_5", 
+   "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "default": "Straight Line", 
+   "depends_on": "", 
+   "fieldname": "depreciation_method", 
+   "fieldtype": "Select", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Depreciation Method", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "\nStraight Line\nDouble Declining Balance", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "description": "The time period over which the company expects that the asset will be productive", 
+   "fieldname": "useful_life", 
+   "fieldtype": "Int", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Useful Life (Years)", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "start_depreciation_from_purchase_date", 
+   "fieldtype": "Check", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Start Depreciation from Purchase Date", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "column_break_11", 
+   "fieldtype": "Column Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "gross_value", 
+   "fieldtype": "Currency", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Gross Value", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "description": "The estimated resale value of an asset at the end of its useful life", 
+   "fieldname": "salvage_value", 
+   "fieldtype": "Data", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Salvage Value", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 1, 
+   "fieldname": "section_break_14", 
+   "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Depreciation Schedule", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "schedules", 
+   "fieldtype": "Table", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Depreciation Schedules", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Depreciation Schedule", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }
+ ], 
+ "hide_heading": 0, 
+ "hide_toolbar": 0, 
+ "idx": 0, 
+ "in_create": 0, 
+ "in_dialog": 0, 
+ "is_submittable": 0, 
+ "issingle": 0, 
+ "istable": 0, 
+ "max_attachments": 0, 
+ "modified": "2016-03-03 17:34:00.991228", 
+ "modified_by": "Administrator", 
+ "module": "Accounts", 
+ "name": "Asset", 
+ "name_case": "", 
+ "owner": "Administrator", 
+ "permissions": [
+  {
+   "amend": 0, 
+   "apply_user_permissions": 0, 
+   "cancel": 0, 
+   "create": 1, 
+   "delete": 1, 
+   "email": 1, 
+   "export": 1, 
+   "if_owner": 0, 
+   "import": 0, 
+   "permlevel": 0, 
+   "print": 1, 
+   "read": 1, 
+   "report": 1, 
+   "role": "Accounts User", 
+   "set_user_permissions": 0, 
+   "share": 1, 
+   "submit": 0, 
+   "write": 1
+  }
+ ], 
+ "read_only": 0, 
+ "read_only_onload": 0, 
+ "sort_field": "modified", 
+ "sort_order": "DESC"
+}
\ No newline at end of file
diff --git a/erpnext/accounts/doctype/asset/asset.py b/erpnext/accounts/doctype/asset/asset.py
new file mode 100644
index 0000000..0479d0a
--- /dev/null
+++ b/erpnext/accounts/doctype/asset/asset.py
@@ -0,0 +1,65 @@
+# -*- coding: utf-8 -*-
+# Copyright (c) 2016, Frappe Technologies Pvt. Ltd. and contributors
+# For license information, please see license.txt
+
+from __future__ import unicode_literals
+import frappe
+from frappe import _
+from frappe.utils import flt, add_years
+from frappe.model.document import Document
+
+class Asset(Document):
+	def validate(self):
+		self.validate_mandatory()
+		self.make_depreciation_schedule()
+	
+	def validate_mandatory(self):
+		if not self.useful_life:
+			self.useful_life = frappe.db.get_value("Asset Category", self.asset_category, "useful_life")
+			if not self.useful_life:
+				frappe.throw(_("Useful Life is mandatory"))
+
+	def make_depreciation_schedule(self):
+		self.schedules = []
+		if not self.get("schedules") and self.status == "Available":
+			depreciation_method = self.get_depreciation_method()
+			
+			accumulated_depreciation = 0
+			value_after_depreciation = flt(self.gross_value)
+			for n in xrange(self.useful_life):
+				depreciation_date = add_years(self.purchase_date, 
+					n if self.start_depreciation_from_purchase_date else n+1)
+				depreciation_amount = self.get_depreciation_amount(value_after_depreciation, 
+					depreciation_method)
+				
+				self.append("schedules", {
+					"depreciation_date": depreciation_date,
+					"depreciation_amount": depreciation_amount,
+					"accumulated_depreciation_amount": accumulated_depreciation + depreciation_amount
+				})
+				
+	def get_depreciation_method(self):
+		depreciation_method = self.depreciation_method or \
+			frappe.db.get_value("Asset Category", self.asset_category, "depreciation_method") or \
+			frappe.db.get_value("Company", self.company, "depreciation_method")
+			
+		if not depreciation_method:
+			frappe.throw(_("Please set Depreciation Method in Asset Category {0} or Company {1}")
+				.format(self.asset_category, self.company))
+	
+	def get_depreciation_amount(self, depreciable_value, depreciation_method=None):
+		if not depreciation_method:
+			depreciation_method = self.get_depreciation_method()
+	
+		if depreciation_method == "Straight Line":
+			depreciation_amount = (flt(self.gross_value) - flt(self.salvage_value)) / flt(self.useful_life)
+		else:
+			factor = 200 / self.useful_life
+			depreciation_amount = depreciable_value * factor / 100
+	
+			value_after_depreciation = flt(depreciable_value) - depreciation_amount
+			if value_after_depreciation < self.salvage_value:
+				depreciation_amount = flt(depreciable_value) - flt(self.salvage_value)
+		
+		return depreciation_amount
+	
\ No newline at end of file
diff --git a/erpnext/accounts/doctype/asset/depreciation.py b/erpnext/accounts/doctype/asset/depreciation.py
new file mode 100644
index 0000000..48a964a
--- /dev/null
+++ b/erpnext/accounts/doctype/asset/depreciation.py
@@ -0,0 +1,117 @@
+# -*- coding: utf-8 -*-
+# Copyright (c) 2016, Frappe Technologies Pvt. Ltd. and contributors
+# For license information, please see license.txt
+
+from __future__ import unicode_literals
+import frappe
+from frappe import _
+from frappe.utils import flt, today
+
+
+# Depreciate
+#------------
+
+def post_depreciation_entries(self):
+	assets = get_depreciable_assets()
+	for asset in assets:
+		depreciate_asset(asset.asset_name, asset.depreciation_amount, asset.schedule_row)
+	
+def get_depreciable_assets(date=None):
+	if not date:
+		date = today()
+		
+	return frappe.db.sql("""
+		select a.name as asset_name, ds.depreciation_amount, ds.name as schedule_row 
+		from tabAsset a, `tabDepreciation Schedule` ds
+		where
+			a.name = ds.parent and ds.depreciation_date=%s 
+			and a.status = 'Available' and ds.posted=0 and a.docstatus < 2""", date, as_dict=1)
+		
+def depreciate_asset(asset_name, depreciation_amount, schedule_row):
+	asset = frappe.get_doc("Asset", asset_name)
+	accumulated_depreciation_account, depreciation_expense_account = get_depreciation_accounts(asset)
+	
+	je = frappe.new_doc("Journal Entry")
+	je.voucher_type = "Depreciation Entry"
+	je.posting_date = today()
+	je.company = asset.company
+	je.remark = "Depreciation Entry against {0} worth {1}".format(asset_name, depreciation_amount)
+	
+	je.append("accounts", {
+		"account": accumulated_depreciation_account,
+		"credit_in_account_currency": depreciation_amount,
+		"reference_type": "Asset",
+		"reference_name": asset.name
+	})
+	
+	je.append("accounts", {
+		"account": depreciation_expense_account,
+		"debit_in_account_currency": depreciation_amount,
+		"reference_type": "Asset",
+		"reference_name": asset.name
+	})
+	
+	je.flags.ignore_permissions = True
+	je.submit()
+	
+	frappe.db.sql("""update `tabDepreciation Schedule` 
+		set posted=1, journal_entry=%s, modified=now(), modified_by=%s where name=%s""", 
+		(je.name, frappe.session.user, schedule_row))
+
+def get_depreciation_accounts(asset):
+	accumulated_depreciation_account, depreciation_expense_account = frappe.db.get_value("Asset Category", 
+		asset.asset_category, ["accumulated_depreciation_account", "depreciation_expense_account"])
+		
+	if not accumulated_depreciation_account or not depreciation_expense_account:
+		accounts = frappe.db.get_value("Company", asset.company, 
+			["accumulated_depreciation_account", "depreciation_expense_account"])
+		if not accumulated_depreciation_account:
+			accumulated_depreciation_account = accounts[0]
+		if not depreciation_expense_account:
+			depreciation_expense_account = accounts[1]
+			
+	if not accumulated_depreciation_account or not depreciation_expense_account:
+		frappe.throw(_("Please set Depreciation related Accounts in Asset Category {0} or Company {1}")
+			.format(asset.asset_category, asset.company))
+			
+	return accumulated_depreciation_account, depreciation_expense_account
+	
+# Scrap
+#---------
+
+@frappe.whitelist()
+def scrap_asset(asset_name):
+	asset = frappe.get_doc("Asset", asset_name)
+	asset.status = "Scrapped"
+	
+	accumulated_depr_amount = frappe.db.sql("""select accumulated_depreciation_amount 
+		from `tabDepreciation Schedule` 
+		where parent=%s and posted=1
+		order by depreciation_date desc limit 1""")
+		
+	accumulated_depr_amount = flt(accumulated_depr_amount[0][0]) if accumulated_depr_amount else 0
+	
+	net_value_after_depreciation = flt(asset.gross_value) - accumulated_depr_amount
+	
+	je = frappe.new_doc("Journal Entry")
+	je.voucher_type = "Depreciation Entry"
+	je.posting_date = today()
+	je.company = asset.company
+	je.remark = "Disposal Entry for asset {0}".format(asset_name)
+	
+	# je.append("accounts", {
+	# 	"account": accumulated_depreciation_account,
+	# 	"credit_in_account_currency": depreciation_amount,
+	# 	"reference_type": "Asset",
+	# 	"reference_name": asset.name
+	# })
+	#
+	# je.append("accounts", {
+	# 	"account": depreciation_expense_account,
+	# 	"debit_in_account_currency": depreciation_amount,
+	# 	"reference_type": "Asset",
+	# 	"reference_name": asset.name
+	# })
+	
+	je.flags.ignore_permissions = True
+	je.submit()
\ No newline at end of file
diff --git a/erpnext/accounts/doctype/asset/test_asset.py b/erpnext/accounts/doctype/asset/test_asset.py
new file mode 100644
index 0000000..cada250
--- /dev/null
+++ b/erpnext/accounts/doctype/asset/test_asset.py
@@ -0,0 +1,12 @@
+# -*- coding: utf-8 -*-
+# Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and Contributors
+# See license.txt
+from __future__ import unicode_literals
+
+import frappe
+import unittest
+
+# test_records = frappe.get_test_records('Asset')
+
+class TestAsset(unittest.TestCase):
+	pass
diff --git a/erpnext/accounts/doctype/asset_category/__init__.py b/erpnext/accounts/doctype/asset_category/__init__.py
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/erpnext/accounts/doctype/asset_category/__init__.py
diff --git a/erpnext/accounts/doctype/asset_category/asset_category.js b/erpnext/accounts/doctype/asset_category/asset_category.js
new file mode 100644
index 0000000..84f0dfc
--- /dev/null
+++ b/erpnext/accounts/doctype/asset_category/asset_category.js
@@ -0,0 +1,8 @@
+// Copyright (c) 2016, Frappe Technologies Pvt. Ltd. and contributors
+// For license information, please see license.txt
+
+frappe.ui.form.on('Asset Category', {
+	refresh: function(frm) {
+
+	}
+});
diff --git a/erpnext/accounts/doctype/asset_category/asset_category.json b/erpnext/accounts/doctype/asset_category/asset_category.json
new file mode 100644
index 0000000..9338e22
--- /dev/null
+++ b/erpnext/accounts/doctype/asset_category/asset_category.json
@@ -0,0 +1,257 @@
+{
+ "allow_copy": 0, 
+ "allow_import": 1, 
+ "allow_rename": 1, 
+ "autoname": "field:asset_category_name", 
+ "creation": "2016-03-01 17:41:39.778765", 
+ "custom": 0, 
+ "docstatus": 0, 
+ "doctype": "DocType", 
+ "document_type": "Document", 
+ "fields": [
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "asset_category_name", 
+   "fieldtype": "Data", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Asset Category Name", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "section_break_2", 
+   "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "default": "Straight Line", 
+   "fieldname": "depreciation_method", 
+   "fieldtype": "Select", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Depreciation Method", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "\nStraight Line\nDouble Declining Balance", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "useful_life", 
+   "fieldtype": "Int", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Useful Life (Years)", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "column_break_5", 
+   "fieldtype": "Column Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "fixed_asset_account", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Fixed Asset Account", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Account", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "accumulated_depreciation_account", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Accumulated Depreciation Account", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Account", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "depreciation_expense_account", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Depreciation Expense Account", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Account", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }
+ ], 
+ "hide_heading": 0, 
+ "hide_toolbar": 0, 
+ "idx": 0, 
+ "in_create": 0, 
+ "in_dialog": 0, 
+ "is_submittable": 0, 
+ "issingle": 0, 
+ "istable": 0, 
+ "max_attachments": 0, 
+ "modified": "2016-03-03 15:17:44.877003", 
+ "modified_by": "Administrator", 
+ "module": "Accounts", 
+ "name": "Asset Category", 
+ "name_case": "", 
+ "owner": "Administrator", 
+ "permissions": [
+  {
+   "amend": 0, 
+   "apply_user_permissions": 0, 
+   "cancel": 0, 
+   "create": 1, 
+   "delete": 1, 
+   "email": 1, 
+   "export": 1, 
+   "if_owner": 0, 
+   "import": 1, 
+   "permlevel": 0, 
+   "print": 1, 
+   "read": 1, 
+   "report": 1, 
+   "role": "Accounts User", 
+   "set_user_permissions": 0, 
+   "share": 1, 
+   "submit": 0, 
+   "write": 1
+  }
+ ], 
+ "read_only": 0, 
+ "read_only_onload": 0, 
+ "sort_field": "modified", 
+ "sort_order": "DESC"
+}
\ No newline at end of file
diff --git a/erpnext/accounts/doctype/asset_category/asset_category.py b/erpnext/accounts/doctype/asset_category/asset_category.py
new file mode 100644
index 0000000..8f922d1
--- /dev/null
+++ b/erpnext/accounts/doctype/asset_category/asset_category.py
@@ -0,0 +1,10 @@
+# -*- coding: utf-8 -*-
+# Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and contributors
+# For license information, please see license.txt
+
+from __future__ import unicode_literals
+import frappe
+from frappe.model.document import Document
+
+class AssetCategory(Document):
+	pass
diff --git a/erpnext/accounts/doctype/asset_category/test_asset_category.py b/erpnext/accounts/doctype/asset_category/test_asset_category.py
new file mode 100644
index 0000000..a85fe3d
--- /dev/null
+++ b/erpnext/accounts/doctype/asset_category/test_asset_category.py
@@ -0,0 +1,12 @@
+# -*- coding: utf-8 -*-
+# Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and Contributors
+# See license.txt
+from __future__ import unicode_literals
+
+import frappe
+import unittest
+
+# test_records = frappe.get_test_records('Asset Category')
+
+class TestAssetCategory(unittest.TestCase):
+	pass
diff --git a/erpnext/accounts/doctype/depreciation_schedule/__init__.py b/erpnext/accounts/doctype/depreciation_schedule/__init__.py
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/erpnext/accounts/doctype/depreciation_schedule/__init__.py
diff --git a/erpnext/accounts/doctype/depreciation_schedule/depreciation_schedule.json b/erpnext/accounts/doctype/depreciation_schedule/depreciation_schedule.json
new file mode 100644
index 0000000..89685cc
--- /dev/null
+++ b/erpnext/accounts/doctype/depreciation_schedule/depreciation_schedule.json
@@ -0,0 +1,159 @@
+{
+ "allow_copy": 0, 
+ "allow_import": 0, 
+ "allow_rename": 1, 
+ "autoname": "", 
+ "creation": "2016-03-02 15:11:01.278862", 
+ "custom": 0, 
+ "docstatus": 0, 
+ "doctype": "DocType", 
+ "document_type": "Document", 
+ "fields": [
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "depreciation_date", 
+   "fieldtype": "Date", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 1, 
+   "label": "Depreciation Date", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "depreciation_amount", 
+   "fieldtype": "Currency", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 1, 
+   "label": "Depreciation Amount", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "accumulated_depreciation_amount", 
+   "fieldtype": "Currency", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 1, 
+   "label": "Accumulated Depreciation Amount", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "posted", 
+   "fieldtype": "Check", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 1, 
+   "label": "Posted", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "journal_entry", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Journal Entry", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Journal Entry", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }
+ ], 
+ "hide_heading": 0, 
+ "hide_toolbar": 0, 
+ "idx": 0, 
+ "in_create": 0, 
+ "in_dialog": 0, 
+ "is_submittable": 0, 
+ "issingle": 0, 
+ "istable": 1, 
+ "max_attachments": 0, 
+ "modified": "2016-03-03 14:50:39.794061", 
+ "modified_by": "Administrator", 
+ "module": "Accounts", 
+ "name": "Depreciation Schedule", 
+ "name_case": "", 
+ "owner": "Administrator", 
+ "permissions": [], 
+ "read_only": 0, 
+ "read_only_onload": 0, 
+ "sort_field": "modified", 
+ "sort_order": "DESC"
+}
\ No newline at end of file
diff --git a/erpnext/accounts/doctype/depreciation_schedule/depreciation_schedule.py b/erpnext/accounts/doctype/depreciation_schedule/depreciation_schedule.py
new file mode 100644
index 0000000..957d6d1
--- /dev/null
+++ b/erpnext/accounts/doctype/depreciation_schedule/depreciation_schedule.py
@@ -0,0 +1,10 @@
+# -*- coding: utf-8 -*-
+# Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and contributors
+# For license information, please see license.txt
+
+from __future__ import unicode_literals
+import frappe
+from frappe.model.document import Document
+
+class DepreciationSchedule(Document):
+	pass
diff --git a/erpnext/accounts/doctype/journal_entry/journal_entry.json b/erpnext/accounts/doctype/journal_entry/journal_entry.json
index 63ba380..080b1bd 100644
--- a/erpnext/accounts/doctype/journal_entry/journal_entry.json
+++ b/erpnext/accounts/doctype/journal_entry/journal_entry.json
@@ -60,31 +60,31 @@
    "unique": 0
   },
   {
-   "allow_on_submit": 0,
-   "bold": 0,
-   "collapsible": 0,
-   "default": "Journal Entry",
-   "fieldname": "voucher_type",
-   "fieldtype": "Select",
-   "hidden": 0,
-   "ignore_user_permissions": 0,
-   "ignore_xss_filter": 0,
-   "in_filter": 1,
-   "in_list_view": 0,
-   "label": "Entry Type",
-   "length": 0,
-   "no_copy": 0,
-   "oldfieldname": "voucher_type",
-   "oldfieldtype": "Select",
-   "options": "Journal Entry\nBank Entry\nCash Entry\nCredit Card Entry\nDebit Note\nCredit Note\nContra Entry\nExcise Entry\nWrite Off Entry\nOpening Entry",
-   "permlevel": 0,
-   "print_hide": 0,
-   "print_hide_if_no_value": 0,
-   "read_only": 0,
-   "report_hide": 0,
-   "reqd": 1,
-   "search_index": 1,
-   "set_only_once": 0,
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "default": "Journal Entry", 
+   "fieldname": "voucher_type", 
+   "fieldtype": "Select", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 1, 
+   "in_list_view": 0, 
+   "label": "Entry Type", 
+   "length": 0, 
+   "no_copy": 0, 
+   "oldfieldname": "voucher_type", 
+   "oldfieldtype": "Select", 
+   "options": "Journal Entry\nBank Entry\nCash Entry\nCredit Card Entry\nDebit Note\nCredit Note\nContra Entry\nExcise Entry\nWrite Off Entry\nOpening Entry\nDepreciation Entry", 
+   "permlevel": 0, 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 1, 
+   "set_only_once": 0, 
    "unique": 0
   },
   {
diff --git a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js
index 4d865b8..8ab7651 100644
--- a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js
+++ b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js
@@ -196,7 +196,7 @@
 
 // Get Print Heading
 cur_frm.fields_dict['select_print_heading'].get_query = function(doc, cdt, cdn) {
-return{
+	return {
 		filters:[
 			['Print Heading', 'docstatus', '!=', 2]
 		]
@@ -204,8 +204,8 @@
 }
 
 cur_frm.set_query("expense_account", "items", function(doc) {
-	return{
-		query: "erpnext.accounts.doctype.purchase_invoice.purchase_invoice.get_expense_account",
+	return {
+		query: "erpnext.controllers.queries.get_expense_account",
 		filters: {'company': doc.company}
 	}
 });
diff --git a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
index f95569d..5edfcb9 100644
--- a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
+++ b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
@@ -55,14 +55,15 @@
 		self.set_against_expense_account()
 		self.validate_write_off_account()
 		self.update_valuation_rate("items")
-		self.validate_multiple_billing("Purchase Receipt", "pr_detail", "amount",
-			"items")
+		self.validate_multiple_billing("Purchase Receipt", "pr_detail", "amount", "items")
+		self.validate_fixed_asset_account()
 		self.create_remarks()
 
 	def create_remarks(self):
 		if not self.remarks:
 			if self.bill_no and self.bill_date:
-				self.remarks = _("Against Supplier Invoice {0} dated {1}").format(self.bill_no, formatdate(self.bill_date))
+				self.remarks = _("Against Supplier Invoice {0} dated {1}").format(self.bill_no, 
+					formatdate(self.bill_date))
 			else:
 				self.remarks = _("No Remarks")
 
@@ -152,12 +153,13 @@
 		stock_items = self.get_stock_items()
 		for item in self.get("items"):
 			# in case of auto inventory accounting,
-			# against expense account is always "Stock Received But Not Billed"
-			# for a stock item and if not epening entry and not drop-ship entry
+			# expense account is always "Stock Received But Not Billed" for a stock item 
+			# except epening entry, drop-ship entry and fixed asset items
 
-			if auto_accounting_for_stock and item.item_code in stock_items \
-				and self.is_opening == 'No' and (not item.po_detail or
-					not frappe.db.get_value("Purchase Order Item", item.po_detail, "delivered_by_supplier")):
+			if auto_accounting_for_stock and item.item_code in stock_items and self.is_opening == 'No' \
+				and (not item.po_detail 
+					or not frappe.db.get_value("Purchase Order Item", item.po_detail, "delivered_by_supplier")
+					or not frappe.db.get_value("Item", item.item_code, "is_fixed_asset")):
 
 				item.expense_account = stock_not_billed_account
 				item.cost_center = None
@@ -235,6 +237,7 @@
 
 	def on_submit(self):
 		self.check_prev_docstatus()
+		self.post_asset_depreciation()
 
 		frappe.get_doc('Authorization Control').validate_approving_authority(self.doctype,
 			self.company, self.base_grand_total)
@@ -248,6 +251,20 @@
 			self.update_billing_status_in_pr()
 
 		self.update_project()
+		
+	def post_asset_depreciation(self):
+		from erpnext.accounts.doctype.asset.asset import depreciate_asset
+		for d in self.get("items"):
+			if frappe.db.get_value("Item", d.item_code, "is_fixed_asset"):
+				if not d.asset:
+					frappe.throw(_("Row #{0}: Asset is mandatory against a Fixed Asset Item").format(d.idx))
+				else:
+					asset = frappe.get_doc("Asset", d.asset)
+					if asset.start_depreciation_from_purchase_date:
+						for schedule in asset.get("schedules"):
+							if schedule.depreciation_date == asset.purchase_date:
+								depreciate_asset(asset.name, schedule.depreciation_amount, schedule.name)
+								break
 
 	def make_gl_entries(self):
 		auto_accounting_for_stock = \
@@ -465,28 +482,18 @@
 
 		for pr in set(updated_pr):
 			frappe.get_doc("Purchase Receipt", pr).update_billing_percentage(update_modified=update_modified)
+			
+	def validate_fixed_asset_account(self):
+		for d in self.get('items'):
+			if frappe.db.get_value("Item", d.item_code, "is_fixed_asset"):
+				account_type = frappe.db.get_value("Account", d.expense_account, "account_type")
+				if account_type != 'Fixed Asset':
+					frappe.throw(_("Row {0}# Account must be of type 'Fixed Asset'").format(d.idx))
 
 	def on_recurring(self, reference_doc):
 		self.due_date = None
 
 @frappe.whitelist()
-def get_expense_account(doctype, txt, searchfield, start, page_len, filters):
-	from erpnext.controllers.queries import get_match_cond
-
-	# expense account can be any Debit account,
-	# but can also be a Liability account with account_type='Expense Account' in special circumstances.
-	# Hence the first condition is an "OR"
-	return frappe.db.sql("""select tabAccount.name from `tabAccount`
-			where (tabAccount.report_type = "Profit and Loss"
-					or tabAccount.account_type in ("Expense Account", "Fixed Asset", "Temporary"))
-				and tabAccount.is_group=0
-				and tabAccount.docstatus!=2
-				and tabAccount.company = %(company)s
-				and tabAccount.{key} LIKE %(txt)s
-				{mcond}""".format( key=frappe.db.escape(searchfield), mcond=get_match_cond(doctype) ),
-				{ 'company': filters['company'], 'txt': "%%%s%%" % frappe.db.escape(txt) })
-
-@frappe.whitelist()
 def make_debit_note(source_name, target_doc=None):
 	from erpnext.controllers.sales_and_purchase_return import make_return_doc
 	return make_return_doc("Purchase Invoice", source_name, target_doc)
diff --git a/erpnext/accounts/doctype/purchase_invoice_item/purchase_invoice_item.json b/erpnext/accounts/doctype/purchase_invoice_item/purchase_invoice_item.json
index ae44c1a..784c747 100755
--- a/erpnext/accounts/doctype/purchase_invoice_item/purchase_invoice_item.json
+++ b/erpnext/accounts/doctype/purchase_invoice_item/purchase_invoice_item.json
@@ -1080,6 +1080,32 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "fieldname": "asset", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Asset", 
+   "length": 0, 
+   "no_copy": 1, 
+   "options": "Asset", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
    "fieldname": "po_detail", 
    "fieldtype": "Data", 
    "hidden": 1, 
@@ -1239,7 +1265,7 @@
  "issingle": 0, 
  "istable": 1, 
  "max_attachments": 0, 
- "modified": "2016-03-18 05:05:27.752823", 
+ "modified": "2016-03-28 05:05:27.752823", 
  "modified_by": "Administrator", 
  "module": "Accounts", 
  "name": "Purchase Invoice Item", 
diff --git a/erpnext/accounts/doctype/sales_invoice/sales_invoice.py b/erpnext/accounts/doctype/sales_invoice/sales_invoice.py
index 2d45abe..7b97013 100644
--- a/erpnext/accounts/doctype/sales_invoice/sales_invoice.py
+++ b/erpnext/accounts/doctype/sales_invoice/sales_invoice.py
@@ -55,7 +55,6 @@
 		self.validate_uom_is_integer("stock_uom", "qty")
 		self.check_close_sales_order("sales_order")
 		self.validate_debit_to_acc()
-		self.validate_fixed_asset_account()
 		self.clear_unallocated_advances("Sales Invoice Advance", "advances")
 		self.validate_advance_jv("Sales Order")
 		self.add_remarks()
@@ -309,14 +308,6 @@
 
 		self.party_account_currency = account.account_currency
 
-	def validate_fixed_asset_account(self):
-		"""Validate Fixed Asset and whether Income Account Entered Exists"""
-		for d in self.get('items'):
-			is_asset_item = frappe.db.get_value("Item", d.item_code, "is_asset_item")
-			account_type = frappe.db.get_value("Account", d.income_account, "account_type")
-			if is_asset_item == 1 and account_type != 'Fixed Asset':
-				msgprint(_("Account {0} must be of type 'Fixed Asset' as Item {1} is an Asset Item").format(d.income_account, d.item_code), raise_exception=True)
-
 	def validate_with_previous_doc(self):
 		super(SalesInvoice, self).validate_with_previous_doc({
 			"Sales Order": {
diff --git a/erpnext/accounts/doctype/sales_invoice_item/sales_invoice_item.json b/erpnext/accounts/doctype/sales_invoice_item/sales_invoice_item.json
index 41bff7c..498caaf 100644
--- a/erpnext/accounts/doctype/sales_invoice_item/sales_invoice_item.json
+++ b/erpnext/accounts/doctype/sales_invoice_item/sales_invoice_item.json
@@ -1577,6 +1577,32 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "fieldname": "asset", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Asset", 
+   "length": 0, 
+   "no_copy": 1, 
+   "options": "Asset", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
    "fieldname": "section_break_54", 
    "fieldtype": "Section Break", 
    "hidden": 0, 
@@ -1631,7 +1657,7 @@
  "issingle": 0, 
  "istable": 1, 
  "max_attachments": 0, 
- "modified": "2016-03-22 11:09:35.263922", 
+ "modified": "2016-03-29 11:09:35.263922", 
  "modified_by": "Administrator", 
  "module": "Accounts", 
  "name": "Sales Invoice Item", 
diff --git a/erpnext/controllers/queries.py b/erpnext/controllers/queries.py
index eff5f53..eb16ac5 100644
--- a/erpnext/controllers/queries.py
+++ b/erpnext/controllers/queries.py
@@ -341,3 +341,27 @@
 				'txt': "%%%s%%" % frappe.db.escape(txt),
 				'company': filters.get("company", "")
 			})
+
+
+@frappe.whitelist()
+def get_expense_account(doctype, txt, searchfield, start, page_len, filters):
+	from erpnext.controllers.queries import get_match_cond
+	
+	if not filters: filters = {}
+
+	condition = ""
+	if filters.get("company"):
+		condition += "and tabAccount.company = %(company)s"
+		
+	return frappe.db.sql("""select tabAccount.name from `tabAccount`
+		where (tabAccount.report_type = "Profit and Loss"
+				or tabAccount.account_type in ("Expense Account", "Fixed Asset", "Temporary"))
+			and tabAccount.is_group=0
+			and tabAccount.docstatus!=2
+			and tabAccount.{key} LIKE %(txt)s
+			{condition} {match_condition}"""
+		.format(condition=condition, key=frappe.db.escape(searchfield), 
+			match_condition=get_match_cond(doctype)), {
+			'company': filters['company'], 
+			'txt': "%%%s%%" % frappe.db.escape(txt)
+		})
\ No newline at end of file
diff --git a/erpnext/manufacturing/doctype/bom/bom.py b/erpnext/manufacturing/doctype/bom/bom.py
index 24a21d9..97196f0 100644
--- a/erpnext/manufacturing/doctype/bom/bom.py
+++ b/erpnext/manufacturing/doctype/bom/bom.py
@@ -56,7 +56,7 @@
 		self.manage_default_bom()
 
 	def get_item_det(self, item_code):
-		item = frappe.db.sql("""select name, item_name, is_asset_item, is_purchase_item,
+		item = frappe.db.sql("""select name, item_name, is_fixed_asset, is_purchase_item,
 			docstatus, description, image, is_sub_contracted_item, stock_uom, default_bom,
 			last_purchase_rate
 			from `tabItem` where name=%s""", item_code, as_dict = 1)
diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index d0b738f..5c2376e 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -258,4 +258,5 @@
 erpnext.patches.v6_20x.remove_fiscal_year_from_holiday_list
 erpnext.patches.v6_24.map_customer_address_to_shipping_address_on_po
 erpnext.patches.v6_27.fix_recurring_order_status
-erpnext.patches.v6_20x.remove_customer_supplier_roles
\ No newline at end of file
+erpnext.patches.v6_20x.remove_customer_supplier_roles
+erpnext.patches.v6_24.rename_item_field
diff --git a/erpnext/patches/v6_24/rename_item_field.py b/erpnext/patches/v6_24/rename_item_field.py
new file mode 100644
index 0000000..1425d8f
--- /dev/null
+++ b/erpnext/patches/v6_24/rename_item_field.py
@@ -0,0 +1,10 @@
+# Copyright (c) 2013, Web Notes Technologies Pvt. Ltd. and Contributors
+# License: GNU General Public License v3. See license.txt
+
+from __future__ import unicode_literals
+import frappe
+from frappe.model.utils.rename_field import rename_field
+
+def execute():
+	frappe.reload_doctype("Item")
+	rename_field("Item", "is_asset_item", "is_fixed_asset")
\ No newline at end of file
diff --git a/erpnext/setup/doctype/company/company.json b/erpnext/setup/doctype/company/company.json
index 76165ef..3de72fd 100644
--- a/erpnext/setup/doctype/company/company.json
+++ b/erpnext/setup/doctype/company/company.json
@@ -965,6 +965,160 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "fieldname": "fixed_asset_depreciation_settings", 
+   "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Fixed Asset Depreciation Settings", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "default": "Straight Line", 
+   "fieldname": "depreciation_method", 
+   "fieldtype": "Select", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Depreciation Method", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Straight Line\nDouble Declining Balance", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "accumulated_depreciation_account", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Accumulated Depreciation Account", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Account", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "column_break_40", 
+   "fieldtype": "Column Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "depreciation_expense_account", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Depreciation Expense Account", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Account", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "gain_loss_account", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Gain/Loss Account on Asset Sale/Disposal", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Account", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
    "description": "For reference only.", 
    "fieldname": "company_info", 
    "fieldtype": "Section Break", 
@@ -1236,7 +1390,7 @@
  "max_attachments": 0, 
  "menu_index": 0, 
  "modified": "2016-03-08 20:21:46.331870", 
- "modified_by": "anand@erpnext.com", 
+ "modified_by": "Administrator", 
  "module": "Setup", 
  "name": "Company", 
  "owner": "Administrator", 
@@ -1384,5 +1538,6 @@
  ], 
  "read_only": 0, 
  "read_only_onload": 0, 
- "sort_order": "ASC"
+ "sort_order": "ASC", 
+ "version": 0
 }
\ No newline at end of file
diff --git a/erpnext/stock/doctype/item/item.js b/erpnext/stock/doctype/item/item.js
index a691f2f..213050c 100644
--- a/erpnext/stock/doctype/item/item.js
+++ b/erpnext/stock/doctype/item/item.js
@@ -111,40 +111,27 @@
 
 $.extend(erpnext.item, {
 	setup_queries: function(frm) {
-		// Expense Account
-		// ---------------------------------
 		frm.fields_dict['expense_account'].get_query = function(doc) {
 			return {
-				filters: {
-					"report_type": "Profit and Loss",
-					"is_group": 0
-				}
+				query: "erpnext.controllers.queries.get_expense_account",
 			}
 		}
 
-		// Income Account
-		// --------------------------------
 		frm.fields_dict['income_account'].get_query = function(doc) {
 			return {
 				query: "erpnext.controllers.queries.get_income_account"
 			}
 		}
 
-
-		// Purchase Cost Center
-		// -----------------------------
 		frm.fields_dict['buying_cost_center'].get_query = function(doc) {
 			return {
-				filters:{ "is_group": 0 }
+				filters: { "is_group": 0 }
 			}
 		}
 
-
-		// Sales Cost Center
-		// -----------------------------
 		frm.fields_dict['selling_cost_center'].get_query = function(doc) {
 			return {
-				filters:{ "is_group": 0 }
+				filters: { "is_group": 0 }
 			}
 		}
 
@@ -159,7 +146,7 @@
 			}
 		}
 
-		frm.fields_dict['item_group'].get_query = function(doc,cdt,cdn) {
+		frm.fields_dict['item_group'].get_query = function(doc, cdt, cdn) {
 			return {
 				filters: [
 					['Item Group', 'docstatus', '!=', 2]
diff --git a/erpnext/stock/doctype/item/item.json b/erpnext/stock/doctype/item/item.json
index 37d0b77..e628d0d 100644
--- a/erpnext/stock/doctype/item/item.json
+++ b/erpnext/stock/doctype/item/item.json
@@ -607,14 +607,14 @@
    "default": "", 
    "depends_on": "eval:doc.is_stock_item", 
    "description": "", 
-   "fieldname": "is_asset_item", 
+   "fieldname": "is_fixed_asset", 
    "fieldtype": "Check", 
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
    "in_filter": 0, 
    "in_list_view": 0, 
-   "label": "Is Fixed Asset Item", 
+   "label": "Is Fixed Asset", 
    "length": 0, 
    "no_copy": 0, 
    "oldfieldname": "is_asset_item", 
@@ -2323,7 +2323,7 @@
  "issingle": 0, 
  "istable": 0, 
  "max_attachments": 1, 
- "modified": "2016-03-28 08:29:07.922559", 
+ "modified": "2016-03-29 08:29:07.922559", 
  "modified_by": "Administrator", 
  "module": "Stock", 
  "name": "Item", 
diff --git a/erpnext/stock/doctype/item/test_records.json b/erpnext/stock/doctype/item/test_records.json
index ca40d45..91a7493 100644
--- a/erpnext/stock/doctype/item/test_records.json
+++ b/erpnext/stock/doctype/item/test_records.json
@@ -9,7 +9,7 @@
   "has_serial_no": 0,
   "income_account": "Sales - _TC",
   "inspection_required": 0,
-  "is_asset_item": 0,
+  "is_fixed_asset": 0,
   "is_pro_applicable": 0,
   "is_purchase_item": 1,
   "is_sales_item": 1,
@@ -41,7 +41,7 @@
   "has_serial_no": 0,
   "income_account": "Sales - _TC",
   "inspection_required": 0,
-  "is_asset_item": 0,
+  "is_fixed_asset": 0,
   "is_pro_applicable": 0,
   "is_purchase_item": 1,
   "is_sales_item": 1,
@@ -64,7 +64,7 @@
   "has_serial_no": 0,
   "income_account": "Sales - _TC",
   "inspection_required": 0,
-  "is_asset_item": 0,
+  "is_fixed_asset": 0,
   "is_pro_applicable": 0,
   "is_purchase_item": 1,
   "is_sales_item": 1,
@@ -93,7 +93,7 @@
   "has_serial_no": 0,
   "income_account": "Sales - _TC",
   "inspection_required": 0,
-  "is_asset_item": 0,
+  "is_fixed_asset": 0,
   "is_pro_applicable": 0,
   "is_purchase_item": 1,
   "is_sales_item": 1,
@@ -113,7 +113,7 @@
   "has_serial_no": 0,
   "income_account": "Sales - _TC",
   "inspection_required": 0,
-  "is_asset_item": 0,
+  "is_fixed_asset": 0,
   "is_pro_applicable": 0,
   "is_purchase_item": 1,
   "is_sales_item": 1,
@@ -134,7 +134,7 @@
   "has_serial_no": 0,
   "income_account": "Sales - _TC",
   "inspection_required": 0,
-  "is_asset_item": 0,
+  "is_fixed_asset": 0,
   "is_pro_applicable": 1,
   "is_purchase_item": 1,
   "is_sales_item": 1,
@@ -151,7 +151,7 @@
   "has_batch_no": 0,
   "has_serial_no": 0,
   "inspection_required": 0,
-  "is_asset_item": 0,
+  "is_fixed_asset": 0,
   "is_pro_applicable": 0,
   "is_purchase_item": 1,
   "is_sales_item": 1,
@@ -169,7 +169,7 @@
   "has_batch_no": 0,
   "has_serial_no": 1,
   "inspection_required": 0,
-  "is_asset_item": 0,
+  "is_fixed_asset": 0,
   "is_pro_applicable": 0,
   "is_purchase_item": 1,
   "is_sales_item": 1,
@@ -187,7 +187,7 @@
   "has_batch_no": 0,
   "has_serial_no": 1,
   "inspection_required": 0,
-  "is_asset_item": 0,
+  "is_fixed_asset": 0,
   "is_pro_applicable": 0,
   "is_purchase_item": 1,
   "is_sales_item": 1,
@@ -209,7 +209,7 @@
   "has_serial_no": 0,
   "income_account": "Sales - _TC",
   "inspection_required": 0,
-  "is_asset_item": 0,
+  "is_fixed_asset": 0,
   "is_pro_applicable": 1,
   "is_sales_item": 1,
   "is_stock_item": 1,
@@ -229,7 +229,7 @@
   "has_serial_no": 0,
   "income_account": "Sales - _TC",
   "inspection_required": 0,
-  "is_asset_item": 0,
+  "is_fixed_asset": 0,
   "is_pro_applicable": 1,
   "is_purchase_item": 1,
   "is_sales_item": 1,
@@ -250,7 +250,7 @@
   "has_serial_no": 0,
   "income_account": "Sales - _TC",
   "inspection_required": 0,
-  "is_asset_item": 0,
+  "is_fixed_asset": 0,
   "is_pro_applicable": 1,
   "is_purchase_item": 1,
   "is_sales_item": 1,