Creating Depreciation For Item

Question: A Fixed Asset Item has been purchased and stored in a warehouse. How can the user create a depreciation for a Fixed Asset Item?

Answer:

Though there is no direct, automated method to book Asset Depreciation. A suitable work around to achieve this is by creating a Stock Reconciliation Entry.

Step 1: In the Attachment file, fill in the appropriate columns;

Item Code whose value is to be depreciated
Warehouse in which it is stored
Qty (Quantity) Leave this column blank
Valuation Rate Enter the Value after Depreciation

Step 2: In the Stock Reconciliation Form, enter the Expense account for depreciation in Difference Account.

Note: For more information on Stock Reconciliation, see the User Guide.

Note: An Automated Asset Depreciation feature in on our To-Do List. See this Github Issue.