brotherton-erpnext/erpnext/docs/user/manual/en/stock/articles/creating-depreciation-for-item.html

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<h1>Creating Depreciation For Item</h1>
<h1>Creating Depreciation For Item</h1>
<b>Question:</b> A Fixed Asset Item has been purchased and stored in a warehouse. How can the user create a depreciation for a Fixed Asset Item?<u><b><br><br></b></u><b>Answer:</b><u><b><br><br></b></u>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.
<br><u><b><br>Step 1:</b></u> In the Attachment file, fill in the appropriate columns;
<br>
<ul>
<li><i>Item Code</i> whose value is to be depreciated</li>
<li><i>Warehouse </i>in which it is stored</li>
<li><i>Qty (Quantity) </i>Leave this column blank</li>
<li>&nbsp;<i>Valuation Rate </i>Enter the Value after Depreciation</li>
</ul>
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<img src="{{docs_base_path}}/assets/img/articles/kb_deprec_csv.png"><br>
<p><u><b><br></b></u>
</p>
<p><u><b>Step 2:</b></u> In the Stock Reconciliation Form, enter the Expense account for depreciation in <i>Difference Account</i>.</p>
<br><img src="{{docs_base_path}}/assets/img/articles/kb_deprec_form.png" height="302" width="652"><br>
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<div class="well">Note: For more information on Stock Reconciliation, see the <a href="https://erpnext.com/user-guide/setting-up/stock-reconciliation-for-non-serialized-item" target="_blank">User Guide</a>.</div>
<div class="well"> Note: An Automated Asset Depreciation feature in on our To-Do List. See this <a href="https://github.com/frappe/erpnext/issues/191" target="_blank">Github Issue</a>.</div>