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

#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 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.