Depreciation Entry

Question: Purchased and kept in a warehouse is a fixed asset item. How do I calculate a fixed asset item's depreciation?

Answer: Through Stock Reconciliation Entry, you can submit an asset depreciation entry for the fixed asset item.

Step 1:

Fill in the necessary columns in the attachment file;

• Item Code whose value is to be depreciated.
• Warehouse in which item is stored.
• Qty (Quantity) Leave this column blank.
• Valuation Rate will be item's value after depreciation.

Return to Stock Reconciliation after updating an item's valuation rate, then upload a saved.csv file.

Step 2:

In the Difference Account, choose the Expense account for depreciation. The value recorded in the depreciation account will be the difference between the fixed asset item's old and new valuation rates; this value represents the actual depreciation amount.