Exact Financials

Fixed Assets Manual - Calculating depreciation

Calculating depreciation

Depreciations contain the recording of fixed entries in which the costs of the purchased assets period are allocated over a predefined life span. This cause the general ledger account 'Depreciation costs' (profit and loss account) to be debited periodically.

You can change the defined depreciation method during the estimated life of the asset, when there is, for instance, a change in the statutory or fiscal depreciation method. If you change the depreciation method during the estimated life of the asset, you can indicate if you want to create a depreciation adjustment or not.