Exact Financials

Fixed Assets Manual - Depreciating assets

Depreciating assets

The cost allocation of your assets is recorded in your financial accounts using generated depreciation entries. Depreciation constitutes recurring expenses which should be equally divided over all periods. Depreciation entries can be generated automatically per asset group in a general journal. Since depreciation takes place per asset group, the processing method depends on the general ledger accounts selected in [Asset: Master data, Maintenance, Assets, Asset groups]. The allocated costs are written to the defined profit and loss account 'Depreciation'. The decrease of the book value is credited on the (balance sheet) account 'Depreciation'. Fixed assets can be depreciated in: [Asset: Depreciation, Depreciate assets].

Depreciation entries will not be generated for:

• Assets that have not been activated
• Assets that have been sold
• Assets from which the depreciation is postponed.

If depreciation occurs more than one period at a time, for each period a financial entry is written, provided if you have enabled the setting Register depreciations per period' on the 'General' tab in [Assets: File, Asset settings, General]. When this setting is disabled, one financial entry will be created which contains the total amount of all periods selected.