Depreciation Entry
Question: A Fixed Asset Item has been purchased and stored in a warehouse. How to create a depreciation for a Fixed Asset Item?
Answer:You can post asset depreciation entry for the fixed asset item via 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 item is stored.
- Qty (Quantity) Leave this column blank.
- Valuation Rate will be item's value after depreciation.
After updating Valuation Rate for an item, come back to Stock Reconciliation and upload save .csv file.
Step 2:
Select Expense account for depreciation in Difference Account. Value booked in the depreciation account will be the difference of old and next valuation rate of the fixed asset item, which will be actually the depreciation amount.
