Asset Depreciation

2026-02-17 · 3 min

Overview

The Depreciation module calculates and posts periodic depreciation for all fixed assets. It supports multiple depreciation methods and auto-generates GL journal entries for each depreciation run.

Depreciation Methods

Supported calculation methods:

• Straight Line Method (SLM): equal depreciation over the asset's useful life.
• Written Down Value (WDV): declining balance based on a fixed percentage.
• Units of Production: depreciation based on actual usage (suitable for medical equipment with metered usage).
• Custom rates: define asset-category-specific rates as per Income Tax Act and Companies Act schedules.

Running Depreciation

Process monthly or quarterly depreciation:

1. Navigate to Finance > Depreciation.
2. Select the period (month/quarter) and depreciation method.
3. Click 'Run Depreciation' to calculate for all active assets.
4. Review the depreciation schedule showing each asset, original cost, accumulated depreciation, and current period charge.
5. Approve to auto-post GL entries: Debit Depreciation Expense, Credit Accumulated Depreciation.
6. View net book value (NBV) for each asset after posting.

Asset Register Integration

Depreciation is linked to the Fixed Assets module:

• New assets added to the register are automatically included in future depreciation runs.
• Disposed or written-off assets are excluded from calculations.
• Asset revaluation adjustments are reflected in subsequent depreciation.
• Full depreciation history per asset is maintained for audit.

Notes

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