Please follow the steps below to record depreciation on fixed assets.
Adding a new fixed asset group
1. Go to Accounting->Chart of Accounts.
2. Click on Add accounting groups.
3. It lists out accounting groups, Liability groups, Revenue group, Expense group. At Asset groups there is an option called Manage Asset groups. Click on it.
4. You will be redirected to list of Asset groups. To add a new asset group Click on Add new groups and click submit.
Adding a new asset account
- Go to Accounting->Chart of Accounts.
- Click on Add new account.
- Fill all the details and click on add account.
Adding depreciation expense category
- Go to Accounting->Set up.
- Click On Setup Expense categories.
- To add new category against an Expense, click on Add New Categories. This will open up a screen to add new category. Add Depreciation expense category.
- Click on Add categories. This will add the categories against Expense.
- Go to Accounting ->Adjustments.
- Click on add adjustment.
- Clicking on this icon will open a new window to add a new adjustment. Fill all the details.
- Select Depreciation and enter the amount in debit column in the first row.
- In the second row, select the specific asset on which depreciation is charged and enter the equal amount in the credit amount equals to debit account.
- Click on submit to add the adjustment.