I am trying to understand how depreciation can be setup based on this page:
Let’s say I buy a mobile phone for 300 Euro, its depreciation is calculated over 4 years(48 Months).
In Manager shall I
- Click on Fixed assets and create a new asset name
2)For the accumulated depreciation(this part I am not sure), if I purchased the phone on the 2/02/2019, 300 / 12 = 75 Euro(Yealy), shall I create 2 entries as:
2/02/2020 @ 75 Euro
2/02/2021 @ 75 Euro
2/02/2022 @ 75 Euro
2/02/2023 @ 75 Euro
If this is correct, where in my report will I see this depreciation so I can minus it to my Net profit?
The part I am not sure about is this…
As I have purchased the mobile phone, I have an expense of 300 Euro in my bank account + vat to calculate so I get it back from the vat department.
If I input the mobile as an asset, it is my understanding that I should not also create an expense receipt in my bank account(or shall I?), how does it works please?
Thank you so much.