How to input depreciation

1

Hello,

I have purchased a PC of a value of 1500 Euro + V.A.T
My accountant is asking me to depreciate the item over a length of 3 years.

My bank account shows an expense of 1500 Euro, is the depreciation the loss in value of the item over 3 years? So in this case my yearly reports will still show an expense of 1500 Euro?

Ho does it works please.

Thank you,

2

Depreciation rates and methods are complex topics in which you be guided by your accountant. As for how to treat fixed assets in Manager, there several Guides under the heading of Asset Registers.

3

No it will show a yearly expense of 500 Euro, unless your 1500 was a typo.

4

This is only true when two conditions are satisfied:

  • Straight-line depreciation is used
  • Salvage value is ignored; that is, when depreciable value equals the full acquisition cost

Both conditions will depend on accounting and tax rules in the local jurisdiction.