Recurring Entries for Asset Depreciation

For companies having many assets, it would be great to automate the assets depreciation entry.

I am wondering if there is some improvements planned for the assets section.



Why not use recurring journal entry function?

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I tried doing that. But you will not have the access to the Accumulated Depreciation Account from the chart of accounts, therefore the asset section will not get affected by journal entries.

True. So you have only two ways. Create your own depreciation account, use journal entries and loose the assets’ automatic reportings or wait for Lubos, if he finds this idea useful and doable.

Exactly! As you said. If you decided you want an automated process for the asset depreciation, then you will chose not to work with the asset module.

But for using the asset module, we will have to do depreciation for each individual asset manually.

To Solve this problem, I suggest two solutions:

  1. Make Asset depreciation account accessible in journal entries, then you can select the asset. (Same process with items, employees, customers and suppliers). Then we can create a recurring journal with the month depreciation entry. This can be a solution, but the main draw back of this solution is that you will have to use straight line depreciation method for all your assets.

  2. Improve the asset depreciation section, to let you choose the asset useful life, the salvage value, and the depreciation method. and let the module do the automated depreciation for you. This is the best option, I hope lubos will plan for this to be developed in the near future.

I found this post, which indicates that this is already being developed. :grinning:

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Hi guys…Agree that auto depreciating an asset would be a useful feature, especially when you need to depreciate multiple assets with the same valuation purchased on the same period