“In this page, you will find everything related to the asset depreciation page, including how to access it, its concept, and its uses, along with an explanation of how to execute it.
To access the “Asset Depreciation” page, please follow the following instructions:
- Start by navigating to the Assets screen from the main menu by clicking on the option related to assets. Then, a window with operations will appear, where you will click on it.
- When you are in the operations window, you need to select the link labeled “Asset Depreciation,” which will allow you to access the relevant page. By following these steps, you can easily access the Asset Depreciation page.
Concept of “Asset Depreciation”:
- It is a term used in accounting and finance to refer to the reduction in the value of tangible assets over time due to continuous use, consumption, or natural wear and tear. Asset depreciation represents costs estimated and calculated to maintain the accuracy of the asset’s accounting value over time. These costs are reflected in the company’s or organization’s capital statement.
- Asset depreciation aims to estimate the actual cost of long-term asset usage and reduce its accounting value over time. This helps companies and organizations estimate the true costs of production or services that rely on these assets and plan for maintenance and replacement when needed.
Explanation of How to Execute “Asset Depreciation”:
- Selecting Assets: Firstly, you need to choose the fixed assets you want to depreciate over the specified period. You can select these assets from your available assets list. These assets should have been previously registered in the company’s records.
- Depreciation Start Date: There is a depreciation start date for the selected fixed asset. This date marks the beginning of the depreciation process and is determined based on the company’s policy and accounting regulations.
- Choosing the Asset’s Branch: If you have multiple assets belonging to different branches within the company, you must select the branch to which the fixed asset you want to depreciate belongs. This will also affect the accounting entry linkage to any branch.
- Reviewing Entry Information: Before executing depreciation, you can click on the “Show General Ledger Information” button to view the accounting entry associated with the depreciation process. You must ensure the accuracy of this entry and its compliance with the company’s accounting policies.
- Executing Depreciation: After verifying the data and accounting entry, you can click on the “Depreciate Asset” button to execute the depreciation process. The depreciation value is automatically calculated based on the depreciation rate set when adding the asset and the depreciation start date specified during asset addition. This allows the company to estimate the actual long-term usage cost of the assets and ensure that accounting values reflect the gradual consumption of the asset over time.”