Introduction

  • 11 minutes

Depreciation is used to allocate fixed assets over their depreciable life. Fixed asset depreciation can be calculated and posted by using two methods:

  • Manual

  • Automatic

You can use the fixed asset G/L journal or the fixed asset journal to post depreciation manually. For the automatic method, run the Calculate Depreciation batch job.

Screenshot of the Calculate depreciation page.

The Calculate Depreciation batch job automatically calculates depreciation based on the conditions that you set up on the batch job request page. Sold, blocked, or inactive assets, and assets that use the manual depreciation method, are excluded from the automatic depreciation calculation. The batch job automatically creates journal lines, and you should only check and post the created journal lines.

If you use multiple depreciation books, run the Calculate Depreciation batch job for each depreciation book separately.

Watch the following video to see a demonstration on how to calculate depreciation.