Managing Assets and Depreciation
The asset register documents cost, useful life, book value, and activity until retirement.
Categories and registration
Create a category with cost, depreciation, and accumulated accounts, then register the asset and values.
- Assets inherit depreciation method and life from the category unless overridden.
- The asset code is unique within the company.
Periodic depreciation
Run depreciation for active assets using the selected method and retain each period's history.
- An asset cannot be depreciated twice for the same period.
- The first month may be prorated daily, by half-month, or as a full month.
Estimate changes and retirement
Apply useful-life or salvage changes prospectively, and record disposal or sale on retirement.
- Disposal writes off net book value.
- Sale compares proceeds with book value to determine gain or loss.
