Depreciation - Property, Plant and Equipment

This ledger takes the monthly or yearly depreciation of tangible fixed assets: furniture, office equipment, vehicles, plant and buildings, never land. When a Purchase Invoice creates an Asset record, the Asset Category sets the useful life, method and these accounts, and the Asset Depreciation Schedule lists each future charge. On each schedule date BRAccount posts a Journal Entry of type Depreciation Entry: Dr this ledger, Cr Accumulated Depreciation, with the asset's cost center. The demo entry ACC-JV-2026-00091 charges Rs 1,235.54 for the chairs and the laptop. The asset's net book value falls each period and the schedule stops at the salvage value. Manual journals here without an Asset record make the asset register and the ledger disagree.

Straight line depreciation per month = (Cost - Salvage value) / Useful life in months

1. 01Go to Assets > Asset Category and set the depreciation expense account to this ledger for each category.
2. 02Post the Purchase Invoice for the asset with Is Fixed Asset ticked; the Asset record is created.
3. 03Open Assets > Asset, confirm cost, useful life and salvage, and submit the asset.
4. 04The Asset Depreciation Schedule posts the Depreciation Entry on each date; the entry below posts.
5. 05Read the charge on Financial Reports > General Ledger or the Asset Depreciations and Balances report.

Posted automatically by the depreciation Journal Entry from each Asset's straight line schedule. Set the useful life on the Asset Category.

Journal Entry ACC-JV-2026-00091: Dr Depreciation - Property, Plant and Equipment Rs 1,235.54, Cr Accumulated Depreciation Rs 1,235.54 for the chairs and laptop.