Once an asset has been created by either approving a pending asset or creating a new fixed asset you can begin to create depreciation transactions using the fixed asset register.
As you process a transaction for the depreciation, the system will create a journal entry which will Dr the depreciation account code and Cr the accumulated depreciation account code.
You can control how the depreciation is processed in several different ways.
Depreciation will not be processed (or deleted) in locked reporting periods found on the Settings > Accounting > Periods menu.
For auto depreciation, navigate to Settings > Configure system > Toggle Features > Features.
Click on the radio button beside the ‘Auto depreciation’ heading (which is nested under the Fixed Assets feature).
Auto depreciation will happen at the end of every month and will create depreciation transactions for every asset for each month since the depreciation start date that has not had a depreciation transaction created.