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.
You can generate depreciation transactions for individual assets and on specific months that you decide.
Navigate to Tools > Fixed assets and click on the depreciation icon beside the appropriate fixed asset.
Select the appropriate months to depreciate and click on the ‘Create selected’ button or click on the ‘Create all’ button to create depreciation transactions for all available months.
If some months do not appear, use the ‘Process assets’ feature and make sure to tick the check ‘Don’t create journals’ checkbox as described in ‘How to manually depreciate all Fixed Assets on the fixed asset register’