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Fixed assets and depreciation

This screen manages the company’s fixed assets register (equipment, furniture, etc.) and calculates their depreciation schedule, whether straight-line or declining balance, including special depreciation where the difference between tax and accounting rules requires it. It allows you to simulate and then post the depreciation entries for a given year.

What it is for

A fixed asset purchased by the company (vehicle, computer, machine) is not recognised as an expense all at once: its value is spread over its useful life through depreciation. This screen centralises your fixed assets (description, date of commissioning, amount excluding VAT, useful life) and calculates the annual depreciation charge to be recorded, either on a straight-line basis (equal allocation) or on a declining balance basis (higher at the start). Where the permitted tax depreciation schedule differs from the chosen accounting schedule, a special depreciation entry is added to the journal entry to comply with both sets of rules simultaneously (accounts 145/6872/7872). For each fixed asset, you can view its depreciation schedule (year, depreciation charge, cumulative depreciation, net book value). At the end of the year, you first simulate the total amount of depreciation charges to be posted, check the figures, and then actually post the corresponding accounting entries.