Fixed Assets
Running depreciation
Calculate and post monthly depreciation for all active assets.
4 min read
Depreciation reduces the book value of assets over time to reflect wear and the cost of using them. MSME Link calculates depreciation automatically based on the category settings.
- 1Go to Fixed Assets → Depreciation.
- 2Select the depreciation period (month and year).
- 3Click Calculate. MSME Link shows you the depreciation charge for every asset.
- 4Review the amounts and click Post to create the journal entries.
- 5Depreciation journals debit the Depreciation Expense account and credit Accumulated Depreciation.
Run depreciation at the end of every month before closing the period. Once a period is locked, depreciation cannot be posted into it.