Depreciation
Year-end depreciation on your fixed assets, computed both the Income-Tax way and the Companies Act way.
Reports → Depreciation works out how much value your fixed assets lose over the year — and it does it both ways so you are covered for tax and for your statutory accounts.
| Method | How it computes |
|---|---|
| Income-Tax | By block of assets on the written-down value, with the half-rate applied to assets put to use for under 180 days. |
| Companies Act (Schedule II) | Per asset, by straight-line or written-down value over the asset's useful life. |
It reads your fixed-asset accounts
Depreciation is computed from the accounts you mark as fixed assets, with the cost and rate details held on each. Set those up well and the year-end run is a review, not a rebuild. See Account groups for how a fixed-asset account is classified.
Run it at year-end
Depreciation is an annual story. Open this once the year's asset additions and disposals are in, then post the charge as a journal.
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