Depreciation is the consumption of an asset or liability over its useful life. By taking this consumption (cost) into account in your accounts, you will know the value of your assets and how much is left to pay off the acquisition of a liability (interest and annuity).
To depreciate an asset, you must create the depreciation table and enter the asset information in the following steps in Holded.
Steps to register a new asset and generate depreciation table
Go to Accountancy and select Assets.
Click on the +New Asset button, which is in the top right-hand corner.
Complete the fields and click Continue.
Click on Calculate Amortization. Then click on Save.
Some important points to note
Once you have entered the asset, you can select it from the list and click on the 'Generate Pending Transactions' button at the bottom of the screen. This action will generate the transactions corresponding to the depreciation of this asset.
If you have more than one asset of the same type to add depreciation, select the assets from the list, fill in the information and a table will be automatically generated for each asset. Remember, once the depreciation entries have been made, you cannot edit the asset.
You can create depreciation entries for an asset from its tab if you need to. Click on an entry in the Depreciation table, edit as required, then click OK.
Once the entry is registered, the button turns green. If you want to delete or edit an entry, select it. From the corresponding tab, you can modify it at any time.
You can s¡elect multiple assets in the list to create the journal entries for the period in bulk.
☝🏼Accounting is included in Standard, Advanced and Premium plan. Check out Holded's plans and choose the one that best suits your business needs.