In the Fixed Asset Management module we can create a fixed assets and charge depreciation for the particular fixed assets. Firstly needs to create a fixed assets records by going through Fixed assets > Lists > Assets > New. Provide the necessary details regarding the fixed assets like Asset type, Original cost, Residual value of the assets will be automatically generated as the residual value percentage is given. Residual value of an asset means the estimated value of the asset at the end of its life time.
Inorder to charge depreciation to the fixed asset on the basis of number of days in every month use 4-4-5 Calendar Depreciation Method (Formula = 12*((CC-RV)/AL)*DH/FY), if the formula for the 4-4-5 Calendar method is not as mentioned we can edit the formula in the depreciation method tab.
In the general subtab of the fixed asset provide details regarding the Purchase date of the asset, Depreciation start date, Financial year start date. After creating the Fixed Asset records depreciate the assets by selecting depreciate assets from Transactions. View the depreciation history of the particular asset where we can see the monthly charged depreciation for the asset.
Depreciation formula – 12*((CC-RV)/AL)*DH/FY)
CC – Current Cost Asset
RV – Residual Value
AL – Asset Lifetime
DH – Days held in current period
FY – Number of Days in Fiscal Year