Run or roll back depreciation on fixed assets

Run depreciation on the fixed assets that you've registered in Xero, or roll back the depreciation date. Depreciation is run monthly but is calculated on a daily basis. You can depreciate to the next month, or several months at a time.

Click the Depreciation button to run depreciation.

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Fixed Assets: Processing Video (3.04) Fixed Assets: Processing

Access the Depreciation screen from the Depreciation button on any of the Fixed Asset tabs in Accounts > Fixed Assets.

Depreciation main

If there are no Registered Items in your fixed asset register, then no accounts will display on this screen.

Note: Only users with the Advisor user role can apply depreciation to fixed asset accounts.

Run depreciation

Enter or edit

Choose a month to depreciate asset items to.

Depreciation Settings

Depreciation is run monthly but is calculated on a daily basis.

Depreciate from

Starts from your Fixed Asset Start Date and updates each time depreciation is run or the Start Date is changed.

Update

When the details of the depreciation you want to run are entered or updated, click Update to re-generate the depreciation amounts.

Depreciation details

Account

The Fixed Asset account to which Registered Items are coded.

Amount to be depreciated

The total amount of depreciation on Registered Items that are coded to that Fixed Asset account.

Accumulated Depreciation Account

The Accumulated Depreciation Account that is linked to the Fixed Asset Account. You can change this if the account listed is not where you want to code accumulated depreciation to. The accumulated depreciation amount will show on the Balance Sheet for each account.

Start date button

Rollback button

Change the depreciation start date

If you need to change the depreciation start date you can do so via the Start Date screen.

Change the depreciation amount

If depreciation has been run and you now need to change the depreciation amount, simply make the changes on your Registered Item and roll back depreciation. Once you've made the changes, simply rerun the depreciation.

Export

Export button

Print button

View full depreciation details

The main depreciation screen shows a summary of the total depreciation that will be posted to each Accumulated Depreciation account. To view individual asset details simply print or export the comprehensive depreciation data.

Approve button

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Approve

Approve the amount to be depreciation for all the asset accounts. You can only approve once all the depreciation accounts have a linked accumulated depreciation account set.

Cancel

Exit this screen without saving any of the changes entered.

Roll back the depreciation date

If depreciation has been run and you now need to change the depreciation amount, simply make the changes on your Registered Item and roll back depreciation. You can then rerun the depreciation once you've made the changes.

  1. Go to Accounts > Fixed Assets and click the Depreciation button.
  2. Click the Rollback Depreciation button.
  3. Select the month you want to roll back depreciation to. Check the notes below regarding date options and restrictions.
  4. Click OK to roll back depreciation to that month. If you don't want to save, click Cancel.

Change depreciation date

Date options and restrictions

  • The drop-down list shows the dates from the end of year lock date forward to your current depreciation date.
  • The depreciation date cannot be set further back than the fixed assets start date.
  • You can only set the depreciation backwards from the current date.

Note: setting the depreciation date backwards causes all depreciation journals and all disposals back to the new depreciation date to be reversed on the date they were created.