How do I record a fixed asset and its depreciation?

Record the asset under Operations → Fixed Assets with its cost, purchase date and useful life. Trabalance calculates the depreciation schedule from those values.

Depreciation reduces the asset's book value over its life and posts the charge to your profit and loss for each period.

Record an asset here rather than as an expense when it will be used for more than a year. Expensing it in full puts the whole cost into one month and understates that month's profit.

Disposal is recorded on the asset itself so the remaining book value and any gain or loss are handled together.

Try it in the live demo: Open fixed assets

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