Auto-Post Depreciation
Configure automatic depreciation posting for fixed assets — scheduling, status badges, and the journal posted each cycle.
Auto-Charge eliminates the need to manually trigger depreciation every month. Once enabled for an asset, the scheduler calculates and posts the depreciation journal at the end of each month without any user action. The journal appears in the Finance ledger, and the asset's book value updates automatically. You review what was posted — you do not have to initiate it.
Enabling Auto-Charge
Navigate to: Operations → Fixed Assets → select any asset → Auto-Charge tab
The Auto-Charge tab controls the automatic depreciation schedule for this specific asset.
| Setting | Options | Details |
|---|---|---|
| Enabled / Disabled | Toggle | The first time it is switched on, the schedule is initialized starting from the current period (never retroactively). Switching it off pauses the schedule; on again resumes it. New assets start Not Configured — nothing posts until you enable it. |
| Frequency | Monthly | Depreciation is charged monthly, on the last day of the month. |
| Next Charge Date | Read-only | The end of the next period to be posted. Advances one period after each post. |
| Last Charged | Read-only | The period end of the most recent posting. "Never" if no post has occurred yet. |
| Total Posted | Read-only | How many depreciation entries have been posted for this asset. |
| Summary cards | Read-only | Asset Cost, Accumulated Depreciation (from postings, with the count), Current Book Value with the scrap value beneath. |
| Recent Postings | Read-only | Posting #, Period, Amount, Book Value and Status for the last five entries. |
The Depreciation Journal Posted Each Cycle
Every night at 01:00 UTC the scheduler finds every asset whose Next Charge Date has passed and posts one combined journal per business (reference DEP-YYYYMM, dated the period end). Run catch-up on the Fixed Assets page runs the same routine on demand. For each asset the structure is:
| Account | Debit | Credit | Description |
|---|---|---|---|
| Depreciation Expense (configured on asset) | Period depreciation amount | — | Depreciation recognized as an operating expense in this period |
| Accumulated Depreciation (configured on asset) | — | Period depreciation amount | Contra-asset balance increases — book value on the balance sheet decreases |
The period depreciation amount is calculated from the opening book value according to the asset's depreciation method:
- Straight Line: (Cost − Scrap Value) ÷ (Useful Life in years × 12)
- Reducing Balance: Opening book value × 20% ÷ 12 (the rate is fixed in the engine)
- Units of Production: Opening book value × (2 ÷ Useful Life in years) ÷ 12 — no units figure is entered
The charge is capped so the book value never falls below the scrap value; once it reaches scrap, or the useful life is exhausted, the asset is marked Complete. A period that falls inside a closed accounting period is skipped, and a period already posted is never posted twice.
The Asset Account always holds the original acquisition cost — it is never touched by depreciation postings. Accumulated Depreciation is a separate contra-asset account that grows over time. Book value shown on the register is Cost minus Accumulated Depreciation — both accounts are always read together, never independently.
Auto-Charge Status Badges
The Auto-Charge tab shows a status badge:
| Status | Meaning |
|---|---|
| Active | Auto-Charge is enabled and the asset is within its useful life. Depreciation will post on schedule. The Next Charge Date is in the future. |
| Paused | Auto-Charge was enabled at some point but is currently toggled off. No further automatic posts will occur until it is re-enabled. Historical posts are retained. |
| Complete | The asset has been fully depreciated — book value has reached the scrap value floor or the useful life is exhausted. Posting has stopped automatically and the toggle is disabled. |
| Not Configured | Auto-Charge has never been enabled for this asset. Nothing posts until you click Enable Auto-Charge. |
| Disposed | The asset has been disposed of. Auto-Charge is permanently stopped. No further depreciation can be posted. |
Running Depreciation Manually
Navigate to: Operations → Fixed Assets → Run catch-up
Run catch-up posts every depreciation entry that is due but not yet posted, across all assets with Auto-Charge active. It is the same routine the scheduler runs, so it never double-posts a period. Assets that are Paused, Not Configured, Complete or Disposed are skipped, as is any period inside a closed accounting period. The result message reports the outcome and the first error, if any.
Reviewing Posted Depreciation
Depreciation journals appear in the Finance ledger with references of the form DEP-YYYYMM; each combined journal lists the assets it covers in its note. The Auto-Charge tab's Recent Postings table lists the entries for one asset, and the Depreciation Schedule tab shows the projected amounts for every period, with elapsed periods highlighted.