Asset Profiles (Categories)
Go to Accounting > Configuration > Asset Profiles. Set up one profile per category of asset you own (Computers, Vehicles, Office Furniture, Machinery) so new assets inherit sensible defaults instead of being configured from scratch every time.
Profile Fields
- Asset Account – the balance sheet account holding the asset's book value.
- Depreciation Account – the accumulated depreciation contra-asset account.
- Expense Account – where the periodic depreciation expense posts (usually a P&L "Depreciation Expense" account).
- Computation Method (see below).
- Number of Years/Periods and Period Length (monthly or yearly entries).
Depreciation Methods
| Method | How It Works |
|---|
| Linear | Equal amount each period: (Purchase Value − Salvage Value) ÷ Number of Periods. The most common method. |
| Linear-Limit | Same as Linear, but depreciates down to Salvage Value using the full Purchase Value as the base. |
| Degressive | A fixed percentage of the remaining value each period — larger amounts early, smaller later (declining-balance method). |
| Degressive-Linear | Starts degressive, then automatically switches to linear once the linear amount would be larger — a common tax-compliant hybrid in several jurisdictions. |
| Degressive-Limit | Degressive down to Salvage Value. |
Check what your local tax authority requires or permits before choosing — some jurisdictions mandate a specific method (or specific useful-life years) for tax depreciation, which may differ from what you use for internal management reporting.
Prorata Temporis
Enable Prorata so an asset purchased mid-period only depreciates for the portion of that first period it was actually owned, instead of a full period's worth of depreciation on day one.
