Fixed assets & depreciation
Keep a fixed-asset register and let Finocket compute depreciation — SLM or WDV, to the paise, day-pro-rated from the day each asset was put to use. Posting writes a balanced Dr Depreciation / Cr Accumulated voucher, idempotent per asset and period, with gain or loss on disposal.
A laptop, a delivery van, a machine — assets lose value over their working life, and that loss is a real expense your accounts must show. Finocket keeps a fixed-asset register and works out depreciation for you, so your balance sheet carries each asset at what it's actually worth and your profit reflects the wear.
The register
Record each asset with its cost, purchase and put-to-use dates, any salvage value, and the method. The Fixed-asset register then shows every asset with its accumulated depreciation and net book value, rolled up by class.
SLM or WDV, to the paise
Both Indian methods are built in. SLM (straight-line) charges a fixed amount each month — cost minus salvage, spread evenly over the useful life. WDV (written-down value) charges a percentage of the reducing book value, so the monthly charge tapers off. Every figure is computed in whole paise with a salvage floor, and the final month absorbs any rounding residual — so a completed schedule sums to the depreciable base exactly, never a rupee out.
Pro-rated from the day it went to use
Depreciation starts from the put-to-use date (falling back to the purchase date), and the first month is charged in proportion to the days the asset was actually in use that month. Put a machine to use on the 20th and only those days count — no over-charging a full month for a part-month asset.
The depreciation voucher
Posting depreciation writes a balanced journal — Dr Depreciation (an expense) and Cr Accumulated Depreciation (against the asset) — so your trial balance still foots to zero. Posting is idempotent per asset and period: running the same asset's month again does nothing, so depreciation is never double-charged.
Disposal gain or loss
When you sell or scrap an asset, record the disposal date and amount. No depreciation is charged for the disposal month or after, and the register's disposals view shows the gain or loss on each sale — the difference between what you got and the asset's net book value at that point.
Access & control
Fixed assets & depreciation is an optional module (currently in beta) — turn it on under Profile → Modules. Owners and assistants maintain the register; an invited accountant reads it. Verify the figures with your CA before finalising the year.
Related: Financial statements, Closing stock & cost of goods sold.
Frequently asked questions
Does Finocket support both SLM and WDV depreciation?
Yes. SLM charges a fixed amount each month (cost minus salvage over the useful life); WDV charges a percentage of the reducing book value so the charge tapers. Both compute in whole paise with a salvage floor, and the final month absorbs any rounding, so the schedule sums to the depreciable base exactly.
How is the first month's depreciation calculated?
Depreciation starts from the put-to-use date (falling back to the purchase date) and the first month is pro-rated by the days actually in use. Put an asset to use on the 20th and only those days are charged — no full-month charge for a part-month asset.
What journal does posting depreciation create?
A balanced one: Dr Depreciation (expense) and Cr Accumulated Depreciation (against the asset), so your trial balance still foots to zero. It's idempotent per asset and period — running the same month again does nothing, so depreciation is never double-charged.
How is gain or loss on selling an asset handled?
Record the disposal date and amount; no depreciation is charged for the disposal month or after, and the disposals view shows the gain or loss on each sale — the difference between the proceeds and the asset's net book value at that point.
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