Run Monthly Depreciation

Last updated: 2026-07-09 Summary:

• Depreciation is a batch you run once per period — it processes every active asset and posts one journal entry per asset.
• Re-running the same period is safe: assets already depreciated for that month are skipped, and fully-depreciated assets do nothing.
• A closed period is rejected; run depreciation before you close the month.

Fixed Assets is available on plans that include Fixed Assets.

Run the batch

1. Go to Fixed Assets → Asset Register and click Run Depreciation. (This needs the post-depreciation permission; if you don’t see the button, ask your admin.)
2. Pick the Period (a month, shown as YYYY-MM).
3. Click Run Depreciation in the dialog.
4. Read the result summary:
   • Assets Processed — how many had depreciation posted.
   • Total Depreciation — the peso total booked this run.
   • Assets Skipped — already depreciated for this period, or fully depreciated.
   • Newly Fully Depreciated — assets that reached their salvage floor on this run.

The figures are book depreciation computed from each asset’s method and life. As the dialog notes, this does not reflect BIR tax rates — the tax-disallowed portion is tracked separately as a memo (see Depreciation caps and the lapsing schedule).

What gets posted

For each processed asset, eKapital posts a journal entry for the period:

• Debit the asset’s depreciation expense account.
• Credit its accumulated depreciation account.

Each asset’s running accumulated depreciation and its last-depreciated period are updated so the next run knows where to continue.

Re-running is safe

The run is idempotent per period:

• Already depreciated for that period — the asset is skipped, not double-booked. You can safely re-run a month after registering a late asset; only the ones still missing that period get posted.
• Fully depreciated — once net book value reaches salvage, the asset is a no-op and counts as skipped.

Where people get tripped up

• Closed period. Running against a closed accounting period returns a “Period closed” error. Choose an open period, or reopen and reclose around the run. See Close an accounting period.
• Financial fields lock after the first run. Once an asset has posted depreciation, its cost, salvage, dates, method, and useful life can no longer be edited. Get those right before the first run — see Register a fixed asset.
• Disposing mid-month. Net book value at disposal only reflects depreciation posted through the last run. If you dispose in a month you haven’t depreciated yet, run that period first so the gain/loss is right — see Dispose of a fixed asset.

See also

• How eKapital calculates depreciation
• Fixed asset reports
• Register a fixed asset