How to create a depreciation plan

In MKG, we distinguish between main assets and sub-assets. Main assets include buildings, machinery, inventory, and computers. Each main asset contains one or more sub-assets, also known as fixed asset lines. For example, different machines, such as the saw bench or milling machine, will fall under the main asset 'Machines' as sub-assets.

Each investment needs to be depreciated. You can create a depreciation plan per sub-asset, where you set the number of terms before the investment is fully depreciated. Follow the steps below to create such a depreciation plan.

Step 1: Find and select the main asset

Open the Fixed Assets module. On the module's homepage, find and select the main asset 'Machines and Accessories'. The main asset opens and shows all sub-assets, the fixed asset lines.

Step 2: Select the sub-asset

Double-click in front of the line of the sub-asset for which you want to create a depreciation plan. The sub-asset opens.

Step 3: Go to the 'Depreciations' tab

On the 'Depreciations' tab, enter the number of periods for the total duration under Number of Terms. Ensure the correct fiscal year and period are set under Start in. The 'Amount to be Distributed' is the amount to be depreciated, formed by the acquisition cost minus the residual value.

Step 4: Distribute the amount

Click on Distribute Amount

Step 5: Check the depreciations

Open the 'Depreciations' section. The depreciations are now distributed per fiscal year and period.

Step 6: Save

Click on Save