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Buildings, machinery, equipment, furniture, fixtures, computers, cars, and trucks are examples of assets that will last for more than one year, but will not last indefinitely.

 

During each accounting period (year, quarter, month etc.) assets are devaluing due to wear and tear. The amount by which each asset devalues is reported as a Depreciation expense in the profit and loss statement. In effect depreciation is the transfer of a portion of the asset's cost from the balance sheet to the profit and loss statement during each year of the asset's life.

 

Fixed Assets module will assist you with managing acquiring, depreciation and disposal of these long-term assets.