Depreciation
Overview
Fr8Labs allows you to automatically generate a depreciation schedule for each asset once it is created with the appropriate depreciation settings.
The schedule is based on:
Depreciation Method (explained below)
Total Number of Depreciations
Available-for-use Date
Other asset record inputs
You must tick the Calculate Depreciation checkbox when creating an asset if you want the system to create this schedule.
It is also possible to maintain multiple depreciation schedules across different Finance Books, which is useful for companies reporting under different standards (e.g., local GAAP vs. group reporting).
Depreciation Methods
Fr8Labs supports multiple methods of calculating depreciation.
Straight Line
Asset value is reduced uniformly over its useful life until it reaches its salvage value.
Example: Asset value = 1,000; Salvage value = 500; Useful life = 5 years.
Depreciation = 100 per year.
Use when depreciation is expected to occur evenly over time.
Double Declining Balance (200% Declining Balance)
Higher depreciation in the early years, slower later.
Example: Asset value = 100,000; Salvage value = 11,000; Useful life = 8 years.
Current Value | Depreciation | Booked Value |
|---|---|---|
100,000.00 | 25,000.00 | 75,000.00 |
75,000.00 | 18,750.00 | 56,250.00 |
56,250.00 | 14,063.00 | 42,187.50 |
42,187.50 | 10,547.00 | 31,640.62 |
31,640.62 | 7,910.00 | 23,730.46 |
23,730.46 | 5,933.00 | 17,797.84 |
17,797.84 | 4,449.00 | 13,348.38 |
13,348.38 | 2,348.00 | 11,000.00 |
Useful for assets that lose value quickly (e.g., IT equipment).
Written Down Value
A fixed rate of depreciation is applied on the remaining book value each year.
Example: Asset value = 1,000; Rate = 10%.
Current Value | Depreciation | Booked Value |
|---|---|---|
1,000.00 | 100.00 | 900.00 |
900.00 | 90.00 | 810.00 |
810.00 | 81.00 | 729.00 |
729.00 | 72.90 | 656.10 |
656.10 | 65.61 | 590.49 |
Suitable for assets with higher depreciation in the initial years.
Manual
System creates a Straight Line schedule by default, but you can manually edit dates and depreciation amounts.
Useful when custom adjustments are needed (e.g., audit requirements, irregular usage).
Automatic Depreciation Entries
If enabled in Accounts Settings, Fr8Labs will automatically book depreciation entries on schedule.
If not enabled, users must manually create entries by clicking Make Depreciation Entry on the schedule.
Accounting Entries
When depreciation is booked, the system automatically posts:
Credit – Accumulated Depreciation Account
Debit – Depreciation Expense Account
These accounts can be configured in either the Asset Category or Company settings.
Asset Value Chart
For each asset, Fr8Labs displays a line graph of net asset value over time, showing how the book value decreases with each depreciation entry.
Documentation owner: Fr8Labs Customer Success. Text reviewed: 21 September 2026.