Depreciation

Depreciation spreads the cost of an asset over the time you use it, instead of counting it all as a cost on day one. In Kontala it is fully automatic: once an asset is on the register, the charges post themselves.

The two methods

• Straight line writes off the same amount each month across the Asset life you chose, so a £1,200 laptop over 2 years loses £50 a month. The asset reaches exactly zero at the end of its life.
• Reducing balance applies your annual Depreciation rate to the remaining value, month by month. Charges start larger and shrink over time, and the value falls towards zero without quite reaching it.

Assets set to No depreciation simply stay at cost.

When charges post

Kontala posts one depreciation charge per calendar month, dated the end of the month, starting with the month you bought the asset. This happens automatically in the background - you never post a charge yourself, and it never posts twice.

Where depreciation appears

• The asset's Net book value falls each month, on the asset register and the asset's own page.
• The charge lands in the Depreciation Charge account on your Profit and loss, under Administration Expenses.
• Your Balance sheet shows the Net Book Value of all assets after depreciation.

To change an asset's method later, open it from the register and choose Edit asset details.