Depreciation in Xero: A complete guide for beginners

[@zohaibrahman2777]

The depreciation is only till the year end so for next year we should do manual journals or what ? (please let me know if possible) Thanks a million in anticipation!!!

[@xeroguru]

You don’t need to post manual journals. Next year, just run depreciation again

[@lquidfire]

Hello! I am wondering how I can add the following depreciation schedule: 1st year: 50% 2nd year: 30% 3rd year: 20% Do you know if there is a way to set this up for an Asset type? Many thanks from South Africa!

[@xeroguru]

The when set up assets types in Xero you can choose from some preset depreciation methods. (Eg No Depreciation, Straight Line, Diminishing Value, Full Depreciation at Purchase). You can’t add your own methods to these defaults. I’m not familiar with South African defaults in Xero, but I’d imagine the answer is no. But it’s worth checking with Xero’s support team, and even worth adding it as a feature request!

[@lquidfire]

@@xeroguru I will reach out to them and otherwise add a feature request. Thank you for your help!

[@xeroguru]

@lquidfire you’re welcome.

[@Chuoihihi7]

If I want to add an account which is accumulated depreciation, what type of account it is? As on xero there is not an account called contra asset. Thank you so much

[@xeroguru]

For accumulated depreciation accounts, you’d add a Fixed Asset account in your chart of accounts. (the account type is Fixed Assets) Correct, there’s no “contra” account type in Xero.

[@Chuoihihi7]

@@xeroguru Thank you so much sir. Your channel is so helpful

[@xeroguru]

@DuongLe-lr7ro you’re welcome!