<h1>Depreciation for Fixed Asset Items</h1>

Depereciation of fixed asset items.

####Separate Group of Depreciation Account

![Fixed Asset Account]({{docs_base_url}}/assets/img/articles/$SGrab_384.png)

####Depreciation Entry for Fixed Asset Items

Depreciation is when you write off certain value of your assets as an expense. For example if you have a computer that you will use for say 5 years, you can distribute its expense over the period and pass a
Journal Voucher at the end of each year reducing its value by a certain percentage.

As per perpetual inventory valuation system (set by default), you should create Stock Reconciliation for depreciating value of fixed asset items. In the Stock Reconciliation template, you should only enter Item's Code, Warehouse and its current value.

Let's assume current value of our computer is $250, and its purchase value was $320.

![Fixed Asset Depreciation]({{docs_base_url}}/assets/img/articles/$SGrab_385.png)

In this case, depreciation amount of Computer will be $70 ($320-$250). Depreciation Amount will be booked under Difference (expense) Account selected in the stock reconciliation.

![Fixed Asset Depreciation]({{docs_base_url}}/assets/img/articles/$SGrab_386.png)

Following is how general ledger will be posted for fixed this Stock Reconciliation.

![Fixed Asset General Ledger]({{docs_base_url}}/assets/img/articles/$SGrab_387.png)

Click [here](https://erpnext.com/user-guide/setting-up/stock-reconciliation-for-non-serialized-item) for steps to be followed when making Stock Reconciliation entry.

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