Depreciation
Spreading the cost of a long-lived asset over the years you use it, instead of expensing it all at once.
In Solo Superstars
Straight-line by default. Each run posts Depreciation Expense against Accumulated Depreciation per asset. The year-end close offers a bulk run for the year; tax depreciation is tracked separately on the asset.
Example
Annual: debit 6500 Depreciation Expense 480, credit 1590 Accumulated Depreciation 480.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- depreciation expense
Related
- Fixed asset — Equipment, vehicles, furniture or property you will use for more than a year. Recorded at cost and depreciated, not expensed.
- Accumulated depreciation — The running total of depreciation taken on a fixed asset. Shown as a negative asset so the balance sheet reads cost minus wear.
- 6500 Depreciation Expense — The share of a fixed asset’s cost charged to this period. Booked by the depreciation run, never by hand.
- 1590 Accumulated Depreciation — The running total of depreciation taken on all fixed assets. A contra asset, so the balance sheet reads cost minus wear.
- Adjusting entry — A journal entry made at period end to fix timing: an accrual, a prepaid release, depreciation. Not tied to a bill or invoice.