Depreciation is not hard math.
It becomes hard operations when the workflow is:
- manual
- inconsistent
- impossible to audit
If you want the product overview first:
The goal: a depreciation run that is safe to repeat
Month-end workflows must be safe to re-run.
If you re-run depreciation and create duplicates, you force manual cleanup, and manual cleanup is not a control.
Design the workflow so “re-run” is normal and safe.
The practical workflow
Step 1: preview depreciation for the period
Preview answers:
- which assets will depreciate this month
- what amounts are expected
- which assets already have records (so you avoid duplicates)
This is your “sanity check” step.
Step 2: create depreciation records (batch)
When the preview is acceptable:
- create the depreciation records for the month
- keep record creation explicit and reviewable
The goal is to preserve a time-based history, not overwrite values.
Step 3: post depreciation to GL (controlled step)
Posting should:
- show success vs failure per asset (no silent partial failures)
- keep journal entry links explicit
- be easy to re-run for failed items only
Step 4: keep the audit trail stable
For auditability you want:
- who ran the depreciation
- when it was posted
- which journal entries were created
- what changed later (and why)
If you care about governance, this is exactly where audit logs matter:
What to do next
If depreciation is currently done in a spreadsheet:
Move to a workflow that supports:
- preview before creation
- batch record creation
- controlled posting with explicit outcomes
Start here: