Depreciation Overview

Last reviewed: June 9, 2026

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The Depreciation Assets screen is used to create depreciation assets and review depreciation schedules.

What this screen is for

Use Depreciation to maintain the asset records PAX uses for monthly depreciation posting.

This screen creates and reviews depreciation assets. Monthly depreciation journal entries are posted from Close Period Overview under Month-End Closing.

The current screen does not provide user-facing edit, delete, or archive actions for existing depreciation assets.

Screen path

Dashboard > Finance > GL & Close > Depreciation

Asset list

The asset list shows active depreciation assets.

Column What it shows
Asset Name Name entered for the asset.
Category Asset category.
Purchase Date Purchase date entered for the asset.
Cost Asset cost.
Monthly Depr. Calculated monthly depreciation amount.
Start Date First month/date depreciation can begin.
End Date Calculated end date for the depreciation schedule.
Total Depr. Accumulated depreciation based on posted depreciation months.
Book Value Cost less accumulated depreciation based on posted months.
Status Active or Fully Depreciated, based on the depreciation schedule dates.
Actions Schedule opens the month-by-month depreciation schedule.

Select Create New Asset to add a depreciation asset.

Create new asset

The create form includes:

Field Notes
Asset Name Required. Maximum 100 characters.
Category Required. Manufacturing Equipment, Furniture & Office Equipment, Vehicles, or Building.
Purchase Date Required.
Cost Required amount greater than zero.
Useful Life (Years) Required number greater than zero. The screen allows half-year increments.
Start Depreciation Date Required. Cannot be before the purchase date.
Asset GL Account Required Asset account.
Accumulated Depreciation GL Account Required Asset account.
Depreciation Expense GL Account Required Expense account.

PAX calculates:

Calculated field How it is used
End Depreciation Date Last date/month in the schedule.
Total Months Useful life in years multiplied by 12, rounded up to whole months.
Monthly Depreciation Amount Cost divided by total months.

Select Create Asset to save the asset.

Depreciation schedule

Select Schedule on an asset row to view the depreciation schedule.

The schedule shows:

Column What it shows
Month Schedule month in YYYY-MM format.
Monthly Depreciation Depreciation amount for that month.
Accumulated Depreciation Total depreciation through that month.
Net Book Value Remaining book value after that month.
Posted Yes when depreciation has been posted for that asset and month.

The final month can use a slightly adjusted amount so the schedule fully depreciates the asset without a rounding remainder.

What happens behind the scenes

Opening Depreciation reads active depreciation asset records and related posted depreciation counts.

When an asset is created, PAX validates the required fields, validates category, confirms cost and useful life are positive, confirms the depreciation start date is not before the purchase date, and confirms the selected GL accounts exist with the correct account types.

PAX then stores the asset, calculated total months, monthly depreciation amount, and end depreciation date.

When a schedule is opened, PAX generates the month-by-month schedule from the asset setup and marks months as posted when matching depreciation journal entries already exist.

Monthly depreciation posting is run from Month-End Closing. It creates one journal entry per eligible asset for the selected month, debiting the asset's depreciation expense account and crediting the asset's accumulated depreciation account. PAX skips assets that already have depreciation posted for that month.

Troubleshooting

Create Asset fails

Likely cause: A required field is missing, cost or useful life is not greater than zero, start depreciation date is before purchase date, or a selected GL account has the wrong account type.

Safe fix: Review every required field and confirm the asset, accumulated depreciation, and depreciation expense accounts are correct.

Contact support if: The account setup appears correct but PAX rejects the asset.

A month shows No in the schedule

Likely cause: Monthly depreciation has not been posted for that asset and month.

Safe fix: Review Month-End Closing before posting depreciation. Do not create a manual journal entry unless finance has determined the normal posting workflow cannot be used.

Contact support if: Depreciation was posted but the schedule still shows No.

An asset was created with incorrect setup

Likely cause: The current screen does not provide user-facing edit or delete actions for depreciation assets.

Safe fix: Do not create duplicate assets without finance review. Confirm whether any depreciation has already been posted.

Contact support if: An asset setup correction is required.

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