Accounting – Depreciating Fixed Assets in Xero

For depreciating fixed assets in Xero (using cash accounting), this was found on the Xero community forums;

Like Peter said, the entries created by the fixed asset system are treated as non-cash.

If you need depreciation in non-cash reports, I have a clunky workaround. You can just do a journal to reverse those entries created by the FA system, and then create a cash journal for the same amounts.

Step by step it’s something like this:
– generate a depreciation schedule report for the report period (for reference)
– create a manual journal entry, un-check the “show in cash reports” checkbox, and reverse the amounts of depreciation that the Fixed Asset system has generated. (credit depreciation expense and debit depreciation asset) So you can just do the one journal for a whole year’s amount, unless you need a monthly cash p&l.
– copy the journal you just created, check the “show in cash reports” checkbox, and reverse the journal you just posted (debit depn expense and credit depn asset).


Leave a Reply