Two depreciation methods
Straight-line distributes value equally, and declining method charges earlier years more. Both stop at salvage value and don't go below it.
Assets with correct book value · Business plan
Record fixed assets and monthly depreciation
Record your business’s assets and calculate their depreciation monthly using straight-line or declining method, track cost, accumulated depreciation, and book value, and close the asset when sold.
Creating an account does not charge you. Business costs 99 SAR per month including VAT, with automatic renewal, by card, Apple Pay or Google Pay.
An asset that is purchased and not depreciated remains on the books at its original cost for years, showing the balance sheet larger than reality and profits higher than they are. Fawtar calculates depreciation monthly and posts it to the general ledger, showing cost, accumulated depreciation, and book value separately—the three numbers the accountant requests.
Available on Business
What do you get?
Catch up previous month
Depreciation is calculated from the month of purchase to the current month, so if startup was delayed two months they are recovered together instead of being lost.
Full disposal entry
On sale, the asset and its accumulated depreciation are deleted from the books together, and the difference between proceeds and book value is recorded as gain or loss.
No duplication with expenses
If the purchase is recorded in expenses or a supplier invoice, a second purchase entry will not be recorded, so the amount is not calculated twice.
How does the feature work?
- 1
Record the asset
Name, cost, salvage value, useful life in months, and depreciation method.
- 2
Let it run
Depreciation is calculated monthly and posted automatically, and you can calculate it immediately with a click.
- 3
Close it when selling
Enter the disposal date and amount received, and the disposal entry is created with its gain or loss.
Suitable for this business
- Vehicles, equipment, and machinery
- Branch and showroom equipment
- Businesses preparing annual financial statements
Frequently asked questions
What is the difference between straight-line and declining depreciation?
Straight-line distributes the depreciable value equally over useful life months. Declining-balance applies a percentage to the remaining book value, loading earlier years more and decreasing gradually.
Can an asset go below its salvage value?
No. The last depreciation payment is shortened to stop exactly at the scrap value.
What if calculation didn't run for a month?
Automatically caught up. Calculation depends on the last month actually depreciated, not activation date, so each missed month is calculated in its cycle.
Does depreciation appear in the general ledger?
Yes. Each entry calculation makes depreciation expense debit and accumulated depreciation credit, so the book value appears correct on the balance sheet.
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