{"id":4148,"date":"2026-05-29T20:31:36","date_gmt":"2026-05-29T20:31:36","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4148"},"modified":"2026-05-29T20:31:36","modified_gmt":"2026-05-29T20:31:36","slug":"depreciation-zoho-books","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/depreciation-zoho-books\/","title":{"rendered":"Depreciation"},"content":{"rendered":"<style>\n.gt-body{font-family:'Poppins',sans-serif;color:#111;line-height:1.75}\n.gt-def{border-left:4px solid #E8650A;padding:16px 20px;background:#fff8f4;border-radius:0 8px 8px 0;margin:0 0 32px;font-size:1.05rem}\n.gt-section{margin:0 0 36px}\n.gt-section h2{font-family:'Fraunces',serif;color:#0A1628;font-size:1.5rem;margin:0 0 12px}\n.gt-example-box{background:#f0f4ff;border-radius:10px;padding:20px 24px;margin:0 0 32px}\n.gt-example-box strong{color:#2563EB}\n.gt-related-pills{display:flex;flex-wrap:wrap;gap:10px;margin:0 0 32px}\n.gt-related-pill{background:#f7f4ef;border:1px solid #ddd8cf;border-radius:20px;padding:6px 16px;font-size:.875rem;color:#0A1628;text-decoration:none}\n.gt-faq-item{border:1px solid #ddd8cf;border-radius:10px;padding:16px 20px;margin:0 0 12px}\n<\/style>\n<div class=\"gt-body\">\n<div class=\"gt-def\">Depreciation in Zoho Books is the periodic reduction in the book value of a fixed asset, recognised as an expense each period through journal entries to reflect the asset&#8217;s gradual consumption or obsolescence over its useful life.<\/div>\n<div class=\"gt-section\">\n<h2>How to Record Depreciation in Zoho Books<\/h2>\n<p>Since Zoho Books does not auto-calculate depreciation, you post it manually. Create a journal entry: debit &#8220;Depreciation Expense&#8221; (an expense account) and credit &#8220;Accumulated Depreciation&#8221; (a contra-asset account linked to the fixed asset). The net book value of the asset on the Balance Sheet is the original cost minus accumulated depreciation.<\/p>\n<p>To avoid forgetting monthly depreciation, set up a Recurring Journal Entry in Zoho Books. Define the debit and credit accounts, the amount, and the frequency (monthly), and Zoho Books will generate the entry automatically each period until the asset is fully depreciated.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Depreciation Methods Used in India<\/h2>\n<p>The two most common depreciation methods in India are Straight-Line Method (SLM) and Written Down Value (WDV). Under SLM, you deduct the same amount each year (cost minus salvage value, divided by useful life). Under WDV, you apply a fixed percentage to the remaining book value each year, resulting in higher charges early in the asset&#8217;s life. The Companies Act 2013 Schedule II prescribes specific useful lives and WDV rates for different asset classes, which your chartered accountant will use to determine the correct depreciation amounts.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Depreciation and Tax in India<\/h2>\n<p>For income tax purposes under the Income Tax Act, depreciation is computed on the block of assets concept using WDV rates prescribed by the IT Act, which often differ from Companies Act rates. This creates a difference between book depreciation (used in Zoho Books P&#038;L) and tax depreciation (used in IT return), giving rise to deferred tax. Your CA will handle the deferred tax calculation; your job is to keep the Zoho Books depreciation journal entries accurate and complete.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Industry:<\/strong> Logistics \u2014 A Nagpur transport company depreciates its 10 trucks at INR 3 lakhs per truck per year using WDV. It sets up 10 recurring journal entries in Zoho Books (one per truck) to post automatically on the last day of each month, keeping the fixed asset register current without manual effort.<\/div>\n<div class=\"gt-related-pills\">\n<a href=\"https:\/\/aaxonix.com\/resources\/glossary\/fixed-asset-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Fixed Asset<\/a><br \/>\n<a href=\"https:\/\/aaxonix.com\/resources\/glossary\/journal-entry-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Journal Entry<\/a><br \/>\n<a href=\"https:\/\/aaxonix.com\/resources\/glossary\/balance-sheet-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Balance Sheet<\/a><br \/>\n<a href=\"https:\/\/aaxonix.com\/resources\/glossary\/write-off-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Write-Off<\/a>\n<\/div>\n<div class=\"gt-faq-item\"><strong>What is Depreciation in Zoho Books?<\/strong><\/p>\n<p>Depreciation in Zoho Books is the systematic reduction of a fixed asset&#8217;s book value over its useful life, recorded through journal entries that debit a depreciation expense account and credit the asset&#8217;s accumulated depreciation account.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>Does Zoho Books calculate depreciation automatically?<\/strong><\/p>\n<p>Zoho Books does not calculate or post depreciation automatically. You must manually create a journal entry or set up a recurring journal entry for each period based on your chosen depreciation method.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Depreciation in Zoho Books is the periodic reduction in the book value of a fixed asset, recognised as an expense each period\u2026<\/p>\n","protected":false},"template":"","meta":{"seo_title":"Depreciation | Zoho Books Glossary","seo_description":"Depreciation in Zoho Books reduces a fixed asset's book value over time. Learn how to record depreciation journal entries and track asset values.","seo_keyword":"depreciation zoho books","seo_faqs":"[{\"q\": \"What is Depreciation in Zoho Books?\", \"a\": \"Depreciation in Zoho Books is the systematic reduction of a fixed asset's book value over its useful life, recorded through journal entries that debit a depreciation expense account and credit the asset's accumulated depreciation account.\"}, {\"q\": \"Does Zoho Books calculate depreciation automatically?\", \"a\": \"Zoho Books does not calculate or post depreciation automatically. You must manually create a journal entry or set up a recurring journal entry for each period. The depreciation amount is calculated based on your chosen method (straight-line, written-down value, etc.) and posted manually.\"}]","term_type":"Business","glossary_related":"","glossary_links":""},"glossary_category":[1246],"class_list":["post-4148","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-books"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=4148"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}