Amortization and depreciation are methods used in accounting to measure the reduction in the value of a tangible and intangible asset over a period of time.

Amortization calculation

For amortization calculation, navigate to Assets > Amortization calculator.

Amortization will display list of fixed assets, where you can set the amortization calculation period by changing the period dates. Asset amortization and the residual value are calculated automatically.

To confirm the amortization calculation, click the Add entry button, after which an journal entry will be created.