Depreciation
The distribution of the cost of a fixed asset over the years in which it is used.
It reflects the loss of value through use and time. The cost is recognised across the relevant financial years rather than entirely in the year of purchase.
An example
A van bought this year is depreciated over its useful life instead of being expensed in full immediately.
The typical mistake
Recording the entire purchase as an expense for the year. That distorts both the current result and later years.
How it appears in AndCompta
Each fixed asset carries its depreciation policy, and the charge is generated as an ordinary, visible, traceable journal entry—not as a hidden calculation.
Where we explain it in depth
Related terms
This definition is general information, not tax or accounting advice. For your specific case, consult a professional and always check the official source.