> For the complete documentation index, see [llms.txt](https://local.docs.ssaudit.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://local.docs.ssaudit.com/english-1/fixed-asset-management/process-section.md).

# 5.3 Process section

### Calculate FA Depreciation

**When to use:** At the end of each month, the accountant needs to calculate depreciation for all fixed assets currently in use. The system automatically calculates the depreciation amount using the straight-line method based on the declared historical cost and depreciation months, then records the depreciation journal entry in the accounting ledger.

> **Example:** Calculate depreciation for Jun/2026 for all FA — Debit Account 642/627 (Administrative/Production Expenses) / Credit Account 214 (Accumulated Depreciation). Example: Photocopier with historical cost 45,000,000 VND, depreciation 60 months → monthly depreciation 750,000 VND.

![](/files/hlBnDDkbJcJswv8Mwwqz)

To calculate monthly FA depreciation, the user proceeds as follows:

1. Enter the **Accounting Period** for depreciation calculation — the system automatically loads all assets into the grid.
2. Review the asset list and depreciation amounts on the grid.
3. Check the assets to be depreciated (or select all).
4. Click **Execute** to record the depreciation journal entry in the accounting ledger.

* **Operational Notes:**
  * Only FAs within their depreciation period (not expired, not disposed) appear on the grid.
  * If the month has been previously calculated, the system will warn — verify before recalculating.
  * Depreciation journal entries are recorded using the accounts declared in the FA master data.

> **Note:** Depreciation calculation should be performed after completing all FA addition/disposal vouchers for the month to ensure accurate figures.

***

### Allocate Prepaid Expenses

**When to use:** At the end of each month, the accountant needs to allocate prepaid expenses (tools/supplies, prepaid insurance, prepaid rent...) into period expenses. The system automatically calculates the allocation amount using the straight-line method based on the declared historical cost and allocation months.

> **Example:** Allocate prepaid insurance expense for Jun/2026 — Debit Account 642 (Administrative Expense) / Credit Account 242 (Prepaid Expense). Example: Insurance 12,000,000 VND allocated over 12 months → monthly allocation 1,000,000 VND.

![](/files/Dh1BriAvy5fQbTcSPrSd)

To calculate monthly prepaid expense allocation, the user proceeds as follows:

1. Enter the **Accounting Period** for allocation — the system automatically loads all expenses into the grid.
2. Review the expense list and allocation amounts on the grid.
3. Check the expenses to be allocated (or select all).
4. Click **Execute** to record the allocation journal entry in the accounting ledger.

* **Operational Notes:**
  * Only expenses within their allocation period (not expired) appear on the grid.
  * In the final allocation month, the system calculates the remaining balance to ensure total allocation equals historical cost.
  * Should be performed after fully declaring new prepaid expenses for the month.

> **Note:** Prepaid expenses (Account 242) and FA depreciation (Account 214) are two important month-end processes — both should be completed before running financial statements.