With the exception of land, all fixed assets lose their capacity to yield service. Assets are of use to a company for only a limited number of years, and the cost of each asset is allocated as expense among the years in which it is used. Therefore, a method must be established to transfer the cost of an asset. This expiration of assets is called depreciation.
There are two types of asset depreciation: Physical, which Includes wear and tear due to use and Functional, which includes obsolescence. You can also re-valuate assets.
To re-valuate an asset, select the lease data entry window from the accounting section of the outlook bar. Then add a revaluation record in the same manner as other data entry records.