Run depreciation after the end of the financial year. Start the run from the asset control form by clicking the run schedule button. Once run asset valuation and depreciation are included in the profit and loss and trial balance and balance sheet reports.
When the depreciation schedule has been run the year is "rolled over" into the next year.
Depreciation is calculated on asset items purchased in previous years when the items are created. This ensures the current asset value is correct. The correct asset value is required to calculate profit/loss on sale of assets and asset equity in the balance sheet.