Stop Calculating Depreciation in Spreadsheets

Fulfil tracks both tangible and intangible assets. Physical assets include manufacturing equipment, packaging machinery, warehouse equipment, display fixtures, retail buildouts, and office furniture. Intangible assets include patents, trademarks, copyrights, software licenses, and other intellectual property. Each asset type can have custom depreciation or amortization schedules based on its useful life.

When you register a fixed asset, Fulfil automatically creates depreciation schedules based on your chosen calculation method (daily or monthly). The system posts backdated entries for past periods if they're still open, and schedules future entries that post automatically at period end. You can track depreciation expense accounts, accumulated depreciation, and current book values in real-time without manual journal entries.

Monthly calculation (simpler, more common): Spreads depreciation equally across all months. Example: $12,000 asset, 1-year life = $1,000/month every month. Best for most businesses where budgeting predictability matters.

Daily calculation (more precise): Adjusts for actual days in each month. Example: $12,000 asset, 1-year life = January (31 days): $1,019, February (28 days): $920, March (31 days): $1,019. Best for mid-month purchases, high-value assets, or regulatory requirements.

Most DTC brands use monthly calculation for simplicity. Daily calculation is more accurate but creates slightly different amounts each month.

Set up intellectual property assets the same way as physical assets, but use amortization schedules aligned with legal protection periods. For patents, amortize over the patent protection period (typically 20 years). For trademarks, you can amortize registration costs over the renewal period (typically 10 years). Software licenses and copyrights follow their respective useful life or legal protection periods. Each asset maintains proper balance sheet valuation with automated expense recognition.

For disposals, Fulfil automatically writes off the remaining net book value to your designated write-off account while clearing the asset and accumulated depreciation accounts. For sales, the system calculates gain or loss by comparing the sale price to the current book value, posts an invoice to accounts receivable, and recognizes the gain or loss on your income statement. All transactions maintain complete audit trails with proper accounting treatment.

Yes, use CSV bulk import to migrate existing assets. Set the depreciation start date to your Fulfil go-live date, and adjust the purchase price to reflect the current net book value (original cost minus accumulated depreciation already expensed elsewhere). This prevents Fulfil from creating historical entries for closed periods while maintaining accurate future depreciation schedules. The system preserves all historical details like original purchase dates for reporting purposes.

Assign depreciation expense to specific departments, cost centers, or locations using Fulfil's class allocation feature. For simple cases, select a single class for the entire depreciation expense. For complex scenarios, use allocation templates to split expenses across multiple classes and categories (e.g., 60% to manufacturing, 40% to R&D). Classes apply to all depreciation entries automatically, ensuring accurate departmental expense tracking and reporting.

Fulfil uses state-based workflows with permission controls. Assets start in Draft state where details can be modified. When ready, users with appropriate permissions register the asset, moving it to In Use state and starting depreciation. You can configure user permissions to separate asset creation from registration approval, ensuring proper review before automated posting begins. All state changes and modifications maintain complete audit trails.

If you're doing under $5M in revenue and don't own significant equipment, you probably don't need detailed fixed asset tracking yet. But once you're buying manufacturing equipment, building out warehouses, or opening retail locations, accurate depreciation matters for:

• • Tax deductions (depreciate equipment to reduce taxable income)
• • Accurate profitability (spread equipment costs over useful life, not all upfront)
• • Financial reporting (investors and lenders want to see proper balance sheet valuation)

Most brands start tracking fixed assets when they hit $5-10M in revenue or make their first major equipment purchase.

Fulfil tracks book depreciation (for financial reporting) using straight-line methods. For tax depreciation (Section 179, bonus depreciation, MACRS), work with your tax accountant.

Many DTC brands expense qualifying equipment fully in year 1 for tax purposes while depreciating normally in their ERP for financial reporting. Your accountant reconciles the difference.

Import existing assets via CSV with their current net book value (original cost minus depreciation already taken). Set the depreciation start date to your Fulfil go-live date.

The system won't create historical entries for closed periods, but will continue depreciating going forward. You maintain historical records for reference.