Appreciation and Depreciation of Assets
Money doesn't handle the appreciation or depreciation of assets specifically, but there are work arounds you can use to track this.
The way to handle this would be to just increase the value of the asset by the amount it had appreciated, or decrease it by the amount it has depreciated.
When entering a transaction such as this directly into the asset account, you will be prompted for a category - this is where you have two options.
- Firstly, you can put one in - I use 'Other Income: Appreciation' and 'Miscellaneous: Depreciation' for my categorization of this.
- There is also a school of thought which suggests that you don't put in a category, and leave it blank
Leaving the category blank should mean it doesn't appear as an income or expense in your reports, although if you want it to, then you may need to include a category.
Note that if you want to appreciate or depreciate an asset over a period of time, you could use a scheduled deposit or bill to do this. This is especially useful if you have bought a car, and wish to depreciate its value over a period of time.
Keywords: Appreciation, Depreciation, Asset, Bill, Deposit