Recording depreciation is the process of recording the decrease in value of a fixed asset over time. This is an expense for the business and should be recorded regularly, such as monthly or annually. Failure to record depreciation can result in an overstatement of net income and the need to pay more in income taxes.

To record depreciation, the expense is debited to the depreciation expense account and credited to the contra asset account for accumulated depreciation.

In some cases, such as when a plant asset is sold or discarded, the general procedure for recording depreciation may be altered.