# Inventory Depreciation

This guide shows a periodic asset write-down flow in Bkper. Whether you apply it to inventory obsolescence or another depreciating asset, you record periodic transactions that move value from the asset into a depreciation expense account, with an accumulated depreciation account reflecting the total reduction.

## The accounts

Set up your chart of accounts with the relevant asset, liability, and expense accounts to capture the full depreciation cycle.

### Receive inventory

When inventory arrives, record the transaction that increases your asset account.

### Pay for the inventory

Record the payment to reflect the cash outflow.

### Depreciate inventory over time

Periodically record depreciation to reflect the loss of value. Each transaction moves a portion of the asset value into the depreciation expense.

> **Tip**
> To record all depreciation transactions at once, prepare your entries in a Google Sheet and use the [Bkper Add-on for Google Sheets](https://bkper.com/docs/guides/google-sheets.md) to post them to your book in bulk.
## Sample book

Explore a working example of inventory depreciation in the [Inventory Depreciation sample book](https://app.bkper.com/#transactions:bookId=agtzfmJrcGVyLWhyZHITCxIGTGVkZ2VyGICAgN6_kKUKDA).