diff --git a/erpnext/assets/doctype/asset/asset.json b/erpnext/assets/doctype/asset/asset.json
index 8fda330..6882f6a 100644
--- a/erpnext/assets/doctype/asset/asset.json
+++ b/erpnext/assets/doctype/asset/asset.json
@@ -33,6 +33,7 @@
   "available_for_use_date",
   "column_break_18",
   "calculate_depreciation",
+  "allow_monthly_depreciation",
   "is_existing_asset",
   "opening_accumulated_depreciation",
   "number_of_depreciations_booked",
@@ -216,8 +217,7 @@
   {
    "fieldname": "available_for_use_date",
    "fieldtype": "Date",
-   "label": "Available-for-use Date",
-   "reqd": 1
+   "label": "Available-for-use Date"
   },
   {
    "fieldname": "column_break_18",
@@ -450,12 +450,19 @@
   {
    "fieldname": "dimension_col_break",
    "fieldtype": "Column Break"
+  },
+  {
+   "default": "0",
+   "depends_on": "calculate_depreciation",
+   "fieldname": "allow_monthly_depreciation",
+   "fieldtype": "Check",
+   "label": "Allow Monthly Depreciation"
   }
  ],
  "idx": 72,
  "image_field": "image",
  "is_submittable": 1,
- "modified": "2019-10-07 15:34:30.976208",
+ "modified": "2019-10-22 15:47:36.050828",
  "modified_by": "Administrator",
  "module": "Assets",
  "name": "Asset",
diff --git a/erpnext/assets/doctype/asset/asset.py b/erpnext/assets/doctype/asset/asset.py
index 94e6f61..d1f8c1a 100644
--- a/erpnext/assets/doctype/asset/asset.py
+++ b/erpnext/assets/doctype/asset/asset.py
@@ -6,7 +6,7 @@
 import frappe, erpnext, math, json
 from frappe import _
 from six import string_types
-from frappe.utils import flt, add_months, cint, nowdate, getdate, today, date_diff, add_days
+from frappe.utils import flt, add_months, cint, nowdate, getdate, today, date_diff, month_diff, add_days
 from frappe.model.document import Document
 from erpnext.assets.doctype.asset_category.asset_category import get_asset_category_account
 from erpnext.assets.doctype.asset.depreciation \
@@ -149,19 +149,31 @@
 					schedule_date = add_months(d.depreciation_start_date,
 						n * cint(d.frequency_of_depreciation))
 
+					# schedule date will be a year later from start date
+					# so monthly schedule date is calculated by removing 11 months from it
+					monthly_schedule_date = add_months(schedule_date, - d.frequency_of_depreciation + 1)
+
 				# For first row
 				if has_pro_rata and n==0:
-					depreciation_amount, days = get_pro_rata_amt(d, depreciation_amount,
+					depreciation_amount, days, months = get_pro_rata_amt(d, depreciation_amount,
 						self.available_for_use_date, d.depreciation_start_date)
+					
+					# For first depr schedule date will be the start date
+					# so monthly schedule date is calculated by removing month difference between use date and start date
+					monthly_schedule_date = add_months(d.depreciation_start_date, - months + 1)
+
 				# For last row
 				elif has_pro_rata and n == cint(number_of_pending_depreciations) - 1:
 					to_date = add_months(self.available_for_use_date,
 						n * cint(d.frequency_of_depreciation))
 
-					depreciation_amount, days = get_pro_rata_amt(d,
+					depreciation_amount, days, months = get_pro_rata_amt(d,
 						depreciation_amount, schedule_date, to_date)
 
+					monthly_schedule_date = add_months(schedule_date, 1)
+
 					schedule_date = add_days(schedule_date, days)
+					last_schedule_date = schedule_date
 
 				if not depreciation_amount: continue
 				value_after_depreciation -= flt(depreciation_amount,
@@ -175,13 +187,50 @@
 					skip_row = True
 
 				if depreciation_amount > 0:
-					self.append("schedules", {
-						"schedule_date": schedule_date,
-						"depreciation_amount": depreciation_amount,
-						"depreciation_method": d.depreciation_method,
-						"finance_book": d.finance_book,
-						"finance_book_id": d.idx
-					})
+					# With monthly depreciation, each depreciation is divided by months remaining until next date
+					if self.allow_monthly_depreciation:
+						# month range is 1 to 12
+						# In pro rata case, for first and last depreciation, month range would be different
+						month_range = months \
+							if (has_pro_rata and n==0) or (has_pro_rata and n == cint(number_of_pending_depreciations) - 1) \
+							else d.frequency_of_depreciation
+
+						for r in range(month_range):
+							if (has_pro_rata and n == 0):
+								# For first entry of monthly depr
+								if r == 0:
+									days_until_first_depr = date_diff(monthly_schedule_date, self.available_for_use_date)
+									per_day_amt = depreciation_amount / days
+									depreciation_amount_for_current_month = per_day_amt * days_until_first_depr
+									depreciation_amount -= depreciation_amount_for_current_month
+									date = monthly_schedule_date
+									amount = depreciation_amount_for_current_month
+								else:
+									date = add_months(monthly_schedule_date, r)
+									amount = depreciation_amount / (month_range - 1)
+							elif (has_pro_rata and n == cint(number_of_pending_depreciations) - 1) and r == cint(month_range) - 1:
+								# For last entry of monthly depr
+								date = last_schedule_date
+								amount = depreciation_amount / month_range
+							else:
+								date = add_months(monthly_schedule_date, r)
+								amount = depreciation_amount / month_range
+							
+							self.append("schedules", {
+								"schedule_date": date,
+								"depreciation_amount": amount,
+								"depreciation_method": d.depreciation_method,
+								"finance_book": d.finance_book,
+								"finance_book_id": d.idx
+							})
+					else:
+						self.append("schedules", {
+							"schedule_date": schedule_date,
+							"depreciation_amount": depreciation_amount,
+							"depreciation_method": d.depreciation_method,
+							"finance_book": d.finance_book,
+							"finance_book_id": d.idx
+						})
 
 	def check_is_pro_rata(self, row):
 		has_pro_rata = False
@@ -588,9 +637,10 @@
 
 def get_pro_rata_amt(row, depreciation_amount, from_date, to_date):
 	days = date_diff(to_date, from_date)
+	months = month_diff(to_date, from_date)
 	total_days = get_total_days(to_date, row.frequency_of_depreciation)
 
-	return (depreciation_amount * flt(days)) / flt(total_days), days
+	return (depreciation_amount * flt(days)) / flt(total_days), days, months
 
 def get_total_days(date, frequency):
 	period_start_date = add_months(date,