Asset depreciation

Depreciation schedules reduce the value of an asset according to user-defined period thresholds. Depreciation provide a more accurate view of an asset's current value and facilitate better decision-making regarding an asset's lifecycle.

Asset depreciation contributes to an asset's lifecycle story. When you apply a depreciation schedule to an asset, a depreciation expense is periodically allocated to the cost of an asset's original purchase value. The schedule can be straight line or double declining. In a straight-line schedule, the expense is an equal amount each period. In a double declining schedule, the expense is a percentage of the item's cost. The rate at which this expense is applied is determined by a user-defined period threshold. Period thresholds can be either date-based or usage-based. Date-based periods can be calculated monthly, quarterly, semi-yearly, or yearly. Usage-based periods are calculated based on meter life-to-date intervals.

A depreciation schedule can be added to an asset by using an action in the Assets application or by applying an asset template that contains a depreciation schedule. Depreciation schedules can also be inherited from rotating items during the receiving or invoicing process. After an asset has a depreciation schedule, you can adjust or remove the schedule in the Manage Depreciation Schedule dialog box, or you can swap the depreciation schedule with another asset in the Swap Depreciation Schedule dialog box.