Depreciation schedules

A depreciation schedule establishes the current value of an asset, based on a starting value and periodic depreciation. The depreciation schedule helps you determine whether repairs and maintenance make good economic sense at any specific point in the life of the asset.

No accounting transactions are generated for an asset depreciation schedule. It is meant to help you make maintenance and repair decisions.

A depreciation schedule is based on a depreciation type, a starting value, a salvage or end value, and periodic reductions in value. The periods can be time-based or meter-based (based on utilization).

There are two standard types of depreciation schedule:
• SL (straight line) means that the value depreciates in a straight line. That is, the value depreciates at the same rate over the lifetime of the asset, whether the lifetime is time-based or meter-reading-based.
• DDB (double declining balance) means that the value depreciates at a faster rate early in the life of the asset than it does later in its life. The depreciation for each period is calculated by the following formula: (original value - accumulated depreciation) x (2/(number of periods in expected life)), to a maximum total depreciation of (original value - salvage value).

You can recalculate a depreciation schedule to account for the added value of a capital improvement to an asset.

If necessary, you can revise and regenerate a depreciation schedule. If you revise an existing schedule and do not select a recalculation point, the entire previous schedule is deleted and replaced with the new schedule.

You can swap the depreciation schedule of one asset with that of another. You can also view the depreciation schedule history and see all changes that were made to an asset's depreciation schedule.

You can create multiple depreciation schedules, and use ratios to determine an asset's value. The ratio determines the depreciation schedule’s contribution to the asset’s overall current value. The sum of all schedules’ ratios must equal 100%.