The fixed Asset Depreciation documents are generated according to the depreciation method assigned to fixed assets. To calculate depreciation for fixed assets, first, enable the Depreciation of Fixed Assets option in your ERP system. Below is the overview of the depreciation calculation methods, parameters, and methods of depreciation

Depreciation Calculation Methods

Depreciation can be calculated either automatically or manually:

  1. Automatic Calculation:

  2. Manual Calculation:

Depreciation for an asset stops when its net book value equals its Salvage Value or zero if no Salvage Value is set. You can review net book values through the Depreciation Statement report.

Accounting Parameters for Depreciation

To enable depreciation calculation, specify these parameters for each asset:

Initial parameters are set in the Fixed Asset Entry document. For re-assessment or capital improvements, use the Changes of Fixed Asset Parameters or Capital Improvements to Fixed Assets documents to update values and recalculate depreciation.

Depreciation Methods