Manage fixed asset depreciation
By depreciating an asset, you can spread the cost of the asset over its entire useful service life. The service life is the period over which the asset is used, until it is no longer usable.
Section Content
About depreciation of fixed assets
Depreciation is used to spread the cost of an asset over its entire useful service life or the period over which the asset is used, until it is no longer usable.
About depreciation configuration
You have to select an appropriate depreciation method and select certain depreciation settings for each fixed asset you add to the system.
About depreciation methods
About averaging conventions
Averaging conventions determine how fixed assets must be depreciated for the financial period within which they are acquired or disposed of.
Calculate depreciation
Depreciate an asset
To depreciate one asset or multiple assets, you use the Calculate depreciation (FA502000) window.
About depreciation suspension
Sometimes it is necessary to stop or suspend calculating depreciation of a fixed asset for some number of financial periods.
Suspend asset depreciation
You can suspend the depreciation of an active asset by using the Fixed assets (FA303000) window.
Configure table methods of class type
To add a new depreciation table method, first you use the Depreciation table methods (FA202600) window to add a method of the class type that will be used to aggregate methods of asset type, as described in this topic.
Configure table methods with annual depreciation
To add a new depreciation table method with annual depreciation, you use the Depreciation table methods (FA202600) window to add a method of the both type that is used to specify both the settings of the depreciation methods and the annual depreciation rates.
Configure table methods of asset type
After you configured a table method of class type, as described in Configure table methods of class type, you use the Depreciation table methods (FA202600) window to configure table methods of asset type.
Configure formula-based depreciation methods
In the Depreciation methods (FA202500) window, you can configure a formula-based depreciation method by using any of the available depreciation calculation methods.