Calculate Depreciation

Depreciation is the amount charged against an organization’s earnings to recognize the cost of an asset over its estimated useful life, giving consideration to wear and tear, obsolescence, and salvage value. Depreciation is calculated on assets for a certain period of time to reflect their decreased value.

Tip: When you select Calculate depreciation from the Assets list, you depreciate all assets. To calculate depreciation for only one asset, open the individual asset and select Calculate depreciation from the task bar. For more information about calculating, review Straight-line depreciation conventions and Calculating straight-line depreciation.

  1. From the Assets list page, select Calculate depreciation on the action bar above the list. The Calculation settings screen appears.

  2. In the Calculate through field, enter the date of the period for which you want to create depreciation calculations.

  3. In the Transaction date field, select “Period end date” or “Period start date.”

  4. In the Post status field, select which transactions to include based on asset status.

    Note: Under Excluded assets, the Fully depreciated and disposed assets and Do not depreciate are selected by default.

  5. Select Add a filter if you want to filter assets before calculating depreciation. Available filters include, assets, classes, locations, departments, and asset custom fields.

  6. We recommend you run the Pre-calculate report before calculating depreciation. The pre-calculation report displays the calculated depreciation and any exceptions.

  7. Select Calculate depreciation. This process calculates depreciation and creates the period depreciation transactions. A summary report appears so you can view the calculations created, and any exceptions.