Depreciation Management

The Asset Management module includes an automated depreciation engine with configurable rules per asset type, daily cron execution, and full entry history.

Depreciation List

The Depreciation menu displays all depreciation entries across your assets, showing the asset reference, type, recorder, amount, depreciation date, and comments.

How Depreciation Works

1. Enable depreciation on the asset form by toggling the Depreciation Apply setting
2. Assign an Asset Type with depreciation rules configured (frequency, method, rate, basis, max entries)
3. A daily cron job (generate_depreciation_entries) runs automatically
4. Entries are created based on the type's method, rate, frequency, and basis
5. Book value updates automatically: Current Book Value = Purchase Price minus Total Depreciation

Calculation Methods

Method	Formula	Example
Fixed	Deduct a fixed amount each period	Rate = 500 means deduct $500/month
Percentage	Deduct a percentage of the basis	Rate = 20%, Basis = Purchase Price ($10,000) means $2,000/year

Depreciation Basis

Basis	Description
Real Value	Always apply to the original purchase price (straight-line depreciation)
Depreciation Value	Apply to the current book value (declining balance depreciation)

Choosing the Right Basis

Use Real Value (straight-line) for assets that lose value evenly over time, such as office furniture. Use Depreciation Value (declining balance) for assets that lose more value early in their life, such as vehicles and electronics.

Configuration Per Asset Type

Depreciation rules are set at the Asset Type level. All assets of a given type inherit the same depreciation schedule.

Field	Description
Depreciation Frequency	Monthly, Yearly, or Days
Depreciation Method	Fixed (fixed amount) or Percentage (rate-based)
Depreciation Rate	Amount or percentage per period
Start Delay	Days/months to wait before the first depreciation entry
Depreciation Basis	Real Value (original price) or Depreciation Value (current book value)
Max Entries	Maximum number of depreciation records (prevents over-depreciation)

Demo Asset Type Depreciation Settings

Type	Rate	Frequency	Basis	Max Entries
Office Equipment	20%	Yearly	Purchase Price	5
Vehicles	25%	Yearly	Purchase Price	4
Office Furniture	15%	Yearly	Purchase Price	7
Computers & IT	33.33%	Yearly	Purchase Price	3
Buildings	5%	Yearly	Purchase Price	20

Safety Guards

The depreciation engine includes several protections to prevent incorrect calculations:

• Destroyed assets are skipped automatically (status = "Destroyed")
• Processing stops when maximum_depreciation_entries is reached
• The start delay is respected before the first entry is generated
• The frequency interval is checked against the last entry date to prevent duplicate entries

Important

Depreciation entries are created by an automated daily cron job. If you need to manually trigger depreciation, an admin can run the scheduled action Generate Depreciation Entries from Settings > Technical > Scheduled Actions.

Financial Tracking on Assets

Each asset form tracks the following computed financial fields:

Field	Calculation
Purchase Price	Set manually when creating the asset
Total Depreciation	Sum of all depreciation entry amounts
Current Book Value	Purchase Price minus Total Depreciation
Total Maintenance Cost	Sum of all maintenance entry costs
Depreciation Count	Number of depreciation entries

Dashboard & Reporting

Depreciation data flows into the dashboard and reporting views:

• Dashboard Hero Banner displays Total Depreciation across all assets
• KPI Cards show Depreciation This Month
• Depreciation Over Time bar chart tracks amounts by entry date
• Depreciation Analysis pivot view breaks down monthly amounts by asset type
• Asset Value Analysis pivot view shows amount vs. current book value per asset

Need Help?

Contact SDLC Corp at sdlccorp.com/contact-us or email sales@sdlccorp.com