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To create a new depreciation rule in AssetIT, follow these steps:
Click on
on the top right of the Depreciation List page.Fill in the fields of:
Depreciation Name: Enter a descriptive name for the depreciation rule. This helps in identifying the rule easily.
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Example: "Office Equipment 5-Year Depreciation" "IT Equipment 3-Year Depreciation" "Vehicle 7-Year Depreciation" |
Number of Months: Specify the number of months over which the asset will be depreciated.
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Example: "60 months" for a 5-year depreciation period. |
Minimum Value after Depreciation: Enter the minimum value that the asset should retain after the depreciation period. This ensures that the asset's value does not drop below a certain threshold, even after full depreciation.
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Example: "100" if the asset should not depreciate below $100. |
Click on
to save the new depreciation rule.
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Assigning Depreciation to Asset Models
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The calculation of depreciation in AssetIT is based on the straight-line depreciation method:
Depreciation Per Day:depreciationPerDay=purchaseCost(depreciation.term×30)\text{depreciationPerDay} = \frac{\text{purchaseCost}}{(\text{depreciation.term} \times 30)}depreciationPerDay=(depreciation.term×30)purchaseCost
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Asset Age:
age=currentDate−purchaseDate\text{age} = \text{currentDate} - \text{purchaseDate}age=currentDate−purchaseDate
Current Value:
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Current Value:
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Despite the calculations, if the current value falls below the minimum value threshold, AssetIT will display the minimum value instead. |
By following these calculations, AssetIT ensures that the depreciation is accurately tracked for all assets, providing a clear view of their current value over time.