Depreciation Calculation

Depreciation is the accounting process of allocating the cost of assets over their useful life. It reflects the reduction in the asset’s value over time due to wear and tear, age, or obsolescence. This allows businesses to match the cost of using the asset with the revenue it helps generate.

Depreciation Calculation determines how much of an asset’s cost should be expensed each year, based on its initial value, estimated useful life, and expected salvage value. This ensures that the asset’s cost is spread appropriately over the period it provides economic benefit.

Depreciation Calculation module is designed to manage and calculate depreciation and indexation of fixed assets as well as small tools used within the organization.

Depreciation Calculation module can be accessed from the menu Financials | Fixed assets | Depreciation Calculation.

The module consists of the following units: