Depreciation
• Frequency of Depreciation (Months): The number of months between depreciations.
• Total Number of Depreciations: The total number of depreciations during the useful life of the Asset. In case of existing assets which are partially depreciated, mention the number of pending depreciations. For example, if you set frequency as 12 months and no. of depreciations as 3, 1 depreciation will be booked every 12 months for 3 years.
• Depreciation Method: There are four available methods for depreciation: Straight Line, Written Down Value, Double Declining Balance and Manual.
• Depreciation Posting Date: The date from which booking of depreciation will be started.
• Expected Value After Useful Life: Useful Life is the time period over in which the company expects that the asset will be productive. After that period, either the asset is scrapped or sold. In case it is sold, mention the estimated value here. This value is also known as Salvage Value, Scrap Value, or Residual Value.
• Salvage Value Percentage: If you want the Expected Value After Useful Life to be calculated automatically based on a percent of the Gross Purchase Amount, mention the percent here.
• Rate of Depreciation: This will be calculated based on the amount entered in expected value after useful life.
• Finance Book: The book against which the depreciation entries should be booked. For more details,
• Depreciate based on daily pro-rata: This divides the depreciation amount by the number of days in a calendar period. For example, the depreciation amount in February is less than the depreciation amount for the months that have 31 days.
• Depreciate based on shifts: This lets you define the number of shifts the asset would run in a period in order to depreciate it accordingly. You need to first define the shift names with their shift factors in the Asset Shift Factor doctype (for example: “half”: 0.5, “single”: 1, “double”: 1.5 and “triple”: 2) and set a default. Later if you want to change the shifts of an asset for a particular period, you can do so using the Asset Shift Allocation doctype, and the remaining shifts are automatically adjusted.
1 Depreciation Schedule
On booking depreciations against this Asset, the Depreciation Schedule section will be visible. This table has columns for Finance Book, Schedule Date, Depreciation Amount, Amount Depreciated, and Journal Entry.
2. Insurance Details
If Insurance has been taken for the Asset you’re recording, you can store the following Insurance details:
• Policy number
• Insurer
• Insured value
• Insurance Start Date
• Insurance End Date
• Comprehensive Insurance
3. Accounting Entries
On submission of an asset, “Capital Work in Progress” account will be credited and the asset account related to the asset will be debited. Submission is only possible after entering “Available-to-use Date”. If “Available-to-use Date” is a future date, then accounting entry will be booked automatically on that date via the scheduler.
4. Maintenance
Ticking on Maintenance Required allows recording Asset Maintenance entries for this Asset. To know more.
