Add a depreciation rule to an asset—Fixed Assets Management

Depreciation rules define how an asset depreciates over time. Each rule includes a depreciation method, convention, and useful life. When a depreciable asset is placed in service, Fixed Assets Management uses the depreciation rules, along with other asset details, to generate depreciation schedules for the asset. Each depreciation rule creates a separate depreciation schedule.

Before you begin

Add a depreciation rule to an asset

Subscription Fixed Assets Management
Regional availability

All regions

User type Business
Permissions

Fixed Assets Management

  • Asset: List, View, Add

  1. Go to Fixed Assets Management > All > Assets.

  2. Find the asset to which you want to add a rule.

    The asset must be in the Ready for review state.

  3. In the Depreciation rules section, select Add row or Add (circle).

  4. Select a Depreciation method.

    Supported depreciation methods and conventions
    Depreciation method Full month convention Half year convention Full year convention
    Straight line (SL) Checkmark Checkmark Checkmark
    Daily (DR) Checkmark    
    150% declining balance (150DB) Checkmark Checkmark Checkmark
    200% declining balance (200DB) Checkmark Checkmark Checkmark
    Custom declining balance with true-up (CDBT) Checkmark Checkmark Checkmark
    Custom declining balance without true-up (CDB) Checkmark Checkmark Checkmark
    Derogatory (DER) Checkmark    
  5. If you selected a custom declining balance method, enter a Depreciation rate (%) from 1.00 to 100.00.
  6. Select a Journal posting rule.

    The Journal posting rule populates the Useful life units, Convention, Journal ID, and Book ID fields from Fixed Assets Management setup. You can only use each journal posting rule once per classification or asset.

  7. Enter a number for Useful life.

    Review the Useful life units field to determine whether the Useful life is entered in months or years. A useful life of up to 1500 months or 125 years is supported.

  8. If the asset is historical and your company is configured for entering historical accumulated depreciation manually, provide an amount for Historical accumulated depreciation.

    Historical accumulated depreciation is the total depreciation a historical asset accrued before the go-live date. Learn more about historical assets.

Repeat these steps to add additional rules as needed.