If your business requires you to manage depreciation to equip you with the financial reporting needed for accounting statements, you may want to use this depreciation functionality.

Once depreciation has been defined for a Product in your Product Catalog, any new Inventory entered into the system for this Product will automatically calculate depreciation expenses against this Inventoried item.

Your Product Catalog consists of items that you sell. Certain Inventory items that are sold may be considered current assets, while others you retain ownership of may be considered fixed assets.

(Note: only serialized products can be depreciated)

Once you have identified the Products you'd like to depreciate, you'll note this in your Product Catalog. Navigate to the Product Catalog and identify the Product:

Management > Products and Suppliers > Catalog

In the Product Catalog, you can use straight-line depreciation to enable automated depreciation calculations.

In the Product Details screen, under the Price section, check the box for Depreciation.

After checking Depreciation, additional options appear.

Let's say you're trying to depreciate a product that you purchased for $5,000.

The NikoHealth system will subtract $500 from the $5,000 purchase price to get $4,500. Then it will divide that purchase price by 5 (Useful Life years) to get $900 of depreciation per year.

You can view and modify depreciation expenses recorded against a specific item by:

You can also modify or pause depreciation, and record a sale or disposition of an item.

The Fixed Asset Report highlights depreciation expenses and asset values, and identifies additional information related to fixed assets.