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.

Determine Which Assets to Depreciate

Your product catalog consists of items that you sell. Certain Inventory items that are sold may be considered current assets while others you may retain ownership of and may be considered fixed assets.

Once you have identified which products you would like to depreciate you can go to the product in the catalog. Please note that only serialized products can be depreciated.

Automate Your Depreciation

On the product in your catalog you can use straight-line depreciation to enable automated depreciation calculations.

Here you can select the depreciation box and indicate:

Let's say your trying to depreciate a product that you purchased for $5000.00. The estimated Useful Life is 5 Years and the salvage value is $500. The system will will subtract $500 from the $5000 purchase price to get $4500. Then it would divide by 5 to get $900 of depreciation per year.

Once depreciation has been defined for a product in your catalog, any new inventory entered into the system for this product will automatically calculate depreciation expenses against this inventoried item.

Depreciation Transactions

You can view and modify depreciation expenses recorded against a specific item by selecting the item from your inventory or from the fixed asset report and click on the depreciation tab. You can also modify or pause depreciation, record a sale or disposition of an item.

Fixed Asset Report
The fixed asset report is available to report on depreciation expenses, asset values and identify additional information related to fixed assets.