Depreciation

The depreciation of asset is an important concept of the Fixed Assets module. Over time, the value of an asset decreases due to wear and tear. You depreciate assets on a periodic basis to record the loss of value . You can depreciate an asset at any time after capitalization and prior to full disposal or the removal of capitalization. Only the vintage and group account assets can accumulate depreciation after they are disposed.

As a part of the depreciation process, you must:

• Define the depreciation procedures.
• Calculate the depreciation results.
• Post the depreciation results to the General Ledger.