Setting up depreciation classes and associating them with your assets is a great way to track the value of assets as they depreciate.
This article covers:
- Enabling the depreciation function
- Creating a depreciation class
- Generating depreciation reports
- Related articles
Note: The depreciation feature is not available for inventory items since they are expendable by definition.
Enabling the depreciation function
If the depreciation function in not yet enabled, an admin can enable it as described in Quick Start for Admins.
Once enabled, Tracmor provides three depreciation methods – Straight Line, Sum of Years Digits Method, and Doubling Declining Balance Method – and allows you to to create as many Depreciation Classes as you need. The two variables are:
- Depreciation Life Span
- Depreciation Method
Resource: Learn more about each method in this article: Common Depreciation Methods.
Creating a depreciation class
On your way to creating a new Depreciation Class you will also see a list of classes already created. Navigate to Admin>Depreciation Class on the side menu. (Admin is near the bottom.)
Click on Depreciation Class. If Depreciation Classes were already created, they will be visible in a section below the Depreciation Class Search in the Depreciation Class List. If many classes were created, you can search by applying filters for Depreciation Class Name, Depreciation Life Span (in years) and Depreciation Method (select from the dropdown menu), as shown below.
Also from this view you can create a new Depreciation Class by clicking on the (blue) plus sign in the upper right hand corner. Once you click on the plus sign, you define a new depreciation class by entering a descriptive name, assigning a method from the drop down menu, specifying the expected life (in years). All fields are required.
Click Save so that your newly created Depreciation Class will be listed and available when you create new asset entries.
Generating depreciation reports
This is what this whole function is about: generating reports for the dual purposes of tracking and planning. Once your assets are in place and you have assigned depreciation models, you can generate a report by clicking on Reports on the top menu, then clicking on Asset Depreciation Report.
For detailed information, see What do I need to know about reports?
If any depreciation function is not working, check these possibilities:
- If Depreciation is not available as an option, check with the admin to make sure they enabled it.
- If you are not seeing depreciation values for an asset, check the asset model. There, you can edit the model and select any depreciation class that you have created - it will show up on a drop down menu.
- When importing assets and you want to include depreciation values, you will be asked to include a depreciation class, so you must create the depreciation class first so you can list it on the import spreadsheet. Be sure to match the spelling exactly!