{"id":34785,"date":"2026-02-12T18:11:29","date_gmt":"2026-02-12T18:11:29","guid":{"rendered":"https:\/\/help.desk365.io\/en\/?post_type=docs&p=34785"},"modified":"2026-03-17T21:13:59","modified_gmt":"2026-03-17T21:13:59","slug":"managing-asset-depreciation-in-desk365","status":"publish","type":"docs","link":"https:\/\/help.desk365.io\/en\/articles\/managing-asset-depreciation-in-desk365\/","title":{"rendered":"Managing asset depreciation in Desk365"},"content":{"rendered":"\t\t
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\nAvailable with:<\/span>\n\n\n<\/circle>\n<\/path>\n<\/svg>\nPremium<\/span>\n<\/span>\n<\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Asset depreciation in Desk365 helps you track how an\u00a0asset\u2019s\u00a0value decreases over time. This is especially useful for finance reporting, lifecycle planning, audits, and replacement decisions.<\/span>\u00a0<\/span><\/p>

Depreciation in Desk365 is calculated\u00a0<\/span>monthly<\/span>, ensuring that the\u00a0asset\u2019s\u00a0book value is always up to date and reflects real usage time.<\/span>\u00a0<\/span><\/p>

This article explains:<\/span>\u00a0<\/span><\/p>

  • What depreciation means in Desk365<\/span>\u00a0<\/span><\/li>
  • The available depreciation methods<\/span>\u00a0<\/span><\/li>
  • How calculations work (with simple examples)<\/span>\u00a0<\/span><\/li>
  • How to configure depreciation step by step<\/span>\u00a0<\/span><\/li>
  • How depreciation appears in the asset creation form<\/span><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Asset depreciation in Desk365 <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    When you\u00a0purchase\u00a0an asset (for example, a laptop for $100,000), its value does not\u00a0remain\u00a0the same forever. Over time:<\/span>\u00a0<\/span><\/p>

    • It experiences wear and tear<\/span>\u00a0<\/span><\/li>
    • It becomes outdated<\/span>\u00a0<\/span><\/li>
    • Its resale value decreases<\/span>\u00a0<\/span><\/li><\/ul>

      Depreciation is the accounting method used to spread the asset\u2019s cost over its useful life.<\/span>\u00a0<\/span><\/p>

      In Desk365, depreciation:<\/span>\u00a0<\/span><\/p>

      • Is calculated monthly<\/span>\u00a0<\/span><\/li>
      • Updates the asset\u2019s book value automatically<\/span>\u00a0<\/span><\/li>
      • Never allows book value to fall below the salvage value<\/span>\u00a0<\/span><\/li>
      • Stops once the useful life ends<\/span><\/span>\u00a0<\/span><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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        Key terms you should understand <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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        Before configuring depreciation,\u00a0it\u2019s\u00a0important to understand these terms:<\/span>\u00a0<\/span><\/p>

        • Cost\u00a0–\u00a0<\/span><\/b>The original purchase price of the asset.<\/span><\/li>
        • Salvage Value – <\/span><\/b>The\u00a0estimated value of the asset at the end of its useful life.<\/span><\/li>
        • Useful Life (Years)\u00a0 <\/span><\/b>How long\u00a0you\u00a0expect the asset to be\u00a0used.<\/span><\/li>
        • Useful Life (Months) – <\/span><\/b>Useful Life (Years) \u00d7 12<\/span><\/li>
        • Months Elapsed – <\/span><\/b>Number of completed months since the purchase date.<\/span><\/li>
        • Depreciable Base\u00a0–\u00a0<\/span><\/b>Cost \u2212 Salvage Value.\u00a0This is the total value that will be depreciated.<\/span>\u00a0<\/span><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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          Depreciation methods available in Desk365 <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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          You can configure depreciation under\u00a0<\/span>Settings\u00a0>\u00a0Asset Management\u00a0>\u00a0Depreciation<\/span><\/b>\u00a0<\/span><\/p>

          Desk365 supports three methods:<\/span>\u00a0<\/span><\/p>

          1. Straight-Line (SL)<\/span>\u00a0<\/span><\/li>
          2. Declining Balance (DB)<\/span>\u00a0<\/span><\/li>
          3. Sum-of-the-Years\u2019-Digits (SYD)<\/span>\u00a0<\/span><\/li><\/ol>

            Let\u2019s understand each one clearly.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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            1. Straight-Line Depreciation (SL) <\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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            Straight-Line Depreciation is the simplest and\u00a0most commonly used\u00a0depreciation method. In this approach, the asset loses the same amount of value every month throughout its useful life.<\/span>\u00a0<\/span><\/p>

            The formula for monthly depreciation is:<\/span>\u00a0<\/span><\/p>

            Monthly Depreciation = (Cost \u2212 Salvage Value) \u00f7 Useful Life (in months)<\/span><\/b>\u00a0<\/span><\/p>

            The book value at any point in time is calculated as:<\/span>\u00a0<\/span><\/p>

            Book Value = Cost \u2212 (Monthly Depreciation \u00d7 Months Elapsed)<\/span><\/b>\u00a0<\/span><\/p>

            For example, if an asset costs 100,000, has a salvage value of 10,000, and a useful life of 5 years (60 months), the depreciable base would be 90,000. Dividing 90,000 by\u00a060 months\u00a0gives a monthly depreciation of 1,500. After 10 months, the accumulated depreciation would be 15,000, and the\u00a0book\u00a0value would be 85,000.<\/span>\u00a0<\/span><\/p>

            This method is best suited for assets such as furniture, office equipment, and other items with steady and predictable usage patterns.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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            2. Declining Balance (DB) <\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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            The Declining Balance method is an accelerated depreciation method where the asset depreciates faster in the earlier years and more slowly in later years. This approach reflects real-world usage patterns for assets that lose value quickly, especially technology-related equipment.<\/span>\u00a0<\/span><\/p>

            In Desk365, the annual depreciation rate is calculated as:<\/span>\u00a0<\/span><\/p>

            Annual Rate = 1 \u00f7 Useful Life (in years)<\/span><\/b>\u00a0<\/span><\/p>

            The monthly rate is derived using:<\/span>\u00a0<\/span><\/p>

            Monthly Rate = 1 \u2212 (1 \u2212 Annual\u00a0Rate)^(1\/12)<\/span><\/b>\u00a0<\/span><\/p>

            The book value is then calculated as:<\/span>\u00a0<\/span><\/p>

            Book Value = Cost \u00d7 (1 \u2212 Monthly\u00a0Rate)^MonthsElapsed<\/span><\/b>\u00a0<\/span><\/p>

            For instance, if an\u00a0asset costs\u00a0100,000 and has a useful life of 5 years, the annual rate would be 20%. The calculated monthly rate would be approximately 1.86%. After 12 months, the\u00a0book\u00a0value would be approximately 80,000.<\/span>\u00a0<\/span><\/p>

            This method is particularly suitable for IT equipment, laptops, servers, and other electronic devices that experience rapid value decline in the\u00a0initial\u00a0years.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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            3. Sum-of-the-Years\u2019-Digits (SYD) <\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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            The Sum-of-the-Years\u2019-Digits method is another accelerated depreciation method, but it follows a more structured calculation compared to the Declining Balance method. It results in higher depreciation in the earlier years, with the expense gradually decreasing over time.<\/span>\u00a0<\/span><\/p>

            First, the SYD value is calculated using:<\/span>\u00a0<\/span><\/p>

            SYD =\u00a0N(N + 1) \u00f7 2<\/span><\/b>, where N\u00a0represents\u00a0the useful life in years.<\/span>\u00a0<\/span><\/p>

            The yearly depreciation is then\u00a0determined\u00a0by:<\/span>\u00a0<\/span><\/p>

            Yearly Depreciation = Depreciable Base \u00d7 (Remaining Life \u00f7 SYD)<\/span><\/b>\u00a0<\/span><\/p>

            Monthly depreciation is calculated proportionally from the annual amount.<\/span>\u00a0<\/span><\/p>

            For example, if an asset costs 100,000, has a salvage value of 10,000, and a useful life of 5 years, the depreciable base would be 90,000. The SYD would be calculated as 5 \u00d7 6 \u00f7 2, which equals 15. In the first year, depreciation would be 90,000 \u00d7 (5 \u00f7 15), resulting in 30,000. This translates to a monthly depreciation of 2,500 i.e., 30,000 \u00f7\u00a012\u00a0.\u00a0After 6 months, the accumulated depreciation would be 15,000, and the\u00a0book\u00a0value would be 85,000.<\/span>\u00a0<\/span><\/p>

            This method works well for vehicles, machinery, and other assets where the decline in value follows a predictable but accelerated pattern.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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            Built-in safeguards in Desk365 <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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            Desk365 ensures:<\/span>\u00a0<\/span><\/p>

            • Book value never falls below salvage value<\/span>\u00a0<\/span><\/li>
            • Depreciation stops after useful life ends<\/span>\u00a0<\/span><\/li>
            • Negative depreciable base is handled gracefully<\/span>\u00a0<\/span><\/li>
            • Monthly calculations are consistent and automated<\/span>\u00a0<\/span><\/li><\/ul>

              This prevents accounting errors and over-depreciation.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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              How to configure depreciation in Desk365 <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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              Step 1: Navigate to depreciation settings <\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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              Go to\u00a0Settings\u00a0>\u00a0Asset Management\u00a0>\u00a0Depreciation<\/span>\u00a0<\/span><\/p>

              You will see the depreciation list screen showing:<\/span>\u00a0<\/span><\/p>

              • Depreciation Name<\/span>\u00a0<\/span><\/li>
              • Depreciation Type<\/span>\u00a0<\/span><\/li>
              • Useful Life<\/span>\u00a0<\/span><\/li>
              • Description<\/span>\u00a0<\/span><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                \n\t\t\t\t\t\t\t\t\t\t\t\t\t\"depreciation-in-asset-management\"\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                Step 2: Create a new depreciation method <\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                Click n<\/span>ew depreciation<\/span>.<\/span>\u00a0<\/span>In the \u201cNew Depreciation\u201d\u00a0<\/span>windo<\/span>w<\/span>\u00a0f<\/span>ill in<\/span>\u00a0the<\/span>\u00a0d<\/span>epreciation\u00a0<\/span>n<\/span>ame<\/span>, type, useful life in years and a description if\u00a0<\/span>required<\/span>.<\/span><\/span>\u00a0<\/span><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                \n\t\t\t\t\t\t\t\t\t\t\t\t\t\"adding-new-depreciation-type\"\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                Click\u00a0<\/span>Save<\/span>.<\/span>\u00a0<\/span>Your depreciation rule is now available for asset\u00a0<\/span>selection<\/span>.<\/span><\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                How depreciation appears in the asset creation form <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                When creating a new asset or editing an asset in Desk365, you can apply a predefined depreciation rule directly from the asset form.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                \n\t\t\t\t\t\t\t\t\t\t\t\t\t\"updating-depreciation-type-from-assets-menu\"\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                Once you enter the values or update them the calculations are handled automatically based on the selected depreciation rule. No manual formulas or external spreadsheets are required.<\/span>\u00a0<\/span><\/p>

                Desk365 will automatically calculate:<\/span>\u00a0<\/span><\/p>

                • Monthly depreciation amount<\/span>\u00a0<\/span><\/li>
                • Accumulated depreciation (based on months elapsed)<\/span>\u00a0<\/span><\/li>
                • Current book value<\/span>\u00a0<\/span><\/li><\/ul>

                  There is no need for manual formulas or spreadsheets. The system keeps the asset value updated automatically based on the purchase date and selected depreciation rule.<\/span>\u00a0<\/span><\/p>

                  This ensures consistent financial tracking, accurate reporting, and better lifecycle management for IT assets.<\/span>\u00a0<\/span><\/p>

                  By combining asset type structure with automated depreciation, Desk365 helps IT teams manage assets not just operationally, but financially as well.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"author":16,"featured_media":0,"parent":34405,"menu_order":5,"comment_status":"open","ping_status":"closed","template":"","doc_tag":[],"class_list":["post-34785","docs","type-docs","status-publish","hentry","no-post-thumbnail"],"comment_count":0,"_links":{"self":[{"href":"https:\/\/help.desk365.io\/en\/wp-json\/wp\/v2\/docs\/34785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/help.desk365.io\/en\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/help.desk365.io\/en\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/help.desk365.io\/en\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/help.desk365.io\/en\/wp-json\/wp\/v2\/comments?post=34785"}],"version-history":[{"count":20,"href":"https:\/\/help.desk365.io\/en\/wp-json\/wp\/v2\/docs\/34785\/revisions"}],"predecessor-version":[{"id":36145,"href":"https:\/\/help.desk365.io\/en\/wp-json\/wp\/v2\/docs\/34785\/revisions\/36145"}],"up":[{"embeddable":true,"href":"https:\/\/help.desk365.io\/en\/wp-json\/wp\/v2\/docs\/34405"}],"prev":[{"title":"Creating and managing assets in Desk365","link":"https:\/\/help.desk365.io\/en\/articles\/creating-and-managing-assets-in-desk365\/","href":"https:\/\/help.desk365.io\/en\/wp-json\/wp\/v2\/docs\/34777"}],"wp:attachment":[{"href":"https:\/\/help.desk365.io\/en\/wp-json\/wp\/v2\/media?parent=34785"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/help.desk365.io\/en\/wp-json\/wp\/v2\/doc_tag?post=34785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}