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Depreciations — User Guide

Depreciations — User Guide

Module: Fixed Equipment
Audience: Asset administrators, finance staff, operations managers
Version: 1.0.0
Last updated: 2026-07-22

Overview

Depreciation tracks how fixed assets and software licenses lose value over time. Synergy uses straight-line depreciation: the purchase cost is spread evenly across a defined number of months. Maintenance costs recorded against an asset can increase the depreciable basis and adjust future monthly amounts.

Use this feature to review monthly depreciation, remaining book value, and accumulated depreciation across your asset register.

Prerequisites

Task Permission
View depreciation table Fixed Equipment → Depreciations → View (or View own)
Create/edit depreciation profiles Fixed Equipment → Settings → Depreciations → Create / Edit
Assign profile to asset models Fixed Equipment → Settings → Models → Edit
Assign profile to licenses Fixed Equipment → Licenses → Edit

Before an asset or license appears in the depreciation table:

  1. Record type must be Asset or License.
  2. Purchase cost (unit price) must be greater than zero.
  3. Purchase date must be set.
  4. Assets: the linked Model must have a depreciation profile assigned.
  5. Licenses: the license record must have a depreciation profile assigned directly.

Step-by-step: Create a depreciation profile

  1. Go to Fixed Equipment → Settings.
  2. Open the Depreciations tab (default for administrators).
  3. Click Add (or equivalent new action).
  4. Enter:
    • Name — e.g. "36 Month IT Equipment"
    • Term — useful life in months (e.g. 36 for three years).
  5. Save.

Expected result: The profile appears in the list and can be assigned to models or licenses.

Step-by-step: Assign depreciation to assets

Physical assets (via model)

  1. Go to Fixed Equipment → Settings → Models.
  2. Edit the model used by your assets.
  3. Select the Depreciation profile and set EOL (end-of-life months) if shown.
  4. Save.

All assets using that model inherit the depreciation term.

Software licenses (direct)

  1. Go to Fixed Equipment → Licenses.
  2. Edit the license.
  3. Select a Depreciation profile and ensure purchase cost and date are filled in.
  4. Save.

Step-by-step: Review the depreciation table

  1. Go to Fixed Equipment → Depreciations.
  2. The system calculates or updates monthly entries when the page loads.
  3. Use filters:
    • Month — view depreciation for a specific calendar month.
    • Status — filter by asset status label.
    • Assets — narrow to specific items.
  4. Click View on a row to open the asset detail.

Expected result: A table showing cost, maintenance, current value, monthly depreciation, and accumulated depreciation per eligible asset.

Column reference

Column Meaning
EOL Estimated end of useful life (purchase date + model life in months)
Cost Original purchase price
Maintenance Maintenance costs recorded to date (through selected month)
Current Value Remaining book value (cost + maintenance − accumulated depreciation)
Monthly Depreciation Depreciation expense for the selected month
Remaining Total accumulated depreciation to date (despite the label, this is not "value left to depreciate")

Tip: Use Current Value for net book value. The Remaining column shows how much has already been depreciated.

How calculation works (business summary)

  • Depreciation starts from the purchase date.
  • Each month, an equal share of the remaining depreciable amount is recorded.
  • If you log maintenance costs against an asset, the system may recalculate future months to include that added cost.
  • Depreciation runs automatically once per day (system cron) and whenever you open the Depreciations page.

Common issues

Symptom Likely cause What to do
Asset not in table Model has no depreciation profile Edit the model in Settings and assign a profile
Amount shows zero Missing purchase price or date Complete financial fields on the asset or license
Numbers not updating Scheduled tasks not running Open the Depreciations page to trigger calculation; verify system cron
License missing Profile not set on license Assign depreciation directly on the license record
Small rounding differences System precision limits Cosmetic only; contact admin if amounts are materially wrong

Known limitations

The current system supports straight-line depreciation only. It does not support:

  • Salvage / residual value (all assets depreciate to zero)
  • Alternative methods (declining balance, units of production)
  • A separate "placed in service" date (always uses purchase date)
  • Automatic accounting journal entries

See the product backlog and docs/modules/fixed-equipment-depreciation-upgrade.md for planned improvements.

Related features

  • Assets — create and maintain asset records with purchase cost and date
  • Licenses — intangible assets with direct depreciation assignment
  • Maintenances — maintenance costs affect depreciation calculations
  • Settings → Models — link depreciation profiles to physical asset templates
  • Accounting (if installed) — manual conversion of fixed-equipment transactions

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