Fixed Assets, Expenses & Contracts

2. Depreciation Methods and Posting

Depreciation is handled through the DepreciationPage and automates the periodic write-down of asset value. SamvraCore supports three depreciation methods: Straight-line, Declining balance, and Sum of years digits. A category can set a default method that its assets inherit, and depreciation is calculated against the asset's useful life.

Depreciation integrates with the general ledger through accumulated-depreciation accounts, and the module generates journal entries for depreciation. This means running depreciation does not just update a figure on the asset record; it produces accounting entries so the financial statements reflect the expense and the growing accumulated depreciation.

The module also produces depreciation schedules and forecasts, allowing the organisation to see the planned write-down of an asset over its life. The backend provides an action to run depreciation and an endpoint to retrieve the depreciation schedule.

A worked example: an asset is assigned the straight-line method and a useful life in months. Running depreciation for a period calculates the period's depreciation, increases the asset's accumulated depreciation, lowers its current value, and generates the corresponding journal entry against the accumulated-depreciation account. The depreciation schedule shows how the asset's value is expected to decline across its remaining useful life, supporting planning and review.