Depreciation

Depreciation settings allow you to run automatic batch jobs that perform scheduled depreciation calculations against CMDB items.

These jobs can be filtered to run for specific CMDB items, CMDB Item types, Users, organizations and/or locations. It provides a flexible automated system for monitoring and maintaining depreciations against your organization's IT infrastructure.

Tracking depreciation in IT Service Management (ITSM) serves several crucial purposes:

1. Financial Management: It helps in accurately reflecting the value of IT assets over time, ensuring financial statements and balance sheets are accurate. This is essential for financial planning, budgeting, and asset lifecycle management.

2. Compliance and Reporting: Many industries have strict regulations regarding asset management and depreciation. Proper tracking ensures compliance with these regulations and facilitates audits by providing a clear record of asset values over time.

3. Maintenance and Replacement Planning: By understanding the depreciated value of assets, ITSM can make informed decisions about when to invest in maintenance or plan for replacements, optimizing the use of financial resources.

4. Cost Allocation: Depreciation tracking allows for the accurate allocation of IT asset costs to different departments or projects, ensuring fair and transparent chargeback or showback models.

5. Performance Management: Monitoring depreciation can also help in evaluating the performance and efficiency of assets over time, leading to better decision-making regarding technology investments and upgrades.

In conclusion, tracking depreciation is vital for effective ITSM as it supports financial accuracy, compliance, strategic planning, and the optimized management of IT assets.

To configure depreciation, you will need to carry out the folowing:

1. Define your CMDB Items.

2. Create one or more depreciation schedules.

3. Define the parameters for one or more methods of depreciation.

4. Link the schedules and methods to CMDB Item Types.

5. Create and define your batch run parameters for each depreciation schedule. This executes the depreciation calculation against the CMDB Items.

6. View a log of all the batch runs.