# Depreciation Methods

#### 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.

### Creating a Depreciation Method <a href="#adding_a_depreciation_method" id="adding_a_depreciation_method"></a>

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### Before You Start

You must have **Depreciation Setup** enabled within your General Access Security Role in order to configure any Depreciation administration settings.
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1. Select Menu and then **Admin**. Alternatively, select the arrow on the **Admin** button.Select **System Administration**. The System Administration window is displayed, with a menu of options available.&#x20;
2. In the Explorer pane, locate the **Depreciation** group, scrolling up or down if necessary. You may need to expand the group to see the options within it.
3. Select **Depreciation Methods** to open the window.
4. Select the New icon. A new row is added to the browse table.
5. Complete the details as follows. (You may like to adjust the column widths to see all of the columns.)

<table data-header-hidden><thead><tr><th width="232"></th><th></th></tr></thead><tbody><tr><td>Depreciation Method</td><td>Type the name for the new depreciation method</td></tr><tr><td>Depreciation Type</td><td><p>Select a depreciation type from the drop down list. There are two depreciation types you can select; straight-line or reducing balance depreciation.</p><p>Straight Line writes off an equal amount of the value of the asset each year</p><p>Reducing Balance writes off a set percentage of the capital cost of the asset’s Net Book Value each year </p></td></tr><tr><td>Writedown Interval</td><td>Select the frequency with which the depreciation calculations are applied to the CMDB items (monthly, quarterly, biannually or yearly). The default selection is monthly.</td></tr><tr><td>First Month</td><td><p>Type the number of the first month in the interval that the new diminished depreciation is calculated.</p><p>For example, if you are using a yearly interval and you put a 6 in the First Month field, then calculations will use the new diminished value starting in June.</p></td></tr></tbody></table>

6\. Select the Save icon to save the changes. Provide the Change Reasons if prompted to do so.

### Editing a Depreciation Method

1. Select Menu and then **Admin**. Alternatively, select the arrow on the **Admin** button.Select **System Administration**. The System Administration window is displayed, with a menu of options available.&#x20;
2. In the Explorer pane, locate the **Depreciation** group, scrolling up or down if necessary. You may need to expand the group to see the options within it.
3. Select **Depreciation Methods** to open the window.
4. Select the entry you want to edit.
5. Update the details as necessary.
6. Select the Save icon to save the changes. Provide the Change Reasons if prompted to do so.

### Deleting a Depreciation Method

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You cannot reverse this procedure. If you delete a Depreciation Method by mistake, you have to re-create the entry by adding a new Depreciation Method.
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1. Select Menu and then **Admin**. Alternatively, select the arrow on the **Admin** button.Select **System Administration**. The System Administration window is displayed, with a menu of options available. In the Explorer pane, locate the **Depreciation** group, scrolling up or down if necessary. You may need to expand the group to see the options within it.
2. Select **Depreciation Methods** to open the window.
3. Select the Depreciation Method entry you want to delete.
4. Select the Delete icon . If you attempt to delete the system default, you will receive a warning message.
5. Select  the Save icon to save the changes. Provide the Change Reasons if prompted to do so.