Add depreciation to an asset

Depreciation is the reduction in value of an asset over time.

Before you begin

Role required: asset

About this task

A depreciation schedule can be added to hardware assets. Based on the information specified in the asset record, the ServiceNow platform calculates the depreciation amount daily using the Calculating Depreciation scheduled job.

The ServiceNow platform calculates the read-only Residual date and Residual value fields based on the Cost, Depreciation, and Depreciation effective date fields. For example, if the asset Cost is $1000.00, the Straight Line depreciation method is selected, and exactly two years have passed, the Residual value would be $500.00.

For more information about fixed assets and depreciation, see Using Depreciation with Fixed Assets.

Procedure

  1. Navigate to Asset > Portfolios > Hardware Assets.
  2. Select an asset.
  3. Fill in the Depreciation, Depreciation effective date, Salvage Value, and Covered by fixed asset fields as described in Create assets.
    Consider these points.
    • If the depreciation effective date is in the future, depreciation is 0 and the current, residual value is the original purchase price. The system does not begin to calculate depreciation until the effective date is reached.
    • The salvage value must be less than or equal to the asset cost. If a salvage value greater than the cost is entered, a warning message appears and the record cannot be saved.
  4. Right-click the header and click Save.
  5. Click Calculate Depreciation.
    The Residual date, Residual value, and Depreciated amount fields are automatically calculated.
    Depreciation fixed assets