Create fixed assets

Fixed assets are containers that can hold multiple assets. Fixed assets are commonly tracked at the corporate level by a finance or accounting department, but may contain IT assets such as hardware and software.

The Fixed Asset option in the Financial Management application shows the IT assets related to a fixed asset record. This link can help IT stay coordinated with the corporate asset system. Users with the financial_mgmt_admin and financial_mgmt_user roles can create fixed assets. After creating a fixed asset and adding assets, the residual value can be automatically calculated.

To create a fixed asset:
  1. Navigate to Financial Management > Fixed assets.
  2. Click New.
  3. Enter a name for the fixed asset.
  4. Click Submit.
To add assets to a fixed asset:
  1. Navigate to Financial Management > Fixed assets.
  2. Click a fixed asset.
  3. In the Covered assets related list, click Edit.
  4. In the Collection list, double-click an asset to add it to the Covers Assets List.
  5. Click Save.
To sum the residual values of all assets in a fixed asset:
  1. Navigate to Financial Management > Fixed assets.
  2. Click a fixed asset.
  3. Click Sum Residual Value.

    The ServiceNow platform calculates the Residual Value, Total cost, and Total depreciation based on information in the Financial and Depreciation sections on the individual asset records.

Use depreciation with fixed assets

You can calculate depreciation for a fixed asset using a choice of depreciation schedules. Calculating depreciation for a fixed asset can help IT coordinate with the corporate fixed asset system to report correct valuation and book value.

Before you begin

Role required: financial_mgmt_admin or financial_mgmt

About this task

When creating a new depreciation schedule, select the Declining Balance or Straight Line depreciation Category. The two categories depreciate an asset by the same overall amount during the asset life cycle, but do so on different schedules.
  • Declining Balance: depreciates an asset by a greater amount in earlier accounting periods than in later periods.
  • Straight Line: depreciates an asset by an equal amount each accounting period.

The following example shows depreciated value on a $10,000.00 asset over five years using the two different methods.

Table 1. Using depreciation with fixed assets
Year Declining balance Straight line
1 $5000.00 $8000.00
2 $2500.00 $6000.00
3 $1250.00 $4000.00
4 $625.00 $2000.00
5 $0 $0

Procedure

  1. To view a depreciation schedule, navigate to Financial Management > Depreciation and click the Category.
  2. To create a new depreciation schedule, click New.
  3. Enter a Name.
  4. Select a Category.
  5. Add a Script to calculate depreciation value.
    Figure 1. Example depreciation schedule script
    Depreciation schedule
  6. Click Submit.
    The depreciation schedule is now available in the Depreciation field on the asset record.