Auto Depreciation

Auto Depreciation Overview

Auto Depreciation is the diminishing in the value of assets. Essentially, when you purchase a depreciating asset it permanently decreases in value as it is lifecycle progresses and overtime the economic value of the asset will be depreciated to zero. Accordingly, SapphireOne has the functionality to account for this process automatically via the Auto Depreciation function.

Auto Depreciation Page

The SapphireOne Auto Depreciation feature will create the transactions required for the selected depreciation schedule, for the current period on all assets in the database. 

  • For the Primary Method in the example, (Tax rate), transactions will be created in Assets and then transferred to Financials where the appropriate General Ledger journals will be created. 
  • For the Secondary Method in the example, (Company rate) transactions will be created in Assets and no further action will be taken on them. 

SapphireOne as seen above will select the Depreciation rate only to run this Asset Depreciation function on. The user must remember to also select the Company depreciation option to tell SapphireOne to run that depreciation process as well. 

All purchases, disposals and the recording of asset movements and adjustments should be completed prior to selecting this option. 

 You can review our Blog and YouTube channel for additional information and resources on SapphireOne ERP, CRM and Business Accounting software.

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