What is asset depreciation? Depreciation is the decrease in the value of an asset over the lifetime of the asset. Capital or asset depreciation has many benefits for tax, accounting, and capital planning purposes. By configuring depreciation schedules, you always know the current value of your assets, the amount that your assets have depreciated, and the date they will be fully depreciated. These numbers provide you with the data you need for tax deductions, balancing your books, and planning for future replacements.
In Limble, you can set and run a straight-line depreciation schedule to track the current value of your assets. You specify this by providing a start date, and other variables such as the purchase cost, salvage value, and the standard useful life. These values are updated nightly so you can check the depreciation of the asset daily. If the schedule either reaches its salvage value or reaches zero, the system generates a task as an alert and assigns it to the user or team that you specified.
Table of contents
Create a current value field
Before setting a depreciation schedule you need to make sure there is a field to represent the value for the asset. If you do not have a currency field type created to specify the asset’s value, add the field by doing the following:
Click Assets > Manage Assets.
The manage assets screen displays:
Click the asset for which you wish to set a depreciation schedule.
The asset viewer screen for the selected asset displays:
Click Add Field.
The add a field screen displays. If you do not have a field already created for the asset value click, Create New FIeld.
Provide a Name for the field. (For example, Current Asset Value).
Select the field type ( $ Currency) and click Create.
The asset viewer screen displays the selected field type and the added currency field.
Configure depreciation schedule
In the asset viewer screen, hover over the currency value field and click (Configure asset capital depreciation).
The asset capital depreciation schedule screen displays.
Enter the values for the following asset capital depreciation options:
Select the box to enable the depreciation schedule.
Note: Once enabled and the configuration is complete with all option values specified, this field is locked so that no one can manually change it.
Cost of the asset when it was first bought.
The estimated value of the asset when it is fully depreciated.
Standard Useful Life (Months)
The estimated duration of time (in months) to which you can reasonably expect the asset to remain functional.
Depreciation Schedule Start Date
The start date for the depreciation schedule. This is usually the date the asset was first put into service.
End of Standard Useful Life Tasks assigned to:
The name of the user to receive a task notification when the asset reaches the specified end-of-life date.
Click Close > Done.
The depreciation schedule is configured and enabled to start.
View current asset value
You can view a graph of the current asset value through the reports tab on the selected asset. The graph shows you the depreciation schedule as well as the current value of the asset at any given time in its specified life cycle duration.
In the manage assets screen, click and select the asset for which you wish to view the current asset value. Click the Reports tab. Scroll down to the current asset value graph.
The graph displays:
The cost of the asset when it was first bought.
The depreciation of the asset as it moves down over to the specified end-of-life duration of the asset. Click anywhere on the graph to see the current value of the asset
Create a custom dashboard widget
You can build a custom dashboard capital depreciation widget to create a list of all assets with depreciation schedules and with a selected set of options to display. Since you are creating an asset widget and the depreciation value is best viewed in a list you select the Asset option and list view options. You can select the fields to capture and display the value of the asset. In our example, it is the currency type field based on which we would like to set the depreciation schedule. You can also set up filters to view and display certain assets based on specified criteria. For example, specifying assets that have a depreciation schedule
To create a custom asset depreciation schedule widget:
From the navigation panel. click Custom Dashboards.
The custom dashboard screen displays.
The add widget screen displays.
Click Assets and List View.
Additional options related to the list view display include asset capital depreciation schedule fields.
Select all the applicable options to display in the list view in the Asset Capital Depreciation Schedule section.
Scroll to Asset Fields options. Click Asset Field 1 box and click Select.
A list of available fields is displayed. Select the field based on which you wish to display the depreciation schedule. In our example, it is the Current Asset Value field.
Under Filtered with Advanced Filters? select Yes and Assets That Have a Depreciation Schedule Set.
Type in a name for your customized widget and click Add.
The customized widget is created.
View Fully Depreciated Assets Tasks
When an asset is fully depreciated, a task notification is sent to the users it was assigned to. To view, the details of the depreciated asset open the Asset Fully Depreciated task.
The depreciated asset details display: