Each year that you own an asset, the asset loses some value until it eventually has no more value to the business. Measuring the loss in value of an asset is called depreciation. Depreciation is a method to allocate the cost of an asset over its estimated useful life. By depreciating your assets, you can take tax deductions for the loss in value.
You can configure depreciation rules by Product Catalog using the Configuration Manager. For more information, see Working with product catalog information.
When you set up a depreciation schedule, and then need to adjust the cost and do a recalculation, the recalculation only takes affect from the current month forward. The system will not go back and recalculate from the beginning. For example, if a depreciation schedule starts on April 1, 2009, and you change the Actual Cost on August 11, 2009, and recalculate, the recalculation only takes affect from August 1, 2009, forward. This is because the previous months are considered already depreciated.
Depreciation is provided only for the following CI types:
- Application Infrastructure
- Application System
- Computer System
- Software Server
This section describes the following topics: