Depreciation Types

There are currently three Depreciation models you have access to in the Settings > Depreciations section of the left-side navigation.

Linear

Also called straight-line depreciation is a method that spreads an asset’s depreciable cost over its active use, which is calculated like this:

$current_value = $cost - ($cost - $floor) * ($months_passed / $months_total);

Half Year Convention, applied with condition

This type of depreciation assumes an asset has been in active use for half of its first year despite when it was actually acquired. When Half Year Convention is applied with condition, the other half of depreciation is only recognized after the midpoint of the last fiscal year of the asset.

Half Year Convention, always applied

Same as applied with condition, but the final half of depreciation is considered taken as soon as you enter the last fiscal year (no mid-year gating).