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Asset Real-time Depreciation

Asset Depreciation refers to the actual decrease in the value of a particular asset over a period of its useful life. There are standard procedures to calculate the valuation of an asset.

For example, when a new equipment is deployed to production, the useful life of equipment will decrease in value year after year as it is being used.

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Knowing depreciation is important because businesses can use this to plan their Capital Investments of long-term assets over the course of time for accounting and tax benefits. As the value of an asset depreciates over the years due to wear and tear, this amount can be shown in the accounting balance sheet.

DreamzCMMS supports all four standard depreciation methods which are –
  • Straight-line Method,
  • Double Declining Balance,
  • Declining Balance
  • Diminishing Value.

3 Factors Determining Depreciation

Equipment Depreciation depends on the following information:

  • Initial value of the asset 
  • Asset useful life (the number of years it takes to fully depreciate)
  • Asset salvage value

Depreciation Configuration

Depreciation configuration requires setting up Account for Fixed Asset Classification such as Land, Building, Plant, Fixture and Furniture, and other Equipment Categories. Master setup can be done for asset categories or a sub-category. This can even be applied on similar groups of assets.

Product / Asset Register

When building a product master for a fixed asset register, depreciation setup is required.  Pre-created depreciation master is also needed to be attached to it.

So, during a new equipment addition, once the right product is chosen it automatically attaches the depreciation. One can view the asset depreciation information under the Asset Financial Tab.

Depreciation Reports

DreamzCMMS provides detailed reporting of Asset Depreciation for each and every equipment added in the fixed asset register. Following are the types of reports:

  1. Asset Valuation Journey
  2. Current Asset Valuation

Asset Depreciation Management will help you to make informed decisions using available information of the asset, its valuation, contribution to useful life, and plan for better maintenance during its useful life.

Benefits of Asset Real-time Depreciation Management using DreamzCMMS

Better understanding of Total Cost of Ownership (TCO).
Taking informed decisions on when as asset needs to be retired or whether to sell or not.
Simplify year end procedure with accurate data that can be passed on directly to the finance system.

Asset Lifecycle Management

Integration Matters

DreamzCMMS is connected to some of the best software platforms in the industry

DreamzCMMS

Other Industries Covered


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Hospital & Healthcare

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Parks & Entertainment

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Municipality

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Education

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