Depreciation is the process by which an asset’s book value decreases over time. As capital assets age, wear, or become obsolete, the loss in value is recognized as depreciation expense. A computer, for example, that initially cost $2,000 is worth substantially less than the original cost in the third year of its useful life. Advantage Fixed Assets allows users to define the types of assets your organization will depreciate, the depreciation method employed, and the accounting structure(s) to which depreciation posts.
For additional details on the depreciation process, please refer to the Mass Depreciation run sheet in the CGI Advantage - Fixed Assets Run Sheets guide as well as the Advanced – Setup and the "Transaction Information" sections within this Fixed Assets user guide.
Refer to the following topics for additional information about the depreciation functionality in Advantage: