Hi @Tommaso2
Asset depreciation in ServiceNow is the process of systematically reducing the recorded value of a hardware or facility asset over its useful life, reflecting wear, obsolescence, or other value loss. ServiceNow automates this process using a scheduled job that calculates depreciation amounts daily, based on key financial fields and parameters set on the asset record.
Key Financial Fields Involved in ServiceNow Asset Depreciation
The main financial fields and their roles in ServiceNow asset depreciation are:
| Field Name |
Description |
| Cost |
The original purchase price or acquisition cost of the asset. |
| Depreciation |
The annual depreciation amount or the method used (e.g., straight-line, declining balance). |
| Depreciation effective date |
The date when depreciation calculation starts for the asset. |
| Salvage Value |
The estimated residual value of the asset at the end of its useful life. |
| Residual Value |
The current value of the asset after accounting for depreciation to date (calculated). |
| Residual Date |
The date when the asset will reach its salvage value (calculated). |
| Depreciated Amount |
The total amount depreciated so far (calculated). |
| Covered by Fixed Asset |
Indicates if the asset is tracked as a fixed asset for financial reporting. |
| Depreciation Method |
The calculation method applied (straight-line, double-declining, etc.). |
| Useful Life |
The expected duration (in years or months) over which the asset will be depreciated. |
How Asset Depreciation Works in ServiceNow
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Asset Setup
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You enter the asset’s financial details: Cost, Depreciation, Depreciation effective date, Salvage Value, and optionally select the Depreciation Method.
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The Depreciation effective date determines when depreciation calculations begin. If this date is in the future, depreciation is not yet applied and the asset’s value remains at its original cost.
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Automated Calculation
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ServiceNow uses the “Calculating Depreciation” scheduled job to automatically update depreciation figures daily.
-
The platform calculates:
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Depreciated Amount (total depreciation to date)
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Residual Value (current book value)
-
Residual Date (when the asset will reach salvage value)
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The system ensures that Salvage Value cannot exceed the original cost; otherwise, it prevents saving the record.
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Depreciation Methods
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ServiceNow supports multiple depreciation methods (e.g., straight-line, double-declining balance), which can be selected per asset. The chosen method impacts how depreciation is calculated over time.
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Financial Reporting
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The calculated fields (Residual Value, Depreciated Amount) are read-only and updated automatically, providing up-to-date financial information for reporting, audits, and asset management decisions.
Additional Financial Fields on the Asset Record
Beyond depreciation, ServiceNow asset records can include other financial and accounting fields such as:
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Purchase Order Number
-
Invoice Number
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Vendor
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Cost Center
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General Ledger Account
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Disposal/Retirement Information (retirement date, reason, resale price)
Summary Table of Depreciation-Related Fields
| Field Name |
Type |
Editable |
Calculated |
Description |
| Cost |
Currency |
Yes |
No |
Purchase price of the asset |
| Depreciation |
Number/Choice |
Yes |
No |
Annual amount or method |
| Depreciation effective date |
Date |
Yes |
No |
Start date for depreciation |
| Salvage Value |
Currency |
Yes |
No |
Value at end of useful life |
| Residual Value |
Currency |
No |
Yes |
Current book value |
| Residual Date |
Date |
No |
Yes |
Date asset reaches salvage value |
| Depreciated Amount |
Currency |
No |
Yes |
Total depreciation to date |
| Depreciation Method |
Choice |
Yes |
No |
Calculation method |
| Useful Life |
Number |
Yes |
No |
Expected life in years/months |
In summary: ServiceNow automates asset depreciation by leveraging key financial fields on the asset record, applying the chosen depreciation method, and updating calculated values daily for accurate financial tracking and reporting.
There is also an older however still valid video explaining everything:
