Add depreciation to an asset

  • Release version: Washingtondc
  • Updated December 12, 2024
  • 1 minute to read

    • Depreciation is the reduction in the value of an asset over time.

    Before you begin

    Role required: asset

    About this task

    A depreciation schedule can be added to hardware assets. Based on the information specified in the asset record, the ServiceNow AI Platform calculates the depreciation amount using the Calculate Depreciation scheduled job. The following system properties determine when the Calculate Depreciation scheduled job should be triggered to calculate the depreciation amount:
    • The sn_itam_depreciation_job_last_run system property stores the date on which the Calculate Depreciation scheduled job was last run.
    • The sn_itam_trigger_depreciation_job_after_days system property determines the frequency (in days) at which the Calculate Depreciation scheduled job should be triggered.
      Note:
      By default, this system property is set to 7. Therefore, the Calculate Depreciation scheduled job runs weekly to calculate depreciation amount.

    The ServiceNow AI Platform calculates the read-only Residual date and Residual value fields based on the Cost, Depreciation, and Depreciation effective date fields. For example, if the asset Cost is $1000.00, the Straight Line depreciation method is selected, and exactly two years have passed, the Residual value would be $500.00.

    When an asset is in the In Use state, the asset form populates a Deprecation effective date.

    For more information about fixed assets and depreciation, see Using Depreciation with Fixed Assets.

    Procedure

    1. Navigate to All > Asset > Portfolios > Hardware Assets.
    2. Select an asset.
    3. Fill in the Depreciation, Depreciation effective date, Salvage Value, and Covered by fixed asset fields as described in Create assets.
      Consider these points.
      • If the depreciation effective date is in the future, depreciation is 0 and the current residual value is the original purchase price. The system doesn’t begin to calculate depreciation until the effective date is reached.
      • The salvage value must be less than or equal to the asset cost. If a salvage value greater than the cost is entered, a warning message appears and the record can’t be saved.
    4. Select and hold (or right-click) the header and select Save.
    5. Select Calculate Depreciation.
      The Residual date, Residual value, and Depreciated amount fields are automatically calculated.
      Important:
      The Calculate Depreciation scheduled job calculates the depreciation amount weekly. If you perform this step before the next run date of the scheduled job, the recently calculated depreciation amount is displayed.