Every Asset needs to be depreciated. In order to do that, proper Depreciation % has to be assigned to Asset. Therefore, it's recommended to create Depreciation Master for each category who has different depreciating rates.
It has to be created initially during setup only.
In Order to create a Depreciation Master -> Go to Menu -> Asset Management Module -> Depreciation Master Sub Module -> Create New
Note:
1. It's recommended to create "Asset Type" or "Depreciation Master" same as "Asset Category"
2. Do not change any "Asset Type" once created and linked to Asset as it might mismatch and depreciation might go wrong.
3. In Asset Master -> Asset Category & Asset Type should be same.
Step-by-Step Guide: Depreciation Master Setup
1. Navigate to Asset Management
Go to the main menu of your ERP system.
Select Asset Management.
2. Access Depreciation Master
Click on Depreciation Master within the Asset Management module.
This will display all existing depreciation categories and percentages that are defaulted in the system.
3. Set Up Categories and Depreciation Rates
Identify the asset categories that need custom setup. Examples:
Vehicle
Caps (or any other category relevant to your company)
Enter the depreciation percentage for each category. Example:
Vehicle → 25% (i.e., 4-year depreciation)
Other categories → 5%, 8%, 9%, 12%, 15% (based on your requirements)
After entering the percentage, click Save to store the settings.
4. Edit or Adjust Categories
If a category already exists but needs adjustment:
Select the category
Click Edit
Modify the percentage or any other required details
Click Save
⚠️ Important: Always save before proceeding to the next category or entering any transaction.
5. Verify the Setup
After saving, click View Transaction to check that all categories and percentages are correctly applied.
Repeat edits for other categories if needed.
Notes & Best Practices
Depreciation should be set up before any transactions are entered for accurate calculation.
Ensure that category names in the depreciation master match your Chart of Accounts names for consistency.
Saving at each step avoids data loss.
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