Asset Depreciation Software – EZOfficeInventory

Asset Depreciation Software

Tracking depreciation is a breeze with EZOfficeInventory. Our asset depreciation software enables you to manage depreciation across different groups, and draft reports utilizing this data for actionable insights.


  1. Getting Started
  2. How Is Depreciation Calculated in EZOfficeInventory?
  3. Depreciation Without a Salvage Value
  4. Depreciation With a Salvage Value
  5. Reports and Analytics
  6. A Note on Depreciation in the Month of Purchase and Disposal

1. Getting Started

We support straight-line depreciation that is configurable at the group level. To start off, go to Settings → Add Ons → Asset Depreciation → Enabled. Next, go to Groups and pick a Group you’d like to set a depreciation rate for. Then click Edit, highlighted below:

Edit groups

The depreciation rate is set to 20% by default. You can change this using the field below:

Specify depreciation rate

2. How is Depreciation Calculated in EZOfficeInventory?

In EZOfficeInventory, depreciation is calculated on a monthly basis. See the following scenarios to see how that plays out:

3. Depreciation Without a Salvage Value

Your company buys a laptop for $1000, and sets the depreciation rate to 20%. We would calculate depreciation as follows:

Monthly Depreciation
= [
Purchase Cost * Depreciation Rate]/12
= [1000 * (20/100)]/12
= 200/12
= $16.666

Say the asset was purchased on the 1st of July 2016, and you want to know its depreciated value on the 1st of January, 2018 – a full 18 months after its purchase. The system would calculate this as:

Depreciated Value After X Months 
= Purchase Cost – [Monthly Depreciation * X]

= 1000 – [16.666 * 18]
= 1000 – 300
= $700

You can see this playing out here for the 1st of January 2018, with the General Electronics group set to a depreciation rate of 20%:

Depreciated value

4. Depreciation With a Salvage Value

In EZOfficeInventory, the Salvage Value field has been hidden by default. If you’d like to add this to your depreciation calculations, go to Settings → Company Settings → Fields to Hide for Items. To see the Salvage Value field in the system, you can disable the setting:

fields to hide for items

To calculate depreciation, let’s take the same example as above – with a laptop worth $1000, and a depreciation rate set to 20%. This time, however, we have a salvage value of $100. You can add this by clicking Edit on any Asset detail page. We would now calculate depreciation as follows:

Monthly Depreciation 
= [(
Purchase Cost – Salvage Value) * Depreciation Rate]/12
= [(1000-100) * (20/100)]/12
= [(900)*(0.2)]/12
= 180/12
= 15

This time, let’s assume we want to find out its depreciated value after 12 months:

Depreciated Value After X Months 
= Purchase Cost – [Monthly Depreciation * X]

= 1000 – [15 * 12]
= 1000 – 180
= $820

And there you have it. Two ways EZOfficeInventory helps you calculate depreciation on your assets!

5. Reports and Analytics

Next, let’s see how you can get some valuable insights on depreciation using our Reports Module. To do this, go to Reports → Asset Reports → Depreciation.

You’ll see a number of filters. Let’s see what they’re all about:

Filters for depreciation

Calculate Depreciation For These Dates: Depreciation will be calculated for this duration. This section will only be visible if you uncheck the option to ‘Calculate Depreciation Since Purchase Date‘.
Created By: Only assets created by a certain User will be shown.
Group: Picks the Group for which the depreciation report will be drawn up.
Subgroup: Picks the Subgroup for which the depreciation report will be drawn up.
Vendor: Only assets supplied by a certain Vendor will be shown.
Created On: Only assets created between these dates will be shown.

As mentioned on the page, if the Purchase Date of an asset came later than the date you’re attempting to calculate depreciation from, the system will revert to the Purchase Date as the starting point of depreciation calculation.

There is also a checkbox to include Retired Assets in your report, and, as mentioned earlier, to calculate depreciation since items’ Purchase Dates.

And that’s all you need to know about using EZOfficeInventory as an asset depreciation software!

6. A Note on Depreciation in the Month of Purchase and Disposal

On Purchase: EZOfficeInventory uses the Full-Month Depreciation convention for the first month of an asset’s life – irrespective of when it was purchased – and this kicks in on the 1st of the next month. Therefore, for the purposes of calculating depreciation, it wouldn’t make a difference if an item was purchased on the 5th of January or the 25th of January; both scenarios would lead to a full month’s depreciation being calculated on the 1st of February.

The depreciated value will be updated every month and show up on the relevant asset’s detail page, as shown above.

On Disposal: EZOfficeInventory does not charge depreciation in the last month of an asset’s life – irrespective of when it was disposed. This is because, as we saw earlier, depreciation for a specific month is charged on the 1st of the next month. As there is no ‘next month’ after an asset is disposed off, no depreciation will be charged.

Note: In EZOfficeInventory, we charge depreciation first and then retire an item. This means that if an item was retired on the 1st of May, depreciation will be charged for the month of April first, after which it will be retired.

Have Feedback About Our Asset Depreciation Software?

EZOfficeInventory is being used by SMBs all over the world to improve productivity and make better decisions about the asset lifecycle. Sign up today for a free 15-day trial to see what we’re all about:

asset depreciation software

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