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Asset Depreciation & Valuation

Calculating Asset Value Decrease Over Time and Determining Current Worth

Asset Depreciation & Valuation in PrismERP provides a robust framework for managing the financial lifecycle of fixed assets—tracking their gradual value reduction over time and determining their fair value at any point. This functionality ensures organizations comply with accounting standards, maintain accurate asset records, and make informed financial decisions regarding their investments in assets.

What is Asset Depreciation?​

Depreciation is the systematic reduction in the recorded cost of a fixed asset over its useful life. It represents how much of an asset's value has been used up and is crucial for both financial reporting and tax purposes.

What is Asset Valuation?​

Asset Valuation refers to the process of assessing the current worth of an asset, taking into account its depreciated value, market conditions, and other financial considerations. This helps reflect accurate asset values in the books and supports financial transparency.

Key Features of Asset Depreciation & Valuation in PrismERP​

  • Automated Depreciation Calculation Calculate depreciation based on multiple methods: Straight Line, Declining Balance, Units of Production, or Custom.

  • Asset Lifecycle Management Track the entire lifecycle of an asset—from acquisition to disposal, including revaluation and impairment.

  • Scheduled Depreciation Runs Set up periodic depreciation entries automatically for monthly, quarterly, or yearly intervals.

  • Multi-Asset Support Manage depreciation and valuation for diverse asset classes including buildings, vehicles, equipment, and IT assets.

  • Revaluation Integration Reassess asset values as per market trends and update financial records accordingly.

  • Audit Trail Maintain a full history of depreciation, revaluation, and adjustments for compliance and internal review.

  • Financial Integration Automatically post depreciation entries to the General Ledger for real-time financial accuracy.

  • Asset Reporting & Forecasting Generate reports on asset depreciation schedules, current value, and remaining useful life.

Integrated Modules​

  • Fixed Asset Management
  • General Ledger
  • Financial Reporting
  • Project Accounting
  • Budgeting & Forecasting
  • Procurement & Inventory (for asset acquisition and movement)

Maximize Financial Accuracy with PrismERP​

By leveraging PrismERP’s Asset Depreciation & Valuation features, organizations gain control over how their assets are measured and reported—ensuring compliance, improving transparency, and enabling better financial decision-making.