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Auto Depreciation Calculation (Monthly, Quarterly, and Annually)

Automated computation of depreciation on a scheduled monthly, quarterly, and annual basis.

PrismERP provides a powerful depreciation engine that supports automatic calculation of depreciation across multiple time frames. Whether you prefer monthly, quarterly, half-yearly, or yearly calculations, the system ensures consistent and accurate depreciation entries without manual intervention. This automation enhances financial reporting accuracy, ensures compliance with accounting standards, and reduces administrative overhead.

Depreciation Integration with PrismERP Accounts Module​

1) Depreciation Voucher for Assets​

The system allows creating a depreciation voucher to track asset depreciation over time.

Required Fields:​

  1. Frequency of Depreciation Defines how often depreciation is calculated (Monthly, Quarterly, Half-Yearly, or Yearly).

  2. Upto Specifies the last date till which depreciation is calculated.

  3. Entry Date Date when the voucher is entered.

  4. Asset Information:

    • Code: Unique code of the asset item.
    • Asset: Name of the asset being depreciated.
    • Opening Balance: Automatically retrieved based on the assigned asset.
    • Total: Displays the total value of the asset.
    • Depreciation Amount: Auto-calculated based on the depreciation percentage set while creating the asset category.
    • Closing Balance: Shows the remaining asset value after depreciation.

Key Notes:​

  • The depreciation voucher helps companies maintain accurate depreciation records for individual assets.
  • It ensures systematic tracking and reporting of asset depreciation over time.
  • The process is fully integrated with the General Ledger, enabling automatic posting of depreciation entries into the accounting system.

Integrated Modules:​

  • Fixed Asset Management
  • General Ledger
  • Financial Reporting
  • Budgeting & Forecasting

With PrismERP’s automated depreciation capabilities, businesses can ensure that all asset values are systematically updated in alignment with accounting practices, helping maintain financial accuracy across reporting periods.