Understanding How PeopleSoft Asset Management Calculates Depreciation

PeopleSoft Asset Management determines depreciation amounts using either tables or formulas. If you have a large number of assets, you will probably want to use formula-based depreciation, because this is considerably faster and uses less storage space. To help you more fully understand how PeopleSoft Asset Management calculates depreciation, this topic includes a discussion of how formulas are used.

When you add an asset to PeopleSoft Asset Management, you decide the cost basis that you want to depreciate—you can include the basic cost of the asset as well as any freight and taxes that were paid. If you do not want to include freight and tax charges in the depreciable cost basis, you can still track these charges in the Acquisition Detail page.

If allowed by the depreciation method, the cost basis is reduced by either salvage value or tax credits.