Depreciation is defined as a: "non-cash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence. Most assets lose their value over time (in other words, they depreciate), and must be replaced once the end of their useful life is reached. There are several accounting methods that are used in order to write off an asset's depreciation cost over the period of its useful life. Because it is a non-cash expense, depreciation lowers the company's reported earnings while increasing free cash flow." [Source: http://www.investorwords.com/1416/depreciation.html.]
The Fixed Asset Depreciation package for xTuple is designed to integrate the purchase, sale and disposition of fixed assets into the general ledger, as well as automating the calculation of depreciation expenses and the posting of those expenses into the general ledger. This eliminates the need to develop an asset register separately from xTuple and eliminates the requirement to manually calculate depreciation expenses. Because the calculations are done within xTuple, no manual data entry of depreciation expense and fixed asset transactions is required.
