---
sourceDocument: Australia Asset Management
sourceDocumentLink: https://servicenow-prod.fluidtopics.net/r/it-asset-management

 Release :

    - australia

ft:locale :

    - en-US

ft:publication_title :

    - Australia Asset Management

ft:clusterId :

    - itam

bundleId :

    - itam

workflow :

    - Technology


---

# Add depreciation to an asset

# Add depreciation to an asset {#ariaid-title1}

* Release version: Australia
* 
* Updated March 12, 2026
* 
* ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 1 minute to read

Depreciation is the reduction in the value of an asset over time.

## Before you begin

Role required: asset

## About this task

A depreciation schedule can be added to hardware assets. Based on the information specified in the asset record, the ServiceNow AI Platform calculates the depreciation amount daily using the Calculate Depreciation scheduled job. The sn_itam_trigger_depreciation_job_after_days system property
determines when the Calculate Depreciation scheduled job calculates the depreciation amount.  
Important:  
The depreciation fields on the asset, such as Depreciated amount, Residual value, and Residual date are updated daily by the Calculate Depreciation job. If you plan to enable audit logging in these fields, it logs every change daily. This process could result in a large volume of audit entries, which might impact storage and log management.

The ServiceNow AI Platform
calculates the read-only Residual date and
Residual value fields based on the
Cost, Depreciation, and
Depreciation effective date fields. For example, if the
asset Cost is $1000.00, the Straight Line depreciation method is selected, and exactly two years have
passed, the Residual value would be $500.00.

When an asset is in the In Use state, the asset form populates a Deprecation effective date.

For more information about fixed assets and depreciation, see [Using Depreciation with Fixed
Assets](https://servicenow-prod.fluidtopics.net/leUA0vmpYp86l4KUD4hFDQ#t_UsingDepreciationWithFixedAssets "You can calculate depreciation for a fixed asset using a choice of depreciation schedules. Calculating depreciation for a fixed asset can help IT coordinate with the corporate fixed asset system to report correct valuation and book value.").

## Procedure

1. Navigate to AllAssetPortfoliosHardware Assets.
2. Select an asset.
3. Fill in the Depreciation, Depreciation effective date, Salvage Value, and Covered by fixed asset fields as described in [Create assets](https://servicenow-prod.fluidtopics.net/UpNATVyeg~UPYQQePCyJKw "Create hardware, software, consumable, bundle, pallet, mobile, and facility assets using the Core UI or the Hardware Asset Workspace.").  
   Consider these points.
   * If the depreciation effective date is in the future, depreciation is 0 and the current residual value is the original purchase price. The system doesn't begin to calculate depreciation until the effective date is reached.
   * The salvage value must be less than or equal to the asset cost. If a salvage value greater than the cost is entered, a warning message appears and the record can't be saved.
   {#t_AddingDepreciationToAnAsset__ul_ugr_njh_3p}
4. Select and hold (or right-click) the header and select Save.
5. Select Calculate Depreciation.  
   The Residual date, Residual value, and Depreciated amount fields are automatically calculated.
**Related tasks**   

* [Create an asset class](https://servicenow-prod.fluidtopics.net/mWKeCMwg675kZcY69SqcRA "Creating an asset class requires defining a new table and creating a corresponding application and module, then adding the new asset class to new or existing model categories. The default asset classes are Hardware, Software License, and Consumable. These general classes can be used to manage various assets.")
* [Create license assets](https://servicenow-prod.fluidtopics.net/wY1xnziVtu3KHqS8a7xJbA "You can manage your organization's software license assets.")
* [Set asset states and substates](https://servicenow-prod.fluidtopics.net/0_dr~qEnWrFC6Lmdh8BzZg "Use asset states and substates to track assets accurately and at a detailed level.")

*[\>]: and then