Accounting · Odoo glossary

Declining-Balance Depreciation

Declining-balance depreciation applies a rate to an asset’s remaining depreciable value, creating larger charges earlier in its life.

Definition

In general ERP practice

Declining-balance depreciation applies a rate to an asset’s remaining depreciable value, creating larger charges earlier in its life. It is an accelerated allocation rather than an equal periodic amount.

In Odoo

Odoo calls the comparable asset method Declining and also provides Declining Then Straight Line. The configured factor and schedule affect charges; choose the method according to accounting policy rather than assuming one rate fits every asset.

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