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.
Official Odoo documentation
The Odoo-specific explanation above is based on the documentation for Odoo 19. Features and workflows can differ in other versions.
Related glossary terms
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