Accounting · Odoo glossary
Depreciation
Depreciation systematically allocates the depreciable amount of an asset over its useful life.
Definition
In general ERP practice
Depreciation systematically allocates the depreciable amount of an asset over its useful life. It is an accounting expense allocation, not a measurement of the asset’s current resale price.
In Odoo
Odoo supports Straight Line, Declining, and Declining Then Straight Line methods. The asset’s depreciation board determines periodic entries from configured dates, duration and values; validate those assumptions before relying on scheduled posting.
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
Continue reading