Show TOC### Immediate Write-Off Method

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Immediate write-off is a depreciation method that completely writes off the depreciable value of an asset in the period when the asset is acquired. Usually, this method is applied to low value assets.

In SAP Business One, based on different calculation bases, a low value asset can be completely written off in the acquisition month or year. For more information, see the examples below:

Example

Asset X

Acquisition and Production Costs: 100 USD

Useful Life: 1 Month

Depreciation Method: Immediate Write-Off

Calculation Base: Yearly

Capitalization Date: January 1st, 2010

As the total useful life of the asset is 1 month, the asset must be completely written off in this month. Therefore, the depreciation amount in January is 100 USD.

End of the example.

Example

Asset Y

Acquisition and Production Costs: 100 USD

Useful Life: 2 Months

Depreciation Method: Immediate Write-Off

Capitalization Date: January 1st, 2010

The asset depreciation can be different based on different calculation bases, as follows:

Calculation Base –

*Yearly*The asset must be completely written off in year 2010. Therefore, the asset is depreciated by 50 USD each month in January and February.

Calculation Base –

*Monthly*The asset must be completely written off in the first month of its useful life. Therefore, the asset is depreciated by 100 USD in January.

End of the example.