Immediate depreciation is a special depreciation method that is used in particular for low-value assets. It allows the full depreciable value of an asset to be written off in the period of its acquisition. SAP Business One supports the implementation of the immediate depreciation method in order to ensure correct and prompt Depreciation of low-value assets.
In SAP Business One, a low-value asset can be fully depreciated either in the month of acquisition or in the year of acquisition, depending on the calculation bases selected. This flexibility allows companies to adapt depreciation practices to their specific operational and regulatory requirements.
The immediate depreciation method is particularly advantageous for companies as it allows for immediate recognition of expenses and thus reduces the tax burden in the year of acquisition. Furthermore, it simplifies the management of low-value assets by eliminating the administrative burden of calculating and tracking depreciation over several years.
By integrating the instant depreciation method into SAP Business One, companies can optimise their financial accounting, ensure compliance with tax regulations and achieve accurate asset valuation and reporting. This helps improve financial transparency and support informed decision-making.