HP Asset Manager: Leveraging Depreciation Capabilities

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HP Asset Manager: Leveraging Depreciation Capabilities

Posted by Walt Hadermann

Wed, May 02, 2012

Does your accounting department struggle to accurately depreciate capital assets? We have seen many companies tackle this problem in different ways.  It can be particularly challenging for organizations that do not manage individual assets within a fixed asset system. In this case, depreciation of capital assets is often done at an aggregate level based on purchase orders or purchase order lines. This can result in depreciation inaccuracies as depreciation expenses are applied to Order Lines with no real insight into the disposition of assets that make up the order. By identifying capital assets within HP Asset Manager (AM) and generating depreciation expenses on a monthly basis, AM can help produce more accurate depreciation expenses for your Accounting department.

Because this problem can be hard to tackle, Evergreen has developed a solution within AM that leverages and extends the inherent depreciation capabilities. While the HP AM tool has the ability to define and utilize various depreciation methods and formulas, no out of the box workflows exist to generate deprecation expenses on a monthly basis.

This left some of our customers without a solution. Working with them to solve the problem Evergreen has developed this functionality utilizing a monthly depreciation methodology. This methodology runs a scheduled process at the end of each month that identifies all capital assets in AM and generates a depreciation line for each in-service asset. This solution not only provides detailed monthly depreciation expenses, but also retains the data necessary to obtain monthly expenses on past months at any given time. This provides the audit trail necessary to verify accurate depreciation costs.

Some of the highlights of this solution include:

  • Ability to identify capital assets
  • Generation of monthly depreciation expenses for each capital asset
  • Generation of “write off” expense when asset is retired prior to end of life
  • Logic to generate expenses on only in-service assets
  • Monthly depreciation formulas
  • Custom table that manages asset depreciation and remaining life
  • Reports that provide detailed and summary depreciation of capital assets

For some examples of how these reports can look inside of the AM tool look at the following screenshots which show the data generated within AM and an example report of asset depreciation.

Screenshot of Capital Asset Record and Associated Monthly Deprecation Costs (click to view)

Cap Asset record screenshot resized 600

 Depreciation Report Example (click to view)

Depreciation Report

How are you solving Asset Depreciation at your company?  If you would like more information about how we have solved this and other ITAM issues contact me.

About the Author

Walt Hadermann
ITAM Practice Manager

Walt has been with Evergreen since it was founded in 1997. He has spent most of his career helping customers implement IT Service and Asset Management solutions. Walt is ITIL Foundation certified and is a PMP. He currently leads Evergreen's IT Asset Manage practice where he oversees the delivery of ITAM solutions. This practice focuses on leveraging HP Asset Manager and DDMI Technologies to help customers improve the IT Asset Management processes.

Topics: ITAM, IT Asset Management, HP Asset Manager, HP, HP AM, Asset Manager, Asset Depreciation, Depreciation Reporting Tools

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