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title: "Fixed Assets - Depreciations Calculation"
canonical: "https://wiki.soft1.eu/space/SS5EN/545194053/Fixed%20Assets%20-%20Depreciations%20Calculation"
format: markdown
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#### Calculation Methods 

Depreciation of a fixed asset refers to the estimation of its reduction in value, typically caused by factors like physical<span style="color: #ff991f"> </span>damage due to usage, as seen in machinery or buildings, or functional deterioration, as seen in computers or software.   
Depreciation may be carried out over specific periods set by the company.

In<span style="color: #ff991f"> </span>SOFT1 ERP, depreciation calculation for fixed assets can be performed in two ways:

1. Either by creating a Depreciation Document (*Financials → Fixed Assets→ Depreciation Documents*) and saving the depreciation values or
2. by selecting the Depreciations Calculation job, which based on the depreciation method the company follows is available as:
  1. Depreciations Calculation (*Financials→ Fixed Assets*) or
  2. Depreciation Calculation G.A.S. & I.A.S<span style="color: #ff991f"> </span>(*Financials→ Fixed Assets→ Accounting Standards*).

:info: The Cost Center of Depreciation Docs can also be updated through the Depreciations Calculation/Depreciation Calculation G.A.S. & I.A.S job. 

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#### ➡️ **<span style="color: #4c9aff">Destroyed or sold F/A Depreciations Calculation.</span>**