Lifecycle – Asset Depreciation

Use Case: Lifecycle – Asset Depreciation

Title:
Asset Depreciation Management in the Lifecycle with CIQ ITAM

Objective:
Automatically control the reduction of the accounting value of assets over time, ensuring tax and financial compliance, as well as providing strategic data for decisions on replacement, contract renewal, and new investments.

Main Actor:

• IT Team (inventory and lifecycle contract management)
• Accounting / Controllership
• IT Management / CFO

Preconditions:

• The CIQ ITAM Inventory and Lifecycle module must be active.
• Devices linked to contracts with a registered start date.
• Permissions assigned for “Configure Depreciation” and “Associate Depreciation.”
• Acquisition prices of devices registered.

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Detailed Use Scenario:

1️⃣ Depreciation Configuration
Define depreciation rules such as:

• Depreciation period (e.g., 20 months).
• Minimum residual value (% of original value, e.g., 20%).
• Applied method: straight-line depreciation.

2️⃣ Rule Association
The team associates depreciation rules with device TYPE:

• Whenever a device is linked to a contract, the calculation occurs automatically.

3️⃣ Device Value Registration
Insertion of the unit acquisition price.

Example:

• Original price: US$ 5,000
• Total period: 20 months
• Residual value: US$ 1,000 (20% of original value).

4️⃣ Automatic Depreciation Calculation
CIQ ITAM automatically calculates value loss based on the rules:

• After 10 months, the value will be US$ 3,000.
• After 21 months, the value will be limited to the residual minimum of US$ 1,000.

The system updates Age in Months, Current Value, and Accumulated Depreciation.

5️⃣ Visualization in Device Details
In Device Details ➝ “Depreciation” Section, the user can view:

• Acquisition value.
• Current depreciated value.
• Minimum residual value.
• Elapsed months and total applied depreciation.

6️⃣ Reporting and Auditing
Consolidated reports allow:

• Control of the total accounting value of assets.
• Forecasting of future depreciation.
• Planning for replacements and disposals.
• Support in tax and financial audits.

7️⃣ Strategic Use of Depreciation
With this information, managers can:

• Identify the ideal time for asset replacement.
• Support decisions on contract and warranty renewals.
• Plan future investments based on concrete data.
• Ensure transparency and accounting compliance in financial reports.

CIQ ITAM Features Used

• Hardware inventory and linked contracts.
• Lifecycle module.
• Depreciation rule configuration and association.
• Device and lifecycle reports.
• Data export for auditing.
• Permission control for administrators and accounting.

Benefits

• Automated depreciation calculation, eliminating the need for manual spreadsheets.
• Tax compliance ensured with standardized rules.
• Real-time visibility of updated asset values.
• Support for accounting in cost determination and financial reporting.
• Solid foundation for IT planning, replacement, and future investments.
• Transparency in internal and external audits.