---
title: "Configure GAAP Depreciation"
slug: "configure-gaap-depreciation"
updated: 2025-12-23T11:54:14Z
published: 2025-12-23T11:58:53Z
canonical: "help.symphonysummitai.com/configure-gaap-depreciation"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.symphonysummitai.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Configure GAAP Depreciation

Most of the organizations use Depreciation methods according to Generally Accepted Accounting Principles, or GAAP, to expense their Assets. In the Apex application, the Depreciation of Assets is calculated by selecting the default formulae, Straight Line or Down Value method (see: Configuring Depreciation Formula).

**GAAP Depreciation Reports**

The Apex application also generates Depreciation Reports based on India-GAAP and US-GAAP. For generating these reports, GAAP Depreciation must be configured in the Apex application (see: Configuring GAAP Depreciation). Following are the types of Depreciation Reports based on GAAP:

- Asset Depreciation by All Categories Report
- Asset Depreciation by Category Report
- Scheduled and Provisional Depreciation Report

To configure a new GAAP Depreciation, perform the following steps:

1. Navigate to **Asset > Configuration > Depreciation > GAAP Depreciation**. The GAAP Depreciation page is displayed. ![](https://cdn.document360.io/62351b42-cfbd-43ad-8ce1-82b8f455337f/Images/Documentation/image-USP4KZBO.png) Figure: GAAP Depreciation
2. On the **GAAP DEPRECIATION** page, the FILTERS pop-up page is displayed. Select the Category Type and click **SUBMIT** to view a list of GAAP Depreciation based on the filter criteria. The GAAP Depreciation page is displayed. ![](https://cdn.document360.io/62351b42-cfbd-43ad-8ce1-82b8f455337f/Images/Documentation/image-43K3AZC5.png) Figure: GAAP Depreciation - List
3. On the ACTIONS panel, click ADD NEW. Select the Department and type in the new GAAP Depreciation details. For more information about the fields on the GAAP DEPRECIATION page, see Field Description.
4. Click **SUBMIT**. A new GAAP Depreciation Method is configured.

**Field Description**

The following table describes the fields on the GAAP DEPRECIATION page:

| **Field** | **Description** |
| --- | --- |
| **DETAILS** |
| Category Type | Select a Category from the list. |
| Sub Category | Select a sub Category from the list. |
| Gaap Type | Select a GAAP type from the list: *India GAAP* and *US GAAP.* |
| Month | Select a month from the list to calculate the depreciation from the selected month. |
| Rate of Depreciation (Company Act) | Specify the rate of depreciation as per Company Act. |
| Rate of Depreciation (Income Tax Act) | Specify the rate of depreciation as per Income Tax Act. |
| Cut-Off Date | Specify the cut-off date to capture the Asset Depreciation details for the last 180 days according to the Income Tax Act. |
| Depreciation Method | Select a depreciation calculation methodology: *Straight Line* and *Down Line.* **Note:** Depreciation Method is only applicable to the Rate of Depreciation (Company Act). |
| Depreciation Start Date | Click the **Calendar** icon to select the period from when the GAAP Depreciation is calculated. |
| Depreciation Start Date | Click the **Calendar** icon to select the period till when the GAAP Depreciation is calculated. |
| Residual Value | Specify the Residual Value based on which the Final Depreciation amount is calculated. If the Useful life of an Asset is less than or equal to 5 years, the Residual Value is 1 INR, by default. If the Useful life of an Asset is greater than 5 years, the Residual Value is 5% of the original cost. |
| Calculate Depreciation Based on Date of Purchase | Select this check box to calculate the GAAP Depreciation by considering the Asset from its date of purchase. If not selected, the GAAP Depreciation is calculated by considering the Asset from the updated date and time of Asset in the application. |
| Calculate Depreciation For Inactive Assets | If selected, the GAAP depreciation is calculated for the inactive Assets under the Income Tax act. |
| Active | Indicates the status set for GAAP Depreciation configuration. - If selected, the GAAP Depreciation configuration is enabled and the configuration is used to calculate the GAAP Depreciation. - If not selected, the GAAP Depreciation configuration is inactive. |

#### ACTIONS

The following section explains all the icons on the **ACTIONS** panel of the **GAAP DEPRECIATION** page.

**SHOW LIST**

Click **SHOW LIST** to display the **LIST** table showing the configured GAAP Depreciations. On the **FILTERS** pop-up page, select the **Category Type** from the list and click **SUBMIT**.

- To update a GAAP Depreciation Method, click the configured **Category**. Make the appropriate changes and click **SUBMIT.**

> [!NOTE]
> Note
> 
> When the GAAP Depreciation Methods are displayed under the **LIST** table, the **ADD NEW** action is displayed on the **ACTIONS** panel. Click **ADD NEW** to configure a new GAAP Depreciation Method.