---
title: "Depreciation Method Definitions"
slug: "depreciation-method-definitions"
description: "Fixed Asset depreciation methods in R365: Straight Line spreads cost evenly; No Depreciation records no periodic expense."
updated: 2025-12-16T16:08:19Z
published: 2025-12-16T16:08:19Z
canonical: "docs.restaurant365.com/depreciation-method-definitions"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.restaurant365.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Depreciation Method Definitions

This article is part of the Fixed Assets Module training. Click here for more information on the [Fixed Assets module](/doc/docs/fixed-assets-overview-security). Specifically, Depreciation Methods are set on the [Asset Class](/doc/docs/fixed-assets-asset-classes), as well as on the [Asset record](/doc/docs/fixed-assets-asset-record).

Through the [Asset Class](/doc/docs/fixed-assets-asset-classes) or [Asset record](/doc/docs/fixed-assets-asset-record), the Deprecation Method is assigned to the [Asset](/doc/docs/fixed-assets-asset-record). Important aspects to note include the following:

- Each Depreciation record will be created with a status of 'Unposted' once the Asset has been 'Placed in Service'
- One Depreciation record will be created for each Period and each Book for the Effective Life of the Asset
  - For example, if an Asset had 13 periods of Depreciation and was utilizing three Active Books, a total of 39 Depreciation records would be created (3 * 13)
- Each Depreciation record will Debit the 'Depreciation Expense' Account for the Asset and Credit the 'Accumulated Depreciation' Account
  - These Accounts are set on the Asset Class or assigned on the 'General tab' of the [Asset record](/doc/docs/fixed-assets-asset-record).

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-7OAT6NVH.png)

**Depreciation Methods:**

- Straight Line - Asset Depreciation that results in the same equal amount of depreciation expense for each Period over the Effective Life of the Asset (with a possible amount variation in the final posting)
- None - No Depreciation records will be created, Asset will have no financial value