Different depreciation methods & Calculation Methods

Technically, we do not need to manually compute our depreciation in Odoo. When we create an Asset, the "   COMPUTE DEPRECIATION   " is already available. Clicking the said button will make the depreciation board available, presenting the Depreciation for that particular asset. 

Lets see what are the available  depreciation methods  in Odoo

01. Straight Line Method -   Cost of the asset will be divided by no of lifetime
02. Declining Method -    Depreciation calculated by a declining factor, this process will be  repeated till the end of depreciation.
03. Declining & Straight Line Method -    Depreciation will be calculated by both of above methods in the backend and odoo will pick the highest value for the period

 
Depreciation Calculation Methods

01. No pro rata - Regardless of the asset acquisition date depreciation will be calculated for the whole year/ month
02. Constant Periods - Depreciation calculated based on months, and in a particular month,  if you select the date, the system will calculate depreciation from the particular date of the selected month.
03. Based on days per period- system will calculate depreciation based on days


Each of above depreciation methods can be calculated with these 03 calculation methods