Brief overview of the different types of depreciation available in fixed assets in Xero.
Asset is not depreciated.
Straight line depreciation is calculated evenly throughout the useful life of the fixed asset. Also called Straight Line Reducing Balance.
Diminishing value depreciation reduces the book value of an asset at a higher rate in the earlier years it is owned.
Full depreciation on purchase
Immediately expenses the full cost of the asset. This is also known as an immediate write-off.