Maintain a fixed asset register with fields: asset_id, description, acquisition_date, cost_basis, salvage_value, useful_life_months, depreciation_method (straight-line, declining balance, units-of-production), accumulated_depreciation, and gl_asset_account, gl_accumulated_depreciation_account, gl_depreciation_expense_account.
For each active asset, compute the period's depreciation charge based on the method: for straight-line, periodic_depreciation = (cost_basis - salvage_value) / useful_life_months; for declining balance, periodic_depreciation = net_book_value * (2 / useful_life_months) for double-declining.
Apply the period-end cutoff: assets placed in service during the period receive a prorated charge based on the acquisition_date relative to the period start (half-month convention or actual days, as per policy).
Aggregate depreciation charges by GL account and cost center; generate a journal entry: debit depreciation expense, credit accumulated depreciation, for each asset group or individual asset depending on materiality.
Post the journal entry to the ERP via the journal entry API using the period-end date; update the accumulated_depreciation field in the asset register after successful posting to keep the register in sync with the GL.
Generate a depreciation schedule report showing opening NBV, current-period depreciation, closing NBV, and remaining useful life for each asset, and reconcile total accumulated depreciation in the register to the GL accumulated depreciation account balance.
Known gotchas
Assets that reach full depreciation (accumulated_depreciation equals cost_basis minus salvage_value) must be stopped from generating further charges; add a guard check before computing each period's depreciation and flag fully depreciated assets still in service for retirement processing.
Mid-period disposals require splitting the depreciation charge to cover only the portion of the period the asset was in service, then reversing the asset cost and accumulated depreciation; posting a full period's depreciation on a disposed asset overstates expense.
Tax depreciation (MACRS, bonus depreciation) schedules differ from book depreciation; if maintaining both book and tax asset registers, ensure the two depreciation runs post to separate GL accounts and the book-tax timing difference feeds the deferred tax calculation.
Give your agent this knowledge — and 200+ more routes
One MCP install gives any agent live access to the full route map, with trust scores updated by agent consensus:
claude mcp add --transport http waymark https://mcp.waymark.network/mcp