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0007051Openbravo ERPB. User interfacepublic2009-01-21 13:182009-05-05 10:37
0007051: Amortization / Depreciation - wrong terminology used
The term amortization is used interchangeably with depreciation when they are slightly different things.

Richard M is the expert on this so please address any questions to him.

Access Financial Management > Assets > Amortization.

The functionality available here in fact relates to depreciation.
This is the correct definition of terms:

Amortization relates to the write down of financial instruments and other non-physical or intangible assets (like loans or investments).
Depreciation is used to write down the value of physical assets (like cars and buildings). Fixed assets are normally depreciated.
Current assets are not normally depreciated (as it is assumed that they are not held for long enough for their value to erode), however they can be "written down", perhaps after a stock count where you find something is either missing or damaged.
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Issue History
2009-01-21 13:18rachelJohnstonNew Issue
2009-01-21 13:18rachelJohnstonAssigned To => rgoris
2009-01-21 13:18rachelJohnstonsf_bug_id0 => 2526108
2009-01-21 13:18rachelJohnstonRegression testing => No
2009-01-21 14:43rmorleyIssue Monitored: rmorley
2009-05-05 10:37rgorisStatusnew => acknowledged

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