In Faerûn, where trade routes are protected by arcane glyphs and castles glow with perpetual wards, it’s easy to overlook that even magic has limits. While a +1 sword might stay sharp indefinitely, enchantments placed on buildings, gates, infrastructure, and tools often degrade, expire, or require periodic recharging. For the wise merchant or quartermaster, these enhancements aren’t one-time costs—they’re capital assets with lifespans and diminishing value.
This article explores how to financially track and depreciate long-term magical enhancements as part of responsible accounting and resource planning.
What Qualifies as a Long-Term Magical Enhancement?
These enhancements share common traits:
- They improve the utility, protection, or efficiency of a structure, facility, or system.
- They last for more than a year but eventually degrade.
- They require significant upfront investment in labor, materials, or guild services.
Examples of Enhancements:

Depreciation Methods for Magical Assets
Straight-Line Depreciation (Most Common)
- Equal value lost each year.
- Works well for enchantments with stable energy decay or maintained potency.
Example: A Sending Circle costing 1,500 FGP with a 100 FGP residual rune value after 5 years:
Annual Depreciation = (1,500 – 100) / 5 = 280 FGP per year

Magical Half-Life Depreciation
- Ideal for enchantments that fade with time, like illusions, camouflage fields, or aura-based effects.
- Value decreases by half each year or by magical potency intervals.
Example: Illusory Ward (600 FGP)

Ritual-Driven Declining Balance
- Some magical investments lose value faster early on (e.g., temporary blessings or planar-tuned wards).
- Use a declining balance method with a fixed percentage (e.g., 40% per year).
Accounting for Residual Magic
When enchantments fade, residual components (e.g., carved runestones, infused crystals, or blessed architecture) may retain scrap value:
- Residual Value: Kept for repurposing or sale.
- Re-enchantment Credit: Used to offset future enhancement costs.
- Magical Salvage: Claimed by guilds like ARALCH if the enchantment was subsidized.
Triggering Revaluations
Some enchantments require mid-life reassessment, such as:
- Leyline shifts that reduce potency.
- Guild policy changes affecting regulatory compliance.
- Damage or misfires reducing duration or effectiveness.
In such cases, a revaluation or impairment adjustment may be applied to reflect the true market or magical value of the asset.
When to Expense Instead of Depreciate
Not all enchantments qualify for depreciation. Short-duration effects, consumable spell contracts, or one-time arcane services (e.g., teleportation, weather summoning) are typically expensed immediately.
Expensed Examples:
- Alarm spell cast on a single delivery (15 FGP, one day)
- Sending scroll rental for a merchant’s urgent message (50 FGP, one use)
- Hallowing a tent before a diplomatic negotiation (100 FGP, single event)
Conclusion
Even in a world saturated with wonder, magic must bow to the ledger. By tracking long-term magical enhancements as depreciable assets, organizations ensure more accurate valuations, realistic budgeting, and better forecasting for re-enchantment cycles.
Whether you’re protecting your warehouse with dragon wards or tuning a lighthouse to repel banshees, accounting for the slow fade of magic is a critical part of surviving in a realm where commerce is every bit as arcane as the spells that fuel it.
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