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From "Pierre Smits (JIRA)" <j...@apache.org>
Subject [jira] [Commented] (OFBIZ-5542) Fixed Asset Management Functionality
Date Fri, 14 Feb 2014 09:13:20 GMT

    [ https://issues.apache.org/jira/browse/OFBIZ-5542?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=13901259#comment-13901259
] 

Pierre Smits commented on OFBIZ-5542:
-------------------------------------

David,

Yes, there are more depreciation methods known in the accounting world, like annuity based,
sum of years digits, unit of production (to name but a few). 
But the two iimplemented are the methods used the most. Your description doesn't show what
other method you would like to see implemented (apart from a different interval for calculating
the depreciation cost).

It would be better if cost calculation would be done on a predetermined period type, like
months. Or even quarters (where applicable). And that would lead to correct gl transactions.
It would require that the calculation period must be set before the first depreciation calculation
was to be executed.

Re: charging Year of Acquisition vs Year of Disposal
If I understand you correctly, when you have bought equipment in e.g. June of 2013 you wouldn't
charge depreciation cost at all in 2013 but start on Jan 2014. And if equipment is disposed
of in Jan 2014, you would even charge depreciation cost after the equipment has been disposed
of until the end of the year or earlier (depending on months left in the depreciation schema).
Maybe I don't understand, but that seems awkward. Normally you would start depreciating the
equipment from day 1 until the last day of the (economic) lifecycle.

Re: mass depreciation run
This would be an iteration of individual depreciation calculation and transaction runs. Should
not be that difficult to implement.

> Fixed Asset Management Functionality
> ------------------------------------
>
>                 Key: OFBIZ-5542
>                 URL: https://issues.apache.org/jira/browse/OFBIZ-5542
>             Project: OFBiz
>          Issue Type: Improvement
>          Components: accounting
>    Affects Versions: SVN trunk
>            Reporter: David Hughes-Owens
>
> I have started looking at the Ofbiz capabilities for managing fixed assets and capital
expenditure.
> The functionality around adding asset records seems ok in terms of data capture, but
there does not appear to be any provision for creating background accounting transactions.
> For depreciation, there are only two methods available and both charge on an annual basis,
whereas we charge depreciation monthly. They also charge depreciation in year of acquisition,
whereas we do not charge in period of acquisition but do in the period of disposal. There
does not appear to be much user-definable flexibility in the depreciation functionality. In
addition there does not appear to be a process for performing a mass depreciation run? It
appears to calculate each asset individually once acquisition date, expected end of life and
depn method are provided.
> There does not appear to be any obvious option for the disposal of an asset. I see an
actual end of life date, but cannot see what effect this has? No transactions are created
when a date is added? Also how does profit/loss on disposal get calculated and charged to
P&L? I see there are separate mappings for profit on disposal and loss on disposal, but
where are the proceeds? and how does it know whether a profit or loss is to be generated?
> For transfers, I assume that transfers between departments within the same company are
handled by changing ownership or assignment, and future depreciation charges would post to
the new owner. However, what about transfers between group companies? (i.e. different legal
entities). An inter-company transfer should initiate a disposal in one company and an addition
to the other.
> Finally, there is no reporting functionality at all currently. e.g. fixed asset register,
additons, depreciation reports etc..
> I would be interested to hear your thoughts on the issues I have raised and if there
are any plans to address any of these points in the immediate future.



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