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Fixed Asset Depreciation Report ?

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brijesh m

Fixed Asset Depreciation Report ?

Hi friends,
can someone please suggest how this "Fixed Asset Depreciation Report" is coming. I have tried it on Demo server as:

On demo server i.e.:

https://demo.hotwaxmedia.com/accounting/control/main

go to
Fixed Assets -> in find opt for DEMO_PROD_EQUIPMT_1 -> then traverse to its depreciation sub tab to access its "Fixed Asset Depreciation Report". How this report is generated as I won't be able to track any calculating method apart from the Salvage Value for this fixed asset which is 50 but still can't comply with this Fixed Asset Depreciation Report values.

thanks
Brijesh M.

Santosh Malviya-3

Re: Fixed Asset Depreciation Report ?

Hello Brijesh,
After choosing fixedAssedtId,say DEMO_PROD_EQUIPMT_1 or DEMO_PROD_EQUIPMT_2
, you have to update fields of the fixedAsset and then will have to go to
"maintenance" sub tab and have to create new maintenance then go to "meter
readings" sub tab of the maintenance and add meter reading for the fixed
asset and then go to "depreciation" tab and you will get report.

Santosh malviya

On Wed, Jul 9, 2008 at 5:00 PM, brijesh m <[hidden email]> wrote:

> Hi friends,
> can someone please suggest how this "Fixed Asset Depreciation Report" is
> coming. I have tried it on Demo server as:
>
> On demo server i.e.:
>
> https://demo.hotwaxmedia.com/accounting/control/main
>
> go to
> Fixed Assets -> in find opt for DEMO_PROD_EQUIPMT_1 -> then traverse to its
> depreciation sub tab to access its "Fixed Asset Depreciation Report". How
> this report is generated as I won't be able to track any calculating method
> apart from the Salvage Value for this fixed asset which is 50 but still
> can't comply with this Fixed Asset Depreciation Report values.
>
> thanks
> Brijesh M.
>
>

brijesh m

Re: Fixed Asset Depreciation Report ?

Hi Santosh,
thanks for your concern. I have tried the way you have suggested but the things are not crystal clear to me. I am sure you have noticed that if you remove all the "meter readings" from the maintenance for the corresponding fixed asset it gives the following error:
The Following Errors Occurred:
ERROR: Could not complete the Service to calculate the yearly depreciation from dateAcquired year to current financial year [file:/demo/deployments/demo.hotwaxmedia.com/applications/accounting/script/org/ofbiz/accounting/fixedasset/FixedAssetServices.xml#calculateFixedAssetDepreciation] process [problem invoking the [straightLineDepreciation] service with the map named [serviceInMap] containing [[fixedAssetId=DEMO_PROD_EQUIPMT_1, expEndOfLifeYear=2012, assetAcquiredYear=2008, purchaseCost=1000.0, salvageValue=50.0, usageYears=0, userLogin=[GenericEntity:UserLogin][createdStamp,2008-07-09 03:09:02.524(java.sql.Timestamp)][createdTxStamp,2008-07-09 03:09:02.336(java.sql.Timestamp)][currentPassword,47ca69ebb4bdc9ae0adec130880165d2cc05db1a(java.lang.String)][disabledDateTime,null()][enabled,Y(java.lang.String)][hasLoggedOut,N(java.lang.String)][isSystem,null()][lastCurrencyUom,null()][lastLocale,null()][lastTimeZone,null()][lastUpdatedStamp,2008-07-09
08:00:32.316(java.sql.Timestamp)][lastUpdatedTxStamp,2008-07-09 08:00:32.316(java.sql.Timestamp)][partyId,admin(java.lang.String)][passwordHint,null()][requirePasswordChange,null()][successiveFailedLogins,0(java.lang.Long)][userLdapDn,null()][userLoginId,admin(java.lang.String)], locale=en_US]]: The following required parameter is missing: [OUT] [straightLineDepreciation.assetDepreciationTillDate]The following required parameter is missing: [OUT] [straightLineDepreciation.assetNBVAfterDepreciation]].

Traversing to -> applications/accounting/script/org/ofbiz/accounting/fixedasset/FixedAssetServices.xml#calculateFixedAssetDepreciation

here some things are not clear:
1. whats the method used for depreciation calculation, appears
to me that they have used "Straight-line depreciation" but
then whats the use of maintenance and meter readings as
inputs to calculate the depreciation as it only requires
salvage value, purchase cost and usage years as inputs.
refer: http://en.wikipedia.org/wiki/Depreciation#Declining-
Balance_Method
2. why in this above error usageYears=0 as I have mentioned
asset acquired date and expected and actual end date for
the asset ?
3. Also in \applications\accounting\script\org\ofbiz
\accounting\fixedasset\FixedAssetServices.xml I can see that
"doubleDecliningBalanceDepreciation" is also mentioned, so
is it also used as a depreciation method ?

kindly enlighten me on the above queries.

thanks
Brijesh M.

santoh malviya <[hidden email]> wrote: Hello Brijesh,
After choosing fixedAssedtId,say DEMO_PROD_EQUIPMT_1 or DEMO_PROD_EQUIPMT_2
, you have to update fields of the fixedAsset and then will have to go to
"maintenance" sub tab and have to create new maintenance then go to "meter
readings" sub tab of the maintenance and add meter reading for the fixed
asset and then go to "depreciation" tab and you will get report.

Santosh malviya

On Wed, Jul 9, 2008 at 5:00 PM, brijesh m
wrote:

Sumit Pandit-3

Re: Fixed Asset Depreciation Report ?

In reply to this post by brijesh m

Hello Brijesh,

The entity FixedAssetDepMethod is used to assign the particular
depreciation method to the asset. The code is like :-
<FixedAssetDepMethod depreciationCustomMethodId="STR_LINE_DEP_FORMULA"
fixedAssetId="DEMO_PROD_EQUIPMT_1"/>

Where the depreciation custom method(depreciationCustomMethodId) is
defined in the :-

<CustomMethod customMethodId="STR_LINE_DEP_FORMULA"
customMethodTypeId="DEPRECIATION_FORMULA"
customMethodName="straightLineDepreciation" description="Straight Line
depreciatiion algorithm for fixed asset((purchaseCost - salvageCost)/
expectedLifeInYears)"/>

And we defined a service(customMethodName) to calculate the
depreciation the name is : -straightLineDepreciation (Formula :
depreciation = (purchaseCost - salvageValue) / (expectedEndOfLife -
dateAcquired)). There can be some other methods to calculate the
depreciation.

Hence in last the whole calculation is done in this service and
depreciation is returned on yearly basis. And the result is rendered
on the next page. So this is the way the "Fixed Asset Depreciation
Report" comes.

Let me know if you have any more questions.

--
Sumit Pandit
HotWax Media

On Jul 9, 2008, at 5:00 PM, brijesh m wrote:

> Hi friends,
> can someone please suggest how this "Fixed Asset Depreciation
> Report" is coming. I have tried it on Demo server as:
>
> On demo server i.e.:
>
> https://demo.hotwaxmedia.com/accounting/control/main
>
> go to
> Fixed Assets -> in find opt for DEMO_PROD_EQUIPMT_1 -> then traverse
> to its depreciation sub tab to access its "Fixed Asset Depreciation
> Report". How this report is generated as I won't be able to track
> any calculating method apart from the Salvage Value for this fixed
> asset which is 50 but still can't comply with this Fixed Asset
> Depreciation Report values.
>
> thanks
> Brijesh M.
>

brijesh m

Re: Fixed Asset Depreciation Report ?

thanks Sumit for such a nice explanation, still exploring things.

Thanks
Brijesh M.

Sumit Pandit <[hidden email]> wrote: Hello Brijesh,

The entity FixedAssetDepMethod is used to assign the particular
depreciation method to the asset. The code is like :-

fixedAssetId="DEMO_PROD_EQUIPMT_1"/>

Where the depreciation custom method(depreciationCustomMethodId) is
defined in the :-

customMethodTypeId="DEPRECIATION_FORMULA"
customMethodName="straightLineDepreciation" description="Straight Line
depreciatiion algorithm for fixed asset((purchaseCost - salvageCost)/
expectedLifeInYears)"/>

And we defined a service(customMethodName) to calculate the
depreciation the name is : -straightLineDepreciation (Formula :
depreciation = (purchaseCost - salvageValue) / (expectedEndOfLife -
dateAcquired)). There can be some other methods to calculate the
depreciation.

Hence in last the whole calculation is done in this service and
depreciation is returned on yearly basis. And the result is rendered
on the next page. So this is the way the "Fixed Asset Depreciation
Report" comes.

Let me know if you have any more questions.

--
Sumit Pandit
HotWax Media

On Jul 9, 2008, at 5:00 PM, brijesh m wrote:

Sumit Pandit-3

Re: Fixed Asset Depreciation Report ?

In reply to this post by brijesh m

On Jul 9, 2008, at 8:37 PM, brijesh m wrote:

> Hi Santosh,
> thanks for your concern. I have tried the way you have suggested but
> the things are not crystal clear to me. I am sure you have noticed
> that if you remove all the "meter readings" from the maintenance for
> the corresponding fixed asset it gives the following error:
> The Following Errors Occurred:
> ERROR: Could not complete the Service to calculate the
> yearly depreciation from dateAcquired year to current financial year
> [file:/demo/deployments/demo.hotwaxmedia.com/applications/accounting/
> script/org/ofbiz/accounting/fixedasset/
> FixedAssetServices.xml#calculateFixedAssetDepreciation] process
> [problem invoking the [straightLineDepreciation] service with the
> map named [serviceInMap] containing
> [[fixedAssetId=DEMO_PROD_EQUIPMT_1, expEndOfLifeYear=2012,
> assetAcquiredYear=2008, purchaseCost=1000.0, salvageValue=50.0,
> usageYears=0, userLogin=[GenericEntity:UserLogin][createdStamp,
> 2008-07-09 03:09:02.524(java.sql.Timestamp)][createdTxStamp,
> 2008-07-09 03:09:02.336(java.sql.Timestamp)][currentPassword,
> 47ca69ebb4bdc9ae0adec130880165d2cc05db1a(java.lang.String)]
> [disabledDateTime,null()][enabled,Y(java.lang.String)]
> [hasLoggedOut,N(java.lang.String)][isSystem,null()]
> [lastCurrencyUom,null()][lastLocale,null()][lastTimeZone,null()]
> [lastUpdatedStamp,2008-07-09
> 08:00:32.316(java.sql.Timestamp)][lastUpdatedTxStamp,2008-07-09
> 08:00:32.316(java.sql.Timestamp)][partyId,admin(java.lang.String)]
> [passwordHint,null()][requirePasswordChange,null()]
> [successiveFailedLogins,0(java.lang.Long)][userLdapDn,null()]
> [userLoginId,admin(java.lang.String)], locale=en_US]]: The following
> required parameter is missing: [OUT]
> [straightLineDepreciation.assetDepreciationTillDate]The following
> required parameter is missing: [OUT]
> [straightLineDepreciation.assetNBVAfterDepreciation]].
>
> Traversing to -> applications/accounting/script/org/ofbiz/accounting/
> fixedasset/FixedAssetServices.xml#calculateFixedAssetDepreciation
>
> here some things are not clear:
> 1. whats the method used for depreciation calculation, appears
> to me that they have used "Straight-line depreciation" but
> then whats the use of maintenance and meter readings as
> inputs to calculate the depreciation as it only requires
> salvage value, purchase cost and usage years as inputs.
> refer: http://en.wikipedia.org/wiki/Depreciation#Declining-
> Balance_Method

You are correct, we don't need to use of maintenance and meter
readings. for this method.

>
> 2. why in this above error usageYears=0 as I have mentioned
> asset acquired date and expected and actual end date for
> the asset ?

Here the usageYears = currentYear - assetAcquiredYear.
And here assetAcquiredYear = currentYear = 2008.

>
> 3. Also in \applications\accounting\script\org\ofbiz
> \accounting\fixedasset\FixedAssetServices.xml I can see that
> "doubleDecliningBalanceDepreciation" is also mentioned, so
> is it also used as a depreciation method ?
>

There are several methods of allocating depreciation over the useful
life of the assets. Those most commonly employed in
industrial and commercial enterprises are the straightline method and
the reducing balance method. The management of a business
selects the most appropriate method(s) based on various important
factors e.g.,
(i) type of asset,
(ii) the nature of the use of such asset and
(iii) circumstances prevailing in the business.

for doubleDecliningBalanceDepreciation you can find the example asset
in the demo data.
A combination of more than one method is sometimes used. You can find
more examples at :-

http://en.wikipedia.org/wiki/Depreciation

Currently we have implemented the two commonly used methods and we
will implement more in future. Which uses the meter reading (case of
truck whose life is 1000000 Miles, so in this case the depreciation
will calculate based on current meter reading.)

> kindly enlighten me on the above queries.
>
>
> thanks
> Brijesh M.
>
> santoh malviya <[hidden email]> wrote: Hello Brijesh,
> After choosing fixedAssedtId,say DEMO_PROD_EQUIPMT_1 or
> DEMO_PROD_EQUIPMT_2
> , you have to update fields of the fixedAsset and then will have to
> go to
> "maintenance" sub tab and have to create new maintenance then go to
> "meter
> readings" sub tab of the maintenance and add meter reading for the
> fixed
> asset and then go to "depreciation" tab and you will get report.
>
> Santosh malviya
>
> On Wed, Jul 9, 2008 at 5:00 PM, brijesh m
> wrote:
>
>> Hi friends,
>> can someone please suggest how this "Fixed Asset Depreciation
>> Report" is
>> coming. I have tried it on Demo server as:
>>
>> On demo server i.e.:
>>
>> https://demo.hotwaxmedia.com/accounting/control/main
>>
>> go to
>> Fixed Assets -> in find opt for DEMO_PROD_EQUIPMT_1 -> then
>> traverse to its
>> depreciation sub tab to access its "Fixed Asset Depreciation
>> Report". How
>> this report is generated as I won't be able to track any
>> calculating method
>> apart from the Salvage Value for this fixed asset which is 50 but
>> still
>> can't comply with this Fixed Asset Depreciation Report values.
>>
>> thanks
>> Brijesh M.
>>
>>
>
>