Fixed Assets Queries - 13.07

[Sharan-F]

Hi Everyone

I’m doing some testing in for Fixed Assets on 13.07 and have come across the following:

No Accounting Transaction at Asset Creation
When you create an asset then you need to record the purchase cost in the general ledger. The transaction is normally something like (Debit Cash / Credit Asset Account).

When you setup a depreciation method there is a link to create the depreciation accounting entries but this type accounting transaction link to create the accounting transactions related to a new fixed asset doesn’t currently exist.

The workaround is to manually create the transactions – so this would be probably classed as “nice to have”

No Monthly or Quarterly Depreciation
OOTB depreciation runs on an annual basis but I know that there are many companies that run depreciation monthly or quarterly.

Looking at JIRA I see that there is an existing one already dealing with this.

Possble Incorrect Labelling
On the Depreciation screen there is a “Depreciation history” section.  When you run the depreciation for an asset this section gets updated. I have found that there is a label in this section called “Depreciation” but the value displayed is NOT the depreciation amount but in fact the updated Net Book Value of the asset (once the depreciation has been deducted).

In my example I created an asset with purchase cost 900. I set it up with a life of 3 years and straight line depreciation method. In theory this should depreciate the asset at 300 per year.

After running the depreciation for the first year.  The depreciation should be 300, the accumulated depreciation should be 300 and the net book value of the asset should be 600 (instead of 900 because 300 has been deducted).

Looking at the Depreciation History section I get:

  Purchase Cost = 900
  Depreciation = 600      (Depreciation should is 300. The Net Book Value is 600)
  Date Acquired: 1st March 2013
  Expected End of Lift: 1st March 2016
  Next Depreciation Amount = 150 (which I also have a query on below)

I think this may be linked to the Edit Fixed Asset detail screen where there is also a “Depreciation” field and when depreciation is run this is also updated incorrectly updated with the Net Book Value.

Next Depreciation Amount
There is another value here called “Next Depreciation amount” and it seems to just display a value that is half of the last depreciation amount.  (My depreciation amount was 300 and it displays half of that 150). I’ve tried this with other values and it consistently is adds a half of the actual depreciation value to this field.

Should this be the value of the next projected depreciation amount (eg 300) or is it being used to hold the depreciation to date (so would update depending on which day you viewed it)?

Is anyone else using Fixed Assets for 13.07 and have you come across these?

If not then is it OK to create a JIRA for the labelling and the next depreciation amount ? Or if necessary I can add it to an existing one as I see that there is a general one 5542 Fixed Asset Management Functionality.

Thanks
Sharan

[Sharan-F]

Oops – there was another couple I came across as well.

Fixed Asset Type GL Mappings
In the GL Type defaults (under Organizational GL Settings), there is a Fixed Asset Type GL Mapping.
In this the drop down selection for the Loss GL Account is restricted to the 601000 – 650000 account range but the LOSS ON SALE OF FIXED ASSET Account is 823000 so you cant actually select the correct account to use.

This is also the same on the Fixed Asset Depreciation screen if you want to select the Loss GL Account in the GL Account Mappings section.

Asset Creation – Party Lookup
When you create an asset the Party ID lookup is restricted to ‘Person’ which means you cant look up or select  “Company” as the asset owner.

There is a workaround to just type in the exact party ID, assign the role and click Update!

[Pierre Smits]

Hi Sharan,

Welcome back. What JIRA issue are you referering to?

Regards,

Pierre Smits

*ORRTIZ.COM <http://www.orrtiz.com>*
Services & Solutions for Cloud-
Based Manufacturing, Professional
Services and Retail & Trade
http://www.orrtiz.com


On Sat, Apr 5, 2014 at 11:17 AM, Sharan-F <[hidden email]> wrote:

> Hi Everyone
>
> I'm doing some testing in for Fixed Assets on 13.07 and have come across
> the
> following:
>
> *No Accounting Transaction at Asset Creation*
> When you create an asset then you need to record the purchase cost in the
> general ledger. The transaction is normally something like (Debit Cash /
> Credit Asset Account).
>
> When you setup a depreciation method there is a link to create the
> depreciation accounting entries but this type accounting transaction link
> to
> create the accounting transactions related to a new fixed asset doesn't
> currently exist.
>
> The workaround is to manually create the transactions - so this would be
> probably classed as "nice to have"
>
> *No Monthly or Quarterly Depreciation*
> OOTB depreciation runs on an annual basis but I know that there are many
> companies that run depreciation monthly or quarterly.
>
> Looking at JIRA I see that there is an existing one already dealing with
> this.
>
> *Possble Incorrect Labelling*
> On the Depreciation screen there is a "Depreciation history" section.  When
> you run the depreciation for an asset this section gets updated. I have
> found that there is a label in this section called "Depreciation" but the
> value displayed is NOT the depreciation amount but in fact the updated Net
> Book Value of the asset (once the depreciation has been deducted).
>
> In my example I created an asset with purchase cost 900. I set it up with a
> life of 3 years and straight line depreciation method. In theory this
> should
> depreciate the asset at 300 per year.
>
> After running the depreciation for the first year.  The depreciation should
> be 300, the accumulated depreciation should be 300 and the net book value
> of
> the asset should be 600 (instead of 900 because 300 has been deducted).
>
> Looking at the Depreciation History section I get:
>
>   Purchase Cost = 900
>   Depreciation = 600          (*Depreciation should is 300. The Net Book
> Value
> is 600*)
>   Date Acquired: 1st March 2013
>   Expected End of Lift: 1st March 2016
>   Next Depreciation Amount = 150 (which I also have a query on below)
>
> I think this may be linked to the Edit Fixed Asset detail screen where
> there
> is also a "Depreciation" field and when depreciation is run this is also
> updated incorrectly updated with the Net Book Value.
>
> *Next Depreciation Amount *
> There is another value here called "Next Depreciation amount" and it seems
> to just display a value that is half of the last depreciation amount.  (My
> depreciation amount was 300 and it displays half of that 150). I've tried
> this with other values and it consistently is adds a half of the actual
> depreciation value to this field.
>
> Should this be the value of the next projected depreciation amount (eg 300)
> or is it being used to hold the depreciation to date (so would update
> depending on which day you viewed it)?
>
> Is anyone else using Fixed Assets for 13.07 and have you come across these?
>
> If not then is it OK to create a JIRA for the labelling and the next
> depreciation amount ? Or if necessary I can add it to an existing one as I
> see that there is a general one 5542 Fixed Asset Management Functionality.
>
> Thanks
> Sharan
>
>
>
>
> --
> View this message in context:
> http://ofbiz.135035.n4.nabble.com/Fixed-Assets-Queries-13-07-tp4650201.html
> Sent from the OFBiz - User mailing list archive at Nabble.com.
>

[Sharan-F]

Hi Pierre

I thought the depreciation time periods was included as part of JIRA 5282 but now I look at it again - I dont think it is.

I know it was raised in the discussion on 5542 but I'm now not sure whether it's been recorded as a potential future requirement.

Thanks
Sharan