[jira] [Commented] (OFBIZ-5542) Fixed Asset Management Functionality

[Nicolas Malin (Jira)]

    [ https://issues.apache.org/jira/browse/OFBIZ-5542?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=13901275#comment-13901275 ]

David Hughes-Owens commented on OFBIZ-5542:
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Thanks Pierre,

Yes, we would use the straight line method also, which like you say is probably the most common method. I was simply highlighting, as you have, that there other methods used, which should perhaps be provided as options to the user.

Yes, for our purposes we require a change to how we set the depreciation intervals. I think a simple drop down to provide the choice of monthly, quarterly or annually during the asset set up would be a useful addition.

Our depreciation policy dictates that we charge depreciation monthly, with no depreciation charge in month/period of acquisition, but a charge made in the month/period of disposal.

e.g. if fixed asset was capitalised in Feb 2014, then first depreciation charge would occur in Mar 2014.

The depreciation charge in month of disposal is not really an issue, as we would simply process the depreciation 'run' for the month/period and then process any disposals afterwards.

It would also be easier if you could enter the number of periods over which to depreciate (e.g. motor vehicle 4 years/48 months/16 quarters) and have the end date populate based on the selection. Or preferably have these values hard coded against the Asset Type Id, with the option to adjust as required.

As a side note, for the asset records I set up to play around with I noticed that the depreciation transaction debit & credit was the wrong way round. Should Dr P&L Depreciation expense and Cr B/S Accumulated Depreciation.

> 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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