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https://issues.apache.org/jira/browse/OFBIZ-1586?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Santosh Malviya updated OFBIZ-1586:
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Attachment: ActivityDepreciation.patch
For Activity depreciation method partially implemented patch is attached and
following are steps to calculate depreciation : -
(1) Create a new fixed asset or update the existing one with following
parameters :-
a) Fixed asset id (if creating a new fixed asset)
b) Date acquired *
c) Expected End Of Life *
d) Salvage Value
e) Purchase Cost *
f) Purchase Cost Uom Id
g) Expected Usage Life *
h) Expected Usage Life Uom Id (depending upon the type of fixed asset)
(2) Then go to the " Maintenance" tab and create a new maintenance with
following parameters : -
a) Status
b)Interval Quantity
c) Interval Uom
d) Interval Meter Type
Then go to "Meter Readings" and add meter reading to the fixed asset.
(3) Then go to "Assignments" tab and then to the "Depreciation method
assignments" and choose Activity depreciation method and add to the fixed asset.
(4) Then press the "Depreciation " tab and you will get the depreciation
calculated for the fixed asset.
* indicates required field.
> Implement more fixed asset depreciation (methods)
> --------------------------------------------------
>
> Key: OFBIZ-1586
> URL: https://issues.apache.org/jira/browse/OFBIZ-1586
> Project: OFBiz
> Issue Type: Improvement
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Santosh Malviya
> Priority: Minor
> Fix For: SVN trunk
>
> Attachments: ActivityDepreciation.patch
>
>
> There are more 'depreciation methods' which are :-
> (1) Activity Depreciation :- Activity depreciation methods are not based on
> time, but on a level of activity. This could be miles driven for a vehicle,
> or a cycle count for a machine. When the asset is acquired, we estimate its
> life in terms of this level of activity. Assume the vehicle above is
> estimated to go 50,000 miles in its lifetime. We calculate a per-mile
> depreciation rate: ($17,000 cost - $2,000 salvage) / 50,000 miles = $0.30 per
> mile. Each year, we then calculate the depreciation expense by multiplying
> the rate by the actual activity level.
> Formula -
> depreciation = (purchase cost - salvage value) * (current reading - previous
> reading) / expected life in distance unit
> where
> distance unit may be miles, kilometers, etc....
> and current reading and previous reading are reading of the distance meter or
> distance count meter.
> (2) Unit of Production Depreciation :- Units of production depreciation is
> used for assets for which it is better to measure the life in terms of the
> quantity of the resource you expect to extract from them, such as mines or
> wells. For example, the production capacity of an oil well is the number of
> barrels of oil you expect to extract from it. For machinery or equipment, you
> measure the production capacity in terms of the expected total hours of use.
> You can enter the production capacity as the expected total production or
> expected total use. First, you enter the units of production depreciation
> method, production capacity, and unit of measure. You then enter the
> production each period to depreciate the asset according to actual use that
> period.
> Formula -
> depreciation = (purchase cost - salvage value) * (Production for the Period )
> / expected production capacity
> where
> Production for the Period = current production count - previous production
> count
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