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Posted to dev@ofbiz.apache.org by "Jacopo Cappellato (JIRA)" <ji...@apache.org> on 2007/12/22 11:10:43 UTC
[jira] Created: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Implement fixed asset depreciation (methods)
--------------------------------------------
Key: OFBIZ-1539
URL: https://issues.apache.org/jira/browse/OFBIZ-1539
Project: OFBiz
Issue Type: Sub-task
Reporter: Jacopo Cappellato
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[jira] Commented: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Sumit Pandit (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=12555846#action_12555846 ]
Sumit Pandit commented on OFBIZ-1539:
-------------------------------------
Hello Jacopo...
Me and Santosh Malviya are working on this task, we are writing the services to calculate the depreciation.
Here I have some queries, the description is as follows:-
1. In the StraightLine formula, where is the purchase cost of FixedAsset stored in the Database.
2. Now regarding the Double Declining Method ; I think that here the purchase cost means the NBV(Net Book Value) i.e. the cost of Asset for previous year (Asset Value - depreciation calculated). Means while preparing the accounts for the current financial year the depreciation amount should be reduce from the the current value of Asset and then the updated asset's value should store somewhere in database. Let me know if i am correct. Also please tell where is this value store.
3. Also I am preparing the demo data for a FixedAsset to test the service.
Now As you know that :-
"The cost of machinery and equipment includes the purchase price, freight and handling charges, insurance on the equipment while in transit, cost of special foundations if required, assembling and installation costs, and costs of conduction trial runs. Costs thus include all expenditures incurred in acquiring the machinery or equipment and preparing it for use, plus the market value of any trade-ins or exchanges".
Here it seems that it is require to prepare seed data for all OTHER_COST . Now my question is that for which entity should we prepare the data, can i use FixedAssetStdCostType ?
Also Is the Purchase Cost of Fixed asset is the sum of purchase price and all other cost.
Also I am posting this comment to the developers mailing list.
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Ashish Vijaywargiya
> Priority: Minor
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Commented: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Jacques Le Roux (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=12557568#action_12557568 ]
Jacques Le Roux commented on OFBIZ-1539:
----------------------------------------
Sumit,
1. You agreed on ML
2. You are right http://en.wikipedia.org/wiki/Depreciation#Declining-balance.2FReducing_balance_depreciation. This is why I suggested on ML to store the salvageValue along with purchaseCost in FixedAsset entity to follow dateAcquired. Maybe we could use another name for salvageValue, like netBookValue. Actually netBookValue is more appropriate but both seems good to me.
3. No ideas (time actually) yet....
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Ashish Vijaywargiya
> Priority: Minor
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Commented: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Sumit Pandit (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=12557967#action_12557967 ]
Sumit Pandit commented on OFBIZ-1539:
-------------------------------------
Jacques, I think you are little bit confused in definition of NetBookValue and salvage value, they are separate things.
Net Book Value is the Value of asset in previous year.
http://www.investorglossary.com/net-book-value.htm
and
Salvage value is like scrap value i.e. value of asset at the end of its life.
http://www.referenceforbusiness.com/encyclopedia/Res-Sec/Salvage-Value.html
And for Jacopo's comment #3
According to accounting concept we must keep record for all transaction that's why i was asking that we have to store the other cost somewhere in database.
Me and Santosh have implemented the service and test it by prepared data for it. Also according to your suggestion, for now we use purchase cost directly but for future I think that we should write a service which take the other cost and original purchase cost from various places then add all the cost and then update the FixedAsset entity by putting the TotalPurchaseCost/ NetPurchaseCost in the field purchaseCost.
Please make correct to me if i am wrong.
Soon we will upload the patch after testing.
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Ashish Vijaywargiya
> Priority: Minor
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Commented: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Jacopo Cappellato (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel#action_12554591 ]
Jacopo Cappellato commented on OFBIZ-1539:
------------------------------------------
I did a bit of research and I've seen that we already have the entities:
* DepreciationMethod
* FixedAssetDepMethod
However, maybe we could consider to suppress the DepreciationMethod and use the generic CustomMethod instead (with a new CustomMethodType).
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Priority: Minor
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Commented: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Jacques Le Roux (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=12557984#action_12557984 ]
Jacques Le Roux commented on OFBIZ-1539:
----------------------------------------
Sumit,
Actually I already understod that when I read the Wikipedia article (link in my comment above). All this come from Len Silverton's book . In the formula he gives he use salvage value in place of NBV. Jacopo's used those formulas hence my 1st use of it. As I said above I would prefer to use purchaseCost and NetBookValue for names of these FixedAsset fields as those are common names for those concepts. Thanks for the links anyway ;o)
BTW I agree with you that having more detailled costs origins is better and your proposition sounds fine to me.
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Ashish Vijaywargiya
> Priority: Minor
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Assigned: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Ashish Vijaywargiya (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]
Ashish Vijaywargiya reassigned OFBIZ-1539:
------------------------------------------
Assignee: Ashish Vijaywargiya
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Ashish Vijaywargiya
> Priority: Minor
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Updated: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Sumit Pandit (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]
Sumit Pandit updated OFBIZ-1539:
--------------------------------
Attachment: Depreciation_Algorithm.patch
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Ashish Vijaywargiya
> Priority: Minor
> Attachments: Depreciation_Algorithm.patch
>
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Commented: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Mridul Pathak (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel#action_12554882 ]
Mridul Pathak commented on OFBIZ-1539:
--------------------------------------
Jacopo,
Will you be providing any details for Account Depreciation Algorithms, for which we need to create the services?
And some more details on the above issue will be helpful for us to proceed further.
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Ashish Vijaywargiya
> Priority: Minor
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Commented: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Sumit Pandit (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=12557997#action_12557997 ]
Sumit Pandit commented on OFBIZ-1539:
-------------------------------------
Jacques I am sorry for my comments.
We are attaching the patch in which we implemented the Straight Line and Double Decline Balance Depreciation algorithms.
To verify the algorithm we prepaired the data for it. :
1) fixedAssetId = DEMO_PROD_EQUIPMT_1 for Straight Line algo and
2) fixedAssetId = DEMO_PROD_EQUIPMT_2 for Double Decline Balance algo.
Kindly verify it and comment if any modification required.
You can verify it by..........
Accounting > FixedAsset > select the Asset Id from the above > depreciation ==> generate the report to display the depreciation from acquired date to current year.
If every thing is correct then we will implement other depreciation calculation services.
Thanks
Santosh Malviya
Sumit Pandit
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Ashish Vijaywargiya
> Priority: Minor
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Commented: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Sumit Pandit (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=12558722#action_12558722 ]
Sumit Pandit commented on OFBIZ-1539:
-------------------------------------
Thanks Jacopo, Mridul, Jacques Santosh and Vikas for there comments.
And a special thanks to Jacopo and Santosh for there support and quick response.
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Vikas Mayur
> Priority: Minor
> Attachments: Depreciation_Algorithm.patch, Depreciation_Algorithm.patch
>
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Closed: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Vikas Mayur (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]
Vikas Mayur closed OFBIZ-1539.
------------------------------
Resolution: Fixed
Thanks Sumit Pandit & Santosh Malviya for the patch.
Your patch is in rev. 611416
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Vikas Mayur
> Priority: Minor
> Attachments: Depreciation_Algorithm.patch, Depreciation_Algorithm.patch
>
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Updated: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Sumit Pandit (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]
Sumit Pandit updated OFBIZ-1539:
--------------------------------
Attachment: Depreciation_Algorithm.patch
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Ashish Vijaywargiya
> Priority: Minor
> Attachments: Depreciation_Algorithm.patch, Depreciation_Algorithm.patch
>
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Updated: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Sumit Pandit (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]
Sumit Pandit updated OFBIZ-1539:
--------------------------------
Attachment: (was: updated_DepreciationAlgo.patch)
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Ashish Vijaywargiya
> Priority: Minor
> Attachments: Depreciation_Algorithm.patch
>
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Assigned: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Vikas Mayur (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]
Vikas Mayur reassigned OFBIZ-1539:
----------------------------------
Assignee: Vikas Mayur (was: Ashish Vijaywargiya)
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Vikas Mayur
> Priority: Minor
> Attachments: Depreciation_Algorithm.patch, Depreciation_Algorithm.patch
>
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Commented: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Jacopo Cappellato (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel#action_12554886 ]
Jacopo Cappellato commented on OFBIZ-1539:
------------------------------------------
I'd say that the first step is the decision about the DepreciationMethod entity: should we remove it and use the CustomMethod entity instead?
I think it would be a good idea.
What others think about this?
If we get positive feedback, the next steps will be:
1) modify the FixedAssetDepMethod entity to point to CustomMethod instead of DepreciationMethod; suppress DepreciationMethod
2) create seed data for DEPRECIATION_FORMULA for the CustomMethodType entity
3) implement a small set of depreciation methods (so that the user can select the most appropriate one for the fixed asset); the most common ones are "straight-line depreciation" and "double-declining balance depreciation" (from the Data Model Resource Book)
formula for straight-line depreciation: (purchase cost - salvage cost) / estimated life in years of the asset
formula for double-declining balance depreciation: (purchase cost - salvage cost) * (1 / estimated life in years of the asset) * 2
In this process we should verify if we have all the required fields in the FixedAsset* data model (salvage cost, purchase cost, estimated life in years of the asset).
Feedback is welcome.
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Ashish Vijaywargiya
> Priority: Minor
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Updated: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Sumit Pandit (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]
Sumit Pandit updated OFBIZ-1539:
--------------------------------
Attachment: updated_DepreciationAlgo.patch
Here some updation is done based on comments posted by Jacopo and Vikas.
It is requested to viewers that kindly verify the output by run it.
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Ashish Vijaywargiya
> Priority: Minor
> Attachments: Depreciation_Algorithm.patch, updated_DepreciationAlgo.patch
>
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Commented: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Jacopo Cappellato (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=12557579#action_12557579 ]
Jacopo Cappellato commented on OFBIZ-1539:
------------------------------------------
My 2 cents:
#1: I think it is a good idea to add the new fields to the FixedAsset entity as suggested by you and Jacques: purchaseCost, purchaseCostUomId (for the currency) and salvageValue; or maybe use the following names: "initialValue" and "finalValue"
#2: thanks for your research/correction on the double declining algorithm;
#3: about the fixed asset cost: I'd say to start with a simple approach and just use the FixedAsset.initialValue and leave the user to enter the appropriate amount (the purchase cost or the purchase cost plus other costs...)
Does it make sense?
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Assignee: Ashish Vijaywargiya
> Priority: Minor
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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[jira] Updated: (OFBIZ-1539) Implement fixed asset depreciation
(methods)
Posted by "Jacopo Cappellato (JIRA)" <ji...@apache.org>.
[ https://issues.apache.org/jira/browse/OFBIZ-1539?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]
Jacopo Cappellato updated OFBIZ-1539:
-------------------------------------
Component/s: accounting
Priority: Minor (was: Major)
Description: New entity, crud services and ui, and pluggable services for account depreciation algorithms.
Affects Version/s: SVN trunk
> Implement fixed asset depreciation (methods)
> --------------------------------------------
>
> Key: OFBIZ-1539
> URL: https://issues.apache.org/jira/browse/OFBIZ-1539
> Project: OFBiz
> Issue Type: Sub-task
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Jacopo Cappellato
> Priority: Minor
>
> New entity, crud services and ui, and pluggable services for account depreciation algorithms.
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