Depreciation and Asset Addition

Topics: Depreciation, Asset, Generally Accepted Accounting Principles Pages: 10 (1815 words) Published: October 31, 2013
iDempiere Fixed Asset
User Manual

Created By

Edwin Ang

Created On

June 12, 2012



The iDempiere Fixed Asset extension package is developed based on the work of these three remarkable men:
1. Robert Klein, who developed the first ever Fixed Assets extension for Compiere 2. Teo Sarca, who modernized Robert Klein's work to use Adempiere more modern document structure. His work was however not properly documented and was influenced with his country local requirement.

3. Redhuan D. Oon (Red1), who took the work published by Teo Sarca, created the migration scripts from the 2Pack, and done some stabilization work. However Red1 somehow mixed Klein's solution to Teo Sarca's which made the design somehow inconsistent. This work was started from where red1 left. I have spent considerable hours try to understand all those three men's design consideration. Somehow, I decided to recover to Teo Sarca's core design and done the work to (1) repair bad codes and AD Configuration, (2) remove – what I thought was – localization codes and AD Configuration, and (3) add missing code and AD Configuration. After many many test iterations and two installation observations, I am confident that I have achieved a certainly working package. Hence this is the FA version 1.0. What functionality that can be expected in this FA v1.0:

1. Asset Addition from Match Invoice
2. Asset Addition from Import Asset
3. Asset Addition from Manual
4. Asset Addition from Project
5. Asset Depreciation using Straight Line Depreciation Method 6. Asset Disposal
7. Each document: Asset Addition, Asset Depreciation, and Asset Disposal can generate their own accounting facts
What should not be expected:
1. Asset Transfer
2. Asset Split
3. Asset Revaluation
4. Asset Financing
5. Asset Depreciation using other Depreciation method
6. Asset First Year Convention Method and Asset Depreciation Calculation Method are not yet developed.

Installation Note:
1. Please use Adempiere 360 LTS or GlobalQSS Adempiere 361. I have tested with various version of GlobalQSS Adempiere 361. The only issue i've met is after the introduction of migration script 845_IDEMPIERE-255.sql. That script add a new mandatory column “Name” to AD_PrintFormatItem_Trl which cause issue when running the FA migration scripts. 2. Please use PostgreSQL database. I am using PostgreSQL and tested it all on PostgreSQL. I have provided the Oracle migration scripts but I believe there should be some minor fix to the Oracle migration scripts. I haven't have the time to fix it now. Any help would be very much appreciated.

Fixed Assets
Below are the setup required:
1. Setup Depreciation Method.
Only “Straight Line” is currently developed. Make sure to use “SL” as value in column DepreciationType.

2. Setup Depreciation Calculation Method
Depreciation Calculation Method is a mandatory field dated back to Robert Klein's FA. This is not currently supported. Hence - for the time being – just create a record to fulfill the mandatory requirement.

3. Setup Depreciation First Year Convention

Depreciation First Year Convention is also a mandatory field dated back to Robert Klein's FA. This is not currently supported. Hence - for the time being – just create a record to fulfill the mandatory requirement.

4. Setup Asset Group
Asset Group is where the default setup for asset is derived. Entry the Asset Group name and tick Owned and Depreciate. Note that there is a Default flag. When you tick it, this Asset Group Accounting information will become Default for all other new Asset Group.

5. Setup Asset Group Acct
This is where you set all parameters related to Depreciation calculation and all those Accounting account configurations. Some explanation of the columns:
• Accounting Schema: for most users, surely you will only have one default accounting schema. But for some who utilize more than one accounting schema, this means that you can have...
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