+1

2011/5/19 Graeme Gellatly <email address hidden>

> Vinay,
>
> You don't get it, I couldn't care less what types you have.  They don't
> matter.  You have serious bugs in the report and some more minor ones I
> don't report yet, like you cannot filter a balance sheet between 2 periods
> or dates, it is a point in time report.  And anyway I just check latest
> 6.0.2 sources again and in the balance sheet parser your types are still
> hard coded as 94<
> http://bazaar.launchpad.net/%7Eopenerp/openobject-addons/6.0/view/head:/account/report/account_balance_sheet.py#L94
> >
>
>        types = [
>
>  95<http://bazaar.launchpad.net/%7Eopenerp/openobject-
> addons/6.0/view/head:/account/report/account_balance_sheet.py#L95>
>
>            'liability',
>
>  96<http://bazaar.launchpad.net/%7Eopenerp/openobject-
> addons/6.0/view/head:/account/report/account_balance_sheet.py#L96>
>
>            'asset'
>
>  97<http://bazaar.launchpad.net/%7Eopenerp/openobject-
> addons/6.0/view/head:/account/report/account_balance_sheet.py#L97>
>
>        ]
>
>
> so where is this new equity type?  Equity is no longer on the balance
> sheet?
>
> You have function called sum_cr which actually sums debits and vice versa.
> You have a balance sheet where the totals do not add up to the amounts
> above
> it (depending on profit or loss)
>
> If your bank account is $1000 overdrawn, it will show as being $1000 in
> credit.
> If you generate a loss or a profit, you add or subtract it from different
> sides of the ledger
>
> Vinay - this is fundamental errors, not wishlist or opinion.
>
> On Fri, May 20, 2011 at 1:04 AM, Vinay Rana (openerp) <
> <email address hidden>> wrote:
>
> > Hello Graeme Gellatly,
> >
> > I know the balance sheet formula :
> > Assets = Liabilities + Shareholders' Equity
> >
> > Current report is supporting equity type.The only thing remain is set the
> > proper configuration in user defined account type form.
> > The existing equity type is not shareholders equity.If you want this as
> > shareholders equity then you just need to change the selection 'Balance
> > Sheet(Liability side).'
> > I have set this as a opinion for other thing.
> >
> > We already assigned one of the following wishlist bug for sign related
> > issue:
> > https://bugs.launchpad.net/openobject-addons/+bug/740132
> >
> > Hope this will help you
> > Thanks.
> >
> > --
> > You received this bug notification because you are a direct subscriber
> > of the bug.
> > https://bugs.launchpad.net/bugs/784339
> >
> > Title:
> >  [stable 6.0.2] Account Balance Sheet parser logic error leads to
> >  incorrect totals amounts and developer confusion
> >
> > Status in OpenERP Modules (addons):
> >   Opinion
> >
> > Bug description:
> >  If you look at the section where it calculates sum_dr and sum_cr it is
> >  incorrect.  Well it is technically correct, but in the sense of having
> >  a balance sheet that balances it is incorrect.
> >
> >  Take the accounting equation property = property rights expanded to
> >  assets = liabilities + equity
> >
> >  In the case of a net profit we incorrectly add the result to sum_dr,
> >  our equity has increased afterall, so sum_cr should increase, (this
> >  behaviour is correct, except the function is named wrong) however in
> >  the case of a net loss we subtract the amount from sum_cr (which
> >  should be sum_dr) which is incorrect as our equity has reduced.
> >
> >  However here is the first bug - sum_dr and sum_cr are around the wrong
> >  way - sum_cr is increased for asset accounts, and sum_dr is increased
> >  for liabilities - it should be the other way around
> >
> >  Put another way, for a balance sheet, we don't really want the totals
> >  to be the sum of dr's and cr's, we want it to be the total of the
> >  stuff on the left (Assets) and the total of the stuff on the right
> >  (Property Rights).
> >
> >  So in the case of a Net Profit we must increase equity (credit) and in
> >  the case of a net loss we must reduce equity (credit).  At no point
> >  should we be changing debits.  The value of our Assets has not changed
> >  (in so far that a net loss already reduces our assets), it is our
> >  equity that has reduced.
> >
> >  Now to make this one step more confusing, and for some unknown reason
> >  it has been decided to leave liabilities as a negative balance, and
> >  then on the report use absolute value which is also incorrect.  Many
> >  assets and liabilities should have a balance opposite of the standard,
> >  Accumulated depreciation for example in Assets,  VAT Paid in
> >  Liabilities, Bank Accounts temporarily in overdraft.
> >
> >  In my own parser, which I have written, to resolve this we declare a
> >  dictionary called signs and at the point we compute the
> >  account.balance we multiple it by the sign.
> >
> >          sign = {
> >              'fixed_asset': 1,
> >              'asset': 1,
> >              'liability': -1,
> >              'fixed_liability': -1,
> >              'equity': -1,
> >              }
> >
> >  We use more types than standard but you get the idea.  Assets are
> >  their balance, liability is their balance *-1.
> >
> >  Then all we do in the for account in accounts loop is make the
> >  balance: account.balance * sign[typ]
> >
> >  So in summary
> >  sum_dr and sum_cr are round the wrong way.
> >  Adding a net loss to Assets is incorrect - it should be subtracted from
> > Equity.
> >  values (already reported bug) should not be absolute, but rather their
> > inverse for liability and equity accounts.
> >
> > To unsubscribe from this bug, go to:
> > https://bugs.launchpad.net/openobject-addons/+bug/784339/+subscribe
> >
>
> --
> You received this bug notification because you are a member of OpenERP
> Accounting Experts, which is a direct subscriber.
> https://bugs.launchpad.net/bugs/784339
>
> Title:
>  [stable 6.0.2] Account Balance Sheet parser logic error leads to
>  incorrect totals amounts and developer confusion
>
> Status in OpenERP Modules (addons):
>  Opinion
>
> Bug description:
>  If you look at the section where it calculates sum_dr and sum_cr it is
>  incorrect.  Well it is technically correct, but in the sense of having
>  a balance sheet that balances it is incorrect.
>
>  Take the accounting equation property = property rights expanded to
>  assets = liabilities + equity
>
>  In the case of a net profit we incorrectly add the result to sum_dr,
>  our equity has increased afterall, so sum_cr should increase, (this
>  behaviour is correct, except the function is named wrong) however in
>  the case of a net loss we subtract the amount from sum_cr (which
>  should be sum_dr) which is incorrect as our equity has reduced.
>
>  However here is the first bug - sum_dr and sum_cr are around the wrong
>  way - sum_cr is increased for asset accounts, and sum_dr is increased
>  for liabilities - it should be the other way around
>
>  Put another way, for a balance sheet, we don't really want the totals
>  to be the sum of dr's and cr's, we want it to be the total of the
>  stuff on the left (Assets) and the total of the stuff on the right
>  (Property Rights).
>
>  So in the case of a Net Profit we must increase equity (credit) and in
>  the case of a net loss we must reduce equity (credit).  At no point
>  should we be changing debits.  The value of our Assets has not changed
>  (in so far that a net loss already reduces our assets), it is our
>  equity that has reduced.
>
>  Now to make this one step more confusing, and for some unknown reason
>  it has been decided to leave liabilities as a negative balance, and
>  then on the report use absolute value which is also incorrect.  Many
>  assets and liabilities should have a balance opposite of the standard,
>  Accumulated depreciation for example in Assets,  VAT Paid in
>  Liabilities, Bank Accounts temporarily in overdraft.
>
>  In my own parser, which I have written, to resolve this we declare a
>  dictionary called signs and at the point we compute the
>  account.balance we multiple it by the sign.
>
>          sign = {
>              'fixed_asset': 1,
>              'asset': 1,
>              'liability': -1,
>              'fixed_liability': -1,
>              'equity': -1,
>              }
>
>  We use more types than standard but you get the idea.  Assets are
>  their balance, liability is their balance *-1.
>
>  Then all we do in the for account in accounts loop is make the
>  balance: account.balance * sign[typ]
>
>  So in summary
>  sum_dr and sum_cr are round the wrong way.
>  Adding a net loss to Assets is incorrect - it should be subtracted from
> Equity.
>  values (already reported bug) should not be absolute, but rather their
> inverse for liability and equity accounts.
>
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