account asset - depreciation starts with usage

Bug #900790 reported by Ferdinand
34
This bug affects 6 people
Affects Status Importance Assigned to Milestone
Odoo Addons (MOVED TO GITHUB)
Confirmed
Wishlist
OpenERP R&D Addons Team 3

Bug Description

quote from
http://www.ehow.com/info_8413513_depreciation-start.html

If you buy a car then depreciation starts the moment you drive it off the lot. For business purposes, however, depreciation starts when an item is placed into service. In order to claim a tax deduction, the item must officially start usage before the end of the tax year.

hence we need an optional "start usage date" which is used instead of purchase date if entered.

the purchase date must be taken from the invoice - invoice-date (mandatory)
it will almost never be
'purchase_date': lambda obj, cr, uid, context: time.strftime('%Y-%m-%d'),
this is a source of errors,especially if the invoice arrives in the month after issued from the supplier.

Revision history for this message
Amit Bhavsar (Open ERP) (amb-openerp) wrote :

Hello DR Ferdinand,

We have implemented a Account_assert for the following manner.
1) Depreciation date start with 1st January, If we have don't set a "Prorata Temporis" .
2) If have used a "Prorata Temporis" then depreciation date start from the purchase date, which you can give it as a manually when you want to start/use it. So I think it is working same as a "Usage date" as you specified in bug report.

So this is not a bug it's your suggestion and also not a generalise issue. That's why I am setting this as "Opinion".

@Experts: Would you please share your view on this.

Thanks and more suggestions are welcomed!

Changed in openobject-addons:
status: New → Opinion
Revision history for this message
Ferdinand (office-chricar) wrote :

Thanks for the explanation, but
* it does not honor "depreciation starts when an item is placed into service."
* "purchase date" defaults to "today",
lambda obj, cr, uid, context: time.strftime('%Y-%m-%d'),
but IMHO should default to date_invoice

Revision history for this message
Ferdinand (office-chricar) wrote :

Example
Buy a server in December and put it into service in January (next fiscal year)

Revision history for this message
Allianz Tech (felix-0t) wrote :

Hi Ferdinand and Amit:

There are different methods of depreciation that are relevant to different scenarios. Let me highlight two scenarios here ...and I hope they apply to your respective countries as they do in the United States:

Tax Purposes:
Depreciation starts when the asset is put into service, not when purchased. Some companies purchase and put those assets into service right away and therefore depreciation starts right away. The depreciation method for tax (the most common in the US) is MACRS - Double Declining Depreciation Method.

Internal (Also referred to as Books):
For this purpose, depreciation starts from the purchase date. Depreciation method used is straight line method.

I hope this helps.

Felix

Revision history for this message
Ferdinand (office-chricar) wrote :

IMHO every country has it's own rules for
* "Books"
* "Tax"
and there will be a lot of special issues which will have to be addressed in localisation
Example in Austria
Tax and Books are usually the same, but
* the duration can be different
* the "tax purchase value" may be different from "Books"

but "put into service" date seems to be a logical and common field, which can be used to override the purchase/invoice date.

Revision history for this message
Amit Bhavsar (Open ERP) (amb-openerp) wrote :

Hello folks,

I have checked the all comment carefully. As per the comment#2, depreciation starts from the purchase date and fiscal year. So currently account_asset satisfy the scenario of "Internal" in comment#4.

I agreed with Felix for "Tax Purposes" comment#4,
For this Issue we have required "usage date". And depreciation start base on Usage Date. So We should be Improved this thing in "account_asset".

I agreed with Felix Nyilu and Dr Ferdinand, It is good feature for Account Asset That's why We can consider this is as your suggestion, and we are considering it as a "Wishlist".

Thanks for Contribute!

Changed in openobject-addons:
status: Opinion → Confirmed
importance: Undecided → Wishlist
assignee: nobody → OpenERP R&D Addons Team 3 (openerp-dev-addons3)
Revision history for this message
Normunds (Alistek) (3pm) wrote :

Just my thoughts of it.
- in vers. 5.x generic asset module was unusable in real life.
- People did a great job for making it usable. https://code.launchpad.net/~grzegorz-og.pl/openobject-addons/extra-5.0_account_asset
- then generic, unusable proof of concept account_asset version in ver.6.0.0,
- then 6.1 account_asset version, close to usable but still missing some essential extra-5.0_account_asset features
- then 6.0.x backport version https://code.launchpad.net/~ovnicraft/openobject-addons/account_asset_backport-6.0
- then 6.0.x extra-5.0_account_asset forked version https://code.launchpad.net/~bstanciu/openobject-addons/account-fixed-assets

What we have now- in short it can be called mess.

This bug is substantial missing feature for using account_asset in other countries.

Normunds
Alistek Ltd

Revision history for this message
Carlos Vásquez (ClearCorp) (cv.clearcorp) wrote :

Hi,

In Costa Rica we need a start_depreciation_date or something similar. Not because the legal reason (or not only at least), but because it is a very common practice to do all depreciations on the same day of the month.

With such a field, usable for both purposes (usage start and/or depreciation start) we can do this.

Thanks

Revision history for this message
Sid (siddiqmomin) wrote :

Hello All,

One more thing we need to take into consideration is

- If you set Purchase Date as start of the depreciation then it calculates depreciation correctly but with wrong dates.
- Dates of the period for depreciation should be Period End date from the Financial Configuration and not the one which starts with Purchase date.

Thanks,

Siddique

Revision history for this message
Carlos Vásquez (ClearCorp) (cv.clearcorp) wrote : Re: [Bug 900790] Re: account asset - depreciation starts with usage

Hi,

About the bad dates I reported this bug:
https://bugs.launchpad.net/bugs/1019932

There is a branch attached with a merge proposal which fixes that error and
a couple of other things. Feel free to download the branch and use that
version of the account_asset module.

Regards,
--
PS: escribí este email desde mi teléfono, por favor disculpe la brevedad y
cualquier error de escritura.

Carlos Vásquez
CTO · Director de Ingeniería
CLEARCORP S.A.

<email address hidden>
CR: +(506) 4000-CORP (4000-2677)
US: +1 (786) 472-4267
Cel: +(506) 8351-4484
skype: crvasquez
twitter: cvclearcorp

300 m. Este de la Escuela
Calle de Platanares
11402 San Jerónimo, Moravia
San José, Costa Rica

http://www.clearcorp.co.cr

To post a comment you must log in.
This report contains Public information  
Everyone can see this information.

Other bug subscribers