Hi Everyone
I’m doing some testing in for Fixed Assets on 13.07 and have come across the
following:
*No Accounting Transaction at Asset Creation*
When you create an asset then you need to record the purchase cost in the
general ledger. The transaction is normally something like (Debit Cash /
Credit Asset Account).
When you setup a depreciation method there is a link to create the
depreciation accounting entries but this type accounting transaction link to
create the accounting transactions related to a new fixed asset doesn’t
currently exist.
The workaround is to manually create the transactions – so this would be
probably classed as “nice to have”
*No Monthly or Quarterly Depreciation*
OOTB depreciation runs on an annual basis but I know that there are many
companies that run depreciation monthly or quarterly.
Looking at JIRA I see that there is an existing one already dealing with
this.
*Possble Incorrect Labelling*
On the Depreciation screen there is a “Depreciation history” section. When
you run the depreciation for an asset this section gets updated. I have
found that there is a label in this section called “Depreciation” but the
value displayed is NOT the depreciation amount but in fact the updated Net
Book Value of the asset (once the depreciation has been deducted).
In my example I created an asset with purchase cost 900. I set it up with a
life of 3 years and straight line depreciation method. In theory this should
depreciate the asset at 300 per year.
After running the depreciation for the first year. The depreciation should
be 300, the accumulated depreciation should be 300 and the net book value of
the asset should be 600 (instead of 900 because 300 has been deducted).
Looking at the Depreciation History section I get:
Purchase Cost = 900
Depreciation = 600 (*Depreciation should is 300. The Net Book Value
is 600*)
Date Acquired: 1st March 2013
Expected End of Lift: 1st March 2016
Next Depreciation Amount = 150 (which I also have a query on below)
I think this may be linked to the Edit Fixed Asset detail screen where there
is also a “Depreciation” field and when depreciation is run this is also
updated incorrectly updated with the Net Book Value.
*Next Depreciation Amount *
There is another value here called “Next Depreciation amount” and it seems
to just display a value that is half of the last depreciation amount. (My
depreciation amount was 300 and it displays half of that 150). I’ve tried
this with other values and it consistently is adds a half of the actual
depreciation value to this field.
Should this be the value of the next projected depreciation amount (eg 300)
or is it being used to hold the depreciation to date (so would update
depending on which day you viewed it)?
Is anyone else using Fixed Assets for 13.07 and have you come across these?
If not then is it OK to create a JIRA for the labelling and the next
depreciation amount ? Or if necessary I can add it to an existing one as I
see that there is a general one 5542 Fixed Asset Management Functionality.
Thanks
Sharan
I’m doing some testing in for Fixed Assets on 13.07 and have come across the
following:
*No Accounting Transaction at Asset Creation*
When you create an asset then you need to record the purchase cost in the
general ledger. The transaction is normally something like (Debit Cash /
Credit Asset Account).
When you setup a depreciation method there is a link to create the
depreciation accounting entries but this type accounting transaction link to
create the accounting transactions related to a new fixed asset doesn’t
currently exist.
The workaround is to manually create the transactions – so this would be
probably classed as “nice to have”
*No Monthly or Quarterly Depreciation*
OOTB depreciation runs on an annual basis but I know that there are many
companies that run depreciation monthly or quarterly.
Looking at JIRA I see that there is an existing one already dealing with
this.
*Possble Incorrect Labelling*
On the Depreciation screen there is a “Depreciation history” section. When
you run the depreciation for an asset this section gets updated. I have
found that there is a label in this section called “Depreciation” but the
value displayed is NOT the depreciation amount but in fact the updated Net
Book Value of the asset (once the depreciation has been deducted).
In my example I created an asset with purchase cost 900. I set it up with a
life of 3 years and straight line depreciation method. In theory this should
depreciate the asset at 300 per year.
After running the depreciation for the first year. The depreciation should
be 300, the accumulated depreciation should be 300 and the net book value of
the asset should be 600 (instead of 900 because 300 has been deducted).
Looking at the Depreciation History section I get:
Purchase Cost = 900
Depreciation = 600 (*Depreciation should is 300. The Net Book Value
is 600*)
Date Acquired: 1st March 2013
Expected End of Lift: 1st March 2016
Next Depreciation Amount = 150 (which I also have a query on below)
I think this may be linked to the Edit Fixed Asset detail screen where there
is also a “Depreciation” field and when depreciation is run this is also
updated incorrectly updated with the Net Book Value.
*Next Depreciation Amount *
There is another value here called “Next Depreciation amount” and it seems
to just display a value that is half of the last depreciation amount. (My
depreciation amount was 300 and it displays half of that 150). I’ve tried
this with other values and it consistently is adds a half of the actual
depreciation value to this field.
Should this be the value of the next projected depreciation amount (eg 300)
or is it being used to hold the depreciation to date (so would update
depending on which day you viewed it)?
Is anyone else using Fixed Assets for 13.07 and have you come across these?
If not then is it OK to create a JIRA for the labelling and the next
depreciation amount ? Or if necessary I can add it to an existing one as I
see that there is a general one 5542 Fixed Asset Management Functionality.
Thanks
Sharan