Re: Fixed Assets

In your previous post you listed the commit that addressed the issue. Just follow it or use the entire set of changes after the FA 2.4.3 release to overwrite them.

Re: Fixed Assets

Hi guys, I'm using FA2.4.3 and at the moment I'm trying / studying the Fixed Asset feature in its relation to Depreciation etc

I can add/deprecate fine, it's not a problem. What seems to be a problem is the following

1. That when you input fixed asset purchase, say, on 3-01-2018 ... The depreciation only started 2 months later ( March 2018 onward ). Is there a way to set this to deprecate 1 month after ?
2. And what more alarming is that, you can ONLY deprecate for the remaining 10 months until December 2018. The item that I want to deprecate has probably 10 years lifecycle, like a production machine

Is this currently the limitation of using FA, or is there a setting that I need to adjust in order to make multi-Financial year depreciation ? I don't think 2.4.4 address this already, does it ?

At the moment, the only way to address multi-year depreciation is by entering manually on Journal Entry just like old days /w Excel ...

Thanks Guys,

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Re: Fixed Assets

In Setup - >System and General GL Setup you can set your depreciation period - monthly/yearly.

Then in Fixed Asets -> Fixed Assets set your depreciation rate  for an item for say 20% (5 years)

All explained in the wiki

The FrontAccounting Wiki(Manual, examples, tips, setup info, links to accounting sites, etc)

29 (edited by aleifuuwork 08/08/2018 05:06:09 am)

Re: Fixed Assets

Ok. After fiddling aroud a bit I think I understand more how to use Depreciation features on FA ...

However, there are 2 things that still confused me

1. The correct rate to use for straight line
Example I want to deprecate item "A" of value 1,200,000 for example for 2 years ( 1,200,000 / 24 = 50,000 each month ).
Now 50,000 / 1,200,000 is about 4.167% or 4.2% in FA's straight line

If I enter 4.2% in straight line method and process depreciation for "A", how come the depreciation value is 4,200 ? while I should be expecting 50,000 each month ?

2. How does FA decides when it starts to depreciate ?
On Fixed Asset item definition, you are provided field "Depreciation Starts" and I enter 1/1/2018.
And on purchase this particular Fixed Asset dated on 1/1/2018

When you want to start Process Depreciation however, the "Starting From Month" is February 2018 or March 2018 in some cases, but never on January 2018

I don't think wiki covers this

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Re: Fixed Assets

Hi, I am still learning the ropes but i can give my 2 cents.
1. Depreciation rate is annual, irrespective of wheather you select to depreciate Yearly or Monthly. In your case, the rate is 50% (2 years)
2. Depreciation starts 1 period after the "Depreciation Starts" Date. so for me, I always put the last date of the period before when i want the asset to start depreciating. e.g if i  want depreciation to start in January 2018, i put "Depreciation Starts"=31-Dec-2017

Re: Fixed Assets

Thanks very much @mugao-em,

I think this answers my question. I think you are right. Rate is annualized regardless wether you select Yearly or Monthly. Now that I have fiddled around more I think that's what it means

So for Depreciation starts actually start 1 period after Depreciation starts are kinda confusing, but I get it now. Maybe for future revision of FA we can do better /w choosing the right word as to not potentially introduce more ambiguity

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