Asset yearly depreciation on fiscal years that do not end on December

[Sergi Almacellas Abellana]

Hi,

We've detected a strange behavior (at least for our costumers) when
using yearly deprecation on a company that it's fiscal year does not end
on December. The current behavior is to always create the deprecation
lines on December but our user expected to have it created on the last
month of the fiscal year (which for us is September).

I'm wondering if we should change the current module behavior to always
use the last month of the fiscal year when creating the deprecation
table of an asset.

Thoughts?

--
Sergi Almacellas Abellana
www.koolpi.com
Twitter: @pokoli_srk

[Cédric Krier]

On 2018-05-09 13:32, Sergi Almacellas Abellana wrote:
> We've detected a strange behavior (at least for our costumers) when
> using yearly deprecation on a company that it's fiscal year does not end
> on December. The current behavior is to always create the deprecation
> lines on December but our user expected to have it created on the last
> month of the fiscal year (which for us is September).
>
> I'm wondering if we should change the current module behavior to always
> use the last month of the fiscal year when creating the deprecation
> table of an asset.
>
> Thoughts?

The problem is that fiscal years are not guarantee to have the same
length so the last month may not always be the same for the lifetime of
the asset. (This can happen on special case when a company readjust the
fiscal year)
So I would say that it will be better to define on the asset instead of
depending on fiscal year when it is yearly which month to use. And maybe
we could also have such option for the day of the month (with a fallback
to the last day of it is out of the month).

--
Cédric Krier - B2CK SPRL
Email/Jabber: cedric...@b2ck.com
Tel: +32 472 54 46 59
Website: http://www.b2ck.com/

[Sergi Almacellas Abellana]

El 09/05/18 a les 14:49, Cédric Krier ha escrit:

> So I would say that it will be better to define on the asset instead of
> depending on fiscal year when it is yearly which month to use.

Agree, this allows more use cases.

And maybe
> we could also have such option for the day of the month (with a fallback
> to the last day of it is out of the month).

For me it makes sense to allow to specify the day for both frequencies
and the month only for yearly frequencies. Adding a default value of -1
for those fields will keep the current behavior (use last day and last
month).

I will open an issue an propose a patch for it.

Thanks.

[Axel Braun]

Am Mittwoch, 9. Mai 2018, 14:49:25 CEST schrieb Cédric Krier:
> On 2018-05-09 13:32, Sergi Almacellas Abellana wrote:
> > We've detected a strange behavior (at least for our costumers) when
> > using yearly deprecation on a company that it's fiscal year does not end
> > on December. The current behavior is to always create the deprecation
> > lines on December but our user expected to have it created on the last
> > month of the fiscal year (which for us is September).
> >
> > I'm wondering if we should change the current module behavior to always
> > use the last month of the fiscal year when creating the deprecation
> > table of an asset.
> >
> > Thoughts?
>
> The problem is that fiscal years are not guarantee to have the same
> length so the last month may not always be the same for the lifetime of
> the asset. (This can happen on special case when a company readjust the
> fiscal year)

Exactly, and this is highly exceptional. Mostly a company changes the fiscal
year only in case they change the legal form, or similar.
As this is the exception, it should not rule the depreciation.

> So I would say that it will be better to define on the asset instead of
> depending on fiscal year when it is yearly which month to use. And maybe
> we could also have such option for the day of the month (with a fallback
> to the last day of it is out of the month).

Each asset has its own depreciation lifecycle (e.g. linear over 3 years),
anyway, you have to accrue per fiscal year and write-off accordingly.

Best,
Axel