Fixed Asset Depreciation

Frappe Framework App Development
1

Continuing Discussion from Reinstall Customized App

I have completed the primary setup of Fixed Asset Module to the best of my knowledge. here is the link to the repository https://github.com/akshay83/erpnext/tree/v5.0

Currently the Module is able to :

  • Create a new Fixed Asset and Link it to the Fixed Asset Ledger in the Chart Of Accounts.
  • Can Purchase a New Fixed Asset
  • Can Sell a Fixed Asset and Book its Profit/Loss. Though this requires a New Ledger to be created ‘Accumulated Depreciation’.
  • Shows a Report for the Selected Fiscal Year.

Remaining part :

  • Fiscal Year Closing Entries are yet to be performed

For now, what I believe, this module should suffice the requirements of a small company. I would like the to know the feedback from the community and ideas to take this module forward.

Thanks & regards
Akshay

P.S. : I really am not getting the idea of a Fixed Asset to be kept in a Warehouse and in a serialized form.

3 Likes
2

@mehta_akshay Awesome! Thanks for sharing. It would be great if you can wrap this in a separate app so that others can use it too.

Also if you can add a basic one page document on how to use tool will make it easy to get started.

@nabinhait and I will have a look at this next week and give further feedback.

3

This is probably is my first documentation, where do I start from. I have tried to include as much description in the fields as I could. Well the following is the Main Screen :

Main Screen.jpg1366×728 72.5 KB

Scenario 1A: Create a Fixed Asset Account if you are carrying forward a Fixed Asset from Last Fiscal Year. See an example below :

Fixed Asset Account.jpg1093×582 80.2 KB

Important Point to note here is to Set the Original Purchase Value Asset and to Insert a single record in the Depreciations Table with the Last Fiscal Year and the Total Accumulated Depreciation of the Fixed Asset till the End of Last Fiscal Year. In Other words Depreciation Provided Till the End of the last fiscal Year.

Scenario 1B: Create a Fixed Asset Account if you are purchasing a new Asset. Here don’t put anything in the Depreciations table and no need to supply Gross Purchase Value. The Purchase Value would be filled in Once the Purchase Transaction is Submitted.

Scenario 2: Purchase a Fixed Asset. Look at the Image below :

Fixed Asset Purchase.jpg1093×582 53.5 KB

I feel it is self explanatory. Once the record is submitted it will give an option to post the Journal Entry.

Scenario 3: Sell a Fixed Asset: Again an example follows :

Fixed Asset Sale.jpg1366×728 92.7 KB

Here you need to select the Fixed Asset Account, where its purchase value would automatically be fetched. Then you can enter the Sale Value (Fixed Asset Sold For), which will result in fetching the Total Accumulated Depreciation for that Asset and whether the Company has incurred Loss/Profit on the Sale of that Asset. Once this is done, the user can then select the Account where the Loss/Profit needs to be booked (Booking Account). Journal Entries can be posted once the record is submitted.

The Report: As discussed earlier the Report Format Could be as :

Fixed Asset Report.jpg1093×582 72.2 KB

I hope the Above documentation is of help and the module itself. I would try to make an Independent Application once the Team is Satisfied with the module and its results.

regards
Akshay

One more thing I don’t have a Python or JavaScript Background, I would appreciate if the team looks at the module with a relatively broader perspective.

Edit: The Module Currently uses “Written Down Method of Depreciation” and for now does not consider Useful life and Scrap Value. I am not even sure how they are used as I was building the module for personal use in the our firm. But thanks to your encouragement I hope to contribute in the development of ERPNext.

1 Like
4

@mehta_akshay Thanks the documentation makes it much clearer. Would love to use your code.

Our thoughts:

  1. Can be part of “Accounts” module (Fixed Asset in Documents, and Fixed Asset Sale in Tools)
  2. No need for Fixed Asset Purchase - you can directly make a Fixed Asset Account or Purchase Invoice / Journal Entry
  3. Code needs cleaning up - Calculation function needs cleanup (use smaller functions and avoid repetition)
  4. Link Fixed Asset with Serial No (optional) - Just add a link for now.

When you fix this, send a pull-request - will add code specific comments in the pull-request.

Will be happy to register your contribution :smile:

5

Will Try this. I the meanwhile just for my information and anxiety, did you find the calculations and the results upto the mark? did you try making some entries?

Edit: I know there is a lot of unused elements in the report section. this is a result of change in Model, the model I was working on previously has now been completely changed. I would clean that.

6

Hi,

As per suggestions I have implemented the changes. the link is https://github.com/akshay83/erpnext/tree/fixed_asset

Some Major Points:

  • I Have calculated Depreciation on Two Methods: Straight Line and Written Down
  • I have taken liberty in modifying the company doctype and added three more fields: default_depreciation_expense_account, default_accumulated_depreciation_account and default_method. They help in generating the report and also in posting the Journal Vouchers.
  • I have also added a Fiscal Year Fixed Asset Closing Tool, helpful in posting the journal entry when closing the fiscal year.
  • I have also assumed that any Fixed Asset will atleast cross One Fiscal Year.

I have tried to reduce the code as much as possible. Hope this is helpful.

Pls review.
regards
Akshay

1 Like
7

@mehta_akshay Great!

But its really hard to see and comment what you have changed unless you send a pull-request. Please send one.

8

is it available for other users?

9

No we have not found time to merge / test it yet. Should try and get this done in a couple of weeks.

10

looking forward to it, good work @rushabh_mehta

11

Hi there,
We have just gotten started with ERP next and I’m trying to set up our company’s fixed asset accounts. Any suggestions for how to track fixed asset values and accumulated depreciation? Is this app/tool available?
thanks!

12

@norlha not finding time to test + integrate a contribution. no its not out of the box at the moment.

13

@rmehta any update on this as i too have recently started my company and i would really like it to be implemented

14

No update yet. Its on the list.

15

@rmehta, is there any update on it?

-Amit

16

@rmehta, any progress on this module?

17

Sorry, but not yet :frowning:

18

Have the team managed to test the fixed asset module. when can we expect an integration?

19

we are also in need of fixed asset integration in our erpnext system,what we want is to manage fixed asset and show the depressiosion in every month,quarter,…also it hase to be showed on balance sheet and other reports.thanks

1 Like
20

well its been ages since this has been passed for testing. i request pls integrate it as fast as you can

1 Like