As part of testing the asset purchase in ERPNext, I have faced some issues.
While purchasing an asset, Purchase Order & Receipt are used, the option to connect purchase to asset is not available.
There is no validation between purchase cost on Purchase Invoice and the Gross Purchase Price for the same asset created in the system separately.
Similarly, while selling the asset; there is no connection between the asset being sold and the invoice. However, the system just creates a reference in the Sales Invoice of the asset and only the amount is shown in the ledger (no linkage for the asset at all).
Now coming to the depreciation, for instance if an asset is bought and scheduled to depreciate on a yearly basis for the next 5 years; if the same asset is sold after 2.5 years of its purchase, the system only books depreciation of 2 years where the actual depreciation should have been for 2.5 years.
Similarly, if the asset is purchased in the mid year (July) and scheduled to depreciate on a yearly basis at the end of the year (31st Dec) for the next 5 years; the system does not accumulate the first 6 months (0.5 years) instead books the first depreciation (12 months) after 1.5 years.