WDV method of Depreciation

JayRam · September 5, 2018, 7:48am

Please let me know if I am missing something. WDV the formula is (1-(V/S)^(1/N)),

where this value represents the percentage of depreciation every year on the Net Block, V is value of Assets, S is estimated savage value after N depreciations and N is the Number of Depreciations.

So the percentage is something that is derived, right?

However when I try this, ERPNext is forcing me to enter a Salvage Value higher than a particular value. Why? I should be able to decide what the Salvage Value of the asset should be, right? Why is ERPNext forcing my hand on this?

Am I missing something? Or is my understanding all messed up?

Thanks

Jay

Pawan · September 5, 2018, 8:55am

Are you trying in v11? If yes, then I think in WDV the calculated value of the asset would never become zero, hence I think the system asks for the input and it should match with the remaining value being calculated by the system otherwise the default calculated method would not work properly. The other option is to use ‘manual’ method, in case you are not satisfied with the system’s calculation.

JayRam · September 5, 2018, 9:31am

Yes, ver 11 develop.

Cool thanks!

Jay

FinForce · January 1, 2019, 9:43am

@Pawan, Am trying to work on Asset Category and Depreciation schedule calculation. The schedule calculated in the ‘SLM’ is not right. And if I select ‘Manual’ method the Depreciation schedule created on Save is not editable.

Could you guide on how to resolve it?

Also, I tried looking for PR merged from v10 to v11.0.3-beta.30 () (staging) making the SLM not working anymore. I could find a track of PR merged if you could help there as well.

Pawan · January 1, 2019, 10:20am

Check on version:

ERPNext: v11.0.3-beta.32 () (staging)
Frappe Framework: v11.0.3-beta.46 () (staging)

Also, you can login to beta.erpnext.com and search for Asset and check the list. It has many examples of calculation of SLM

FinForce · January 1, 2019, 10:41am

it’s not working on beta.erpnext also. Asset Name: Laptop-S.No-H2NOC

I could not test the new Asset now, as it is not allowing me to create New Item on demo

Pawan · January 1, 2019, 11:02am

The calculation is day wise and is based on number of days in the month so it is correct. You may want to check your settings

FinForce · January 1, 2019, 1:17pm

Setting seems to be confusing to me. Could you help me understand -

Total Number of Depreciations
Frequency of Depreciation (Months)

my scenario is: Computer of Rs 100,000 to be Depreciated in 3 years on SLM method, with depreciation entry being posted every month.

If I select, total nos of depreciation = 36 and Frequency = 1, this is what I get:

Pawan · January 2, 2019, 10:47am

I cannot replicate on my account, maybe you are missing some configuration. If you can provide access I could check or maybe you can check with support@erpnext.com