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https://issues.apache.org/jira/browse/OFBIZ-1586?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Jacopo Cappellato closed OFBIZ-1586.
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Resolution: Later
> Implement more fixed asset depreciation (methods)
> --------------------------------------------------
>
> Key: OFBIZ-1586
> URL: https://issues.apache.org/jira/browse/OFBIZ-1586
> Project: OFBiz
> Issue Type: Improvement
> Components: accounting
> Affects Versions: Trunk
> Reporter: Santosh Malviya
> Priority: Minor
>
> There are more 'depreciation methods' which are :-
> (1) Activity Depreciation :- Activity depreciation methods are not based on
> time, but on a level of activity. This could be miles driven for a vehicle,
> or a cycle count for a machine. When the asset is acquired, we estimate its
> life in terms of this level of activity. Assume the vehicle above is
> estimated to go 50,000 miles in its lifetime. We calculate a per-mile
> depreciation rate: ($17,000 cost - $2,000 salvage) / 50,000 miles = $0.30 per
> mile. Each year, we then calculate the depreciation expense by multiplying
> the rate by the actual activity level.
> Formula -
> depreciation = (purchase cost - salvage value) * (current reading - previous
> reading) / expected life in distance unit
> where
> distance unit may be miles, kilometers, etc....
> and current reading and previous reading are reading of the distance meter or
> distance count meter.
> (2) Unit of Production Depreciation :- Units of production depreciation is
> used for assets for which it is better to measure the life in terms of the
> quantity of the resource you expect to extract from them, such as mines or
> wells. For example, the production capacity of an oil well is the number of
> barrels of oil you expect to extract from it. For machinery or equipment, you
> measure the production capacity in terms of the expected total hours of use.
> You can enter the production capacity as the expected total production or
> expected total use. First, you enter the units of production depreciation
> method, production capacity, and unit of measure. You then enter the
> production each period to depreciate the asset according to actual use that
> period.
> Formula -
> depreciation = (purchase cost - salvage value) * (Production for the Period )
> / expected production capacity
> where
> Production for the Period = current production count - previous production
> count
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