The difficulty with automatic depreciation schedules is that there are many different ways of calculating depreciation, depending on your tax jurisdiction. Your method only allows for straight-line depreciation without revaluation. It is very common to maintain depreciation schedules separately from accounting records.
Hi @tut,
First of all this is only an idea open for discussion. As far as i know the straight-line deprecation is the most common one used. The method i mentioned only creates the deprecation-lines that otherwise all have to be made separately. So this way you can always adjust, remove or add deprecation-lines exactly the way it is now.
This is hardly true. In many locations, its use is precluded by law, regulation, or mandated accounting standards. When other methods are considered, I think it fair to say straight-line depreciation is used in a minority of cases.
In Holland we use mainly 3 methods (i don’t now in other country’s),
Fixed percentage from the purchase value (lineair)
Fixed percentage from the book value
Sum of year digits
These are not difficult to calculate and could be selected in, for instance, a selection-box
Are there additional in your country? Maybe we can try to find the most commonly used and see if it’s possible to add such function to the program (off course if @lubos wants to do that).
A 30-second internet search turned up at least 8 other major types of depreciation. Plus you must consider the many countries where IASB rules are followed requiring periodic revaluation and, therefore, recalculation of depreciation schedules. The developer has previously indicated he is not inclined to go the route of automatic calculation.
Another reason is that future, scheduled depreciation amounts are not financial transactions that can be entered. So you are asking that Manager merely serve as a calculation and storage location rather than an accounting program. If you want to do that, calculate your depreciation schedule in a spreadsheet, where you will have many options, and attach the file in a folder. See Organize attachments with folders | Manager.
Don’t get me wrong but i’m not asking for anything i just want to make suggestions to improve the (already great) software.
That said, how do you think of my primary suggestion to add a “Copy to new deprecation” button in the Fixed Assets menu just like is done for instance the invoice menu.
It would be helpful to have depreciation logic in Manager itself, selectable in much the same way that we can choose built-in tax rates (per country).
But tax rates are far simpler than depreciation logic would be, so it would be a large task just to add support for a few countries. Too much to expect lubos to implement alone.
Perhaps some limited way to create custom depreciation logic, in the same way that we can create custom tax rates?
I assume that such an implementation for depreciation would be a significant new feature. And significant new features usually need significant resources (time, effort) to implement.
I’m not complete sure what you mean. But under Fixed Assets - Accumulated depreciation instead of making a new deprecation entry the possibility to clone an existing deprecation line.
The button could be added in future but I don’t think it will have much value (other than for consistency reasons).
Better feature would be implement some sort of generator which can allow you to generate these depreciation entries automatically across all fixed assets.