openerp-expert-accounting team mailing list archive

[Felix Nyilu <900790@xxxxxxxxxxxxxxxxxx>]

Hi Ferdinand and Amit:

There are different methods of depreciation that are relevant to
different scenarios. Let me highlight two scenarios here ...and I hope
they apply to your respective countries as they do in the United States:

Tax Purposes:
Depreciation starts when the asset is put into service, not when purchased. Some companies purchase and put those assets into service right away and therefore depreciation starts right away. The depreciation method for tax (the most common in the US) is MACRS - Double Declining Depreciation Method.

Internal (Also referred to as Books):
For this purpose, depreciation starts from the purchase date. Depreciation method used is straight line method.

I hope this helps.

Felix

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Accounting Experts, which is subscribed to the bug report.
https://bugs.launchpad.net/bugs/900790

Title:
  account asset - depreciation starts with usage

Status in OpenERP Addons (modules):
  Opinion

Bug description:
  
  quote from
  http://www.ehow.com/info_8413513_depreciation-start.html

  If you buy a car then depreciation starts the moment you drive it off
  the lot. For business purposes, however, depreciation starts when an
  item is placed into service. In order to claim a tax deduction, the
  item must officially start usage before the end of the tax year.

  hence we need an optional "start usage date" which is used instead of
  purchase date if entered.

  the purchase date must be taken from the invoice - invoice-date (mandatory)
  it will almost never be 
  'purchase_date': lambda obj, cr, uid, context: time.strftime('%Y-%m-%d'),
  this is a source of errors,especially if the invoice arrives in the month after issued from the supplier.

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