Hello my client requires me to implement a fixed asset subledger. His needs are very basic [I should implment asset #, asset price, year of purchase, depreciation mode, calculations] but I can propose thousands of different implementations with these. Are there any rules to consider in order to reduce the impact of potential mistakes ?
E.g. I can implement the following logic : - an asset is created in the DB. This generates 1 line in the Asset table : Year of purchase = 2010, Cost : 100, depreciation : linear over 5 years, already depreciated : 0 - end of year closing will include a calculation to determine the amount to be depreciated (quite long calculation, since depreciation logic can be tough) - as a result, the asset line will be replaced by the following : Year of purchase = 2010, Cost : 100, depreciation : linear over 5 years, already depreciated : 20
Or can implement the following logic : - an asset is created in the DB. Cost : 100, depreciation : linear over 5 years. This generates 1 line in the Asset table - this also generates 5 accounting lines [one per year] in a specific table [asset accounting], such as Year 1 : cost 20; Year 2 : cost 20,... - the line concerning the present year is accounted for as a cost in the P&L, other lines stays there until next year closing - at year N+1, the year closing ops will include the search in the asset table for amounts to be acconted for in the year.
Thanks
