Asset Shift Allocation
The Asset Shift Allocation functionality in ERPNext enables organizations to adjust the shift allocation of an asset—especially those with shift-based depreciation enabled—for a certain duration. During mid-life change of shifts, the system redistributes the existing depreciation entries automatically so that the data remains accurate and the number of depreciation entries is preserved.
Let's go through an example to know how it works.
Suppose an asset has Shift Depreciation activated, Depreciation Method specified as Straight Line, a Total Number of Depreciations of 12, and a Frequency of Depreciation specified as 1 month. The first five months of depreciation entries were all made with the default shift specified as Single (i.e., a shift factor of 1.0).
Below is a screenshot of the shift factors specified in the Asset Shift Factor master:
Then go to the Asset Shift Allocation doctype, type in the name of the asset and save the document. Saved, ERPNext will automatically retrieve the existing depreciation schedule of the asset so that you can modify shifts for any particular period onwards. For example, if you modify the shift in the 6th month (row) to Triple, the system recalculates the remaining shifts proportionately.
When you save, you will note that the last depreciation row is automatically deleted. The reason is that this has to be done so that the Total Number of Depreciations still matches with the original setup. If the 6th row is modified to Double, the system will make the last row's shift Half, redeploying the remaining depreciation value accordingly.
Prior to submission, good practice is to double-check the revised depreciation schedule for accuracy and alignment with internal accounting policy. Having checked, click Submit, and ERPNext will recreate a new Depreciation Schedule based on the new shift allocation.
This is highly beneficial for companies where equipment use fluctuates based on production load or operating shifts so that depreciation accurately follows actual asset use, which facilitates more realistic financial reporting.