System and method for capital depreciation simulation

• US 20040172318A1
• Filed: 02/27/2003
• Published: 09/02/2004
• Est. Priority Date: 02/27/2003
• Status: Abandoned Application

• Current Assignee: Taiwan Semiconductor Manufacturing Company Limited
• Original Assignee: Taiwan Semiconductor Manufacturing Company Limited
• Inventors: Shen, Fong
• Application Number:
  US10/375,598
• Publication Number:
  US 20040172318A1
• Time in Patent Office: Days
• US Class Current: 705/7
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

System and method for a dynamic multiple condition/multiple version simulation model for fixed asset depreciation. The simulation model may be used in or interfaced directly with the enterprise resource planning system, and the data may be manipulated directly in the enterprise resource planning system database itself. The system and method increase the accuracy of capital depreciation forecasts, shorten the capital depreciation forecast cycle time, and reduce manpower for the forecast process.

Claims

1. A method of simulating fixed asset depreciation in an enterprise resource planning system, said method comprising:

storing a first set of condition data for a first fixed asset type in a database of said enterprise resource planning system;

storing a second set of condition data for said first fixed asset type in said database, wherein said second set of condition data is different from said first set;

storing a third set of condition data for a second fixed asset type in said database;

combining said first and third sets of condition data into a first plan version;

executing a first depreciation simulation using said first plan version; and

compiling results from said first depreciation simulation into a simulation report.

2. The method of claim 1, further comprising:

storing a fourth set of condition data for a third fixed asset type in said database;

storing a fifth set of condition data for a fourth fixed asset type in said database; and

combining said fourth and fifth sets of condition data into said first plan version,

wherein said first asset type is physical fixed assets, said second asset type is open capital purchase orders, said third asset type is open capital purchase requests, and said fourth asset type is open capital goods and invoices received.

3. The method of claim 2, wherein multiple sets of condition data for each of said first, second, third and fourth fixed asset types are stored in said database.

4. The method of claim 3, further comprising generating multiple plan versions, each one of said multiple plan versions containing a different combination of said first, second, third and fourth asset type condition data.

5. The method of claim 1, further comprising:

combining said second and third sets of condition data into a second plan version;

executing a second depreciation simulation using said second plan version; and

compiling results from said second depreciation simulation into a simulation report.

6. The method of claim 5, further comprising generating a comparison report comparing said first and second depreciation simulations.

7. The method of claim 1, further comprising modifying parameter values in said first set of condition data.

8. The method of claim 1, further comprising modifying said first plan version to contain said second set of condition data instead of said first set of condition data.

9. The method of claim 1, wherein said sets of condition data contain information related to asset transfers in and out of cost centers, key machine code transfers, and asset retirement.

10. A system for simulating fixed asset depreciation, said system comprising:

an enterprise resource planning system database containing information for fixed assets of an enterprise, said fixed assets grouped into multiple fixed asset types;

multiple sets of fixed asset conditions stored in said database, each one of said sets comprising depreciation related parameters for one of said multiple fixed asset types;

a multiple condition control module, said condition control module for modifying said parameters in said multiple sets of fixed asset conditions;

a multiple plan version control module, said version control module for generating multiple plan versions, each one of said plan versions containing one of said sets of conditions for each of said fixed asset types; and

a simulation engine, said engine for executing depreciation aggregation simulation for a selected one of said plan versions.

11. The system of claim 10, wherein said simulation engine comprises:

a depreciation rule control module;

a depreciation aggregation simulation module; and

a simulation report module.

12. The system of claim 11, wherein said depreciation rule control module provides adjustable depreciation rules for simulations executed by said depreciation aggregation simulation module, and wherein said depreciation simulation aggregation module provides simulation results to said simulation report module for generating simulation reports.

13. The system of claim 12, wherein said simulation report module further generates a comparison report comparing depreciation simulations for different said plan versions.

14. The system of claim 10, wherein said multiple fixed asset types comprise physical fixed assets, open capital purchase orders, open capital purchase requests, and open capital goods and invoices received.

15. The system claim 10, wherein said multiple plan versions each comprise a different set of fixed asset conditions.

16. The system of claim 10, wherein said depreciation related parameters comprise asset transfers in and out of cost centers, key machine code transfers, and asset retirement.

17. A computer-readable medium having computer code recorded thereon executable by a computer, said computer code comprising:

instructions for storing a first set of condition data for a first fixed asset type in an enterprise resource planning system database;

instructions for storing a second set of condition data for said first fixed asset type in said database, wherein said second set of condition data is different from said first set;

instructions for storing a third set of condition data for a second fixed asset type in said database;

instructions for combining said first and third sets of condition data into a first plan version;

instructions for executing a first depreciation simulation using said first plan version; and

instructions for compiling results from said first depreciation simulation into a simulation report.

18. The computer-readable medium of claim 17, further comprising:

instructions for storing a fourth set of condition data for a third fixed asset type in said database;

instructions for storing a fifth set of condition data for a fourth fixed asset type in said database; and

instructions for combining said fourth and fifth sets of condition data into said first plan version,

wherein said first asset type is physical fixed assets, said second asset type is open capital purchase orders, said third asset type is open capital purchase requests, and said fourth asset type is open capital goods and invoices received.

19. The computer-readable medium of claim 17, further comprising:

instructions for combining said second and third sets of condition data into a second plan version;

instructions for executing a second depreciation simulation using said second plan version; and

instructions for compiling results from said second depreciation simulation into a simulation report.

20. The computer-readable medium of claim 19, further comprising instructions for generating a comparison report comparing said first and second depreciation simulations.