erp_be/src/modules/assets/assets.depreciation.js

const round4 = (value) => Math.round(Number(value || 0) * 10000) / 10000;

const DEPRECIATION_METHOD_OPTIONS = [
  {
    value: 'SLM',
    label: 'Straight Line Method (SLM)',
    description:
      'Equal depreciation each year on original cost. Rate auto-calculated from useful life when not provided.',
  },
  {
    value: 'WDV',
    label: 'Written Down Value (WDV)',
    description:
      'Depreciation on reducing book value. Rate auto-calculated from cost, salvage and useful life when not provided.',
  },
  {
    value: 'CUSTOM',
    label: 'Custom',
    description: 'Custom method. Depreciation rate must be entered manually.',
  },
];

/** Map legacy OTHER → CUSTOM for reads/writes. */
const normalizeDepreciationMethod = (method) => {
  if (method === 'OTHER') return 'CUSTOM';
  return method || null;
};

/**
 * Resolve salvage amount and % from either input.
 * - If only salvage_percentage → derive salvage_value from purchase_cost
 * - If only salvage_value → derive salvage_percentage
 * - If both → prefer salvage_percentage and recompute salvage_value
 * - If neither → both 0
 */
const resolveSalvageFields = ({
  purchase_cost: cost,
  salvage_value: salvageAmount,
  salvage_percentage: salvagePct,
} = {}) => {
  const purchaseCost = Number(cost || 0);
  const hasPct = salvagePct !== undefined && salvagePct !== null && salvagePct !== '';
  const hasAmount =
    salvageAmount !== undefined && salvageAmount !== null && salvageAmount !== '';

  let salvagePercentage = 0;
  let salvageValue = 0;

  if (hasPct && !hasAmount) {
    salvagePercentage = round4(Math.min(Math.max(Number(salvagePct), 0), 100));
    salvageValue = purchaseCost > 0 ? round4((purchaseCost * salvagePercentage) / 100) : 0;
  } else if (hasAmount && !hasPct) {
    salvageValue = round4(Math.max(Number(salvageAmount), 0));
    salvagePercentage =
      purchaseCost > 0 ? round4(Math.min((salvageValue / purchaseCost) * 100, 100)) : 0;
  } else if (hasPct && hasAmount) {
    // Both sent: percentage is source of truth (FE amount/% toggle)
    salvagePercentage = round4(Math.min(Math.max(Number(salvagePct), 0), 100));
    salvageValue = purchaseCost > 0 ? round4((purchaseCost * salvagePercentage) / 100) : 0;
  }

  return {
    salvage_value: salvageValue,
    salvage_percentage: salvagePercentage,
  };
};

const yearsElapsed = (purchaseDate, asOfDate = new Date()) => {
  if (!purchaseDate) return 0;
  const start = new Date(purchaseDate);
  const end = new Date(asOfDate);
  if (Number.isNaN(start.getTime()) || Number.isNaN(end.getTime()) || end < start) return 0;
  const ms = end.getTime() - start.getTime();
  return round4(ms / (365.25 * 24 * 60 * 60 * 1000));
};

const resolveDepreciationRate = ({
  method,
  depreciation_rate: rate,
  purchase_cost: cost,
  salvage_value: salvage,
  useful_life_years: lifeYears,
}) => {
  if (rate !== undefined && rate !== null && rate !== '') {
    return round4(rate);
  }

  const purchaseCost = Number(cost || 0);
  const salvageValue = Number(salvage || 0);
  const years = Number(lifeYears || 0);
  const normalizedMethod = normalizeDepreciationMethod(method);

  if (!normalizedMethod || normalizedMethod === 'CUSTOM' || years <= 0) return null;

  if (normalizedMethod === 'SLM') {
    if (purchaseCost <= 0) return round4(100 / years);
    const depreciable = Math.max(purchaseCost - salvageValue, 0);
    return round4((depreciable / purchaseCost / years) * 100);
  }

  if (normalizedMethod === 'WDV') {
    if (purchaseCost <= 0 || salvageValue <= 0 || salvageValue >= purchaseCost) return null;
    return round4((1 - (salvageValue / purchaseCost) ** (1 / years)) * 100);
  }

  return null;
};

const calculateDepreciation = ({
  depreciation_method: method,
  depreciation_rate: rateInput,
  purchase_cost: cost,
  salvage_value: salvage,
  salvage_percentage: salvagePct,
  useful_life_years: lifeYears,
  commencement_date: commencementDate,
  purchase_date: purchaseDate,
  as_of_date: asOfDate,
} = {}) => {
  const purchaseCost = Number(cost || 0);
  const { salvage_value: salvageValue, salvage_percentage: salvagePercentage } =
    resolveSalvageFields({
      purchase_cost: purchaseCost,
      salvage_value: salvage,
      salvage_percentage: salvagePct,
    });

  const normalizedMethod = normalizeDepreciationMethod(method);
  const rate = resolveDepreciationRate({
    method: normalizedMethod,
    depreciation_rate: rateInput,
    purchase_cost: purchaseCost,
    salvage_value: salvageValue,
    useful_life_years: lifeYears,
  });

  // Depreciation starts from the asset's usage start date (commencement_date).
  // Fall back to purchase_date for assets created before this field existed.
  const depreciationStartDate = commencementDate || purchaseDate;
  const elapsed = yearsElapsed(depreciationStartDate, asOfDate || new Date());
  const cappedYears =
    lifeYears && Number(lifeYears) > 0 ? Math.min(elapsed, Number(lifeYears)) : elapsed;

  let annualDepreciation = 0;
  let accumulatedDepreciation = 0;
  let bookValue = purchaseCost;

  if (normalizedMethod === 'SLM' && rate !== null) {
    annualDepreciation = round4((purchaseCost * rate) / 100);
    const maxDepreciable = Math.max(purchaseCost - salvageValue, 0);
    accumulatedDepreciation = round4(Math.min(annualDepreciation * cappedYears, maxDepreciable));
    bookValue = round4(Math.max(purchaseCost - accumulatedDepreciation, salvageValue));
  } else if (normalizedMethod === 'WDV' && rate !== null) {
    annualDepreciation = round4((purchaseCost * rate) / 100);
    bookValue = purchaseCost;
    const fullYears = Math.floor(cappedYears);
    const fraction = cappedYears - fullYears;

    for (let i = 0; i < fullYears; i += 1) {
      const yearDep = round4((bookValue * rate) / 100);
      bookValue = round4(Math.max(bookValue - yearDep, salvageValue));
      accumulatedDepreciation = round4(purchaseCost - bookValue);
      if (bookValue <= salvageValue) break;
    }

    if (fraction > 0 && bookValue > salvageValue) {
      const yearDep = round4(((bookValue * rate) / 100) * fraction);
      bookValue = round4(Math.max(bookValue - yearDep, salvageValue));
      accumulatedDepreciation = round4(purchaseCost - bookValue);
    }

    annualDepreciation = round4((bookValue * rate) / 100);
  } else if (normalizedMethod === 'CUSTOM' && rate !== null) {
    annualDepreciation = round4((purchaseCost * rate) / 100);
    const maxDepreciable = Math.max(purchaseCost - salvageValue, 0);
    accumulatedDepreciation = round4(Math.min(annualDepreciation * cappedYears, maxDepreciable));
    bookValue = round4(Math.max(purchaseCost - accumulatedDepreciation, salvageValue));
  }

  return {
    depreciation_method: normalizedMethod,
    depreciation_rate: rate,
    annual_depreciation: annualDepreciation,
    accumulated_depreciation: accumulatedDepreciation,
    book_value: bookValue,
    years_elapsed: elapsed,
    purchase_cost: purchaseCost,
    salvage_value: salvageValue,
    salvage_percentage: salvagePercentage,
    useful_life_years: lifeYears ?? null,
    depreciation_start_date: depreciationStartDate || null,
  };
};

module.exports = {
  DEPRECIATION_METHOD_OPTIONS,
  resolveDepreciationRate,
  resolveSalvageFields,
  normalizeDepreciationMethod,
  calculateDepreciation,
  yearsElapsed,
  round4,
};