E1: 12: User Defined Depreciation (R12855) Incorrectly Calculates Year-to-Date and Adjustments Balances for a Fully Depreciated Asset If Processing Option 8 On Process Tab is set to 1 (Doc ID 2891938.1)

Last updated on NOVEMBER 10, 2023

Applies to:

Symptoms

The depreciation method that is used is set up as follows:

• Initial term apportionment is set to A
• Compute Direction is set to I (Inception-to-Date)
• Life Period is set to 36 months
• The ‘Conventions’ tab shows a blank in the 'Allows Over Depreciation' field, meaning that over depreciation is NOT allowed.

An asset was fully depreciated as of 2017.

When User Defined Depreciation (R12855) is run for this asset in preliminary mode and processing option 8 on the Process tab is set to 1 (one), the UBE incorrectly calculates balances for this asset in the Year-to-Date and Adjustments columns.

When this processing option is set to blank, no balances are calculated in these columns for this asset.

STEPS TO REPRODUCE

1. P12851: set up a depreciation method as follows:
   1. Initial term apportionment: A
   2. Compute Direction: I (Inception-to-Date)
   3. Life Period: 36 months
   4. Conventions tab should show a blank in the 'Allows Over Depreciation' field, meaning that over depreciation is NOT allowed.
   5. Use these formulas: 102, 103, 501
2. P1204: create an asset with a start date in 2014
3. P12130: set up a beginning balance for the asset
4. Depreciate it every month so that it is fully depreciated in 2017
5. Run R12855 for it in proof mode with PO 8 on the Process tab set to 1 for July 2022
6. Run R12855 for it in proof mode with PO 8 on the Process tab set to blank for July 2022

DESIRED OUTCOME

R12855 should not calculate balances in the Year-to-Date and Adjustments columns for a fully depreciated asset if the depreciation method used for this asset does not allow over-depreciation.

Changes

Cause

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