Is it Possible to Over-Depreciate an Asset?

(Doc ID 2243799.1)

Last updated on JULY 10, 2017

Applies to:

Oracle Fusion Assets Cloud Service - Version 11.1.11.1.0 and later
Oracle Fusion Assets - Version 11.1.11.1.0 and later
Information in this document applies to any platform.

Goal

 You would like to depreciate an asset for total amount greater than the asset recoverable cost.

Example:

Asset cost:               1000
Depreciation year 1: 1200
Depreciation year 1: 1200
Depreciation year 1: 1200
Depreciation year 1: 1200
Depreciation year 1: 1200

Total depreciation reserve = 6000.
 

Is it possible to over-depreciate an asset?

Solution

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