Is There A Way To Automatically Extend The Asset's Life When Additional Cost Is Added?
(Doc ID 2549970.1)
Last updated on FEBRUARY 04, 2021
Applies to:Oracle Fusion Assets Cloud Service - Version 11.13.19.01.0 and later
Information in this document applies to any platform.
The ERP should allow to prolong the life of the asset when the cost of the asset increases.
The ERP must divide the amount of the adjustment between the amortization amount. The result of this operation will be the amount of useful life periods that must be added to the life of the asset.
It is intended to increase the cost of the asset to increase the net book value.
Below is a scenario:
Asset is created with Life = 60
Cost = $60,000
Monthly depreciation = $1,000 ($60,000 / 60 = $1,000)
Adjust cost by $10,000 ($60,000 + $10,000 = $70,000 new asset cost)
New Life = 70 periods ([$10,000/ $1,000 = 10] + 60 periods)
New Monthly Depreciation = $1,000 ($70,000 / 70 = $1,000)
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