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Depreciation Calculated in First Period for FLAT Rate Assets with BEGINNING PERIOD as Basis Rule (Doc ID 3022943.1)

Last updated on MAY 28, 2024

Applies to:

Oracle Fusion Assets Cloud Service - Version 11.13.24.01.0 and later
Information in this document applies to any platform.

Symptoms

Depreciation is calculated in the first period for FLAT rate assets with BEGINNING PERIOD as basis rule.

As documented in "How Are Depreciation Amounts Calculated Using Depreciable Basis 'Beginning Period Balance'? (Doc ID 1174444.1)"

"Beginning Period Balance" basis can be used in situations where the business does not want to account any depreciation amount in the period of addition.
This basis is available both with flat and formula method and with the calculation basis of both Cost and NBV. The formula below is used to calculate depreciation when this basis rule is used.

Current Period Depreciation Expense for Beginning Period Balance = (Asset Balance at Beginning of Period *Annual Depreciation Rate)/ Periods Per Year

Cause

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In this Document
Symptoms
Cause
Solution
References


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