R12.1 FADEPR Incorrect Depreciation Calculation After Amortized Adjustment (Doc ID 1340938.1)

Last updated on JULY 20, 2017

Applies to:

Oracle Assets - Version 12.0.6 to 12.1.3 [Release 12 to 12.1]
Information in this document applies to any platform.

FADEPR - Depreciation Program

Symptoms

The system is calculating incorrect depreciation expense amount after an amortized adjustment.

Sample Calculations:
Cost - 25000
Salvage Value - 1
DPIS - 13-AUG-2008
Depreciation rate - 16.21 % with Cost basis rule

Asset was added in Apr-10 period with a depreciation reserve of 6753.38.  In Jan-11 the depreciation rate was changed from 16.21% to 33.33%.  In Mar-11 the rate was changed back to 16.21%.  Both of these transactions were expensed.

In Mar-11 the depreciation method was changed to a flat method with the depreciation % at 73.146293%.  This transaction was amortized with an amortization start date of 01-Apr-2010.

The calculation should be:

Per day depreciation as per old rate 16.21% = 24999*16.21% /365 = 11.10229562

# of days from 13-Aug-2008 to 01-Apr-2010 = 595
Total depreciation reserve as of 01-Apr-2010 = 595 days * 11.10229562 = 6605.865892

Adjusted cost on 01-Apr-2010 = 24999 - 6605.865892 = 18393.13411

Per day depreciation for the new rate of 73.146293% = 18393.13411 *73.146293% /365 = 36.85998841

Total depreciation amount from 01-Apr-2010 to 31-Mar-2011 = 36.85998841 * 366 days = 13490.75576 and total reserve as of 31-Mar- 2011 = 6605.865892 + 13490.75576 = 20096.62165.  Adjusted cost as of 31-Mar-2011 = 24999-20096.62165 = 4902.37835

However, the system was calculating the adjusted cost of 3127 which is not correct.

Cause

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