R12.1 FADEPR Incorrect Depreciation Calculation After Amortized Adjustment
(Doc ID 1340938.1)
Last updated on FEBRUARY 09, 2019
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
The system is calculating incorrect depreciation expense amount after an amortized adjustment.
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.
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