My Oracle Support Banner

Gain Loss Amount is Calculated Incorrectly When Retiring An Impaired Asset (Doc ID 1390604.1)

Last updated on AUGUST 27, 2018

Applies to:

Oracle Assets - Version 11.5.10.2 to 12.1.3 [Release 11.5 to 12.1]
Information in this document applies to any platform.

Symptoms

The gain loss amount is incorrect when retiring an impaired asset.  The impairment reserve is not reflected in the amount when retiring.

Example
-----------------------
1.  Add an asset *** 2010/09
Cost : 776921
YTD Depreciation : 0
Accumulated Depreciation : 407667
Date in Service : 20-AUG-2008 20-08-2008
Method : STL (Life in Months : 72)
Salvage Value : 0 (0 %)
Limit Amount : 0 (Amount)

2.  Overrides depreciation:7856 from 2010/09 to 2011/07.

3.  Overrides depreciation:7690 in 2011/08.

4.  Impairment *** 2011/08
Impairment Date : 20-AUG-2011
Impairment Loss : 275147

5.  Retirement **** 2011/11
Retire Date : 01-NOV-2011
Cost Retired : 776,921
Proceeds of Sale : 0
Retirement Convention : SKA_CONV04 ** Next Month Convention

6.  Check the reserve.
Accumulated Depreciation : 501773
Impairment Reserve : 275147

7.  Run Calculate Gains and Losses.
8.  Check the Retirement on Asset Workbench.

Cost Retired : 776,921
Proceeds of Sale : 0
Cost of Removal : 0
Gain/Loss Amount : -275,148 <- Should be -1. *

* Cost - Accumulated Depreciation - Impairment Reserve
= 776921 - 501773 - 275147 = 1.

9.  Check the Transaction Detail of FULL RETIREMENT transaction on Transaction History

Cost Retired : 776,921
Proceeds of Sale : 0
Cost of Removal : 0
Gain/Loss Amount : -275,148 <- Should be -1

 

Assets should calculate with this formula:

Gain/Loss = [Proceeds of Sale] - [Cost of Removal] - [Net Book Value Retired] + [Revaluation Reserve Retired Retirement] * [Net Book Value Retired] = [Cost] - [Reserve Retired] - [Impairment Reserve Retired]

Changes

 

Cause

To view full details, sign in with your My Oracle Support account.

Don't have a My Oracle Support account? Click to get started!


My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.