R12 Clarification on Depreciation Expense Account Default on Reclass (Doc ID 1424014.1)

Last updated on APRIL 07, 2024

Applies to:

Symptoms

When reclassifying, if the old category and new category have the same depreciation expense account, the depreciation expense account is not defaulted from the new category.

But the manual says the following:

Oracle® Assets User Guide Release 12.1 Part No. E13586-04, pg 3-2
Note: When you reclassify an asset in a period after the period you entered it, Oracle Assets creates journal entries to transfer the cost and accumulated depreciation to the asset cost and accumulated depreciation accounts of the new asset category. This occurs when you create journal entries for your general ledger.  Oracle Assets also changes the depreciation expense account to the default depreciation expense account for the new category, but does not adjust for prior period expenses.   

Example
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(A) Create categories as follows:
  1)  Name : TEST.1
    Book                 : TEST_BOOK
    Depreciation Expense : 00.00.00.XXX1.00.00
  2)  Name : TEST.2
    Book                 : TEST_BOOK
    Depreciation Expense : 00.00.00.XXX2.00.00
(B) Add assets with the following:
  1)  Asset Number : TESTASSET-01
    Book                 : TEST_BOOK
    Category             : TEST.1
    Expense Account      : 00.00.00.XXX1.00.00
  2)  Asset Number : TESTASSET-02
    Book                 : TEST_BOOK
    Category             : TEST.1
    Expense Account      : 00.00.00.XXX1.00.00
(C)  Change the Category of the asset : TESTASSET-01 from TEST.1 -> TEST.2 .
(D)  Check the Expense Account of the asset : TESTASSET-01.
  -> Confirm changing the Expense Account to 00.00.00.XXX1.00.00
(E)  Change the Depreciation Expense of Category : TEST.1 to 00.00.00.XXX2.00.00.
  -> Note that Category : TEST.1 and Category : TEST.2 have the same Expense Account.
(F)  Change the Category of the asset : TESTASSET-02 from TEST.1 -> TEST.2.
(G)  Check the Expense Account of the asset : TESTASSET-02.
  -> Confirm the Expense Account is still 00.00.00.XXX1.00.00.

Cause