Incorrect Depreciation Expense On Fully Reserved Asset After Partial Cost Retirement Using Following Month Prorate (Doc ID 1563135.1)

Last updated on MARCH 06, 2018

Applies to:

Symptoms

After completing an amortized adjustment and partial cost retirement for a fully reserved asset, negative depreciation expense is calculated.

Note:  The partial cost retirement uses a following month convention.


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1. Addition ***** 2013-03 (MAR-13)
 =========================================================
   Book                             :  FA_BOOK-A
   Asset Number                     :  FA_BOOK-A-01
   Cost                             :  10,000
   YTD depreciation amount          :   9,999
   Accumulated depreciation amount  :   9,999
   DPIS                             :  2012-04-01
   Depren method                    :  JP-250DB 5
   Salvage value                    :  0 JPY ( Amount )
   Depreciation limit amount        :  1 JPY ( Amount )
 
2. Adjustment ***** 2013-04 (APR-13)
 =========================================================  
   Depren method                    :  JP-250DB 5 => STL
   Life Years                       :  5 YR
   Amortize Adjustment              :  Check
   Amortization Start Date          :  2013-04-30
 
 3. PARTIAL RETIREMENT ***** 2013-04 (APR-13)
 =========================================================
   Book                             :  FA_BOOK-A
   Asset Number                     :  FA_BOOK-A-01
   Retire Date                      :  2013-04-01
   Cost Retired                     :  9,900
   Retirement Convention            :  Following month convention
   
 4. Run Calculate Gains and Losses ***** 2013-04 (APR-13)
 =========================================================

 5. Run Depreciation without period close ***** 2013-04 (APR-13)
 =====================================================================
   FA_DEPRN_SUMMARY.DEPRN_AMOUNT = -99

Cause