Incorrect Extended Depreciation Values are Calculated for Multi-Distributed Assets in What-If Analysis (Doc ID 1582601.1)

Last updated on AUGUST 25, 2020

Applies to:

Symptoms

 The What-If Depreciation Report shows that incorrect extended depreciation values are calculated for multi-distributed assets.

EXAMPLE:

 1. Addition ***** 2013-03(MAR-12)
 ===================================
 Book                             :  FA_BOOK
 Asset Number                     :  FA_BOOK_01
 Cost                             :  100000
 YTD depreciation amount          :      0
 Accumulated depreciation amount  :      0
 DPIS                             :  01-APR-2006
 Depren method                    :  JP-STL 3YR
 Salvage value                    :  10%
 Depreciation limit amount        :  95%


 2. Transfer ***** 2013-04(APR-13)
 ===================================
  Unit Charge  Units  Expense Account       Location
  -----------  -----  --------------------  --------
  -1               1  10.100.10.E1011.0000  13.13103
  .5              .5  10.100.10.E1000.0000  13.13103
  .5              .5  10.100.10.E1005.0000  13.13103


 3. What-If Analysis ***** 2013-04(APR-13)
  ===================================
  Book                             :  FA_BOOK
  Currency                         :  JPY
  Start Period                     :  MAR-12
  Number of Periods                :  10

  Asset Number                     :  FA_BOOK_01
  Analyze Fully Reserved Assets    :  Check
  Calculate Extended Depreciation  :  Check


   What-If Depreciation Report
   ============================
   Period   Fiscal  Expense                                     New
   Name     Year    Account           Cost Depreciation Depreciation
   -------- ------- ------------- -------- ------------ ------------
   MAR-12   2012    10.100.10.E10  100,000       95,000       95,000
   APR-13   2013    10.100.10.E10   50,000           83           83 <- Incorrect
   APR-13   2013    10.100.10.E10   50,000           83           83 <- Incorrect
   MAY-13   2013    10.100.10.E10   50,000           83           83 <- Incorrect
   MAY-13   2013    10.100.10.E10   50,000           83           83 <- Incorrect

Extended Depreciation Expense should be 42 (Round) or 41 (Down) because this assets have been made a separation each 0.5 units.
However the What-If Depreciation Report shows Extended Depreciation Expense as 83.

<< Estimated Extended Depreciation Expense>>
 1.0 units = ( 5,000 JPY - 1 JPY ) / 5YR      =  83.31666666666 JPY
 0.5 units =  83.31666666666 JPY  * 0.5 unit  =  41.65833333333 JPY

Cause

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