R12.1 Impairment is Allowed on Asset with Pending Retirement or Reinstatement (Doc ID 1596928.1)

Last updated on MARCH 24, 2016

Applies to:

Oracle Assets - Version 12.1 and later
Information in this document applies to any platform.
FARET - Calculate Gain/Loss

Symptoms

Problem
-----------------------
Impairment is allowed on an asset which has pending retirement or reinstatement transaction.

During the same period add an asset, peform retirement and then register Impairment. 
When Calculate Gains and Losses isn't submitted before Impairment 
the IMPAIR_RESERVE amount (FA_ADJUSTMENTS.ADJ_TYPE=IMPAIR RESERVE) is not reflected in IMPAIRMENT_RESERVE of FA_DEPRN_SUMMARY.


Expected Behavior
-----------------------
Impairment is not allowed on a book which has pending retirement or reinstatement transaction.


Steps/Example
-----------------------
The issue can be reproduced at will with the following steps:

1. 2013/07 : Add an asset

 Cost                   : 5,200,000
 Date Placed in Service : 2013/07/01
 Method                 : JP-200DB 10
 Salvage Value          : 0
 YTD Depreciation       : 0
 Accumulated Depreciation : 0
 
2. 2013/07 : Partial Retirement
 
 Date Retired: 2013/07/31
 Cost Retired: 200,000
 
** POINT: Calculate Gains and Losses isn't submitted here.
 
3. 2013/07 : Register Impairment with preview mode
 
 Impairment Date: 2013/07/10
 Impairment Loss: 10,000
 
4. 2013/07 : Post Impairment
 
5. 2013/07 : Run Depreciation with period close
 
6. 2013/08 : Run Depreciation without period close
 
 
[Asset Trace]

FA_ADJUSTMENTS
 
TRX_HID  SOURCE      ADJ_TYPE         DC  ADJ_AMOUNT
-----------------------------------------------------
211207   ADDITION    COST CLEARING    CR  5200000
211207   ADDITION    COST             DR  5200000
212121   RETIREMENT  IMPAIR RESERVE   DR  385
212121   RETIREMENT  RESERVE          DR  8094
212121   RETIREMENT  EXPENSE          DR  4889
212121   RETIREMENT  COST             CR  200000
212121   RETIREMENT  PROCEEDS CLR     DR  200000
212121   RETIREMENT  PROCEEDS         CR  200000
212121   RETIREMENT  NBV RETIRED      DR  191521
213140   ADJUSTMENT  IMPAIR RESERVE   CR  10000
213140   ADJUSTMENT  IMPAIR EXPENSE   DR  10000
 
FA_DEPRN_SUMMARY
 
DEPRN_SOURCE_CODE  DEPRN_AMOUNT  YTD_DEPRN  DEPRN_RESERVE  IMPAIRMENT_RESERVE
-----------------------------------------------------------------------------
BOOKS              0             0          0              0
DEPRN              83333         83333      83333          10000
DEPRN              81778         165111     165111         10000

Cause

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 hundreds of Community platforms