R12.1 Impairment is Allowed on Asset with Pending Retirement or Reinstatement
Last updated on FEBRUARY 28, 2018
Applies to:
Oracle Assets - Version 12.1 and laterInformation 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
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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
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