A Negative Depreciation Amount Occurs After Adjusting Salvage Value of Impairment JP-STL XXYR Asset
(Doc ID 1982652.1)
Last updated on MARCH 14, 2023
Applies to:
Oracle Assets - Version 12.1.3 and laterInformation in this document applies to any platform.
Symptoms
After adjusting Salvage Value of JP-STL XXYR Asset which was posted Impairment, this asset becomes to depreciate a negative depreciation amount.
Current Behavior
A negative depreciation amount occurs because of a negative ADJUSTED_COST
Expected Behavior
Oracle Assets should not depreciate a negative depreciation amount.
Steps to Reproduce
1. 2013-10 *** Addition
Cost : 1000000
YTD depreciation : 45000
Accumulated depreciation : 585000
Date in Service : 01-APR-2005
Depreciation method : JP-STL 10YR
Salvage value : 10%
Depreciation limit amount : 95%
2. 2013-11 *** Impairment
Impairment Amount : 349998
ADJUSTED_COST
= COST - DEPRN_RESERVE - IMPAIRMENT_RESERVE - SALVAGE_VALUE
= 1000000 - 600000 - 349998 - 100000
= -49998
-> Getting a fully reserved and it's an expected behavior.
3. 2013-12 *** Adjusting SALVAGE VALUE
Cost : 1000000
YTD depreciation : 45000
Accumulated depreciation : 585000
Date in Service : 01-APR-2005
Depreciation method : JP-STL 10YR
Salvage value : 10% -> 65000 ###Update###
Depreciation limit amount : 95%
Impairment Reserve : 349998
ADJUSTED_COST
= COST - DEPRN_RESERVE - IMPAIRMENT_RESERVE - SALVAGE_VALUE
= 1000000 - 600000 - 349998 - 65000
= -14998
FA_BOOKS:
COST ADJUSTED_COST DEPRN_METHOD SALVAGE_VALUE PC_FULLY_RESERVED
------- ------------- ------------ ------------- -----------------
1000000 900000 JP-STL 10YR 100000 *NULL
1000000 -49998 JP-STL 10YR 100000 24164
1000000 -14998 JP-STL 10YR 65000 *NULL <--- A negative ADJUSTED_COST
4. 2013-12 *** Depreciation
FA_DEPRN_SUMMARY:
PERIOD_COUNTER DEPRN_AMOUNT YTD_DEPRN DEPRN_RESERVE ADJUSTED_COST
-------------- ------------ --------- ------------- -------------
24162 0 45000 585000 900000
24163 7500 52500 592500 900000
24164 7500 60000 600000 900000
24165 -125 59875 599875 -14998 <--- A negative DEPRN_AMOUNT
-> A negative depreciation amount occurs because of a negative ADJUSTED_COST
Changes
Cause
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In this Document
Symptoms |
Changes |
Cause |
Solution |
References |