A Negative Depreciation Amount Occurs After Adjusting Salvage Value of Impairment JP-STL XXYR Asset (Doc ID 1982652.1)

Last updated on FEBRUARY 22, 2015

Applies to:

Oracle Assets - Version 12.1.3 and later
Information 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


Cause

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