Profile Option FA: Use Threshold Is Not Working When Set to No (Doc ID 2035426.1)

Last updated on FEBRUARY 14, 2019

Applies to:

Oracle Assets - Version 12.2.3 and later
Information in this document applies to any platform.

Symptoms

Although the profile option "FA: Use Threshold" is set to "No," Oracle Assets is working incorrectly as though set to "Yes/Null."

Steps to Reproduce

Case A
1. Set the profile option FA: Use Threshold to No

2. 2015-05 *** Addition

    Cost                        : 1
    YTD depreciation            : 0
    Accumulated depreciation    : 0
    Date in Service             : 01-APR-2015 <--Prior period
    Depreciation method         : JP-STL 4YR
    Salvage value               : 0
    Depreciation limit amount   : 0
    Depreciate flag             : Yes

3. Check the asset

    Cost                        : 1
    YTD depreciation            : 1            <--Wrong catch up amount
    Accumulated depreciation    : 1            <--Wrong catch up amount
    Date in Service             : 01-APR-2015
    Depreciation method         : JP-STL 4YR
    Salvage value               : 0
    Depreciation limit amount   : 0
    Depreciate flag             : Yes

Case B
1. Set the profile option FA: Use Threshold to No

2. 2015-05 *** Addition

    Cost                        : 1
    YTD depreciation            : 0
    Accumulated depreciation    : 0
    Date in Service             : 01-MAY-2015 <--Current period
    Depreciation method         : JP-STL 4YR
    Salvage value               : 0
    Depreciation limit amount   : 0
    Depreciate flag             : Yes

3. 2015-05 *** Run Depreciation

4. Check the asset

    Cost                        : 1
    YTD depreciation            : 1            <--Wrong depreciation amount
    Accumulated depreciation    : 1            <--Wrong depreciation amount
    Date in Service             : 01-APR-2015
    Depreciation method         : JP-STL 4YR
    Salvage value               : 0
    Depreciation limit amount   : 0
    Depreciate flag             : Yes

Current behavior:
Wrong catch up / depreciation amount, 1 yen is calculated. The net book value(= 1 yen) is less than 10 yen. So the remaining net book value(= 1 yen) is depreciated incorrectly to fully reserved despite FA: Use Threshold being No.

Expected behavior:
Even if the net book value is less than 10 yen, the remaining net book value(= 1 yen) should NOT be depreciated to fully reserved because FA: Use Threshold is No

Case C
1. Set the profile option FA: Use Threshold to No

2. 2015-05 *** Addition

    Cost                               : 165
    YTD depreciation                   : 0
    Accumulated depreciation           : 157
    Date in Service                    : 01-APR-2012
    Depreciation method                : STL 84(=7 year)
    Salvage value                      : 0
    Depreciation limit amount          : 0
    Amortize NBV over Remaining Life   : Yes
    Amortization start date            : 01-MAY-2015

2. 2015-05 *** Override

    Period Name         : 2015-05
    Deprn Amount        : 0
    Used by             : DEPRECIATION
    Status              : Post

3. 2015-06 *** Post Impairment

    Value in use        : 1

4. Impairment ends with a warning error with:

Impairment cannot be charged for asset &FA_ASSET_ID as the NBV after considering current month
depreciation is either zero or less than impairment loss.

5. Check the Impairment: (N)Assets > Impairment > Create and Post - Asset Impairment page:

Value In Use : 1
Impairment Loss : -1 <--Wrong

Current behavior:
The net book value(8 yen = 165-157) is less than 10 yen. So the remaining net book value(= 8 yen) is depreciated incorrectly to fully reserved. After that, the net book value becomes 0. Therefore Impairment Loss is calculated as -1 yen to adjust the net book value to be 1 yen.

Expected behavior:
Even if the net book value is less than 10 yen, the remaining net book value(= 8 yen) should NOT be depreciated to become fully reserved because FA: Use Threshold is No

Asset Impairment page:
Value In Use : 1
Impairment Loss : 7 <--Correct