Impairment Transactions Have Incorrect Exchange Rate for the Reporting Ledger (Doc ID 2043809.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Assets - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

On : 12.1.3 version, FA Adjustments

ACTUAL BEHAVIOR
---------------
The exchange rate for impairments is done at the current period rate, however
the NBV is calculated at the historic rate.  Due the changing in rates over
time, this can lead to an asset impairment leaving a negative NBV in the
reporting ledger.

The IMPAIRMENT_AMOUNT in FA_MC_IMPAIRMENTS is calculated as IMPAIRMENT_AMOUNT
in FA_MPAIRMENTS * GL_Daily Rate (for the impairment date), while it should
be calculated as primary currency impairment amount multiplied by the
historical rate.

EXPECTED BEHAVIOR
-----------------------
Expect the same exchange rate (historic rate) to be used for the impairments.

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
1. Add Asset
2. Add impairment for the asset after several periods


Cause

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