No Write Back of Depreciation Made in the Adjustment Amount For The Revaluation (Doc ID 2057615.1)

Last updated on DECEMBER 18, 2015

Applies to:

Oracle Assets - Version 12.1.3 to 12.1.3 [Release 12.1]
Information in this document applies to any platform.

Goal

For a case like the following:

Fully reserved asset revalued upwards Oct 2014 from £18,899.46 to £19,509.17.
- Then an amortized life adjustment was carried out in Dec-2014 from 4 to 8 years.
- In Dec 2015 the asset is revalued upwards from £19,509.17 to £20,484.63.
Now as it has an amortized life the postings are DR Asset Cost £975.46, DR Accumulative Depr. £6,492.91 and a CR to Revaluation  Reserve £ 7,468.37  
- The asset  now starts to depreciated again but at a new rate of the £213.38 also the revaluation amortises at this amount as well.

There is No write back of depreciation made in the - Adjustment Amount-  column on the - Depreciation  tab of the -View Financial Information screen, when
the revaluation is posted. When we sum the figures in the Depreciation tab they do not add back to the Accumulated Depreciation  summary figure on the
top line of the View Financial Information screen.

- The revalued amount of £20,484.63, which is correct, but the NBV is now £7,041.61 and this has reset the Accumulation to £13,443.02, the asset is
also showing £7041.61 in the revaluation reserve field.

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From R12 Oracle Assets User Guide:


'If you decide to revalue accumulated depreciation, Oracle Assets revalues the
accumulated depreciation by the same rate by which you revalue your asset cost. Then
it determines the change in net book value and transfers the difference to the
revaluation reserve account. Oracle Assets calculates current depreciation expense
based on the net book value after revaluation, salvage value, and the remaining life.'

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Trying to work out how the actual behaviour has followed the above:
Prior to the last reval, the cost and accum deprn were both 19509.17, hence NBV zero (fully reserved).
So according to the above, both cost and accum deprn should move to 20484.63 and no change in NBV hence no difference to post to reval reserve account.

Solution

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