Total Reserve Is Bigger Than Adjusted Recoverable Cost After Full Retirement with Following Month Prorate Convention for Impairment Asset
(Doc ID 2067532.1)
Last updated on JANUARY 18, 2023
Applies to:
Oracle Assets - Version 12.1.3 and later Information in this document applies to any platform.
Symptoms
After performing Full Retirement with following month prorate convention for Impairment asset, Total Reserve is wrongly bigger than Adjusted Recoverable Cost. Total reserve should NOT be bigger than Adjusted Recoverable Cost. - Total Reserve = Deprn Reserve + Impairment Reserve - Adjusted Recoverable Cost = Cost - Depreciation Limit AmountSteps to Reproduce 1. 2014-01 *** Addition Cost : 120000 YTD depreciation : 0 Accumulated depreciation : 0 Date in Service : 01-APR-2013 Depreciation method : STL 12 month Salvage value : 0 Depreciation limit amount : 1 * Begining of April 2. 2014-02 *** Impairment Impairment amount : 5000 3. 2014-03 *** Full Retirement with following month prorate convention Date Retired : 31-MAR-2014 Cost retired : 120000 Prorate convention : *Following Month 4. 2014-03 *** Run Depreciation without period close Current behavior FA_ADJUSTMENTS *** SOURCE_TYPE_CODE ADJUSTMENT_TYPE FLAG ADJUSTMENT_AMOUNT ---------------- --------------- ---- ----------------- RETIREMENT COST CR 120000 RETIREMENT EXPENSE DR 5000 <--Wrong RETIREMENT IMPAIR RESERVE DR 5000 RETIREMENT RESERVE DR 115000 <--Wrong FA_DEPRN_SUMMARY *** PC DEPRN_AMOUNT YTD_DEPRN DEPRN_RESERVE DEPRN_ADJ IMPAIRMENT ------- ------------ --------- ------------- --------- ---------- 24165 0 0 0 0 24166 100000 100000 100000 90000 0 24167 10000 110000 110000 0 5000 24168 5000 115000 0 5000 0 [Calculation] Total Reserve = Deprn Reserve + Impairment Reserve = 115000 + 5000 = 120000 Adjusted Recoverable Cost = Cost - Depreciation Limit Amount = 120000 - 1 = 119999 [Result] Total Reserve is Bigger Than Adjusted Recoverable Cost. Expected behavior FA_ADJUSTMENTS *** SOURCE_TYPE_CODE ADJUSTMENT_TYPE FLAG ADJUSTMENT_AMOUNT ---------------- --------------- ---- ----------------- RETIREMENT COST CR 120000 RETIREMENT EXPENSE DR 4999 <--Correct RETIREMENT IMPAIR RESERVE DR 5000 RETIREMENT RESERVE DR 114999 <--Correct RETIREMENT NBV RETIRED DR 1 <--Correct FA_DEPRN_SUMMARY *** PC DEPRN_AMOUNT YTD_DEPRN DEPRN_RESERVE DEPRN_ADJ IMPAIRMENT ------- ------------ --------- ------------- --------- ---------- 24165 0 0 0 0 24166 100000 100000 100000 90000 0 24167 10000 110000 110000 0 5000 24168 4999 114999 0 4999 0 [Calculation] Total Reserve = Deprn Reserve + Impairment Reserve = 114999 + 5000 = 119999 Adjusted Recoverable Cost = Cost - Depreciation Limit Amount = 120000 - 1 = 119999 [Result] Total Reserve is equal to Adjusted Recoverable Cost.
Changes
Cause
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