JP-2X0DB: Depreciation Amount in the Last Period of the Year Is Calculated by Mistake Using Revised Rate When Performing Impairment (Doc ID 2123941.1)

Last updated on APRIL 05, 2016

Applies to:

Oracle Assets - Version 11.0.3 and later
Information in this document applies to any platform.

Symptoms

Depreciation amount in the last period of the year is calculated by mistake using revised rate when performing Impairment.

Condition

Steps to Reproduce
1.  2015-03 *** Addition

    Cost                               : 206294
    YTD depreciation                   : 17731
    Accumulated depreciation           : 151262
    Date in Service                    : 01-OCT-2008
    Depreciation method                : JP-250DB 7
    Salvage value                      : 0
    Depreciation limit amount          : 1


2.  2015-03 *** Override

    Period Name         : 2015-03
    Deprn Amount        : -10
    Used by             : DEPRECIATION
    Status              : Post


3.  2015-03 *** Impairment

    Impairment amount   : 35301


4.  2015-04 *** Change Depreciation method to JP-250DB 5 with Amortized

    Depreciation method             : JP-250DB 7 --> JP-250DB 5
    Amortized flag                  : Yes
    Amortization start date         : 01-APR-2015


5.  2016-03 *** Check the Asset

    FA_BOOKS ***
    COST    ADJUSTED_COST  DEPRN_METHOD  RATE
    ------  -------------  ------------  -----
    206294          72763  JP-250DB 7    0.357
    206294          19741  JP-250DB 7      0.5
    206294          19741  JP-250DB 5      0.5  <--- Original rate

    FA_DEPRN_SUMMARY ***
    PERIOD    COUNTER   DEPRN_AMOUNT   DEPRN_RESERVE   ADJUSTED_COST
    -------   -------   ------------   -------------   -------------
    2015-02     24179              0          151262           72763 <--Using original rate
    2015-03     24180            -10          151252           55042 <--Using original rate
    2015-04     24181            823          152075           19741 <--Using original rate
    2015-05     24182            823          152898           19741 <--Using original rate
    2015-06     24183            823          153721           19741 <--Using original rate
    2015-07     24184            823          154544           19741 <--Using original rate
    2015-08     24185            823          155367           19741 <--Using original rate
    2015-09     24186            823          156190           19741 <--Using original rate
    2015-10     24187            823          157013           19741 <--Using original rate
    2015-11     24188            823          157836           19741 <--Using original rate
    2015-12     24189            823          158659           19741 <--Using original rate
    2016-01     24190            823          159482           19741 <--Using original rate
    2016-02     24191            823          160305           19741 <--Using original rate


6.  2016-03 *** Impairment

    Impairment amount   : 1


    FA_BOOKS ***
    COST    ADJUSTED_COST  DEPRN_METHOD  RATE
    ------  -------------  ------------  -----
    206294          72763  JP-250DB 7    0.357
    206294          19741  JP-250DB 7      0.5
    206294          19741  JP-250DB 5      0.5
    206294           9041  JP-250DB 5        1 <--Correct. This rate will be used in the next year.

    FA_DEPRN_SUMMARY ***
    PERIOD    COUNTER   DEPRN_AMOUNT   DEPRN_RESERVE   ADJUSTED_COST
    -------   -------   ------------   -------------   -------------
    2015-02     24179              0          151262           72763 <--Using original rate
    2015-03     24180            -10          151252           55042 <--Using original rate
    2015-04     24181            823          152075           19741 <--Using original rate
    2015-05     24182            823          152898           19741 <--Using original rate
    2015-06     24183            823          153721           19741 <--Using original rate
    2015-07     24184            823          154544           19741 <--Using original rate
    2015-08     24185            823          155367           19741 <--Using original rate
    2015-09     24186            823          156190           19741 <--Using original rate
    2015-10     24187            823          157013           19741 <--Using original rate
    2015-11     24188            823          157836           19741 <--Using original rate
    2015-12     24189            823          158659           19741 <--Using original rate
    2016-01     24190            823          159482           19741 <--Using original rate
    2016-02     24191            823          160305           19741 <--Using original rate
    2016-03     24192           1646 <--Wrong 161951            9042 <--Wrong.  It is using revised rate.



    Current behavior
    Theoretical YTD
        = trunc(adjusted_cost * Rate in use)
        = trunc(adjusted_cost * Revised rate)
        = trunc(19741 * 1)
        = 19741

    Period Depreciation
        = round(Theoretical YTD * (1/12))
        = round(19741 * (1/12))
        = 1645


    Depreciation amount is calculated by mistake using revised rate


    Expected behavior
    Theoretical YTD
        = trunc(adjusted_cost * Rate in use)
        = trunc(adjusted_cost * original rate)
        = trunc(19741 * 0.5)
        = 9870

    Period Depreciation
        = round(Theoretical YTD * (1/12))
        = round(9870 * (1/12))
        = 823


     Depreciation amount in 2016-03 should be 823, instead of 1645

Cause

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