What-If Report: Negative Amount Is Calculated for JP-STL Method Assets with Impaired (Doc ID 2138724.1)

Last updated on MARCH 15, 2023

Applies to:

Symptoms

What-If Analysis Report calculates negative amount for the asset which has been impaired to Net Book Value = ZERO.

Conditions

• What-If Depreciation Report is generated at the next year of impairment
• Asset uses JP-STL depreciation method
• Asset has impaired to Net Book Value = ZERO
• Negative depreciation amounts is calculated for the current open period

Steps to Reproduce

*Calendar starts from April and ends to March.

1. FEB-10 *** Addition

  Cost                      : 224467
  YTD depreciation          : 0
  Accumulated depreciation  : 0
  Date in Service           : 16-FEB-2010
  Depreciation method       : JP-STL 10YR
  Salvage value             : 0
  Depreciation limit amount : 1

2. Run Depreciation with period close

3. MAR-14 *** Impairment
  Impairment loss = 109075

4. Run Depreciation with period close

5. MAR-15 *** Impairment
  Impairment loss = 19681

  * Net Book Value of this asset becomes ZERO
  * Depreciation amount for the current open period is calculated

6. MAR-15 *** Run What-if report

  Period   Fiscal               New
  Name     Year    Depreciation Depreciation
  -------- ------- ------------ ------------
  MAR-15   2014               0            0
  APR-15   2015               0            0 <-----Check
  MAY-15   2015               0            0
  JUN-15   2015               0            0
  JUL-15   2015               0            0
  AUG-15   2015               0            0
  SEP-15   2015               0            0
  OCT-15   2015               0            0
  NOV-15   2015               0            0
  DEC-15   2015               0            0
  JAN-16   2015               0            0
  FEB-16   2015               0            0
  MAR-16   2015               0            0
  APR-16   2016               0            0

7. Run Depreciation with period close

8. APR-15 *** Run What-if report

  Period   Fiscal               New
  name     Year Depreciation    Depreciation
  -------- ------- ------------ ------------
  APR-15   2015              -1           -1 <-----Incorrect
  MAY-15   2015               0            0
  JUN-15   2015               0            0
  JUL-15   2015               0            0
  AUG-15   2015               0            0
  SEP-15   2015               0            0
  OCT-15   2015               0            0
  NOV-15   2015               0            0
  DEC-15   2015               0            0
  JAN-16   2015               0            0
  FEB-16   2015               0            0
  MAR-16   2015               0            0
  APR-16   2016               0            0

Changes

Cause

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