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Retirement Expense Is Incorrect In Tax Book When Perform Backdated Retirement After Backdated Transfer (Doc ID 2222944.1)

Last updated on MAY 31, 2018

Applies to:

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

Symptoms

Retirement expense is incorrect in the tax book only when performing a backdated retirement after a backdated transfer.  However, the retirement expense is correct in the corporate book.

Summary
1. Transfer backdated in Corporate book
2. Retirement backdated in Tax book
===> Retirement expense is incorrect

Steps to Reproduce

1.  2015-04 *** [Corporate book] Addition

    Cost                       : 1200000
    YTD depreciation           : 0
    Accumulated depreciation   : 120000
    Date in Service            : 01-APR-2014
    Depreciation method        : STL 10Year
    Salvage value              : 0
    Depreciation limit amount  : 1
    Amortize NBV over Remaining life    : Yes
    Amortization start date             : 01-APR-2015


2.  2015-04 *** [Tax book] Addition

    Cost                       : 1200000
    YTD depreciation           : 0
    Accumulated depreciation   : 120000
    Date in Service            : 01-APR-2014
    Depreciation method        : STL 10Year
    Salvage value              : 0
    Depreciation limit amount  : 1
    Amortize NBV over Remaining life    : Yes
    Amortization start date             : 01-APR-2015

    ### Tax book is the same as Corporate book ###


3.  2016-12 *** [Corporate book] Transfer

    Transfer Date : 01-SEP-2016     ### backdated ###


4.  2016-12 *** [Corporate book] Full Retirement

    Retirement Date : 01-OCT-2016   ### backdated ###


5.  2016-12 *** [Tax book] Full Retirement

    Retirement Date : 01-OCT-2016   ### backdated ###


[Tax book]
FA_ADJUSTMENTS 
SOURCE_TYPE  ADJUSTMENT_TYPE FLAG ADJUSTMENT_AMT COUNTER ANNUALIZED_ADJUSTMENT
------------ --------------- ---- -------------- ------- ---------------------
ADDITION     COST            DR          1200000   24181                     0
ADDITION     COST CLEARING   CR          1200000   24181                     0
------------ --------------- ---- -------------- ------- ---------------------
DEPRECIATION EXPENSE         DR            30000   24201                360000
DEPRECIATION EXPENSE         DR           -30000   24201                     0
DEPRECIATION EXPENSE         DR                0   24201                     0
TRANSFER     COST            CR          1200000   24201                     0
TRANSFER     COST            DR          1200000   24201                     0
TRANSFER     RESERVE         CR           320000   24201                     0
TRANSFER     RESERVE         DR            30000   24201                360000
TRANSFER     RESERVE         DR           320000   24201                     0
TRANSFER     RESERVE         DR           -30000   24201                     0
------------ --------------- ---- -------------- ------- ---------------------
RETIREMENT   COST            CR          1200000   24201                     0
RETIREMENT   EXPENSE         DR            10000   24201                     0  <---### Incorrect ###
RETIREMENT   NBV RETIRED     DR           870000   24201                     0
RETIREMENT   RESERVE         DR           330000   24201                     0


[Corporate book]
FA_ADJUSTMENTS 
SOURCE_TYPE  ADJUSTMENT_TYPE FLAG ADJUSTMENT_AMT COUNTER ANNUALIZED_ADJUSTMENT
------------ --------------- ---- -------------- ------- ---------------------
ADDITION     COST            DR          1200000   24181                     0
ADDITION     COST CLEARING   CR          1200000   24181                     0
------------ --------------- ---- -------------- ------- ---------------------
DEPRECIATION EXPENSE         DR            30000   24201                360000
DEPRECIATION EXPENSE         DR           -30000   24201                     0
DEPRECIATION EXPENSE         DR                0   24201                     0
TRANSFER     COST            CR          1200000   24201                     0
TRANSFER     COST            DR          1200000   24201                     0
TRANSFER     RESERVE         CR           320000   24201                     0
TRANSFER     RESERVE         DR            30000   24201                360000
TRANSFER     RESERVE         DR           320000   24201                     0
TRANSFER     RESERVE         DR           -30000   24201                     0
------------ --------------- ---- -------------- ------- ---------------------
RETIREMENT   COST            CR          1200000   24201                     0
RETIREMENT   EXPENSE         DR           -20000   24201                     0  <---### Correct ###
RETIREMENT   NBV RETIRED     DR           900000   24201                     0
RETIREMENT   RESERVE         DR           300000   24201                     0

Changes

 

Cause

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