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

Last updated on JANUARY 13, 2017

Applies to:

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

Symptoms

Retirement Expense is incorrect in only Tax book when perform backdated retirement after backdated transfer. However Retirement Expense is correct in Corporate book.

Summary
1. Transfer with backdated in Corporate book
2. Retirement with 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

Cause

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