Impairment Reserve Is Wrong When Perform Impairment on an Asset having Already Impairment

(Doc ID 2309281.1)

Last updated on SEPTEMBER 21, 2017

Applies to:

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

Symptoms

When attempt to perform impairment again on an asset that has already impairment, impairment reserve is wrong.

Steps to Reproduce

1.  Perform 1st impairment with 3000

    FA_ADJUSTMENTS
    SOURCE_TYPE  ADJUSTMENT_TYPE  FLAG  ADJUSTMENT_AMT
    -----------  ---------------  ----  --------------
    ADDITION     COST             DR           1200000
    ADDITION     COST CLEARING    CR           1200000
    -----------  ---------------  ----  --------------
    ADJUSTMENT   IMPAIR EXPENSE   DR              3000 <-- 1st impairment
    ADJUSTMENT   IMPAIR RESERVE   CR              3000 <-- 1st impairment



2.  Perform 2nd impairment with 2000

    [Current behavior]

    FA_ADJUSTMENTS
    SOURCE_TYPE  ADJUSTMENT_TYPE  FLAG  ADJUSTMENT_AMT
    -----------  ---------------  ----  --------------
    ADDITION     COST             DR           1200000
    ADDITION     COST CLEARING    CR           1200000
    -----------  ---------------  ----  --------------
    ADJUSTMENT   IMPAIR EXPENSE   DR              3000 <-- 1st impairment
    ADJUSTMENT   IMPAIR RESERVE   CR              3000 <-- 1st impairment
    -----------  ---------------  ----  --------------
    ADJUSTMENT   IMPAIR EXPENSE   DR              2000 <-- 2nd impairment
    ADJUSTMENT   IMPAIR RESERVE   CR             -1000 <-- 2nd impairment


    Impairment Reserve should be 2000, instead of -1000.

NOTE: Impairment Reserve is calculated wrongly as below:


    [Expected behavior]
    FA_ADJUSTMENTS
    SOURCE_TYPE  ADJUSTMENT_TYPE  FLAG  ADJUSTMENT_AMT
    -----------  ---------------  ----  --------------
    ADDITION     COST             DR           1200000
    ADDITION     COST CLEARING    CR           1200000
    -----------  ---------------  ----  --------------
    ADJUSTMENT   IMPAIR EXPENSE   DR              3000 <-- 1st impairment
    ADJUSTMENT   IMPAIR RESERVE   CR              3000 <-- 1st impairment
    -----------  ---------------  ----  --------------
    ADJUSTMENT   IMPAIR EXPENSE   DR              2000 <-- 2nd impairment
    ADJUSTMENT   IMPAIR RESERVE   CR              2000 <-- 2nd impairment

 

Cause

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