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Impairment Reserve Is Wrong When Perform Impairment on an Asset having Already Impairment (Doc ID 2309281.1)

Last updated on MARCH 18, 2019

Applies to:

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

Symptoms

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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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In this Document
Symptoms
Cause
Solution
References


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