YTD Depreciation is not Calculated Correctly on Evergreen Assets
(Doc ID 2413895.1)
Last updated on MAY 03, 2022
Applies to:Oracle Lease and Finance Management - Version 12.2.4 and later
Information in this document applies to any platform.
On : 12.2.4 version, Asset Management
YTD Depreciation is not calculated correctly on Evergreen assets. During evergreen period, instead of calculating the depreciation using the depreciable life less the original lease term, it uses the whole depreciable life term.
Expect depreciation to be calculated based on the remaining life of the asset
The issue can be reproduced at will with the following steps:
1) Create a direct finance lease contract with term lease of 36 months and Asset corp Book having Depreciation method of STL 42.
2) Enable evergreen eligible flag.
3) Book the contract
4) Bill the contract until end of term.
5) Run accrual
6) Run Terminate expired contract to make the contract evergreen
7) Run Process Transactions in Fixed Assets
8) Run Depreciation for the evergreen period and notice it is calculating the YTD depreciation using the full term and not using the remaining life of the asset
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