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Incorrect Adjusted_Cost Following Unplanned Depreciation, Retirement and Reinstatement of Asset with Earlier Transactions (Doc ID 2996468.1)

Last updated on JANUARY 11, 2024

Applies to:

Oracle Assets - Version 12.2.9 and later
Information in this document applies to any platform.

Symptoms

Following a specific series of activities on an Asset, the adjusted_cost (depreciable basis) reverts to incorrect cost, which causes later depreciation expense taken to be incorrect.

STEPS TO REPRODUCE:

Using a responsibility such as Fixed Assets Manager:

 

1)  Added asset with method STL and life 5 years via the menu path Assets : Additions : Quick

2)  Run depreciation to close several periods via the Depreciation : Run menu


3)  Query the Asset up in the Asset Workbench, choose Books, and change asset life to 4 years


4)  Requery the Asset in the Asset Workbench, choose Books, and change the depreciate flag to No

5)  Query the Asset in the Asset Workbench, choose Books, and change depreciate flag to Yes, choosing to enable Amortize Adjustment and having Amortization Start Date as the first day of the open period


6)  Query the Asset in the Asset Workbench, choose Books, and change the life to 6 years.  Amortization will be required by the application, accept the defaulted Amortization Start Date.


7)  Query the Asset in the Asset Workbench, choose Books, and change the life to 5 years. Amortization will be required by the application, accept the defaulted Amortization Start Date.

8)  Query the Asset in the Asset Workbench, choose Books, and change the life to 4 years. Amortization will be required by the application, accept the defaulted Amortization Start Date.

9)  Query the Asset in the Asset Workbench and choose the Books tab.  Choose the Unplanned Depreciation button and perform Unplanned on the asset.  Accept the defaulted Amortization Start Date.

10)  Query the Asset in the Asset Workbench and choose the Retirement option.  Perform a full retirement on the asset dated to the first day of the open period.

11)  Using the menu path Other : Requests : Run, submit the concurrent request Calculate Gains and Losses.


12) Query the Asset in the Asset Workbench and choose the Retirement option. Query on this form to find the retirement done in step 10.  Choose to Reinstate that retirement.

13) Using the menu path Other : Requests : Run, submit the concurrent request Calculate Gains and Losses.

 

Adjusted cost should revert to the amount of the last "before unplanned" amortized adjustment. It reverted to original cost + unplanned amount.  This causes ongoing periodic depreciation to be overstated.

Cause

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In this Document
Symptoms
Cause
Solution
References


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