Overlapping a Full Retirement With a Partial Unit Retirement Reverses All Reserve (Doc ID 3068029.1)

Last updated on JANUARY 22, 2025

Applies to:

Symptoms

When doing a backdated full retirement which overlaps by the retirement date of a partial unit retirement, full reserve is reversed rather than appropriate reserve as at the retirement date.

The issue can be reproduced at will with the following steps (note this assumes an Asset Book with open period of June 2021 -- adjust dates as needed should work start with a later open period):

1)  Add asset with 96 units and DPIS in May-21. Depreciation method:  Straight Line (STL), 2 years life.

Menu path:  Assets -- Asset Workbench, Quick Additions.

2)  Run Depreciation to close period.

Menu path:  Depreciation, Run, ensure period close checkbox is enabled.

3)  Adjust life to 8 months, amortized to open period.

Menu path: Assets -- Asset Workbench

Choose Books.

Update life to 8 years.  Enable the Amortize check box and ensure the Amortization Start Date is in the current open period. Save.

4)  Run Depreciation to close periods through to Mar-22.

Menu path: Depreciation, Run, ensure period close checkbox is enabled.

Repeat until correct open period is now open.

5)  Perform partial unit retirement to reduce units to 60, dated to 10-MAR-2022.

Menu path: Assets -- Asset Workbench

Choose Retirements

Enter a retirement of 36 units. 

Set retirement date to 10-Mar-2022.

Save.

6)  Run Depreciation to close period.

Menu path: Depreciation, Run, ensure period close checkbox is enabled.

7)  Do a subsequent retirement of remaining 60 units, dated to 15-Feb-2022.

Menu path: Assets -- Asset Workbench

Choose Retirements

Enter a retirement for the remaining 60 units.

Set retirement date to 15-Feb-2022.

Save.

8)  Run Depreciation without period close checked.

9)  Validate reserve retired.

Changes

Cause

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