How Is Depreciation Calculated For Straight Line (STL) Method With Life Less Than One Year, Daily Prorate Calendar and By Days Depreciation Allocation? (Doc ID 578762.1)

Last updated on OCTOBER 17, 2023

Applies to:

Goal

How does Oracle Assets calculate the depreciation of an asset with the following setup?

The setup of the depreciation book is as follows:

- Monthly depreciation calendar
- Daily prorate calendar with 365 periods
- Depreciation Allocation : By Days

The Asset is added with a Date Placed in Service (DPIS) in the current period:  10-JUL-2008
Prorate convention:  Daily with Prorate Date = 10-JUL-2008
Cost : 1000 
Depreciation Method : STL
Life = 2 Months 

Solution

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