Amortized Cost Change Recalculates From DPIS Rather Than From Amortization Start Date (Doc ID 973035.1)

Last updated on JANUARY 23, 2023

Applies to:

Symptoms

Incorrect depreciation is calculated after a backdated amortized adjustment is entered with an amortization start date set in the current fiscal year.  The problem asset was entered with YTD reserve and accumulated reserve with date placed in service in the past fiscal year.  The system recalculates reserve from data placed in service (DPIS) instead of using values provided at the time of entry.

It is expected that the system would use the YTD reserve and accumulated reserve entered to derive the value of accumulated reserve at the end of prior fiscal year and recalculate from the amortization start date instead of the data placed in service.

The issue can be reproduced with the following steps:

1.  Enter as asset in Sep-09 with the following values:

COST = 59135.59
DPIS = 28-AUG-2003
METHOD = (16.66% COST Strict Flat)
YTD = 4849.12
RESERVE = 59135.59

2.  Run depreciation

3.  Enter an amortized cost adjustment with the following values:

TRX_DATE = 01-JAN-2009
DELTA COST = + 64340.12
NEW COST = 123475.71

Changes

Cause

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