How Is Depreciation Calculated For STL Method With Life Less Than One Year, Daily Prorate Calendar, Following-Month Convention And By Days?

(Doc ID 980985.1)

Last updated on MARCH 07, 2017

Applies to:

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


Under following scenario:


DPIS: 01-OCT-2009
Following month convention, deprn start date: 01-NOV-2009
Depreciate when placed in service: No (but that should not matter as method is STL)
Cost: 66666.67
STL, Life in months: 2

Based on <Note.578762.1> the calculation would be:

Cost 66666.67 / (1/12)=0.166666667 =400000.02 / 365 * 30 days = 32876.71
Even if we take 31 days we only get 33972.60, but the system calculated 33515.98

How did the system calculate the 33515.98 depreciation for November 2009?


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