Bonus Depreciation Calculation On Fusion Assets (Doc ID 1680899.1)

Last updated on MARCH 01, 2016

Applies to:

Oracle Fusion Assets - Version 11.1.8.0.0 and later
Oracle Fusion Assets Cloud Service - Version 11.1.7.0.0 and later
Information in this document applies to any platform.

Goal

While Calculating the Bonus Depreciation Value for asset, the application is Multiplying Number of Years of Asset Life to the Bonus Depreciation Calculation.

Asset Life =4 Years
YTD Depr: 212.33 = 10,000 *31/(365*4)
(Asset Cost * Number of days in Period/ Total Asset Life) –> This is Correct.
Bonus Depreciation
254.79 =4*30%*212.33
(Number of Years * Bonus Depr Rule * Calculated YTD Depr)
This Should have been just 30% of the YTD Depreciation and not the number of years multiplied to it. Calculated Value Should have been just 30% *212.33 = 63.70


1. Processing of From Year and To Year Fields on Bonus Rule Setup Page. For Example: Asset Acquired on 05/22/2014. Bonus Depreciation Rule associated has 30% additional depreciation from year 0 to year 1 and 10% additional depreciation from year 1 to year 2. What processing impact does it have.

Does it mean that between 05/22/2014 and 05/21/2015, the depreciation calculation would be 30% Bonus and between 05/22/2015 to 05/21/2016, it would be 10% Bonus.

2. What role does Life of the asset play. If I specify 4 year asset life with 30% bonus depreciation, as of now the system is calculating 4*30% =120% Bonus depreciation. Is this correct?
 

Solution

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