Need to Depreciate Assets using Double Declining Depreciation Based on NBV
Last updated on FEBRUARY 27, 2017
Applies to:Oracle Fusion Assets Cloud Service - Version 18.104.22.168.0 and later
Oracle Fusion Assets - Version 22.214.171.124.0 and later
Information in this document applies to any platform.
You want to use Double Declining depreciation method.
Depreciation for a period = 2 * straight line depreciation percent *[(book value at beginning of period-salvage value)-accumulated depreciation)].
Example: If a business purchased a delivery truck for $30,000 that it expected to last for 10 years, after which it would be worth $3,000 (its salvage value), the company would deduct
the remaining $27,000 as $2,700 per year for 10 years under straight-line depreciation. Using the double-declining balance method, however, it would deduct 20% (double 10%)
of $27,000 in year 1 ($5,400), 20% of $21,600 ($27,000 minus $5,400) in year 2 ($4,320), and so on.
The seeded 200DB depreciation method is mostly meeting your requirements but there is some variation in depreciation amount calculated.
Is there any other seeded depreciation method that can be used to meet the above requirement?
Sign In with your My Oracle Support account
Don't have a My Oracle Support account? Click to get started
My Oracle Support provides customers with access to over a
Million Knowledge Articles and hundreds of Community platforms