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Amortised Cost Adjustments Generate Depreciation Adjustment For Historic Depreciation (Doc ID 2245363.1)

Last updated on DECEMBER 11, 2019

Applies to:

Oracle Fusion Assets - Version 11.1.11.1.0 and later
Information in this document applies to any platform.

Goal

Amortised cost adjustments generate depreciation adjustment for historic depreciation

I have created 2 assets where the original cost was adjusted by an amortised cist adjustment transaction.
When trying to validate the depreciation, I noticed a depreciation adjustment which I was not expecting.
My understanding is that depreciation applied to an asset with an amortised adjustment is as follows:-
Original Cost + Cost Adjustment - Salvage value - depreciation reserve / Remaining Useful Life.

In what circumstances would an amortised result in a retrospective adjustment to depreciation?
 

Solution

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In this Document
Goal
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