EAM: Incorrect Depreciation for Asset where Low Limit is Greater then the Remaining NBV (Doc ID 2097866.1)

Last updated on JANUARY 18, 2016

Applies to:

PeopleSoft Enterprise FIN Asset Management - Version 9.2 and later
Information in this document applies to any platform.

Symptoms

If an asset is added such that the low limit is greater than the remaining NBV, depreciation is incorrect.

Asset is added for a cost of $50,000 and accumulated depreciation of 49,510,so the NBV is 490. But if the low limit is $500, when depreciation runs, since the NBV of 490 is lower than the limit of 500, the asset should be fully depreciated in the year added (e.g. 2015). The NBV should be 0 at the end of 2015, not 2016.

REPLICATION STEPS
=================
1. Add asset with cost of $50,000, accum depr of $49,510, and depr limit of $500 (NBV of $490 is lower than the low limit). Trans/accounting date of 08/02/2015, in service date of 07/30/2010, convention AM, Method Declining Balance, 8%, low limit $500.00,depr in service switch checked.

2. Run depreciation calculation.

Expected results:I expect the entire $500 will be depreciated in the current year (remaining accounting period). 

Actual results:The regular depreciation is calculated for the current year. The remaining NBV is depreciating next year.

Cause

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