EAM: The ADJ To Zero Depreciation Calculation with LD Convention is Incorrect When Adjusting Multiple Negative Cost Transactions at the Same Time
(Doc ID 2641281.1)
Last updated on JULY 22, 2020
Applies to:PeopleSoft Enterprise FIN Asset Management - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.
When multiple cost transactions are adjusted to zero with the Life to Date (LD) convention, the DTTM_Stamps on the PS_COST table are identical and only one corresponding pending transaction is created in the PS_OPEN_TRANS table. Submitting the pending transaction in the PS_OPEN_TRANS table should cause all of the ADJ to Zero transactions to be taken in the period of adjustment. Instead, when the transactions are adjusting negative cost to zero, the cost adjustments are backed out of future depreciation over the life of the asset per the Remaining Value (RV) calculation type. When transactions that are adjusting positive cost to zero are included in the transaction set, the cost adjustments for these transactions are taken in the period of adjustment correctly.
Just as the ADJ to Zero transaction that is adjusting positive cost to zero with the LD convention results in the adjustment being taken in the period of adjustment, so should the ADJ to Zero transaction that is adjusting negative cost to zero with the LD convention result in the adjustment being taken in the period of adjustment.
The issue can be reproduced at will with the following steps:
1) Add an Asset. Calculate the depreciation for the ADD transaction.
2) Submit multiple positive and negative cost adjustments to the Asset with the LD convention separately via the Cost Adjust/Transfer Asset component. Calculate the depreciation for each transaction as they are created.
3) Submit ADJ to Zero transactions to zero out all adjustments made in step 2 via the Cost Adjust/Transfer Asset component at the same time (i.e. in one transaction). Calculate the depreciation for the one transaction generated.
4) Review the depreciation results in the Review Depreciation Info component.
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