EAM9.2:Incorrect Depreciation After Partial Retirement on Straight Line Method and Actual Month Convention when Business Unit Definition is Set to 'Store Depr By Period’. (Doc ID 2758780.1)

Last updated on JUNE 06, 2023

Applies to:

Symptoms

Depreciation is not computed correctly after partial retirement on Straight Line Method and Actual Month Convention related profile parameters if asset got expanded for the year
(Business Unit Definition is Set to 'Store Depr By Period’).   The system is working correctly if this option is not selected.

Steps to replicate:

Summary:
Test 1:  When New Asset Trans Date and Acctg Date are backdated, Book CORP total depreciation is not correct.
Test 2:  When New Asset Trans Date and Acctg Date are current-dated, both Books CORP and FEDERAL total depreciation are not correct.
Test 3:  Partial Retirement Trans Date backdated to Feb 2020.

TEST 1
=======
1.  In Asset Management Definition for Unit = US120, note that `Store Depr By Period' option is selected.
2.  Create a new Asset:
      Business Unit = US120
      Asset ID = 000000000001
      Quantity = 1.000
      Cost = 800,000.00
      Book = CORP:
        Convention = AM
        Method = Straight Line
        Useful Life = 240
      Book = FEDERAL:
        Convention = MM
        Method = Straight Line
        Useful Life = 468
3.  Depreciation Calculation:
      Unit = US120
      Asset ID = 000000000001
4.  Expand by Period:
    Fiscal Year = 2020
    Business Unit = US120
5.  Do a partial retirement:
      Unit = US120
      Asset ID = 000000000001
      Retire As = Retirement by Sale
      Quantity = -.5000
      Retirement Amt = 400,000.00
6.  Depreciation Calculation:
      Unit = US130
      Asset ID = 000000000001
7.  Then, review depreciation.

TEST 2:
========
* In Asset Management Definition for Unit = US120, note that `Store Depr By Period' option is selected.
* Expand by Period for Both Books CORP and FEDERAL:
    Fiscal Year = 2020
    Business Unit = US120

1.  Create a new Asset:
      Business Unit = US120
      Asset ID = 000000000002
      Trans Date = 10/06/2020
      Acctg Date = 10/06/2020
      Quantity = 1.000
      Cost = 800,000.00
      Book = CORP:
        Convention = AM
        Method = Straight Line
        Useful Life = 240
      Book = FEDERAL:
        Convention = MM
        Method = Straight Line
        Useful Life = 468
2.  Depreciation Calculation:
      Unit = US120
      Asset ID = 000000000002
3.  Do a partial retirement:
      Unit = US120
      Asset ID = 000000000002
      Retire As = Retirement by Sale
      Quantity = -.5000
      Retirement Amt = 400,000.00
4.  Depreciation Calculation:
      Unit = US130
      Asset ID = 000000000002
5.  Then, review depreciation.

TEST 3:
========
1.  In Asset Management Definition for Unit = US120, note that ‘Store Depr By Period’ option is ‘not’ selected for both Books CORP and FEDERAL.
2.  Open Period for Business Unit = US120:
      From Year = 2019
      From Period = 10
      To Year = 2020
      To Period = 10    
3.  Create a new Asset:
      Business Unit = US120
      Asset ID = 000000000010
      Trans Date = 10/04/2019
      Acctg Date = 10/04/2019
      Quantity = 1.000
      Cost = 800,000.00
    - Book = CORP:
       Convention = AM
       Method = Straight Line
       Useful Life = 240
    - Book = FEDERAL:
       Convention = MM
       Method = Straight Line
       Useful Life = 468
4.  Run Depreciation Calculation for Asset ID = 000000000010.    
5.  Open Period for Business Unit = US120:
      From Year = 2020
      From Period = 10
      To Year = 2020
      To Period = 10    
6.  Select ‘Store Depr by Period’ option at AM BU for both Books CORP and FEDERAL.    
7.  Run Expand by Period (AMDPEXP) process for BU US120.    
8.  Do a partial retirement:
      Unit = US120
      Asset ID = 000000000010
      Retire As = Retirement by Sale
      Click Go button.
9.  Change the Partial Retirement Trans Date to 02/11/2020
     Acctg Date = 10/19/2020 (today)
     Quantity = -.5000
     Retirement Amt = -400,000.00
     Save.    
10.  Run Depreciation Calculation.

Result:  Depreciation Total was not correct for Book CORP, but as expected for Book FEDERAL.

See replication here.

Note:  After solution for Bug 32005387, still there's Incorrect Depreciation after Partial RET when Period is expanded.

Test 1:  Prior year cost addition with current period open, then a current year yet prior month partial retirement.

Test 2a: Prior year cost addition in the prior year, same open period, then change open period to current year and finally,
             having a current year yet prior month partial retirement.  (note: period not expanded in this scenario - results were ok)

       2b: Prior year cost addition in the prior year, same open period, then change open period to current year and expanding current year depreciation, and finally, having a current year yet prior month partial retirement.

Additional replication here.

Cause

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