ELA: Incorrect Depreciation Amount Calculated After Department Transfer, on a Reclassified Lease. (Doc ID 2879725.1)

Last updated on DECEMBER 31, 2023

Applies to:

Symptoms

The depreciation amount is incorrect post DEPTID change on recategorized lease i.e. after reclassifying the lease from operating to finance and department change, the per period depreciation amount is increased.

Steps to Replicate:

1. Create a new payable lease (classification: operating lease) with a quarterly lease payment schedule.
     Menu > Lease Administration > Payable Leases > Create a New Payable Lease.

2. Run straight line process.
    Menu > Lease Administration > Integrations > Generate SL Schedule.

3. Process Accounting entries.
    Menu > Asset Management > Accounting Entries > Create Accounting Entries.

4. Run Depreciation close process.
    Menu > Asset Management > Accounting Entries > Close Depreciation.
    
5. Add an amendment to reclassify the asset to finance and activate the amendment.

6. Process accounting entries and run depreciation close process.

7. Once again Add an Amendment to change the department and activate the amendment.

8. Process accounting entries and run close depreciation.

9. Review accounting entries. The per period depreciation amount is more than previous period amount.

Please review the replication steps.

Cause

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