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EAM: When an Asset is Recategorized From Non-depreciable to Depreciable Asset With Actual Day Convention(AD), the Prior Period Depreciation is Calculated Using the Actual Month(AM) Convention. (Doc ID 2913845.1)

Last updated on JANUARY 22, 2023

Applies to:

PeopleSoft Enterprise FIN Asset Management - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.

Symptoms

An asset created under the Business unit configured with 5-4-4 Calendar is recategorized from the non-depreciable to depreciable asset category. When recategorizing the asset, Actual day convention is used.
It is observed that the system is using the Actual Month convention instead of the Actual day convention to calculate the prior period depreciation (PDP)amount.

NOTE: The above User Details / Company Names / Addresses / Emails / Telephone Numbers / Etc. are fictitious (based upon made-up data used in the Oracle DEMO Environments), any similarity to actual persons, living or dead, is purely coincidental and not intended in any manner.

Steps to Replicate:

1) Create a 5-4-4 calendar and map this calendar to Asset Management Business unit.
     Menu > Set Up Financials/Supply Chain > Common Definitions > Detailed Calendar.

2) Add an asset worth $10000 using express add with transaction date and accounting date as 12/06/2022.
     Menu > Asset Management > Asset Transactions > Owned Assets > Express Add

3) Make sure that the asset is non depreciable.

4) Run the depreciation and review the asset depreciation info. No depreciation information will be available since the asset is not depreciable.
     Menu >Asset Management > Depreciation > Processing > Calculate Depreciation
     Menu > Asset Management > Depreciation > Review > Depreciation Info > Asset Depreciation

5) Now recategorize the asset to a depreciable asset category with Convention as actual day and the transaction date 12/16/2021 and the accounting date 01/23/2022.
     Menu > Asset Management > Asset Transactions > Financial Transactions > Cost Adjust/Transfer Asset

6) Review Depreciation Info.

Since depreciation convention is actual day the expected Prior Period Depreciation is 242.64(for 18 days), however the depreciation amount calculated is 377.59(for 28 days). For more details review Replication Steps.

Cause

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In this Document
Symptoms
Cause
Solution
References


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