EAM: When the Flat Rate % Method is Used After Recategorizing the Asset as a Depreciable Asset the Depreciation on the Last Fiscal Year is Incorrect. (Doc ID 2916984.1)

Last updated on DECEMBER 22, 2022

Applies to:

Symptoms

An asset is recategorized from non depreciable asset to a depreciable asset and the  Flat Rate % is used as the depreciation method.

The depreciation calculated per year is correct, in the last fiscal year the per period depreciation amount is not same as the other fiscal years.

Steps to replicate:

1. Add Asset with category non depreciable (LAND) 
     Navigation: Asset Management > Asset Transactions > Owned Assets > Express Add

2. Run AM_DEPR_CALC process
     Navigation: Asset Management > Depreciation > Processing > Calculate Depreciation > Depreciation Calculation

3. Recategorize to category depreciable (ME)
     Navigation: Asset Management > Asset Transactions > Financial Transaction > Cost Adjust/Transfer Asset

4. Run AM_DEPR_CALC
     Navigation: Asset Management > Depreciation > Processing > Calculate Depreciation > Depreciation Calculation

5. Change Depreciation Attributes to be Flat Rate % with Low Limit, and change 'In Service Date'
    Navigation: Asset Management > Asset Transactions > Asset Book Information > Define Tax/ Depr Criteria 
     
6. Run AM_DEPR_CALC
     Navigation: Asset Management > Depreciation > Processing > Calculate Depreciation > Depreciation Calculation

7. Review Depreciation – Annualized is ok
     Navigation: Asset Management > Depreciation >Review Depreciation Info >Asset Depreciation
     
8. Review Depreciation – Monthly on last year behavior inconsistent.

Replication steps.

Cause

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