How Is Depreciation Calculated For STL Depreciation Method And Daily Prorate Calendar? [ID 377505.1]

		Modified 26-JUN-2009 Type HOWTO Status PUBLISHED

In this Document
  Goal
  Solution
  References

Applies to:

Oracle Assets - Version: 11.5.10 to 12.0.6
Information in this document applies to any platform.

Goal

How is depreciation calculated for an asset with an amortization start date in the current open period and a backdated DPIS, with a daily prorate?

The setup of the depreciation book is as follows:

- Daily prorate calendar
- Monthly depreciation calendar
- Divide Depreciation : Evenly

The asset information:

Date placed in service (DPIS) : 14-Nov-2003
Amortize Start Date = 30-Apr-2006
Amortize Flag = Y
Cost : 1,020,000.00
Accumulated Depreciation : 0.00
Salvage Value: 112500.00
Life = 40 Years

Solution

Adjusted Cost = Cost - Salvage Value = 1020000 - 112500 = 907500

The depreciation has been calculated based on the remaining life of the asset from the amortization start date of 30-April-2006.

With a start date of 14-Nov-2003 and a 480 month life, the last day depreciation would be charged would be 13-Nov-2043.

Remaining life is for fiscal 2043.

Apr 30 + May 31 + Jun 30 + Jul 31 +Aug 31 + Sep 30 + Oct 31 + Nov 13 = 227

The remaining life of the asset = 37 years + 227/365 days = 37.6219 years

The annual depreciation charge = 907500 / 37.6219 = 24121.59

Depreciation amount = 24121.59 / 12 = 2010.13

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STL Depreciation Method And Daily Prorate Calendar? [ID 377505.1]

Applies to:

Goal

Solution

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