Assets Loaded in Wrong Period

Anjireddy.r12 · Post by **Anjireddy.r12** » Sun Sep 09, 2012 6:09 am

Hi,

We loaded Assets wrongly in 9th period but actually need to load in 10th period.The loaded assets depreciation calculated upto 9th period.

Can we move all the Assets from 9th to 10th period,or is there any alternate.

Please let me know your Valuable Suggestions.

Regards,
Anjireddy

karthikeyanp1981 · Post by **karthikeyanp1981** » Tue Sep 11, 2012 10:12 am

Hi Angireddy,

once asset is created the only way to remove it is by Retirement and re-load the assets correctly in 10th month.
Now, you have uploaded assets in 9th period including 9th month's depreciation, hence when you run depreciation for the 9th month in order to close the period, you are expecting the system to over charge the depreciation ...? System will not overcharge depreciation, it would continue to calculate the depreciation from DPIS and perform the catchup ( excess / shortfall) and close the 9th period.
To my knowledge there is a rollback available for reverting back the Depreciation charged, but not the assets created/loaded ... your chance is long gone when you ran the "post Mass Addition process"....
However as a last hope do check with oracle support, if they have a workaround or data fix to revert back the changes from backend ...

Regards,
Karthikeyan

Anjireddy.r12 · Post by **Anjireddy.r12** » Wed Sep 12, 2012 12:40 pm

Hi Karthikeyan,

Thanks for your reply.

I find following information in FA User Guide

------------------------
Accumulated Depreciation
You normally enter zero accumulated depreciation for new capitalized assets. If you are adding an asset that you have already depreciated, you can enter the accumulated depreciation as of the last depreciation run date for this book, or let Oracle Assets calculate it for you. If you enter a value other than zero, Oracle Assets uses that amount as the accumulated depreciation as of the last depreciation run date.

---------------
I think the Content means, if we loaded asset in 9th Period with accumulated deprecitation amount, system treats it has correct amount and runs once again the depreciation for 9th Period; it takes over depreciation.

Eg:

For single period Depreciation is 10,
Loaded asset in 9th period with an accumulated depreciation 90
now closing the 9th period, then system calculates the depreciation again and it shows accumulated depreciation as 100.

Is my opinion is correct or wrong..Please let me know your suggestion.

(Is there any back end process for this issue)

Thanks & Regards,
Anjireddy

karthikeyanp1981 · Post by **karthikeyanp1981** » Wed Sep 12, 2012 2:27 pm

Hi Anjireddy,

you have interpreted oracle statement in a different manner .....
1) Oracle does not assume that the accumulated depreciation loaded for an asset is correct and proceeds further, it recalculates the depreciation when the depreciation program is run, if the accumulated depreciation loaded is as per the depreciation method and life of the asset, it does not disturb the amount, if the loaded accumulated depreciation is incorrect, then system would correct the same ...
For an Asset added in 9th period, Accumulated Depreciation is updated is 90 ... which is incorrect, it should have been 80 (assuming 10 as a depreciation value per month). If you entered 80 as Accumulated depreciation in 9th period for the asset added and then ran the depreciation program ..... system would take 80 (opening accumulated depreciation) + 10 ( Current Month Depreciation) = 90 (Closing accumulated depreciation)................
Whereas you have uploaded it as 90 ... in which case what would happen is ....system would take 90 ( Opening accumulated Depreciation ) + Zero ( Current Month Depreciation) = 90 (Closing accumulated Depreciation) ...
current month would be zero, because system would have found out by charging 10 in current month would result in an incorrect closing accumulated depreciation value.

The Thumb rule for depreciation program is,
"IRRESPECTIVE OF THE ACCUMULATED DEPRECIATION YOU HAVE UPLOADED, SYSTEM RECALCULATES DEPRECIATION AMOUNT EVERY MONTH FROM DATE PLACED IN SERVICE AND APPORTIONS THE CORRECT VALUE IN THE CURRENT OPEN PERIOD IN ASSET MODULE"

Try a test case, to observe the above functioning of Depreciation program ....

Alternatively, you can delete the asset from Front end if Depreciation has not been run for the 9th Period (Even if it is done, you can rollback the
depreciation using another API)..... If the number of assets that needs to be deleted are huge in numbers, you can consider using asset deletion
API.

Regards,
Karthikeyan

Anjireddy.r12 · Post by **Anjireddy.r12** » Wed Sep 12, 2012 4:04 pm

Hi Karthikeyan,

Thanks for information.

Here i am getting little confusion about Accumulated Depreciation.

We are loading the data first time and data contains upto 10 years old Assets.

Eg:

Asset Purchased in Jan 2010 and cost is 10,000
Depreciation Rate is 10% on NBV

End of the year 2010 Accumulated Depreciation is 1000 and NBV is 9000

in Jan 2011 depreciation rate is changed to 15%

End of the year 2011, Accumulated Depreciation is 2350 (1000+1350) and NBV is 7650

In Jan 2012, we received above Asset information from client as following; and Loaded,

Cost......NBV........Acc.Dep........Dep Rate........Date Placed in service
10000....7650.......2350.............15%...............01-Jan-2010

Here my doubt is, if we run the Depreciation for Jan 2012, system calculates Depreciation for the period Jan 2012 only or from the Date placed in Service.

For above Asset, if system calculates Depreciation from the date placed in service, the Accumulated depreciation is 2775 (original is 2350) upto 2011 year end.

Please Clarify the Same.

Thanks & Regards,
Anjireddy

karthikeyanp1981 · Post by **karthikeyanp1981** » Wed Sep 12, 2012 4:47 pm

Hi Anji,

For your scenario,

For Year 2010,
Asset Cost = 10,000 Dep Rate = 10%
Dep Value for Year 2010= 1000, (Depreciation is same as per Manual Calculation and Oracle Calculation)
NBV = 10,000 - 1,000 = 9,000

For Year 2011,
NBV = 9,000
Dep Rate = 15%
Dep Value for Year 2011
a) Manual Calculation = 1350 (15% on 9000)
b) Oracle Calculation would be,
15% dep for Year 2010 = 10,000 X 15% = 1,500
15% dep for Year 2011 = 8,500 X 15% = 1275
Total Accum Dep for 2010 and 2011 should be = 1500 + 1275 = 2775
Dep already charged for 2010 when Dep is at 10% = 1000
Net Depreciation that would be computed for the year 2011 = 2775 - 1000 = 1775

Perform few test cases for yourself for better understanding, so that you can make out system behavior.....

Regards,
Karthikeyan

Anjireddy.r12 · Post by **Anjireddy.r12** » Wed Sep 12, 2012 4:58 pm

Thank you Karthikeyan.

Anjireddy.r12 · Post by **Anjireddy.r12** » Mon Sep 17, 2012 7:59 am

Hi Karthikeyan,

I have added Three Assets in 5th period with Same cost, Date placed in services and Depreciation methods; with different Accumulated Depreciation amounts Like following

255920........1000
255921........300
255922........0

I closed the period then System keeps Same accumulated rates and Caluculated only for Current period for those Assets i entered Accumulated Depreciation Amounts..... and calculated correct amount for the Asset which Accumulated Depreciation is ' 0 '.

Actually for end of 5th month Accumulated Depreciation is 833.35 for all Assets, but system generated Like Following,

255920-AUTO-CARS 31-JAN-2012 STL 5.00 10,000.00 166.67 1,166.67 1,166.67 100.00
255921-AUTO-CARS 31-JAN-2012 STL 5.00 10,000.00 166.67 466.67 466.67 100.00
255922-AUTO-CARS 31-JAN-2012 STL 5.00 10,000.00 833.35 833.35 833.35 100.00

Please let me know your Suggestions.

Regards,
Anjireddy

karthikeyanp1981 · Post by **karthikeyanp1981** » Mon Sep 17, 2012 8:50 am

Hi Anji,

i am unable to understand your last query ....

Are you saying...
"System has incorrectly computed accumulated Depreciation as ZERO for the 5th period by overriding the Accumulated Depreciation amounts you have provided/uploaded, whereas actually the Accumulated Depreciation amount should have been 833.35 " ...

If above is the case, this can very well happen due to data corruption, can you try penny cost adjustment for those 3 assets alone and check the accumulated depreciation amounts again .....system would have corrected it from Zero to 833.35 ....

If you need to know how Penny cost adjustment should be done ... follow the steps demonstrated in the below youtube video ..
http://www.youtube.com/watch?v=zXG6J0OJZvw

Regards,
Karthikeyan

Anjireddy.r12 · Post by **Anjireddy.r12** » Mon Sep 17, 2012 10:07 am

Hi Karthikeyan,

My mean system is Calculating the Depreciation from Date placed in service for the Assets which we don't enter the Accumulated depreciation Amount.

If we are keeping any amount in Accumulated depreciation, system considering upto particular period that is the correct amount and calculating Only for Current Period.

I Added Assets in 5th Period with following Accumulated Depreciation amounts,

255920........1000
255921........300
255922........0

For One period Depreciation Amount is 166.7; After Depreciation Run,

255920........1000 + 166.7
255921........300+ 166.7
255922........666.8+ 166.7...... for this system calculating depreciation immediately after add the asset in book for 4 periods(666.

and adding 166.7 for current Period Depreciation.

Based on above, i am concluding that; If we enter any Accumulated depreciation Amount for Asset, system treats it has correct amount and calculate depreciation amount only for current period not from the date placed in service.

Thanks & Regards,
Anjireddy

karthikeyanp1981 · Post by **karthikeyanp1981** » Mon Sep 17, 2012 1:05 pm

Hi Anji,

thank you for the Clarification ....

Can you run depreciation program for next two periods as well (i.e. by closing the current 5th period ) in your test environment ....The reason
being, system behaviour from my experience has always been the same, Depreciation program recomputes depreciation from DPIS and charges +/- in current month which your result in increase/decrease in Accumulated Depreciation.
System treating whatever amount we enter as Accumulated Deprecation for an asset as Correct cannot be true, assume a case, where due to data entry, Accumulated Depreciation amount is entered incorrectly, at what point/ which period system would correct the same ... It would happen always in the month we are adding the asset
However you have a clear test case on hand with results ... the only way to make sure that system is performing the calculation correctly is to do
a penny cost adjustment. Perform the below steps and see what is the value available in the Accumulated depreciation..
1) Query for 255920 in the Asset Workbench.
2) Update cost of the asset with 0.01 value i.e. if the cost is 10,000, update it as 10,000.01
3) Save it and close the form
4) Requery the same asset again in the Asset Workbench...
5) Revert back the cost adjustment you have done i.e. change from 10,000.01 to 10,000
6) Save it ...
Now verify the Accumulated Depreciation ....

Regards,
Karthikeyan

Anjireddy.r12 · Post by **Anjireddy.r12** » Tue Sep 18, 2012 3:54 pm

Thanks Khartikeyan for sharing your knowledge with me.

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