Fixed Assets, Asset Cost Adjustment Effects

[u_fazal]

Assalam-u-Alaikum,

We are using Oracle Applicaions 11.5.7 and need help in Asset cost adjustment effects on Accumulated depreciation and Book Value. The case with us is that we added some assets during the year, at the year end we found some errors in asset costs i.e. with some of the assets cost were recorded in excess of the actual cost. Now Assets have some accumulated depreciation and a certain book value in the system that is based on the wrong cost recorded in the system.

We need to adjust the Cost, Accumulated Depreciation and the Book Value for the assets.

To do this on test Environment we adjusted the current cost for asset and run the Depreciation. The system has adjusted all three things Cost, Accumulated Depreciation and the Book Value but the figures are correct.

Let me explain the case with an example we have and Asset with name ABM SINGLE NEEDLE AUTO QUILTING MACHINE as Asset# 1009927

We had added it in the system in May 2006 with its cost as Rs.287287.00 system was showing asset?s detail as follows.

ASSET# COST ACC DEP BOOK VALUE

1009927 238,395 3,973.11 234,421.74


In June 2006 we discovered that its Actual Cost was Rs.238395.00, so we adjusted the current cost to Rs.238395.00 in the system and run the depreciation. Ideally system should show the following results

ASSET# COST ACC DEP BOOK VALUE

1009927 238,395 3,973.11 234,421.74


But the system is showing the Assest information as follows
ASSET# COST ACC DEP BOOK VALUE

1009927 238,395 3,956.70 234,438.30


Can some one help us in finding out the cause of diffrerence and its solution.

<u><b>We are using Declining Depreciation Method with 10% Rate</b></u>

Regards,

Muhammad Usman Fazal
Assistant Manager - IT SD
Ph 92 041 111-105-105 Ext 3032
Fax 92 041 111-103-104

[anuragagarwal1980]

Hi,

Can you please give more details regarding the asset when it was loaded intially, whether you loaded with any acc dep. How was the dep initally for May 06 calculted. can you give the calculation

Also can you give details abut the calendar you are using...

[anuragagarwal1980]

Hey Fazal

I got the result. Have a look below.

Dep Rate 10%
Cost- May 06 238,395.00
Dep-May 06 1,986.63
WDV Value 236,408.38
Dep-Jun 06 1,970.07


Total Acc Dep 1986.63+1970.07 =3956.70

[u_fazal]

Thanks Anurag,
But i found some error in qouting the problem at my end.

Any way we have solved the problem by adjusting the current cost in the next fiscal year before running depriciation.

Thanks for your intrest.

[ramesh040671]

Hello Fazal,

I am new user for this side.

I have gone through your query but why have done the cost adjustment ever the original cost was same.

anyway..

you did a cost adjustment in june and ran the depreciation so system has depriciated the amount from 1st of jun till.

You may view the accu depreciation amouy

Asset Inquiry>Financial information>find the asset#>books>trancation>depreciation.

I hope this will help you to understand.

Ramesh