Fixed Assets, Asset Cost Adjustment Effects
Posted: Mon Nov 06, 2006 7:22 am
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
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