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How the Penny Cost Adjustment is done in Assets.

Pls. tell me the steps for this.

Thanks in advance.

Amitava

Sorry that I could not understand your question fully. Cost adjustments are there in assets. What is penny cost adjustment?

Can you explain more detail?

Cheers,
Saravanan

Penny cost Adjustment is a feature in Fixed Asset module which is used to correct the Depreciation computation.
It helps in catching up the depreciation as on date.
It works as below:

Try uploading/creating an Asset with an incorrect Accumulated Depreciation for an Asset
After creation of asset successfully,
Query the asset from the Asset workbench, open the details, and change the cost by adding 0.01 to the existing cost. i.e. if your Asset cost is 10,000 Rs, make it as 10,000.01 Rs, and SAVE it
Now again make the change to 10,000 Rs from 10,000.01, and save your work, now you can see that your Depreciation would have been recomputed based on your DPIS and it would have been compared with your Accumulated Depreciation, any excess or shortfall would be charged in the current month, you can check that excess or shortfall from the financial inquiry.

This is maily useful in case of incorrect depreciation computation through upload process, or change in depreciation method or life or rate etc... and one can find the corrected values for the past periods..... For current period depreciation, one needs to run the depreciation program as usual ...

I came to know about this feature from oracle support, where i messed up data migration of assets in one of my projects .....

Thanks Karthikeyan. I have not come across this "Penny Cost Adjustment" in the FA User Manual (different terminology is used?). Anyway, I will check it out again.

Cheers,
Saravanan

Thanks a lot Karthikeyan.

I need to know one thing. While changing the cost of the asset by 0.01% and again go back to the original cost do I need to amortize the asset ?

Thanks in advance.

Amitava

I don't think so as cost adjustment is made (and then rolled back) to correct the previous periods depreciation value. However, if there is a big impact in your current month P&L and if the company decides to amortize the value, you can do it (with the consent of auditors).

Cheers,
Saravanan

I guess this video from youtube will also help ...
http://www.youtube.com/watch?v=zXG6J0OJZvw