Depreciation from current NBV and not start of FY

[Chris1973]

Hello, Can anyone help on this question:
I would like to calculate a depreciation charge using the current NBV of an asset rather than R12855 going back to the start of the financial year. This is because we want to change the UEL of an asset mid year and for the future charges to be calculated using the current NBV of an asset.

e.g. £1200 asset with 12 month UEL.
Depreciation posted for first 6 months @ £100 per month.

Then change UEL to 24 months.

System then posts a credit into P7 effectively catching up to where it thinks it should be:

See below illustrative of what it is currently doing compared to what we would like it to do.

Period JDE Desired
P1 100 100
P2 100 100
P3 100 100
P4 100 100
P5 100 100
P6 100 100
P7 -250 33.33
P8 50 33.33
P9 50 33.33
P10 50 33.33
P11 50 33.33
P12 50 33.33
etc etc.

Any thoughts on how to do this?

Thanks in advance.

Chris

 

[dschleicher]

Hi Chris,

What value do you have in the Computation Method? If I am understanding your post correctly, I'm guessing you have an "I" for Inception to Date processing. I think changing this to "R" for Remaining Months should accomplish what you want.

 

[Chris1973]

Hi Dave,
Thanks for replying. I have tried this with I, C and R computation methods and all come up with the same answer.
Chris

 

[elway]

Chris,

I think that you might find this Oracle kg document useful: How to Create a Depreciation Rule that takes the NBV Divided by the Remaining Life Months (Doc ID 1390275.1)

Funnily enough, I am in the middle of assisting a client to make a similar change at this very moment!

Regards,

Elway.

 

[NewbyNewbyNew]

elway

Can you send me the document you are referring to in the thread? I have a similar issue.