Depreciation In Oracle Assets (FADEPR)

Applies to:

Oracle Assets - Version 11.5.9 to 11.5.10.2 [Release 11.5]
Information in this document applies to any platform.
Depreciation Program - FADEPR

***Checked for relevance on 08-Jan-2013***

Purpose

 To provide information on the depreciation process in Oracle Assets.

Scope

This article is for general use as reference material only.

Details

DEPRECIATION IN ORACLE ASSETS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Depreciation Program (FADEPR) calculates depreciation expense and
adjustments, and updates the accumulated depreciation and year-to-date
depreciation.  When you run depreciation, the Depreciation Program submits
three or four separate requests, depending on release version:

- Generate Accounts (FAGDA - Release 11 and 11i)
- Calculate Gain/Loss (FARET)
- Depreciation (FADEPR)
- Journal Entry Reserve Ledger Report (FAS400) for a Corporate book
  or Tax Reserve Ledger Report (FAS480) for a TAX book.
- Process Pending Transactions (11i only)

The Generate Accounts process will generate all necessary GL code combinations
and populate the FA_DISTRIBUTION_ACCOUNTS table.  FAGDA is independent of the
depreciation program and is intended as a performance enhancer.  If you are
running depreciation for the first time, you should consider running
Generate Accounts first (Other-Requests-Run) because it can take an extended
length of time to run, depending on the number of assets and distributions.

The Calculate Gain/Loss process will calculate gains and losses for retired
assets and catch up depreciation for retired and reinstated assets in the
current period.  FARET should be run standalone whenever you retire or
reinstate assets throughout the period.

The depreciation process will calculate depreciation expense and adjustments
and close the current period for the book.  You should be sure you have entered
all transactions for the period before running depreciation because you cannot
reopen the period once it is closed.

The Process Pending Transactions program has added an additional Mass
Addition Post job in the Depreciation request set.  When Depreciation runs and
opens the next period, a Mass Additions Post job will automatically be
submitted to process any mass additions for that period.

JOURNAL ENTRIES FOR DEPRECIATION
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Oracle Assets creates the following journal entries for depreciation:

Depreciation Expense       DR
Accumulated Depreciation   CR


CALCULATING DEPRECIATION - THE BASICS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1.  Use the Run Depreciation form to submit a concurrent request, which will
    calculate depreciation for the current period for all assets in a book.

2.  Oracle Assets will first run the Calculate Gains and Losses program to
    process any pending retirements or reinstatements.

3.  After depreciation has completed, Oracle Assets will automatically run
    the Journal Entry Reserve Ledger Report or the Tax Reserve Ledger Report.

For release 10.7 and 11, once you run depreciation for a book, Oracle Assets
closes the period.  All subsequent transactions you enter for this book will
be processed in the following period.

For release 11i, you have the option of whether you want to close the period or not.
The new functionality of rerunable depreciation and rerunable Create Journals was introduced in 11i.

Oracle Assets takes the following steps to calculate depreciation:

1.  Use the date placed in service (DPIS) and the prorate convention to
    determine the prorate date.

2.  Use the prorate date and the prorate calendar to determine the prorate
    period.

3.  Determine the depreciation rate.
    - For flat-rate depreciation methods, use the adjusted rate.
    - For table-based depreciation methods, use the prorate period
      and the rate table.
    - For calculated depreciation methods, use the life.
    - For units of production assets, use the capacity and the periodic
      production.

4.  Determine the depreciable basis.
    - For cost-based depreciation methods, this is usually the cost minus
      salvage value.
    - For net book value based depreciation methods, this is usually the cost
      minus accumulated depreciation.
    - In TAX books, the depreciable basis may be limited by a cost ceiling.

5.  Calculate the current year depreciation.
    - Use the depreciation rate, the depreciable basis, and the prorate
      calendar to calculate the current year depreciation.
    - In TAX books, the annual depreciation may be limited by an expense
      ceiling.

6.  Determine the current period depreciation.
    - For the first period of the asset life, use the depreciation calendar,
      prorate calendar, depreciation start date, and current year
      depreciation.
    - For the last period of the asset's life, use the recoverable cost minus
      accumulated depreciation.
    - For the last period of the fiscal year, use the current year
      Depreciation minus year-to-date depreciation.
    - For other periods, use the depreciation calendar and the current year
      depreciation.

There are specific cases that FADEPR checks when running depreciation:

- AMORTIZED ADJUSTMENTS (COST OR LIFE CHANGES)
Oracle Assets uses the (ADJUSTED_COST)/(RATE_ADJUSTMENT_FACTOR) to calculate
current period depreciation.  In normal cases this is equal to Asset Cost,
but when there is an amortized change, the ADJUSTED_COST is the new asset
cost and the RATE_ADJUSTMENT_FACTOR is used to spread depreciation over the
remaining life of an asset after amortization or revaluation.

- FIRST YEAR OF ASSET'S LIFE
For the first year of asset's life, DPIS, prorate convention, and Depreciate
When Placed in Service are taken into account for calculating the depreciation
for the period.  For this fiscal year, current period depreciation will be
calculated based on the following formula:
     Annual Depreciation Amount x Fraction of Year Held /(number of periods the
     asset will depreciate during this fiscal year)

- LAST YEAR OF THE ASSET'S LIFE
For the last year of asset's life, retirement date and retirement convention are
taken into account for calculating the depreciation for the period.  For this
fiscal year, current period depreciation will be calculated based on the
following formula:
     Annual Depreciation Amount x Fraction of Year Held /(number of periods the
     asset will depreciate during this fiscal year)

- DEPRECIATION CEILINGS
If the asset has a depreciation ceiling and the calculated depreciation amount
is greater than the ceiling amount, then Oracle Assets uses the ceiling amount.


DEPRECIATION EXAMPLE
====================
An asset is added to the CORPorate book with the following parameters:
Cost = $1,000,000
Salvage Value = $100,000
Depreciation Method = STL 2 year
Date Placed in Service = 11-APR-98
Prorate Convention = Mid Quarter
The depreciation calendar for the book is MONTHLY.
The prorate calendar for the book is FOL MONTH.
The book is set to divide depreciation EVENLY.
The fiscal year goes from January to December.

Calculate depreciation for this asset:

1.  The prorate date is 01-MAY-98.

2.  The prorate period is MAY-98. (period number 5)

3.  The depreciation rate is 1 life, or .5 .

4.  Since STL is a cost-based depreciation method, the depreciable basis is
    1,000,000 - 100,000 = 900,000.

5.  The annual depreciation is 900,000 x .5 = 450,000. Since there are only
    8 periods left in the current fiscal year according to the prorate calendar,
    the current year depreciation is as follows: 450,000 x 8/12 = 300,000.

6.  The current depreciation period spans from April through June.  The asset
    is to be depreciated starting in May (according to the prorate calendar),
    so the current period depreciation is two (2) months' worth, or 75,000.


BEHIND THE SCENE
~~~~~~~~~~~~~~~~
When you run depreciation, Oracle Assets processes each asset according to the
transactions that you have performed on the asset since the last depreciation.

FADEPR uses the following tables:

FA_DEPRN_DETAIL
For each depreciable asset, Oracle Assets inserts one row per distribution line
that was active at any time during the current period.

BOOK_TYPE_CODE    ASSET_ID PERIOD_COUNTER DISTRIBUTION_ID D DEPRN_RUN_DATE
--------------- ---------- -------------- --------------- - --------------------
DEPRN_AMOUNT  YTD_DEPRN DEPRN_RESERVE ADDITION_COST_TO_CLEAR       COST
------------ ---------- ------------- ---------------------- ----------
DEPRN_ADJUSTMENT_AMOUNT DEPRN_EXPENSE_JE_LINE_NUM DEPRN_RESERVE_JE_LINE_NUM
----------------------- ------------------------- -------------------------
REVAL_AMORT_JE_LINE_NUM REVAL_RESERVE_JE_LINE_NUM JE_HEADER_ID
----------------------- ------------------------- ------------
REVAL_AMORTIZATION REVAL_DEPRN_EXPENSE REVAL_RESERVE YTD_REVAL_DEPRN_EXPENSE
------------------ ------------------- ------------- -----------------------
HALIMCORP           100661          23981             850 B 13-AUG-1999 10:53:11
           0          0             0                1000000          0




HALIMCORP           100661          23982             850 D 13-AUG-1999 10:55:15
       75000      75000         75000                           1000000
                  37500

                 0                   0             0                       0

HALIMCORP           100661          23983             850 D 16-AUG-1999 09:38:13
       37500     112500        112500                           1000000
                      0

                 0                   0             0                       0


FA_DEPRN_SUMMARY
Oracle Assets inserts one row per depreciable asset.

BOOK_TYPE_CODE    ASSET_ID DEPRN_RUN_DATE       DEPRN_AMOUNT  YTD_DEPRN
--------------- ---------- -------------------- ------------ ----------
DEPRN_RESERVE DEPRN_SOURCE_CO ADJUSTED_COST BONUS_RATE LTD_PRODUCTION
------------- --------------- ------------- ---------- --------------
PERIOD_COUNTER PRODUCTION REVAL_AMORTIZATION REVAL_AMORTIZATION_BASIS
-------------- ---------- ------------------ ------------------------
REVAL_DEPRN_EXPENSE REVAL_RESERVE YTD_PRODUCTION YTD_REVAL_DEPRN_EXPENSE
------------------- ------------- -------------- -----------------------
PRIOR_FY_EXPENSE
----------------
HALIMCORP           100661 13-AUG-1999 10:53:11            0          0
            0 BOOKS                  900000
         23981



HALIMCORP           100661 13-AUG-1999 10:55:15        75000      75000
        75000 DEPRN                  900000          0
         23982                             0                        0
                  0             0                                      0
               0

HALIMCORP           100661 16-AUG-1999 09:38:13        37500     112500
       112500 DEPRN                  900000          0
         23983                             0                        0
                  0             0                                      0
               0


FA_BOOK_CONTROLS
If DEPRN_STATUS in the FA_BOOK_CONTROLS table is either 'C' (Completed) or
'E' (Error), the form submits the concurrent request and sets the DEPRN_STATUS
= 'S' (Submitted).  Oracle Assets now locks this row to prevent you from
entering any transaction when depreciation is running.  If DEPRN_STATUS in the
FA_BOOK_CONTROLS table is either 'R' (Running) or 'S' (Submitted), then Oracle
Assets displays the errors message "CHECK_BOOK_STAUS" or "Failed to obtain lock
on FA_BOOK_CONTROLS row for book."

Oracle Assets also checks if the depreciation request is for the current open
period.  If the LAST_PERIOD_COUNTER in the FA_BOOK_CONTROLS is that of the last
period, the program proceeds.  Oracle Assets updates the LAST_PERIOD_COUNTER,
LAST_DEPRN_RUN_DATE, DEPRN_REQUEST_ID, DEPRN_STATUS, and CURRENT_FISCAL_YEAR
for the book.

FA_DEPRN_PERIODS
Oracle Assets closes the row corresponding to the current period (by entering
a PERIOD_CLOSE_DATE) and inserts a new row for the book and the new period.

FA_FISCAL_YEARS
If the new fiscal year has not been created, Oracle Assets automatically extends
the fiscal year definition.

FA_ADJUSTMENTS
Retroactive transactions and expensed depreciation adjustments.

TRANSACTION_HEADER_ID SOURCE_TYPE_COD ADJUSTMENT_TYPE DE CODE_COMBINATION_ID
--------------------- --------------- --------------- -- -------------------
BOOK_TYPE_CODE    ASSET_ID ADJUSTMENT_AMOUNT DISTRIBUTION_ID
--------------- ---------- ----------------- ---------------
LAST_UPDATE_DATE     LAST_UPDATED_BY LAST_UPDATE_LOGIN ANNUALIZED_ADJUSTMENT
-------------------- --------------- ----------------- ---------------------
JE_HEADER_ID JE_LINE_NUM PERIOD_COUNTER_ADJUSTED PERIOD_COUNTER_CREATED
------------ ----------- ----------------------- ----------------------
ASSET_INVOICE_ID

    1335 ADDITION        COST            DR             12849
HALIMCORP           100661           1000000             850
13-AUG-1999 10:55:15            2849            467341                     0
                                           23982                  23982


                 1335 ADDITION        COST CLEARING   CR               13528
HALIMCORP           100661           1000000             850
13-AUG-1999 10:55:15            2849            467341                     0
                                           23982                  23982



                 1335 DEPRECIATION    EXPENSE         DR               21759
HALIMCORP           100661             37500             850
13-AUG-1999 10:55:15            2849            467341                450000
                                           23982                  23982


FA_BOOKS
Look up information needed for depreciation calculation and check the following:
   PERIOD_FULLY_RESERVED = NULL
   PERIOD_FULLY_RETIRED = NULL
   DEPRECIATE_FLAG = YES
   ADJUSTMENT_REQUIRED_STATUS is not NONE or TFR (Prior Period Transfer)
   DATE_INEFFECTIVE = NULL

BOOK_TYPE_CODE    ASSET_ID DATE_PLACED_IN_SERVI DATE_EFFECTIVE
--------------- ---------- -------------------- --------------------
DEPRN_START_DATE     DEPRN_METHOD LIFE_IN_MONTHS RATE_ADJUSTMENT_FACTOR
-------------------- ------------ -------------- ----------------------
ADJUSTED_COST       COST ORIGINAL_COST SALVAGE_VALUE PRORATE_CO
------------- ---------- ------------- ------------- ----------
PRORATE_DATE         COS ADJU CAP RET DEP LAST_UPDATE_DATE     LAST_UPDATED_BY
-------------------- --- ---- --- --- --- -------------------- ---------------
DATE_INEFFECTIVE     TRANSACTION_HEADER_ID_IN TRANSACTION_HEADER_ID_OUT
-------------------- ------------------------ -------------------------
ITC_AMOUNT_ID ITC_AMOUNT RETIREMENT_ID TAX_REQUEST_ID  ITC_BASIS BASIC_RATE
------------- ---------- ------------- -------------- ---------- ----------
ADJUSTED_RATE BONUS_RULE                     CEILING_NAME
------------- ------------------------------ ------------------------------
RECOVERABLE_COST LAST_UPDATE_LOGIN ADJUSTED_CAPACITY FULLY_RSVD_REVALS_COUNTER
---------------- ----------------- ----------------- -------------------------
IDL PERIOD_COUNTER_CAPITALIZED PERIOD_COUNTER_FULLY_RESERVED
--- -------------------------- -----------------------------
PERIOD_COUNTER_FULLY_RETIRED PRODUCTION_CAPACITY REVAL_AMORTIZATION_BASIS
---------------------------- ------------------- ------------------------
REVAL_CEILING UNIT_OF_MEASURE           UNREVALUED_COST ANNUA
------------- ------------------------- --------------- -----
PERCENT_SALVAGE_VALUE ALLOWED_DEPRN_LIMIT ALLOWED_DEPRN_LIMIT_AMOUNT
--------------------- ------------------- --------------------------
PERIOD_COUNTER_LIFE_COMPLETE ADJUSTED_RECOVERABLE_COST ANNUA
---------------------------- ------------------------- -----
HALIMCORP           100661 11-APR-1998 00:00:00 13-AUG-1999 10:53:11
11-APR-1998 00:00:00 STL                      24                      1
       900000    1000000       1000000        100000 FOL-MONTH
01-MAY-1998 00:00:00 NO  NONE YES NO  YES 13-AUG-1999 10:53:07            2849
                                         1335


          900000            466883


                                                1000000

                                                900000

FA_DISTRIBUTION_HISTORY
Look up active distributions.

FA_CEILINGS
Look up ceiling information.

FA_CALENDAR_PERIODS
Look up period information.

FA_CONVENTIONS
Look up prorate convention information.


THE BOTTOM LINE
~~~~~~~~~~~~~~~
Historical depreciation calculations (DEPRN_EXPENSE, ACCUMULATED_DEPRN) can be
found in FA_DEPRN_DETAIL and FA_DEPRN_SUMMARY.  The main difference between
these tables is that FA_DEPRN_DETAIL shows depreciation information for each
distribution line (i.e. each active row in FA_DISTRIBUTION_HISTORY), whereas
FA_DEPRN_SUMMARY shows summary depreciation information for an asset.

NOTE:  Because referential integrity is not maintained at the RDBMS level, the
depreciation tables do not reference FA_DISTRIBUTION_HISTORY or FA_ADJUSTMENTS.


COMMON DEPRECIATION ERRORS
~~~~~~~~~~~~~~~~~~~~~~~~~~
APP-48260 Module CHECK_BOOK_STATUS ended with error.
   Cause:  The MASS_REQUEST_ID for this book is NOT NULL.
   Resolution:  Check to verify that all mass requests for this book have
   completed normal.  NULL the MASS_REQUEST_ID in the FA_BOOK_CONTROLS table.

APP-00988 ORA-1403 in fadccs.
   Cause: fadccs failed due to ORA-01403 no data found.

APP-47670 Unable to validate depreciation periods.
   Cause:  You ran depreciation for the first time in your book.  The problem
   is that there is a missing row in FA_DEPRN_PERIODS.  FADEPR expects a row in
   FA_DEPRN_PERIODS for one period less than the active period.
   Resolution:  Insert the missing row in FA_DEPRN_PERIODS table.  Contact
   Oracle Support Services for the datafix script.

APP-47984 in fazccp and ORA-1403 in fazgtcp.
   Cause:  The depreciation calendar needs to go as far back as the oldest DPIS,
   or if you have changed the calendar, there may be gaps or period overlaps.
   Resolution:  Correct the calendar.

APP-00988 ORACLE error 1403 in fadubc
APP-47649 Error: Unable to set depreciation status in FA_BOOK_CONTROLS table
APP-47640 Error: Unable to update FA_BOOK_CONTROLS table
   Cause:  You ran depreciation for a book with no assets and you are in the
   last period of the fiscal year.
   Resolution:  You need to apply patch for BUG 605315 or higher.

APP-00988 Oracle error 1555 in faddep
   Cause: faddep failed due to ORA-01555: snapshot too old (rollback segment
   too small).
   Resolution:  Increase the rollback segment size.

APP-47191 and ORA-1403 in fazgtbc
   Cause:  Depreciation is submitted with number of parallel requests set to
   more than 1 (FA:Number of Parallel Requests) and the BOOK_TYPE_CODE has a
   space in between 2 words.  Example: US CORPORATE
   Resolution:  This is BUG 456936.  Apply Patch 605315 or higher.  As a
   workaround, you need to submit depreciation in single mode.

APP-00988 ORACLE error 1 in faenicp
   Cause:  faenicp failed due to ORA-00001:unique constraint
   (FA.FA_CALENDAR_PERIODS_U3) violated.
   Resolution:

     1) Make sure that the version of faeofy.lpc in FADEPR is version 70.15
        or Higher.

     2) Check the calendar periods for gaps or overlap.

     3) Check that the Fiscal Start and End Dates match the Start and End Dates
        of the first and last periods of the fiscal year respectively.

     4) Make sure that there are no gaps or overlap between Fiscal Year Start
        and End Dates.

     5) Be sure that all of the periods for a Fiscal Year have been created.

ORA-1 in fadaid/fadais
   Common causes:

     - Updating DEPRN_STATUS in FA_BOOK_CONTROLS to C (Completed).
     - Partially committed or incomplete transfers, adjustments, or partial
        retirements.
     - Transfers that happened after depreciation has errored in a book.
     - Orphaned adjustment records.
     - Orphaned distributions.

   Resolution:  Run the provided ORA-1 diagnostic scripts.  Contact Oracle
   Support Services for any required datafix scripts.


ORA-1 DIAGNOSTIC SCRIPTS
========================

Script to check for adjustment rows with invalid distribution_id:

select aj.asset_id, aj.distribution_id
from fa.fa_distribution_history dh, fa.fa_adjustments aj
where aj.period_counter_created = &PCounter
and   aj.book_type_code =  '&BOOK'
and   NOT exists (select dh.asset_id
                 from   FA.fa_distribution_history dh
                 where  dh.distribution_id = aj.distribution_id
                 and  dh.asset_id = aj.asset_id);


Another script to check for adjustment rows with invalid distribution_id:

select aj.asset_id
from fa.fa_transaction_headers th,
     fa.fa_distribution_history dh,
     fa.fa_adjustments aj,
     fa.fa_deprn_periods dp
where dp.book_type_code = '&BOOK'
and   dp.period_close_date is null
and   dp.period_counter = aj.period_counter_created
and   dp.book_type_code = aj.book_type_code
and aj.transaction_header_id = th.transaction_header_id
and   th.transaction_type_code = 'TRANSFER'
 and   aj.distribution_id = dh.distribution_id(+)
and   dh.code_combination_id is null;


The best script to check for adjustment rows with invalid distribution_id:

select distinct aj.asset_id
from fa.fa_adjustments aj, fa.fa_deprn_detail dd
where aj.book_type_code = &book
and   aj.distribution_id = dd.distribution_id(+)
and   aj.period_counter_created = dd.period_counter(+)
and aj.book_type_code = dd.book_type_code(+)
and   dd.deprn_amount is null
and  exists (select 'fine' from fa.fa_deprn_detail dd2
             where dd2.asset_id = aj.asset_id
              and dd2.book_type_code = aj.book_type_code
             and dd2.period_counter = aj.period_counter_created);


Script to check for invalid rows in FA_DISTRIBUTION_HISTORY:

select dh.asset_id
from fa.fa_distribution_history dh1,
fa.fa_distribution_history dh
where dh.transaction_header_id_out is not null
and   dh.transaction_header_id_out = dh1.transaction_header_id_in(+)
and   dh1.code_combination_id is null;


NOTE:  Make sure you have the latest faxchk.lpc (fa75win.dll) to prevent ORA-1 issues.


GENERAL INFORMATION
===================

• DEPRECIATION CALENDAR

The depreciation calendar determines the number of accounting periods in

your fiscal year.

• PRORATE CALENDAR

The prorate calendar determines what rate Oracle Assets uses to calculate

annual depreciation by mapping each date to a prorate period, which

corresponds to a set of rates in the rate table.

• PERIOD CLOSE

Oracle Assets automatically closes the book's current period and opens the

next when you run the depreciation program.  You cannot have more than one

open period for a given depreciation book.

• YEAR-END PROCESSING

You can close the year independently in each depreciation book.  The

depreciation program automatically resets year-to-date amounts on a book

the first time the depreciation program is run on that book in a fiscal year.

For assets added in the first period of the year with YTD depreciation, the

YTD is NOT reset to zero on the first depreciation run.

Oracle Assets automatically creates the depreciation and prorate periods for

your new year when you run depreciation for the last period of the previous

fiscal year.

• SUSPEND DEPRECIATION

You can suspend depreciation by un-checking Depreciate flag in the Books

form.  If you suspend depreciation of an asset when you add the asset, Oracle

Assets expenses the missed depreciation in the period you start depreciating

the asset.

For table and calculated methods, Oracle Assets calculates depreciation

expense for the asset based on an asset life that includes the periods you

did not depreciate it.  If you suspend depreciation after an asset has started

depreciating, Oracle Assets catches up the missed depreciation expense in the

last period of life.

For flat-rate methods, Oracle Assets continues calculating depreciation expense

for the asset based on the flat-rate.  For flat-rate methods that use net book

value, Oracle Assets uses the asset net book value at the beginning of the

fiscal year in which you resume depreciation.  The asset continues depreciating

until it becomes fully reserved.

• RECOVERABLE COST

For depreciation methods with a calculation basis of cost, Oracle Assets

calculates depreciation using the recoverable cost. The recoverable cost

is calculated as the lesser of either the cost less the salvage value less

the investment tax credit basis reduction amount, or the cost ceiling.

Oracle Assets depreciates the asset until the accumulated depreciation equals

the recoverable cost.

• ADJUSTMENTS

The following are some examples of financial adjustments you can expense or

amortize:

- Recoverable Cost Adjustments

- Depreciation Method Adjustments

- Life Adjustments

- Rate Adjustments

- Capacity Adjustments

• PRIOR PERIOD TRANSACTIONS

1. Prior Period Additions

  If you enter an asset with a date placed in service before the current

  accounting period, Oracle Assets automatically calculates the missed

  depreciation and adjusts the accumulated depreciation on the next depreciation

  run.  If you provide accumulated depreciation when you add the asset, Oracle

  Assets does not recalculate the accumulated depreciation.  It accepts the

  amount you entered.  For table and calculated methods, even if the entered

  accumulated depreciation differs from what Oracle Assets would have

  calculated, Oracle Assets does not depreciate the asset beyond the

  recoverable cost.  If the accumulated depreciation is too low, Oracle Assets

  takes additional depreciation in the last period of the asset's life so that

  the asset becomes fully reserved.  If the asset's accumulated depreciation is

  too high, Oracle Assets stops depreciating the asset when it becomes fully

  reserved, effectively shortening the asset life.

2. Prior Period Transfers

  If you backdate an asset transfer, Oracle Assets automatically reallocates

  depreciation expense by reversing some of the depreciation charged to the

  from account, and redistributing it proportionally to the to accounts. 

  Retroactive transfers do not impact the total depreciation.  You cannot

  backdate a transfer to a prior fiscal year.

3. Prior Period Retirements / Reinstatements

  If you backdate a retirement, Oracle Assets automatically adjusts the

  depreciation for the year by the appropriate amount, resulting in a one-time

  adjustment in depreciation expense for the period.  Oracle Assets then

  computes the gain or loss using the resulting net book value.  You cannot

  backdate a retirement to a previous fiscal year, nor can you reinstate a

  retirement performed in a previous fiscal year.

4. Prior Period Amortized Adjustments

  If you backdate an amortized adjustment, Oracle Assets automatically

  calculates depreciation from the retroactive amortization start date, and

  adds the retroactive depreciation to the current period.

5. Negative Cost (Credit) Assets

  You can enter a credit asset as an asset with a negative cost and Oracle

  Assets credits depreciation expense and debits accumulated depreciation each

  period for the life of the asset.

Reference: Oracle Support Doc Id. :[ID 77371.1]