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Depreciation reserve Calculation

in Assets 1 comment

We are having issue while converting the Operating lease asset. When we convert the Operating lease asset with past date as date placed in service, it calculates the depreciation reserve amount by the Calculate Lease Expenses process. We want to understand the calculation because it is not as per our expectation.

Asset Cost: 281,657.34
In Service Date: 05/28/2025
Lease Start Date: 05/28/2025
Lease Monthly Payment: 3540.23
Advance Payment : 3540.23
Lease Residual Value : 136200
Prorate Date : 04/27/2025 (First day of the Period of In service date)
Life : 84 months
Method : STL
Calendar : 4-4-5 Calendar
Current Period: Jun-25
Asset Addition and Lease creation Period : Jun-25

Depreciation Reserve calculated by Oracle is 5705.61, we want to understand the calculation.

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