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How does prorate convention daily work with monthly depreciation calendar?

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edited Aug 27, 2023 7:51PM in Assets 6 comments

Summary: How does the prorate for depreciation works in Oracle?


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Prorate calendar= Daily

Depreciation Calendar = Monthly

1.) Capitalised $66,666 with period Jan-22 and an In-service date of 31/01/22. Asset category Life in years=8. Depreciation Method=STL

Salvage Value= 0

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2.) Depreciation calculated at $707.76, which seems a little high, given it’s only one day in service in Jan-22. I was expecting something more along the lines of ~$22.83 (i.e. $66,666 / 2920 [8 years * 365 days] days * 1 day in January 2022)

Can someone please shed light on how oracle calculated its depreciation given these scenarios?

Version (include the version you are using, if applicable):

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