How does prorate convention daily work with monthly depreciation calendar?
Summary: How does the prorate for depreciation works in Oracle?
Content (required):
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
Version (include the version you are using, if applicable):
Content (required):
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):