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Production based Asset Depreciation Calculation

edited Jun 26, 2024 8:38AM in Assets 1 comment

Hi, We have a client requirement to calculate Depreciation for Production based Assets as per below logic:

Asset Cost: 200000

Total Production Capacity: 5000

Production Capacity for JAN month: 100

Depreciation for JAN month: 4000 ((100 / 5000) * 200000)

For FEB month, client is expecting to consider the “Total Production Capacity” as 4900 (5000 – 100) which is nothing but Total Production Capacity minus JAN month Production Capacity.

So if the FEB month Production Capacity is 75, then expected Depreciation should be 3061.22 ((75 / 4900) * 200000) whereas Oracle calculates it as 3000 ((75 / 5000) * 200000).

Is it possible to achieve this requirement ?

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