How Is Depreciation Catchup Charged In Period Of Addition Sent To GL In Release 12?

 

When an asset is added as Expensed with backdated Date Placed in Service ,the application calculates depreciation catchup in the period of addition.

In Release 11i, this depreciation catchup is part of the Depreciation Journal which is created after running Depreciation.

For example, an asset is added in period SEP-08 as Expensed with cost =1000 and Prorate date= 01-JAN-2008 .
Depreciation Method is Table based on Cost with rate=0.5 in first year
Depreciation catchup is charged for January 2008 to August 2008 = 1000 * .5 /12 * 8 = 333.33

Hence in release 11i following Journal entries are sent to GL:

Addition Journal in R11i
Dr. Asset Cost 1000.00
                                       Cr. Asset Clearing 1000.00