Accelerated Depreciation versus Loss on Disposal
Hi All,
I have a business user that has tried to finagle the system to generate a final depreciation for an asset he's retiring rather than generate a loss on disposal.
The asset original cost was $3,921.75 and $3,513.92 had been depreciated through Oct-13. He retired the asset effective 11/8, but when he checked on the final depreciation, Nov-13 showed $0 depreciation and a ~$407 in Gain/Loss. So, he reinstated it, changed the life to 1 month--hoping to get an accelerated depreciation for that final Nov-13 period of ~$407. When re re-retired the asset, the $407 still went in the Gain/Loss field.
In production support, we feel the loss on disposal calculation is how Oracle works, but he's trying to get the system to do something different. I am hoping to confirm that Oracle doesn't work in the manner he's trying to get it to generate depreciation and that he'll have to make a correcting journal entry to account for this in the way he wants.
I have a business user that has tried to finagle the system to generate a final depreciation for an asset he's retiring rather than generate a loss on disposal.
The asset original cost was $3,921.75 and $3,513.92 had been depreciated through Oct-13. He retired the asset effective 11/8, but when he checked on the final depreciation, Nov-13 showed $0 depreciation and a ~$407 in Gain/Loss. So, he reinstated it, changed the life to 1 month--hoping to get an accelerated depreciation for that final Nov-13 period of ~$407. When re re-retired the asset, the $407 still went in the Gain/Loss field.
In production support, we feel the loss on disposal calculation is how Oracle works, but he's trying to get the system to do something different. I am hoping to confirm that Oracle doesn't work in the manner he's trying to get it to generate depreciation and that he'll have to make a correcting journal entry to account for this in the way he wants.
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