Fixed Assets - EBS (MOSC)

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Declining balance method with switch to straight line, to comply with French rules (Oracle R12)

edited Aug 25, 2014 9:14AM in Fixed Assets - EBS (MOSC) 3 commentsAnswered

Dear expert,

I would like some guidance on how to set-up in R12 a depreciation Declining balance method with switch to straight line, that comply with French Tax rules.  I have tested a method with Table rates, based on NBV, but the problem is with the depreciation in Year 1, if the service date is not the first period of the year.  Let me illustrate the problem with an example;

Asset cost: $1000

Life: 5 years

Service date: 1-Aug-14

Rate: 35% (STL is 20% x Coefficient of 1.75 = 35%).

For Year 4 and 5 the method should switch to straigh Line (since the depreciation amount become greater than DB amount).

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