Adjust STL asset life without catching up depreciation
Is there a way to adjust the life of an asset after it's been in-service without it processing a catch-up adjustment the next time depreciation is run.
Scenario:
Corporate book using standard STL methods
The asset is $100 cost with 5 year life
One year has passed, so there is $20 AD and the NBV is $80.
We now want to change the life of the asset to 2 years, which means there is one year remaining. So, in the final year, it will should take $80 in depreciation.
However, what is actually happening is that Oracle is recalculating the entire depreciation schedule from the in-service date) using the new 2 year life and creating a catch-up adjustment. So, if the asset life was two years, then the depreciation would be $50/year. After one year,the NBV would be $50, rather than the $80 that is currently is. So it's creating an acceleration adjustment and taking the missing $30 immediately.