Straight Line Depreciation Method with Flat rate
Hi,
We are on Oracle version 12.2.4. We are in process of implementing the Fixed Asset module.
As per companies Act life for Office Equipment is 5 years and 5 % salvage. So derived rate of depreciation on the basis of its useful life less of its 5% salvage amount,
is 100*5% = 100-5= 95 , 95/5(yrs) = 19%.
So when we define Depreciation Method with following inputs
Method Type - Flat
Calculation Basis- Cost
Depreciable Basis Rule- USE RECOVERABLE COST
Rate- 19%
The system is calculating 19% on recoverable cost (Original Cost minus Salvage Value), but we have already considered salvage in rate.
Hence we want it to be calculated on Original Cost. So is there any changes needs to be done in setup for it.