FA depreciation calculation using Formula based on NBV

Feb 9, 2018 10:42AM

Hi,

I need advice on depreciation method that gives a wrong calcuation.

I load an asset inn period JAN-2018 with the following data:

Asset Cost = 11357017.96

Accumulated Depreciation = 8 047 074.70

NBV = 3 309 943.26

Date Placed in Service = 01/01/2009, Life = 25 years

Prorate Convention = Month

Depreciation method = Formula (1/<Remaining_Life_1>), based on NBV, Depreciation Basis Rule = USE TRANSACTION PERIOD BASIS, Life Year =25, Month=0

Fiscal Year = from 01/01/2018 to 31/12 2018 - 12 months

When I run the Depreciation program, Oracle gives for the first period, 60285.54 as depreciation amount.

We expected that it will be near 16766.05 (calculation of the legacy system)

Expected annual calculation = NBV/Remaining Life = 3 309 943.26 / 16 = 198824.80 --> that gives for JAN-2018 : 198824.80 * 31 / 365 = 16886.50

or in days:

Fixed Assets - EBS (MOSC)