1 Reply Latest reply: Jul 16, 2007 2:33 AM by 587248 RSS

    Additional Deprecation on Asset

    577946
      Hi Friends,

      I am having an Issue in Fixed Assets Module. Can any body help me out…..


      We want to calculate the Additional Deprecation on Asset in Tax Books for fist year only. Second year on wards the deprecation will be base deprecation only. Example

      Asset Cost is : 3000
      Base Deprecation Rate is : 20% (Straight Line Bases)
      Additional Deprecation is : 10%

      For fist year the Deprecation should be calculate 30% ( Base 20% + Additional 10% )
      Next year onwards the deprecation rate should be 20% Base rate only

      I am requesting you please give me setup steps for this issue

      Thanks in advance

      Regards,

      VENKAT
        • 1. Re: Additional Deprecation on Asset
          587248
          Hi,

          Please use the Bonus rule of depreciation.
          Navigation Setup -> Depreciation -> Bonus Rule

          EG.

          Bonus Depreciation Rule Listing
          Use this listing to review the bonus rules you have set up. Bonus rules specify additional depreciation to take in the early years of an asset's life.

          Selected Headings
          From/To Year: The fiscal year range during which the bonus rule is effective.

          Bonus Rate: The rate allowed for an asset. For example, if you are using a flat-rate depreciation method of 20%, and you allow a 10% bonus rate for 1994 to 1995 and a bonus rate of 15% for 1996, Oracle Assets calculates your depreciation expense as 30% of the cost for 1994 and 1995, and 25% for 1996.

          Map the above eg to your requirement

          In Case of any issue please feel free to connect me.

          Regards,
          Gajanan(9869636727)