Hi Hasan:

I got 2 scenarios to TEST in FA. Can you please advice what steps do i need to follow to test these in FA

Scenario 1
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Asset 3846 has a useful life of 4200 days. Additionally, an upgrade for $100,000 was added to this component. The asset & upgrade continue to have the same life of 4200 days.

Scenario 2
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Asset 3825 has a useful life of 5000 days and only 500 days have been used. An upgrade is done to this asset for $200,000 that extends the life of the asset. Now the asset & upgrade have a new life of 5500 days.

Can you please advice the steps to test these 2 scenarios so that i can then run depreciation and create accounting process to verify the entries generated.

Thanks in advance
UQRC

Hasan

Can you please advice on this ... you might ne thinking thats it not related to Videos .. but please can you please guide me in right direction so that i can proceed

Hasan

In the STL video - you mentioned the formula for calculating depreciation using STL method

Asset cost - salvage value/no. of years

if my number of years is 3 yrs and 7 months

then should i use 3.7

also if 7 months are used then how will we calculate depreciation and adjust it

Sorry for the late reply.

If expected life of your asset is 3 years and 7 months then this is exactly how you will tell Oracle. (3 years and 7 months). You enter remaining life in years and months. You can enter that at asset category level or override it at the asset level.

If asset has already been in service since last 7 months, then at the time of adding the asset into the system, enter the service date as 7 months in the past. Oracle will automatically calculate depreciation expense for the last 7 months.

DEBIT: ASSET COST
DEBIT: DEPRECIATION EXPENSE (FOR 7 MONTHS)
CREDIT: ASSET CLEARING
CREDIT: ACCUMULATED EXPENSE (FOR 7 MONTHS)