Depreciation

Chapter 4

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Running Depreciation
Run depreciation to process all assets in a book for a period.
When you run depreciation, Oracle Assets gives you the option of closing
the current period if you check the Close Period check box on the Run
Depreciation window. If all of your assets depreciate successfully, Oracle
Assets automatically closes the period and opens the next period for the
book. If you do not check the Close Period check box when you run
depreciation, Oracle Assets does not close the period.
Once depreciation has been processed for an asset in the current open
period, you cannot perform any transactions on those assets unless
depreciation is rolled back or the current period is closed.
To run depreciation:
Step 1. Run the Assets Not Assigned to Any Cost Centers
Listing and the Assets Not Assigned to Any Books Listing to
ensure that all assets are assigned to expense accounts
and books.
NOtherRequestsRun
Step 2. Navigate to the Run Depreciation window.
NDepreciationRun Depreciation
Step 3. Choose the Book for which you want to run depreciation.
Step 4. Choose whether you want Oracle Assets to close the period after
successfully depreciating all assets.
Ensure that you have entered all transactions for the period
before you run depreciation. Once the program closes the
period, you cannot reopen it.

Step 5. Choose Run to submit concurrent requests to run the calculate

gains and losses, depreciation, and reporting programs.

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You cannot enter transactions for the book while depreciation is

running.
Oracle Assets automatically runs the Journal Entry Reserve
Ledger report when you run the depreciation program for a
corporate book, and the Tax Reserve Ledger report for a tax
book, so you can review the depreciation calculated.
Step 5. Review the log files and report after the request completes.
Step 6. If the log file lists assets that did not depreciate successfully,
correct the errors and rerun depreciation.

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Rolling Back Depreciation

If you have run depreciation for a particular period, you can use the
Rollback Depreciation feature to restore assets to their state prior to
running depreciation.
To roll back depreciation:
Step 1. Navigate to the Submit Request Set window to Roll Back
Depreciation.
NDepreciationRollback Depreciation
Step 2. On the Parameters window, specify the book for which you want
to roll back depreciation. The period automatically defaults to the current
open period.

Step 3. Choose Submit to submit your request to roll back the

depreciation.

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Projecting Depreciation
Depreciation projections are estimates of actual depreciation expense. You
can project depreciation expense for any depreciation book.
To project depreciation expense:
Step 1. Navigate to the Depreciation Projections window.
NDepreciationProjections
Step 2. Enter the Projection Calendar to specify how you want to
summarize the projection.
Step 3. Enter the Number of Periods for which you want to project
depreciation.
Step 4. Enter the Starting Period for your projection.
Step 5. Check Cost Center Detail to print a separate depreciation
projection amount for each cost center. Otherwise, Oracle Assets prints a
consolidated projection report for each expense account without cost
center detail.
Step 6. Check Asset Detail to print a separate depreciation amount for
each asset. Otherwise, Oracle Assets prints a consolidated projection report
without asset detail.
Step 7. Enter the Book that you want to include in your projection.

Step 8. Choose Run.

Step 9. Choose ViewRequests and review the Depreciation Projection
Report.

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Forecasting Depreciation
You can use whatif depreciation analysis to forecast depreciation for
groups of assets in different scenarios without making changes to your
Oracle Assets data. You can run whatif depreciation analysis on assets
defined in your Oracle Assets system or on hypothetical assets that are not
defined in Oracle Assets.
Whatif depreciation analysis differs from depreciation projections in that
whatif depreciation analysis allows you to forecast depreciation for many
different scenarios without changing your Oracle Assets data. Depreciation
projection allows projection only for the parameters set up in Oracle
Assets.
To forecast depreciation using whatif depreciation analysis:
Step 1. Navigate to the WhatIf Depreciation Analysis window in Oracle
Assets.
NDepreciationWhat-If Analysis
Step 2. Enter the book containing the assets for which you want to run
whatif analysis.
Step 3. In the Assets to Analyze tabbed region, enter the parameters you
want to use to identify the set of assets for which you want to run whatif
depreciation analysis.
OR
In the Hypothetical Assets tabbed region, enter the parameters to identify
the hypothetical asset for which you want to run whatif depreciation
analysis.
Step 4. Enter the Depreciation Scenario parameters to identify the
depreciation rules to be used in the analysis.
Step 5. Choose Run to run whatif depreciation analysis.
Step 6. Review the results of the WhatIf Depreciation Report or the
Hypothetical WhatIf Report by navigating to the View My Requests
window.
Step 7. Update your assets according to the specified parameters in the
Mass Changes window.
OR
Repeat this procedure using different parameters.
Parameters
You run whatif depreciation analysis based on parameters you specify in
the WhatIf Depreciation Analysis window in Oracle Assets. You enter

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these parameters for purposes of analysis only. The parameters you enter in
these windows do not affect depreciation of your Oracle Assets data.
Assets to Analyze Parameters
Use the Assets to Analyze tabbed region when you want to perform whatif
depreciation analysis on assets that exist in your Oracle Assets system. You
use this group of parameters to tell Oracle Assets on which assets to
perform whatif analysis. If you leave the optional fields blank, Oracle
Assets defaults to performing analysis on all possible assets.
Parameter
Asset Number

Usage
Optional

Explanation
You can enter a beginning range, and ending
range, or both. If both fields are blank, Oracle
Assets performs analysis on all assets in the
specified book. If only the beginning asset
number is specified, Oracle Assets performs
analysis on all assets including and following the
beginning asset number. Similarly, if only the
ending asset number is specified, Oracle Assets
performs analysis on all assets up to and
including the ending asset number.

Dates in Service

Optional

You can enter a beginning range, and ending

range, or both. Similar to the Asset Number field,
if you leave both fields
blank, Oracle Assets will perform analysis on all
assets in the specified book, or on all assets
preceding or following the
beginning or ending date.

Description

Optional

If you only want assets of a particular description

included in your analysis, enter the description.

Category

Optional

If you only want assets of a particular

category included in your analysis, enter
the category.

Analyze Fully Reserved Assets

Optional

Check the Analyze Fully Reserved Assets

check box to include fully reserved assets
in your analysis.

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Hypothetical Assets Parameters

Use the Hypothetical Assets tabbed region when you want to perform
whatif depreciation analysis on assets that have not been defined in your
Oracle Assets system.
Parameter
Category

Usage
Required

Explanation
Enter the category of the hypothetical asset

Dates in Service
Cost
Accumulated Depreciation

Required
Required
Optional

Enter the hypothetical date place in service.

Enter a hypothetical asset cost.
Enter hypothetical accumulated depreciation.

Depreciation Scenario Parameters

Use this group of parameters to indicate the depreciation rules you want
applied in the analysis. If you leave any of the fields blank, Oracle Assets
applies the rules already set up in Oracle Assets. You can enter any
combination of parameters. No specific parameters are required, but you
must enter at least one parameter.
Parameter
Method

Explanation
Enter the depreciation method, for example, flat
rate. This field is not required, however, if you do
enter a depreciation method in this
field, it affects other fields you can enter,
depending on the value you entered in the
Method field. If you enter a lifebased method,
the Life field appears where you can enter the life
of the asset. If you enter a ratebased method,
the Rate field appears where you can
enter the rate.

Life

Enter the life of the asset in years and months. If

you entered a value in the Method field, it must
be a lifebased method for the Life field
to be valid.

Rate

Enter the depreciation rate. If you entered a value

in the Method field, it must be a ratebased
method for the Rate field to be valid.

Prorate Convention

Enter the prorate convention you want applied to

the assets in the whatif analysis.
Enter the percentage of the cost of your assets
that should be equivalent to the salvage value,
based on the following formula:
Salvage Value=Cost x Default Percentage

Salvage Value %

Amortize Adjustments

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Check the Amortize Adjustments check box if you

want your adjustments to be amortized in your
analysis. If you do not check the
check box, adjustments will be expensed on the
analysis.

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Process
After you have entered the parameters you want used in your analysis,
select the Run button to launch the Whatif Depreciation Report or the
Hypothetical WhatIf Report.
For every asset you specified, Oracle Assets will compute depreciation data
for the number of periods you specified.

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