- OracleApps Epicenter - http://www.oracleappshub.com -

What is Amortized Asset and Expensed-Off Assets Adjustment?

When you are changing financial information of any asset once its aquired in system then you will have two options under financial side.

  1. Effect of adjustment should have retrospective effect, ie, asset will be treated with new financial information as though it would have been, when asset is added or
  2. Effect of adjustment should have prospective effect,ie, the effect of adjustment will affect only future depreciation amounts.

If you choose option 1,it is called EXPENSED ADJUSTMENTS. For expensed adjustments, Oracle Assets recalculates depreciation using the new information and expenses the entire adjustment amount in the current period. Any excess or deficit of depreciation on account of change in financial information will be charged in the current period.

If you choose option 2,it is called AMORTIZED ADJUSTMENTS. For amortized adjustments, Oracle FA spreads the adjustment amount over the remaining life or remaining capacity of the asset. For flat-rate methods, Oracle Assets starts depreciating the asset using the new information. You can set up your amortized adjustments to have a retroactive start date by changing the default amortization start date (usually the system date) to a date in a previous period. Any adjustment amount missed since the amortization start date is taken in the current period. If you amortize an adjustment for an asset, you cannot expense any future adjustments for that asset in that book.

Amortize check box is available in scrren which you need to open via this navigation (N) Asset workbench>Books

1 Comment (Open | Close)

1 Comment To "What is Amortized Asset and Expensed-Off Assets Adjustment?"

#1 Pingback By What is Amortized Asset and Expensed-Off Assets Adjustment? Part -II | OracleApps Epicenter On February 12, 2011 @ 1:27 am

[…] What is Amortized Asset and Expensed-Off Assets Adjustment?What is Amortized Asset and Expensed-Off Assets Adjustment? Part -IICredit Card Transactions in Iexpense -> Accounting for Credit Card Transactions (Part II)Credit Card Transactions in Iexpense -> Process FlowsTCA : Party Purge API Blogroll […]