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The Mass Depreciation Adjustment program calculates the maximum depreciation expense as follows:

Maximum Depreciation Expense = Maximum Accumulated Depreciation - Accumulated Depreciation in the Adjusted Book at the Beginning of the Fiscal Year

The minimum and maximum depreciation expense amounts are the depreciation amounts necessary to bring the accumulated depreciation in the adjusted tax book at the beginning of the fiscal year to the minimum and maximum amounts that have been calculated for accumulated deprecation at the end of the fiscal year.

Oracle Assets modifies the depreciation expense for all assets in your tax book according to the depreciation adjustment factor you enter.

The Mass Depreciation Adjustment program calculates the adjusted depreciation expense as follows:

Adjusted Depreciation Expense = Minimum Depreciation Expense + Depreciation Adjustment Factor X (Maximum Depreciation Expense - Minimum Depreciation Depreciation)

Mass Depreciation Adjustment does not adjust fully retired assets. However, it adjusts the depreciation expense for credit (negative cost) assets between the minimum (least negative) and maximum (most negative) depreciation expense.

See Also

Mass Depreciation Adjustment Examples

Adjusting Tax Book Accumulated Depreciation