Adjustments

Perform adjustments to correct or update financial and depreciation information for a single asset or for multiple assets.

Adjustments can be as follows:

Transaction Type	Description
Change financial details	Perform adjustments to change information such as the asset cost, salvage information, and depreciation information.
Transfer source lines	Transfer source lines between capitalized assets, construction-in-process (CIP) assets, capitalized and CIP assets, and CIP and capitalized assets.
Add source lines	Add source lines to assets. Only manual source lines can be added to CIP assets.
Change source lines	Change all information for manual source lines. For source lines from source systems such as Oracle Payables and Oracle Projects, you can't change any information.
Change category	Change the asset category along with its descriptive flexfield information.
Suspend depreciation	Stop calculating depreciation for the specified assets.
Resume depreciation	Resume depreciating assets for which depreciation was previously suspended.
Enter unplanned depreciation	Enter the negative or positive unplanned depreciation for the current open period.
Delete asset	Delete assets added in the current period.
Change group asset	Assign a standalone asset as a member of a group asset, transfer member assets from one group asset to another group asset, or make a member asset a standalone asset.
Transfer reserve	Move reserve from one group asset to another group asset.

A cost adjustment includes any adjustment that affects the recoverable cost, including a change in:

• Cost

• Salvage value

• Depreciation

• Depreciation expense

• Investment tax credit ceilings

• Bonus rules

Perform cost adjustments manually or automatically by adding a mass addition to an existing asset.

If you change financial information after you have run depreciation, you must choose one of the following:

• Expense

• Amortize

Expensed Adjustments

For expensed adjustments, Oracle Assets recalculates depreciation using the new information and expenses the entire adjustment amount in the current period. Expensed adjustments result in a one-time adjusting journal entry.

Amortized Adjustments

You can set up 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 can't expense any future adjustments for that asset in that book.

• Method adjustments

  • For amortized method changes, Assets doesn't recalculate accumulated depreciation, but uses the new information for the remaining time that the asset is in service.

  • For table and calculated methods, Assets depreciates the cost minus the accumulated depreciation over the remaining life of the asset.

  • For diminishing value methods, Assets calculates depreciation based on the recoverable net book value of the asset as of the period that you make the change.

  • If, instead, your depreciation method multiplies the flat-rate by the cost, Assets begins using the new information to calculate depreciation.

  • For life-based or capacity-based methods, Assets spreads the adjustment amount over the remaining life or capacity of the asset.

  • For flat-rate methods, Assets starts depreciating the asset using the new information.

    If, instead, your depreciation method multiplies the flat-rate by the cost, Assets begins using the new information to calculate depreciation.

• Bonus adjustments

  • For assets with a cost-based depreciation basis, the bonus rate is applied to the cost.

  • For assets with a net book value depreciation method basis, the bonus rate is applied to the cost minus the total reserve (accumulated depreciation and bonus reserve).