How Depreciation for Reinstatements Is Calculated

When you reinstate a retired asset, Oracle Assets calculates additional depreciation expense that was missed during the period the asset was retired.

Settings That Affect Depreciation for Reinstatements

The depreciation amount is controlled by:

• The retirement convention

• The date retired

• The period in which you reinstate the asset

How Depreciation Is Calculated

In the period when you reinstate an asset, Assets calculates the additional depreciation expense that would be calculated if you didn't retire the asset.

Note: No additional depreciation expense is calculated if you perform the reinstatement in the same period that you retired the asset.

Reversals of Depreciation

A reinstatement results in a reversal of depreciation when the following occurs:

• The retirement convention caused additional depreciation to be calculated when you retired the asset.

• You then reinstate the asset before the retirement prorate date.

  In this case, Assets:

  • Reverses the extra depreciation that was calculated during retirement.

  • Waits until the appropriate accounting periods to calculate depreciation.