How You Override Depreciation

You can override the depreciation amounts calculated by Oracle Assets when the calculated amount doesn’t meet your business requirements.

When you override depreciation, Assets charges a different periodic depreciation amount than what's calculated by the Calculate Depreciation process. Override amounts are still subject to all standard validations. You can manually override the calculated default depreciation amounts for both standalone and group assets.

Before you can override depreciation amounts, you must first:

• Enable the ORA_FA_ALLOW_OVERRIDE lookup.
• After you enable the lookup, enable the Allow depreciation override option in the Edit Book page.

You perform depreciation override using the Manage Depreciation Override Application Desktop Framework Desktop Integration (ADFdi) spreadsheet. Use this spreadsheet to search for assets, update assets, and submit depreciation override information.

You can use the Manage Depreciation Override ADFdi spreadsheet to override depreciation amounts in one of two ways:

• Depreciation: When you select Depreciation in the Use by column in the Manage Depreciation Override spreadsheet, Assets overrides the depreciation amounts calculated by the application.
• Adjustment: When you select Adjustment in the Use by column in the Manage Depreciation Override spreadsheet, you perform an adjustment to incorporate the override data. In this case, the application creates a transaction type of Adjustment. But when you run the Calculate Depreciation process for this period, the normal depreciation amount is also calculated.

Note: When using the Manage Depreciation Override spreadsheet, you can't download asset information from the user interface. You must search for the assets you want to override depreciation for directly in the spreadsheet.

Override Depreciation

This task shows you how to override depreciation for your book.

Before completing these steps, ensure you’ve completed the following setup for your asset book:

• Enable the Allow Depreciation Override lookup.
• Enable the Allow depreciation override option in the Edit Book page.

To override depreciation, follow these steps:

1. Navigate to the Assets landing page.
2. Select your book.
3. In the Tasks panel tab, click Override Depreciation.
4. Download and save the Manage Depreciation Override spreadsheet.
5. Open the Manage Depreciation Override spreadsheet and sign into your environment.
6. Select your book in the Book field.
7. Enter your search criteria in the Search section. You can search for a single asset by entering the asset number or search for multiple assets by entering the category or the from and to periods.

   Note: The period or periods for which you override depreciation must be open.

8. Click Search.
9. Select Post in the Status column.
10. Select Depreciation in the Used by column.
11. Enter the new depreciation amount in the Depreciation Expense column.
12. Click Submit to run the Validate Depreciation Override process.
13. Run the Calculate Depreciation process with or without closing the period.
14. After the Calculate Depreciation process completes successfully, search for your asset in the Manage Depreciation Override spreadsheet.
15. Confirm that the status is Posted and the Depreciation Expense column shows the new depreciation amount.
16. In the Tasks panel tab, click Inquire Assets.
17. Search for your asset in the Asset Inquiry page.
18. In the Depreciation tab in the Details section of the Asset Inquiry page, confirm that the depreciation override amount is listed for the period for which you overrode depreciation.

Override Depreciation Using an Adjustment

This task shows you how to override depreciation for your book by performing an adjustment transaction.

Before completing these steps, ensure you’ve completed the following setup for your asset book:

• Enable the Allow Depreciation Override lookup.
• Enable the Allow depreciation override option in the Edit Book page.

To override depreciation by creating an adjustment transaction, follow these steps:

1. Navigate to the Assets landing page.
2. Select your book.
3. In the Tasks panel tab, click Override Depreciation.
4. Download and save the Manage Depreciation Override spreadsheet.
5. Open the Manage Depreciation Override spreadsheet and sign into your environment.
6. Select your book in the Book field.
7. Enter your asset number and the period you want to override depreciation for.

   Note: The period or periods on which you override depreciation must be closed.

8. Click Search.
9. Select Post in the Status column.
10. Select Adjustment in the Used by column.
11. Enter the new depreciation expense amount in the Depreciation Expense column.
12. Click Submit.

Perform a cost adjustment:

1. Select your book in the Assets landing page.
2. In the Tasks panel tab, click Adjust Assets.
3. Search for your asset in the Adjust Assets page.
4. Select your asset and click the Change Financial Details button.
5. Enter the new cost in the Cost field.
6. Click Submit.
7. Confirm that the status is Posted in the Manage Depreciation Override spreadsheet.
8. In the Tasks panel tab, click Inquire Assets.
9. In the Asset Inquiry page, search for your asset.
10. Confirm that the depreciation adjustment amount is now adjusted with the override amount.