Unplanned Depreciation

Unplanned depreciation is primarily used to comply with special depreciation accounting rules in Germany and the Netherlands.

You also can use unplanned depreciation to handle unusual accounting situations in which you need to adjust the net book value and accumulated depreciation amounts for an asset without affecting its cost.

Enter unplanned depreciation amounts by asset in either the corporate or tax book for any current period during the useful life of an asset. When you enter unplanned depreciation, Oracle Assets immediately updates:

• The year-to-date and life-to-date depreciation

• The net book value of the asset

You can change the depreciation method after entering unplanned depreciation.

Unplanned Depreciation Expense

When entering unplanned depreciation expense:

• The unplanned depreciation expense you enter must not exceed the current net book value of the asset.

  You can enter multiple unplanned depreciation amounts, both positive and negative, in a single period, as long as the net amount doesn't exceed the current net book value of the asset. Thus, it's possible to enter unplanned amounts to back out depreciation taken in prior periods, including previously entered unplanned depreciation amounts.

• Assets uses the unplanned depreciation amount, in addition to regular depreciation, to calculate depreciation for the period in which you entered the unplanned depreciation.

  When you create journal entries for the general ledger, Assets posts the expense due to unplanned depreciation to the selected account.

Assets uses the unplanned depreciation amount, in addition to regular depreciation, to calculate depreciation for the period in which you entered the unplanned depreciation. When you create journal entries for the general ledger, Assets posts the expense due to unplanned depreciation to the account you selected when you entered the unplanned depreciation for the asset.

Restrictions

When entering unplanned depreciation, keep in mind the following restrictions:

• Expensed adjustments: You can't perform expensed adjustments to assets for which you have previously entered unplanned depreciation and have since amortized the amount. You can, however, perform expensed adjustments to the asset until you choose to amortize the unplanned depreciation amount.

• Assets shared between balancing segments: You can't enter unplanned depreciation for assets shared between balancing segments. In other words, you can't allocate unplanned depreciation amounts to specific distributions of an asset. Assets posts the unplanned depreciation expense only to the depreciation expense account you enter.

• Table-based depreciation methods: You can't enter unplanned depreciation for assets that use table-based depreciation methods. If you need to enter unplanned depreciation for an asset that depreciates using a table-based method, you must first change the depreciation method to a method that isn't table-based.

• Prior period retirements: You can't perform prior period retirements to assets with unplanned depreciation amounts.

• Mass changes: You can't perform a mass change to assets with unplanned depreciation amounts.