What-if Depreciation Analysis

Use what-if depreciation analysis to forecast depreciation for groups of assets in different scenarios. The information you enter is for analysis purposes only and doesn't affect your Oracle Assets data.

When running what-if depreciation analysis, remember the following points:

  • Depreciation projections are only estimates of actual depreciation expense.

  • After running what-if depreciation analysis, take note of the process ID and then run the What-if Depreciation Analysis Report to view your results.

  • You can run what-if depreciation analysis for as many scenarios as you like. Each time you run what-if depreciation analysis, Assets launches a separate report. The results of an analysis will not overwrite the results of previous analyses.

  • You can project depreciation expense for any depreciation book and for any number of periods beginning from the starting period you enter as a parameter.

You can forecast depreciation for either:

  • Existing assets: When you run what-if depreciation analysis for existing assets, the application automatically launches the Prepare What-if Depreciation Analysis process.

  • Hypothetical assets: When you run what-if depreciation analysis for hypothetical assets, the application automatically launches the Prepare Hypothetical Depreciation Analysis process.

Forecast Depreciation

The following table shows differences between the two methods of forecasting depreciation:

Analysis Type

Description

Requirements

Restrictions

Existing assets using current depreciation rules

Analyze assets that already exist in Assets.

  • Enter the book, starting period, currency, and number of periods.

  • Optionally enter asset-specific parameters. If all parameters are blank, then Assets projects depreciation using all of the current parameters.

You can't run what-if depreciation analysis to project depreciation for group assets or CIP assets.

Existing assets using new depreciation rules Analyze assets that already exist in Assets using new rules.
  • Enter the book, starting period, currency, and number of periods.

  • Optionally enter asset-specific parameters. If all parameters are blank, then Assets projects depreciation using all of the current parameters.

You can't run what-if depreciation analysis to project depreciation for group assets or CIP assets.

Hypothetical assets

Analyze assets that aren't yet defined in Assets.

  • Enter the book, starting period, currency, and number of periods.

  • You must also enter the category, date placed in service, and cost.

  • If you don't enter any depreciation rules, Assets applies the rules already specified in the Create or Edit Category page.

You can't run what-if depreciation analysis on hypothetical group assets.