Set Extended Life

fa3 create new tag

Transaction Description

If the asset uses a straight line or flat rate depreciation method, it can be depreciated beyond its life. To initiate this transaction, you must specify a depreciation limit (flat amount or percentage). You can set default depreciation limits in the Asset Categories window and asset specific limits on the depreciation tab of the books window in the Asset Workbench. For straight line method assets, use the Set Extended Life window to specify an extended life. If you do not set an extended life in years, the asset will continue to depreciate at the same rate as during the last year of the asset's normal life.

Formulas

For amount based depreciation limits, recoverable cost = cost - depreciation limit

For percentage depreciation limits, recoverable cost = cost * depreciation limit percentage

During the normal life of an asset, the depreciation amount depends solely on the cost less the salvage value. After the normal life, depreciation continues until accumulated depreciation is equal to recoverable cost.

Restrictions

These transactions cannot be performed on an asset that is beyond its normal useful life.

• Cost adjustments
• Life adjustments
• Salvage value adjustments
• Revaluation
• Prior period transfers
• Invoice transfers or adjustments
• Addition of a mass addition to an existing asset
• Change to date placed in service
• Change to the prorate convention
• Change to the depreciation method
• Retirements in prior periods

Header Fields

• Asset Number
• Description

Book

List of Fields

• Book
• Extended Life in Years

Comments

Links

• Related: OracleAssets, FA12SetupAssetSystemAssetCategories, FA12AssetsAssetWorkbench

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Collaborating Authors and Reviewers: -- DianeMcHugh, JimCrum