One of the challenges of a global enterprise is to meet stringent tax requirements coming from all over the world. As a worldwide corporation, you need a financial system that satisfies the needs from operations in different parts of the world. This financial system has to enable you to meet the ever-changing statutory requirements while keeping cost low. Oracle Assets is sensitive to your needs in dealing with complex and diversified tax requirements from a global perspective. With Release 11i of Oracle Assets, you can comply with tax codes governing asset depreciation using depreciation formulas.
This paper discusses depreciation requirements in various countries and industries and sheds some light on how you can meet these requirements using formula-based depreciation. It also walks you through some complex depreciation calculations. You will walk away with all the details you need to create your own depreciation formulas and optimize your asset accounting strategies. This paper answers the most commonly asked questions on asset depreciation such as ‘How does Oracle Assets amortize a basis adjustment’ and unveils the mystery of ‘Rate Adjustment Factor’ – a critical component of the depreciation algorithm. Finally, you are given diagnostics tips necessary for troubleshooting data discrepancies.