What is ment by prorate convention?
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fiscal year - according to dictionary definition any
accounting peroid consisting of 12 months is fiscal year.
where as in assets while defining fiscal year we are just
mentioning the start and end period.
depreciation calender - determines the number of accounting
periods in the fiscal year ex- jan, feb, mar.
prorate calender/ convention - This determines over how
many periods
to spread the annual depreciation amount (or) else in
simple terms it specifies when an asset should be
depreciated.
Ex: purchased an assest on jan
and specified prorate date as mar, in this case the
system will run depreciation in the month on mar.
| Is This Answer Correct ? | 14 Yes | 5 No |
Answer / abhishek rai
The prorate calendar determines the number of prorate
periods in your
fiscal year. The depreciation program uses the prorate
calendar to
determine prorate period, which is used to determine the
annual
depreciation amount.
The prorate convention determines how much depreciation to
take in the
first and last year of an asset's life based on when you
place the asset in
service. Your tax department chooses the prorate
convention. The prorate
calendar and convention must be setup before adding the
assets. If you
retire an asset before it is fully reserved, the retirement
convention
determines how much depreciation to take in the period of
retirement. The
prorate convention, the retirement convention and the
depreciation method
work together to determine the depreciation for the first
and last year of an
asset's life. After setting up the prorate convention, you
specify the prorate
convention for each asset on the Books form and the
retirement convention
on the Retirements form in Asset Workbench. See the white
paper - The
Wonderful World of Prorate Conventions, located on
MetaLink, for more
details.
Thanks, Abhishek Rai
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / prasad
Oracle have this Prorate Convention functionality to make
flexible calculation of Asset Depriciation.
We have 3 Types of Calendar
Fiscal Year Calendar -
Jan 12 - Dec 12,2012
Jan 12 - Dec 12,2013
Jan 12 - Dec 12,2014
Depriciation Calendar -
Jan 01 - Jan 31, 2012
Feb 01 - Feb 28, 2012
Mar 01 - mar 31, 2012
Prorate Calendar - (2 Examples)
Jan 01 - Jan 31 Prorate Con - Jan 31,
Or
Feb 01 - Feb 15 Prorate Con - Feb 28,
From this we conclude as it will decide the depriciation of
the asset,irrespective of the Date-In-Place falls in which
prorate convention.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / gangavarapu srinivasa rao
The prorate calendar is used to identify the depreciation start date and depreciation end date for assets starting and ending year.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / susmit
It is the method of depreciation in the apps. Ex- STL,
Table based method etc.
| Is This Answer Correct ? | 3 Yes | 7 No |
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