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What is ment by prorate convention?

Answer Posted / 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.

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