What is difference between prorate calendar and depreciation calendar in Fixed Assets

What is difference between prorate calendar and depreciation calendar in Fixed Asset R12.  

Depreciation Calendar

The depreciation calendar determines the number of ACCOUNTING periods in a fiscal year i.e. how many times depreciation will need to be run.

You can use one depreciation calendar for multiple depreciation books and as both the depreciation and prorate calendar for a book.

The depreciation program uses the depreciation calendar and the Divide Depreciation flag (located on the Book Controls form) to determine what fraction of the annual depreciation expense to take each period. For example, if you have a quarterly depreciation calendar, Oracle Assets calculates one-fourth of the annual depreciation each time you run depreciation.

Tip: If you intend to post journal entries from Oracle Assets to Oracle General Ledger, the period names for your depreciation calendar must exactly match the corresponding period names assigned in GL. Note that there is no adjusting period in Oracle Assets, therefore no period start and end dates can overlap.

Prorate Calendar

The prorate calendar determines the number of PRORATE periods in your fiscal year.

Both calendars are defined in the Asset Calendars form. The navigation path is: Setup > Asset System > Calendars.

The depreciation program uses the prorate calendar to determine the prorate period, which is used to determine the annual depreciation amount.

TIP 1: Use the prorate calendar with the smallest period size or resolution you need for determining your depreciation rate. For example, you may want to use a monthly prorate calendar in a tax book that uses a quarterly depreciation calendar to allow finer control of the annual depreciation amount for some monthly prorate/method combinations.

TIP 2: In determining your prorate calendar, also keep in mind the type of depreciation method you will be using. For instance, if you choose a 365-period prorate calendar with a table-based depreciation method, you must setup 365 depreciation rates per year in your table! To make your life easier and more pleasant, choose your prorate calendars according to a cost-benefit analysis to simplify the maintenance of your assets. You can use the depreciation calendar as your prorate calendar. This is defined in the Book Controls form. The navigation path is: Setup > Asset System > Book Controls.

Reference: Doc ID 158518.1