Oracle Assets

* Asset Maintenance - Adjustment, Transfer, Reclass & Revaluation

Oracle Assets simplifies asset management and accounting complexities. It lowers the cost of asset ownership and secures your assets while giving you a global view. Oracle Assets is a member of Oracle’s Asset Lifecycle Management solution, which maximizes the return on your global assets.

Integration within the Oracle E-Business Suite optimizes your asset management processes:

• Oracle Payables – Automate asset additions as part of the procure-to-pay process to interface depreciable capitalized assets. Push lease payment amounts to Oracle Payables to ensure timely payments of your leased assets.
• Oracle Projects – Track construction-in-process project costs and capitalize them via integration with Oracle Projects. When retiring costly equipment and properties, track retirement project costs in Oracle Projects and transfer them into Oracle Assets for capital gains and loss calculations.
• Oracle Application Desktop Integrator – Create assets and import physical inventory from spreadsheets.

 

 

1. Asset Setup Information

1.1. Asset Number
An asset number uniquely identifies each asset. When you add an asset, you can enter the asset number, or leave the field blank to use automatic asset numbering. If you enter an asset number, it must be unique and not in the range of numbers reserved for automatic asset numbering. You can enter any number that is less than the number in the Starting Asset Number field in the System Controls window, or you can enter any non–numeric value.You can enter any number that is less than the number in the Starting Asset Number field in the System Controls window, or you can enter any non-numeric value.

1.2 Description
Use list of values to choose a standard description you defined in the QuickCodes window, or enter your own.

1.3 Tag Number
If you enter a tag number, it must be unique. A tag number uniquely identifies each asset. For example, use the tag number to track asset barcodes, if you use them.

2.1 Category
Oracle Assets defaults depreciation rules based on the category, book, and date placed in service. All assets in a category share the same asset cost accounts and depreciation accounts for each depreciation book.

Descriptive flexfields allow you to collect and store additional information about your assets. For each asset category, you can set up a descriptive flexfield to prompt you for additional information based on the asset category you enter. For example, you might want to track the license number for automobiles, but the square footage for buildings. When you specify a category for a new asset, you can enter your information in a descriptive flexfield.

2.2 Asset Key
The asset key allows you to group assets or identify groups of assets quickly. It does not have financial impact; rather it can be used to track a group of assets in a different way than the asset category. For example, use an asset key to group assets by project.

2.3 Asset Type
Valid asset types are:

1. Capitalized: Assets included on the company balance sheet. Capitalized assets usually depreciate. Charged to an asset cost clearing account.
2. CIP (Construction–In–Process): Unfinished assets being built, not yet in use and not yet depreciating. Once you capitalize a CIP asset, Oracle Assets begins depreciating it. Charged to a construction–in–process clearing account.
3. Expensed: Items that do NOT depreciate; the entire cost is charged in a single period to an expense account. Oracle Assets tracks expensed items, but does not create journal entries for them. Oracle Assets does not depreciate expensed assets, even if the Depreciate check box in the Books and Mass Additions Prepare windows is checked for that asset.
4. Group: A group asset is a collection of member assets. You can add member assets to a group asset, transfer assets out, or between groups assets. Group asset cost is the sum of all the associated member assets costs. A group may contain many individual assets that were placed into service in different years, but share one depreciation account maintained for the group.  Group asset depreciation, known as group depreciation, is computed and stored at the group level.

3.1 Units
The number of units represents the number of components included as part of an asset. Use units to group together identical assets. For example, you might add an asset that is composed of ten separate but identical chairs. If you are adding an asset, accept the default value of one, or enter a different number of units.

3.2 Parent Asset
You can separately track and manage detachable asset components, while still automatically grouping them to their parent asset. For example, a monitor can be tracked as a subcomponent of its parent asset, a computer. You can specify a rule in the Asset Categories window by which Oracle Assets defaults the life for a subcomponent asset based on the category and the parent asset life.

Enter the parent asset to which your asset belongs if you are adding a subcomponent asset. The parent asset must be in the same corporate book. If you are adding a leasehold improvement, enter the asset number of the leased asset. To properly default the subcomponent life, add the parent asset before the subcomponent. You must set up the depreciation method for the subcomponent asset life before you can use the method for that life. If your subcomponent asset uses a depreciation method of type Calculated, Oracle Assets sets up the depreciation method for you. If the depreciation method is not Calculated and if it is not already set up for the subcomponent life rule default, Oracle Assets uses the asset category default life.

Oracle Assets does not automatically perform the same transaction on a subcomponent asset when you perform it on the parent asset. Use the Parent Asset Transactions Report to review the transactions that you have performed on parent assets during a period.

3.2 Warranty Number
You can set up and track manufacturer and supplier warranties online. Each warranty has a unique warranty number. Use the list of values or enter a previously defined warranty number to assign the asset to the coinciding warranty.

3.3 Lease Number
You can enter lease information only for an asset assigned to an asset category in which the Ownership field is set to Leased. You must define the lessor as a valid supplier in the Suppliers window, and define leases in the Lease Details window, before you can attach a lease to an asset you are adding in the Asset Details window.
If you are entering a leasehold improvement and you completed the Parent Asset field in the Asset Details window, Oracle Assets displays the related lease information from the parent asset. You cannot provide separate lease information for the leasehold improvement.

4.1 Ownership
You can track Owned and Leased assets. Choosing the value Leased from the Ownership list does not automatically allow you to enter lease information. You can enter lease information only if you assign the asset to a leased asset category.
If the lease has a Transfer of Ownership option, you can change the value of the Ownership field from Leased to Owned, even when the lease is attached to an asset. Changing the ownership of the lease does not affect the lease or any other financial attributes of the asset.

4.2 Bought
Enter as the asset is bought to the organization : Used or New

4.3 In Use
The In Use check box is for your reference only. It indicates whether the asset is in use. For example, a computer in storage still depreciates because it becomes obsolete over time whether or not it is in use. Use this check box to track that it is not in use.

4.4 In Physical Inventory
When you check the In Physical Inventory check box, it indicates that this asset will be included when you run the Physical Inventory comparison. When you set up categories, you define whether assets in a particular category should be included in physical inventory. You can use the In Physical Inventory check box in the Asset Details window to override the default.
 

Depreciation Rules (Books)

1. Book
An asset can belong to any number of depreciation books, but must belong to only one corporate depreciation book. You must assign a new asset to a corporate depreciation book before you can assign it to any tax books. You can only assign the asset to a book for which you defined the asset category.
Oracle Assets defaults financial information from the asset category, book, and date placed in service. Each book can have independent accounts, an independent calendar, and independent depreciation rules. You can specify for which ledger a depreciation book creates journal entries.

The asset can also have different financial information in each book. For example, you can make the asset cost in your tax book different from the cost in your financial reporting book. The depreciation books are independent, so you can run depreciation for each book on a different schedule.

You can change financial and depreciation information for an asset in a book. You can choose whether to amortize or expense the adjustment.
You can add an asset to a tax book using the Books window. To copy a group of assets to a tax book, use Mass Copy.

• The salvage value(The estimated value of an asset at the end of its useful life.) cannot exceed the asset cost, and you cannot enter a salvage value for credit (negative cost) assets.
• You can specify a salvage value as a percentage of an asset's acquisition cost or as an amount.
• The percentage salvage value will be defaulted from the category default rules if you have defaulted the salvage value percentage at the category level in the Asset Categories window. The salvage value is calculated by multiplying the acquisition cost by the default salvage value percentage.
• If you specify the salvage value as an amount, you simply enter the amount.
• You can also select Sum of Member Assets if you are using the Group Depreciation feature.
• You can perform salvage value adjustments if necessary.
• You also can override the default salvage value when adding an asset during the Detail Additions process.

Assignments

Assign assets to employees, general ledger depreciation expense accounts, and locations. You can share your assets among several assignment lines. You can automatically assign distributions to an asset by choosing a predefined Distribution Set.

You can transfer an asset between employees, expense accounts, and locations. Changing the expense account has a financial impact, since Oracle Assets creates journal entries for depreciation expense to the general ledger using the account. Changing the location or employee information, however, has no financial impact because Oracle Assets uses them solely for property tax and responsibility reporting.When you run a transaction report or create journal entries for a tax book, Oracle Assets uses the current assignment information from the associated corporate book.

Source Lines

You can track information about where assets came from, including sources such as invoice lines from your accounts payable system and capital assets from Oracle Projects.
Each source line that came from another system through Mass Additions may include the following information:

• Cost
• Invoice Number
• Line
• Description
• Supplier
• Purchase Order Number
• Source Batch
• Project Number
• Task Number

Construction-in-Process (CIP) Assets

A construction-in-process (CIP) asset is an asset you construct over a period of time. You create and maintain your CIP assets as you spend money for raw materials and labor to construct them. Since a CIP asset is not yet in use, it does not depreciate. When you finish building the CIP asset, you can place it in service and begin depreciating it.

You can track CIP assets in Oracle Assets, or you can track detailed information about your CIP assets in Oracle Projects. If you use Oracle Projects to track CIP assets, you do not need to track them in Oracle Assets.Use the Asset Key to Track CIP Projects.The asset key is a set of key identifying information, such as project name and project number, that you define for each CIP asset. Use the asset key to group and track your CIP assets with common key words so you can find them easily for inquiry or transactions.

Acquire and Build CIP Assets
Create CIP assets using Mass Additions or manual additions.
Oracle Assets identifies invoices with distributions to CIP clearing accounts in Oracle Payables, and creates mass additions from them. You can create new CIP assets from your mass additions, or add them to existing assets. You can also add non-invoiced expenses, such as labor cost, to your CIP assets. You can perform transfers or adjustments on your CIP assets if necessary.

Automatically Adding CIP Assets to Tax Books
You can can set up Oracle Assets to automatically copy CIP assets to a tax book when a CIP asset is added to the corporate book.

Asset Setup

This chapter covers the following topics :

2.1. Manual Asset Additions

You can use one of the following processes to enter new assets:

2.1. Manual Asset Additions

•  Adding an Asset Accepting Defaults (Quick Additions)

•  Adding an Asset Specifying Details (Detail Additions)

•  Correcting Current Period Addition Errors

•  Auto Prepare Mass Additions Lines

•  About the Mass Additions Interface

Quick Asset Additions

Detail Asset Additions

Use the Detail Additions process to manually add complex assets that the QuickAdditions process does not handle.
Override default depreciation rules if necessary.

Correcting Current Period Addition Errors

If you incorrectly added an asset, you can delete it from the system. You can only delete assets added in the current period.

2.2. Overview of the Mass Additions Process

The mass additions process lets you add new assets or cost adjustments from other systems to your system automatically without reentering the data. For example, you can add new assets from invoice lines brought over to Oracle Assets from Oracle Payables, or from CIP asset lines sent from Oracle Projects. The steps in the mass additions process are described below:

Steps in the Mass Addition Process
1. Create - Enter invoices in Oracle Payables, or source information in any other feeder system. Run Create Mass Additions for Oracle Assets in Oracle Payables, the Interface Assets process in Oracle Projects, or use the interface to convert data from other systems.

2. Review - Review mass additions to become assets. Add mass addition lines to existing assets. Split, merge, or adjust mass additions.

3. Post - Post your mass additions to Oracle Assets.

4. Clean up - Delete unnecessary and posted mass additions. Purge deleted mass addition lines from Oracle Assets.

Mass Addition Queues
Each mass addition belongs to a queue that describes its status, and the queue name changes according to the transactions you perform on the mass addition. You can define your own mass additions hold queues in the QuickCodes window. The following table describes each Oracle Assets mass addition queue name:

Check the attached document for step by step process of Perform Asset Mass Addition.doc

Review Mass Additions

Review newly created mass addition lines before posting them to Oracle Assets. Enter additional mass addition source, descriptive, and depreciation information in the Mass Additions window. Assign the mass addition to one or more distributions, or change existing distributions, in the Assignments window. If the mass addition is not an asset,
or if it was created in error, you can delete it.

Once you have verified that the mass addition is ready to become an asset, change the queue to POST. The next time you Post Mass Additions to Oracle Assets this mass addition becomes an asset. The Mass Additions post program defaults depreciation rules from the asset category, book, and date placed in service. You can override the depreciation rules in the Books window if necessary.

Add to Existing Asset
You can add a mass addition line to an existing asset as a cost adjustment. These mass additions lines can include future assets that have not yet been capitalized. Choose whether to change the category and description of the existing asset to those of the mass addition. Oracle Assets reclassifies the destination asset to the category and updates its description to that of the mass addition when you Post Mass Additions to Oracle Assets. Also choose whether to amortize or expense the cost adjustment.

 

Merge Mass Additions

You can merge separate mass addition lines into a single mass addition line with a single cost. The mass addition line becomes a single asset when you Post Mass Additions to Oracle Assets.
For example, merge tax lines into the main invoice line distribution to maintain proper asset descriptions; merge a discount line with its appropriate mass addition line; or combine individual mass additions from different invoices into a single line and amount.

Split Mass Additions

You can split a mass addition line with multiple units into several single unit lines. You can split a previously merged mass addition line.
If you split a mass addition, the original line is put in the SPLIT queue as an audit trail of the split. The resulting split mass additions appear with one unit each, and with the same existing information from the source system. Each split child is now in the ON HOLD queue. You can review each line to become a separate asset. If you undo a split, Oracle Assets places the original multiple unit mass addition line in the ON HOLD queue and deletes the single unit lines.

Example
For example, you are asked to split a single mass addition line into three new lines.
Prior to the split, the mass addition line has a queue name of NEW. Details for the line are as follows:
• Invoice #2000, Line 1, $3000, 3 units, Queue = NEW
After the split, you have four mass additions lines. The original line now has a queue name of SPLIT and cannot be made into an asset. The three new lines have a queue name of ON HOLD and can become an asset. Details for the mass addition lines are now as follows:
• Invoice #2000, Line 1, $3000, 3 units, Queue = SPLIT
• Invoice #2000, Line 1, $1000, 1 unit, Queue = ON HOLD
• Invoice #2000, Line 1, $1000, 1 unit, Queue = ON HOLD
• Invoice #2000, Line 1, $1000, 1 unit, Queue = ON HOLD
The following graphic illustrates the example:

Post Mass Additions to Oracle Assets

Use the Post Mass Additions to Oracle Assets program to create assets from mass addition lines in the POST queue using the data you entered in the Mass Additions window. It also adds mass additions in the COST ADJUSTMENT queue to existing
assets. You can run this program as often as you want during a period.

Clean Up Mass Additions

Delete unwanted mass addition lines

• Mass additions in the SPLIT queue for which you have already posted the child mass addition lines created by the split
• Mass additions in the POSTED queue that have already become assets
• Mass additions in the DELETE queue.

Create Mass Additions from Invoice Distributions in Payables

Mass Additions lets you add assets and cost adjustments directly into Oracle Assets from invoice information in Payables. The Create Mass Additions for Oracle Assets process sends valid invoice line distributions and associated discounts from Payables to an interface table in Oracle Assets. Then you review them in Oracle Assets and determine whether to create assets from the lines.

Register your Accounts
Account Type Must Be Asset
You must register the clearing accounts you want to use as Asset accounts in the Segment Values window. The create mass additions process selects Payables invoice line distributions charged to clearing accounts with the type of Asset.

Define Valid Clearing Accounts in Oracle Assets
For each asset category in Oracle Assets for which you want to import invoice line distributions from Payables, define valid asset clearing and construction-in-process clearing accounts. These accounts must be of type Asset. The create mass additions process only imports lines charged to accounts that are already set up in your asset categories.

Using Multiple Ledgers
Payables must be tied to the same ledger as the corporate book for which you want to create mass additions in Oracle Assets. If you use the multiple organization feature and have multiple corporate books in Oracle Assets, ensure that you create mass additions for the correct Oracle Assets corporate book. You cannot create mass additions for tax books.

Define Items with Asset Categories
You can define a default asset category for an item in Purchasing or Inventory. Then when you purchase and pay for one of these items using Purchasing and Payables, the mass additions process defaults this asset category. This is the only time Oracle Assets defaults an asset category for a new mass addition line.

If you want mass addition lines for an item to appear in Oracle Assets with an asset category, you must:

• Define a default asset category for an item in the Item window in Purchasing or Inventory
• Create a purchase order for that item
• Receive the item in either Purchasing or Inventory
• Enter an invoice in Payables and match it to the outstanding purchase order
• Approve the invoice
• Post the invoice to General Ledger

• The line is charged to an account set up as an Asset account
• The account is set up for an existing asset category as either the asset clearing account or the CIP clearing account
• The Track As Asset check box is checked. (It is automatically checked if the account is an Asset account)
•  The invoice is approved
•  The invoice line distribution is posted to Oracle General Ledger from Payables
•  The general ledger date on the invoice line distribution is on or before the date you specify for the create program
•  If you use the multiple organization feature, your Payables operating unit must be tied to the same ledger as the corporate book for which you want to create mass additions.

1. The invoice line distribution is charged to an Expense account
2. Track as Asset is checked
3. The invoice is approved
4. The invoice line distribution is posted to Oracle General Ledger from Payables
5. The general ledger date on the invoice line distribution is on or before the date you specify for the create program
6. Your installation of Payables must be tied to the same ledger as the corporate book for which you want to create mass additions.

2.3. Adding an Asset Automatically from an External Source (Mass Additions)

Use the Mass Additions process to add an asset automatically from an external source. Review new mass addition lines created from external sources before posting them to Oracle Assets. You can also delete unwanted mass addition lines to clean up the system.

You can also load data into Oracle Assets using the Create Assets Feature in the Applications Desktop Integrator (ADI), which allows you to import data from an Excel spreadsheet.

Reviewing Mass Addition Lines
You must review newly created mass addition lines before you can post them to Oracle Assets to become assets. You can place a group of mass additions in the POST, ON HOLD, or DELETE queues all at once. You can also perform a split, merge, or cost adjustment on mass additions before you post them. You can continue to review a mass addition until you post it. To review mass additions that have not yet been posted, run the Unposted Mass Additions or Mass Additions Status Report.
Note: If you want to find mass additions by Invoice Number, PO Number, or Supplier Number in the Find Mass Additions window, your search criteria must match exactly, including capitalization.

Prerequisites
Create mass additions from external sources

• Create: finds potential new assets in Oracle Payables and brings them into the FA_MASS_ADDITIONS table
• Prepare: allows you to review potential new assets and enter additional information
• Post: creates assets by importing asset information from the FA_MASS_ADDITIONS table into several Oracle Assets tables

To add a mass addition line to an existing asset

Note: You can only perform cost adjustments for mass additions in the NEW, ON HOLD, or user-defined hold queues.

Loading Your Asset Data

This section describes how to define, load, and confirm your interim asset table. In many cases you have to load asset information into the Oracle tables from a non-Oracle file system. This section shows you how to use SQL*Loader to import your information.

Complete the following steps to load your asset data:
Note: If you are using Multiple Reporting Currencies (MRC), when loading the FA_MASS_ADDITIONS table with data from a legacy system (a feeder system other than Oracle Payables or Oracle Projects), you must also load the FA_MC_MASS_RATES table. For each mass addition line in FA_MASS_ADDITIONS, you need to provide exchange rate information in the FA_MC_MASS_RATES table for each reporting ledger associated with the corporate book into which the assets will be
added. It is recommended that you use the calculated exchange rate, not the official exchange rate, for each ledger. This will minimize rounding issues. See: Multiple Reporting Currencies in Oracle Applications, Multiple Reporting Currencies in Oracle Applications.

1. Define your interim table in the Oracle database.
Use a single interim table if possible. You can use multiple tables if the data exists in multiple tables or files in the old asset system. In either case, you must eventually place the data in a single table, the FA_MASS_ADDITIONS table.
If you wish, you may load data directly into FA_MASS_ADDITIONS, but it is more difficult due to the complexity of the table.

2. Load your interim table (Using SQL*Loader if asset data is external).
Use SQL*Loader to import information from outside your Oracle database. SQL*Loader accepts a number of input file formats and loads your old asset data into your interim table.
If the data already resides within an Oracle database, there is no need to use SQL*Loader. Simply consolidate the asset information in your interim table using SQL*Plus or import, and go directly to .
Follow these steps if you plan to use SQL*Loader:

• Get the asset information in text form

• Create the SQL*Loader control file

• Run SQL*Loader to import your asset data

2.4. Creating Asset Additions Using Web ADI

Oracle Assets integrates with Web ADI to enable you to create assets additions through the Additions Integrator. The Additions Integrator allows you to enter or load data into a spreadsheet using pre-defined mappings and layouts. Web ADI validates all required fields. If the Pre-Validate check box is checked, Web ADI validates both required and optional fields. After validating data, you can automatically upload your assets to Oracle Assets.

• Add Assets – Default
• Add Assets – Detailed
• Add Assets from Supplied Invoices
• Add CIP Assets
• Add Leased Assets

4. Adding Assets in Short Tax Years

When assets are acquired as a result of a merger, in the first year during which the assets are acquired, these assets are usually depreciated during a shorter than normal tax year. It is essential that the acquiring company is able to depreciate the acquired assets correctly during the short tax year.
When you add assets in a short tax year, you identify the asset as a short tax year asset. When you add short tax year assets, you must use either the detail additions process or the mass additions process. You cannot use the quick additions process to add short tax year assets.

You can define custom depreciation formulas to help you to properly depreciate newly acquired assets in a short tax year.

Adding a Single Asset in a Short Tax Year

How Oracle Assets Calculates Depreciation in a Short Tax Year

To depreciate assets properly in a short tax year, Oracle Assets needs to account for the acquired assets up to the date on which the assets are converted to the acquiring company's Oracle Assets system. When adding assets that will depreciate in a short tax year, you must enter a conversion date and original depreciation start date, and check the Short Fiscal Year check box on the Books window.

Note: The prorate date is determined by the date placed in service and the prorate convention. If the original prorate convention is different from that in the acquiring company, you may need to set up a new prorate convention for the converted assets to map the prorate date correctly.

The conversion date is the date an asset begins depreciating under the acquiring company's Oracle Assets system. Therefore, the year-to-date depreciation is zero at that time. The conversion date enables Oracle Assets to calculate the remaining life of the asset. You must choose a conversion date in the current open period of the corporate and tax books. Otherwise, the depreciation calculations may be incorrect. You cannot enter a conversion date in a past fiscal year or in future periods.

Note: Oracle Assets does not calculate any depreciation before the conversion date. You must enter the total depreciation taken (depreciation reserve) up to the conversion date.
Depreciation in a short tax year is calculated as follows:

Depreciable Basis * Annual Rate * No. of Months in Short Tax Year / No. of Months in the Full Tax Year

If the depreciation method has a calculation basis of NBV, the value of the depreciable basis is the net book value (NBV) as of the conversion date. The NBV is derived from the depreciation reserve.

MACRS Deductions in a Short Tax Year
You can define a formula-based MACRS depreciation method to calculate depreciation in a short tax year. For example, you could define a MACRS method with a straight-line switch as follows:
Greatest (2/Life, Decode (Short Year, 1, 1/Remaining Life 1, 0, 1/ Remaining Life 2)) In this example, Decode means the following: if the current year is a short tax year, then use Remaining Life 1. Otherwise, use Remaining Life 2.

• Remaining Life 1 : Oracle Assets calculates the remaining life of the asset as of the conversion date or prorate date, which ever is later. If the prorate date is later than the conversion date, Oracle Assets calculates the remaining life based on the prorate date to avoid over-depreciating the asset.
• Remaining Life 2 : Oracle Assets calculates the remaining life of the asset as of the first day of the fiscal year of the acquiring company, after the conversion date.

Asset Maintenance

3.1 Reclassifying Assets - Changing Asset Details

You can change descriptive information for an asset at any time. Changing asset descriptive information other than category and units has no financial impact on the asset.

Reclassifying Assets
Reclassify assets to update information, correct data entry errors, or when consolidating categories. You cannot reclassify fully retired assets.
Note: When you reclassify an asset in a period after the period you entered it, Oracle Assets creates journal entries to transfer the cost and accumulated depreciation to the asset cost and accumulated depreciation accounts of the new asset category. This occurs when you create journal entries for your general ledger. Oracle Assets also changes the depreciation expense account to the default depreciation expense account for the new category, but does not adjust for prior period expenses.

Reclassifying an Asset to Another Category

• If you want only fully reserved assets to be reclassified, check the Fully Reserved - Yes check box. If you want only assets that are not fully reserved to be reclassified, check the Fully Reserved - No check box. If you do not check either check box, both fully reserved assets and assets that are not fully reserved will be reclassified.
• When you run the Mass Reclassification process, Oracle Assets first reclassifies the assets (changes the assets from one category to another), then changes the depreciation rules, if you have chosen to have the reclassified assets inherit the depreciation rules of the new category. Oracle Assets reclassifies assets to a new category, even if inheriting depreciation rules fails. However, if reclassification fails (assets are not changed to the new category), assets will not inherit the depreciation rules of the new category.
• If you choose to have the reclassified assets inherit depreciation rules, you can also choose to either amortize or expense the resulting depreciation adjustments.
• Reclassification is done at the asset level. If an asset cannot be reclassified in one book, the asset will not be reclassified in any of the books to which it belongs. If you attempt to reclassify assets to the same category (for example, you have a group of assets assigned to category PC, and you run the Mass Reclassification process to reclassify the assets to category PC), the assets will not be reclassified and will not inherit depreciation rules.
• You cannot reclassify an asset in a prior period.

• If the Depreciate check box on the Books window is checked for an asset before the asset is reclassified, the check box will remain checked after reclassification. If the Depreciate check box is not checked for an asset before the asset is reclassified, that asset will inherit the depreciation rules of the new category, but the Depreciate check box will remain unchecked.
• If you check the Inherit Depreciation Rules of New Category check box, you must also ensure you have checked the Allow Mass Changes check box in the Accounting Rules region of the Book Controls window, for any assets that you want to inherit depreciation rules. If the Allow Mass Changes check box is not checked, reclassified assets will not inherit depreciation rules, even though you checked the Inherit Depreciation Rules of New Category check box on the Mass Reclassifications window.

6. 

System Setup

Some of the steps outlined in this flowchart and setup checklist are Required and some are Optional. Required step with Defaults refers to setup functionality that comes with pre–seeded, default values in the database; however, you should review those defaults and decide whether to change them to suit your business needs. If you want or need to change them, you should perform that setup step. You need to perform Optional steps only if you plan to use the related feature or complete certain business functions.

 

Oracle Assets With Multiple Sets of Books

You can use Oracle Assets with multiple sets of books, within a single Oracle Assets installation.
You can handle multiple companies in two different ways. You can have multiple companies within one general ledger set of books, or you can have multiple companies each with its own general ledger set of books. Regardless of the way you choose, you create at least one depreciation book for each set of books that you want to use.
Example: Global Computers is a parent company with three subsidiaries. They are:

• Global Computers G/L set of books 1
• Real Estate G/L set of books 2
• Research & Development G/L set of books 3
• Distribution G/L set of books 3

 

• Set up the Account structure (chart of accounts) associated with each general ledger sets of books
• Use Oracle General Ledger to set up the general ledger sets of books you need. If you do not have Oracle General Ledger, you can set up your sets of books using the Set of Books window in Oracle Assets
•  

• If you want to transfer assets that are in different corporate depreciation books, you must retire the asset from one depreciation book and add it to the other.
• You can run depreciation projections for several books at once if all books have the same Account flexfield structure. If they have different structures, you must project them separately.

FA Fiscal Years & Calendar Periods

Creating Fiscal Years
Specify the start and end dates of each fiscal year for a fiscal year name. Create fiscal years from the oldest date placed in service through at least one fiscal year beyond the current fiscal year. Depreciation will fail if the current fiscal year is the last fiscal year.
You can set up multiple fiscal years in this window. You can assign different fiscal years to your different corporate books. The calendar for a tax book must use the same fiscal year name as the calendar for the associated tax book.

To create a fiscal year:

You can set up as many calendars as you need. Each book you set up requires a depreciation calendar and a prorate calendar. The depreciation calendar determines the number of accounting periods in a fiscal year, and the prorate calendar determines the number of prorate periods in your fiscal year. You can use one calendar for multiple depreciation books, and as both the depreciation and prorate calendar for a book.

Your corporate books can share the same calendar. A tax book can have a different calendar than its associated corporate book. The calendar for a tax book must use the same fiscal year name as the calendar for the associated tax book.

The depreciation program uses the prorate calendar to determine the prorate period which is used to choose the depreciation rate. The depreciation program uses the depreciation calendar and divide depreciation flag 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.

You must initially set up all calendar periods from the period corresponding to the oldest date placed in service to the current period. You must set up at least one period before the current period. At the end of each fiscal year, Oracle Assets automatically sets up the periods for the next fiscal year.

Attention: If you use this depreciation calendar in a depreciation book from which you create journal entries for your general ledger, you must make the period names identical to the periods you have set up in your general ledger.
You can define your calendar however you want. For example, to define a 4–4–5 calendar, set up your fiscal years, depreciation calendar, and prorate calendar with different start and end dates, and fill in the uneven periods. To divide annual depreciation proportionately according to the number of days in each period, enter By Days in the Divide Depreciation field in the Book Controls window.

Notes

The period names in GL and FA should be same, else system ‘ll throw below error while running ‘create journal entry’ program.
The specified period is not postable in General Ledger. The period must exist in the associated
set of books,and the status must be Open or Future Enterable.
select set_of_books_id, period_name, closing_status
from gl_period_statuses
where set_of_books_id in
(select set_of_books_id
from fa_book_controls
where book_type_code = '&your_deprn_book');

select period_name, period_counter, deprn_run
from fa_deprn_periods
where book_type_code = '&your_deprn_book'
order by period_counter, period_name ;
 

Asset Organization

Oracle Assets shares organization and hierarchy information with Oracle Human Resources. If your business does not currently use Oracle Human Resources, you define this data using the Oracle Human Resources windows provided with Oracle Assets.

Organizations are departments, sections, divisions, companies, or other organizational units in your business.
The illustration below depicts ABC Corporation’s organization structure. There are three levels of organizations. ABC Corporation, the top–level organization, has three child organizations Americas, Europe, and Asia/Pacific. Each of these organizations also has several child organizations. For example, the Americas organization has the following child organizations: US, Canada, and Brazil.

 

Depreciation Books

You can define corporate, tax, and budget depreciation books. You must set up your depreciation books before you can add assets to them. You can set up multiple corporate books that create journal entries for different general ledger sets of books, or to the same set of books. In either case, you must both run depreciation and create journal entries for each depreciation book. For each corporate book, you can set up multiple tax and budget books that are associated with it.

To define a depreciation book:

• Choose Evenly to divide depreciation evenly to each period
• Choose By Days to divide it proportionally based on the number of days in each period

Entering Accounting Rules for a Book

Entering Natural Accounts for a Book

Entering Journal Entry Categories for a Book

Entering Tax Rules for a Book

The Tax Rules tabbed region is only available for tax books. This tabbed region will not appear if you did not select Tax in the Class field in the Book Controls window.

Depreciation Methods

Once you start using a method you cannot update it. Enter another method if you need different rates.

To define a calculated depreciation method:
1. Navigate to the Depreciation Methods window.
2. Enter a depreciation Method name and Description.
3. Select Calculated from the Method Type poplist.
4. The calculation basis automatically defaults to Cost (NBV is not valid for calculated methods).
5. Choose whether this depreciation method allows you to depreciate an asset in the year it is retired.
6. Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis.
7. Enter the number of Years and Months of asset life.
8. Save your work.

To define a table–based depreciation method:
1. Navigate to the Depreciation Methods window.
2. Enter a depreciation Method name and Description.
3. Select Table from the Method Type poplist.
4. Choose whether to use Cost or NBV as the basis for calculating
depreciation from the Calculation Basis poplist.
5. Choose whether this depreciation method allows you to depreciate an asset in the year it is retired.
6. Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis.
7. Choose whether this method is a straight–line method.
8. Enter the number of Years and Months of asset life.
9. Enter the number of Prorate Periods Per Year this method uses.
10. Choose the Rates button to enter rates in the Depreciation Rates window.
11. Enter annual depreciation rates.
You must enter rates that fully depreciate an asset over its life. If you specify a calculation basis rule of Cost, the sum of all the years’ rates for each period must be one. If you specify a calculation basis rule of NBV, the rate for the last year of life for each period must be one and all the other rates must be between zero and one.
Attention: For table methods, the annual rate you enter for each prorate period must reflect the fraction of the fiscal year the asset was in service. The rate must be prorated based on the number of periods in the year and on the prorate convention.
12. Save your work.

To define a units of production depreciation method:
1. Navigate to the Depreciation Methods window.
2. Enter a depreciation Method name and Description.
3. Select Production from the Method Type poplist.
4. The calculation basis automatically defaults to Cost (NBV is not valid for units of production methods).
5. Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis.
6. Save your work.

To define a flat–rate depreciation method:

Asset Categories

Category information is common for a group of assets. Oracle Assets defaults these depreciation rules when you add an asset, to help you add assets quickly. If the default does not apply, you can override many of the defaults for an individual asset in the Asset Details or Books windows. You set up default values for each category in each book. The default depreciation rules that you set up for a category also depend upon the date placed in service ranges you specify.

Prerequisites
❑ Set up your Account segment values and combinations.

Defining Distribution Sets

Use this window to define default distribution sets. Then, when you add a new asset using the Detail Additions or Mass Additions process, you can choose a predefined distribution set from a poplist in the Assignments window to quickly assign the appropriate distributions to a new asset.

You can define a distribution set to allocate percentages of asset units to different depreciation expense accounts, locations, and employees. You can define one or more distributions in a set. You can also change the distribution information for a distribution set at any time.
Attention: If you change the distribution information for a distribution set, note that it does not affect assets already assigned to that distribution set.

To define a distribution set:

ACCOUNTING ENTRIES

Acquisition
The term ‘acquisition’ rather than ‘purchase’ is normally used with regards to non-current assets. The two terms mean exactly the same, but in order to avoid confusion between expenditure on non-current assets (capital expenditure) and expenditure on goods for resale (revenue expenditure), we tend to refer to ‘acquisition of a non-current asset’ and
‘purchase of goods for resale’.

To record the acquisition of a non-current asset we need to remember that, as for any other transactions, the dual aspect must be reflected. This requires clear thinking – especially if the cost is not paid immediately. Therefore, the best way to consider this is to start with a straightforward acquisition, which is paid in full at the point of acquisition. We can then adapt our treatment to reflect an acquisition on credit or by raising some form of finance.

Finally, the most complex possibility – when part of the cost is settled by selling a non-current asset – is considered in the section below on ‘part exchange’. 

When a non-current asset is paid for immediately, the payment is likely to be by cheque. As non-current assets are usually quite expensive, it is unlikely that any organisation would use cash (notes and coins). Thus, the dual aspect is that  non-current assets have increased, while the current asset of the balance at the bank has reduced. (Or, if the bank account
is already overdrawn, the overdraft will increase.)

So, the double entry is as follows:
                       Debit Non-current assets at cost
                                                                   Credit Bank

If the cost of the asset is not paid immediately, two possibilities are that a normal period of trade credit has been obtained, or a loan has been raised to pay for the asset.
In the case of trade credit, the credit entry will be to the trade payables account. If a loan is raised, we will create a loan account with a credit entry, and debit the cash account with the receipt of the loan, and then the double entry is the same as above.

Depreciation
It is important to note that depreciation does not involve a cash transaction. Rather, it is a book entry, whereby a share of the cost of non-current assets is transferred to create a charge against profit. The accounting equation is maintained, as the value of non-current assets is reduced, by the same amount as the charge against profit.

From this, it follows that the depreciation charge leads to a debit entry in an expense account (depreciation charge). The corresponding credit entry is to the non-current asset. As it is convenient to maintain a record of the cost of non-current assets, we carry the reduction in value to date as a separate balance. Therefore, the credit entry is not made in the same ledger account as the cost of non-current assets. Rather, a separate account (accumulated depreciation) is used to record the amount of depreciation charged to date.

Thus the entry is:
            Debit Depreciation charge
                                 Credit Accumulated depreciation

Disposal
To deal with the disposal of a non-current asset, several steps are required.
As discussed above in the section on depreciation, the balances relating to the asset are carried in two accounts. So, to remove the asset from the accounting records, we must make a credit entry in the cost account, and a debit entry in the accumulated depreciation account. These entries are completed with corresponding entries in the asset disposal account. The entries are:
Cost of asset:
Debit Asset disposal account
                                 Credit Non-current assets at cost
Accumulated depreciation to the point of disposal:
Debit Accumulated depreciation account
                                 Credit Asset disposal account

These entries mean that the net book value has been transferred to the disposal account. If we compare the net book value with the proceeds of disposal, the resulting balance is the profit or loss on sale. A profit arises if the proceeds are greater than the net book value; if the proceeds are less than net book value, a loss has been sustained. The balance
on the disposal account is transferred to the income statement.

Therefore, we credit the disposal proceeds to the disposal account. If the proceeds have been received immediately, they will have been lodged to the bank, leading to a debit entry in the bank account. If the buyer has been allowed a period of credit, this will be reflected by a debit entry in the trade receivables account. The other possibility is that the disposal of the asset has been a part-exchange transaction. This is considered below.

Debit Bank Cash account
Debit Accumulated depreciation account
                        Credit Non-current assets at cost
             Proit/Loss Account

Part exchange
When a non-current asset is replaced by another non-current asset, it is quite common to use the sale of the original asset as part of the transaction. This is referred to as ‘part exchange’ (or sometimes ‘trade in’). By stating the transaction in this way, we have recognised that it is, in fact, two separate transactions.

The first transaction is the sale of a non-current asset. This is dealt with in broadly the same way as the straightforward sale discussed above. The difference is that instead of receiving payment for the asset sold, the sale proceeds settle part of the cost of the acquisition. So the debit entry is made in the non-current assets at cost account. This means that the amount to be settled is the balance of the cost of the acquisition. This is recorded in the same way as any other acquisition, except that the value of the entries is less than the full cost of the acquisition.

Scrapping
When an asset is scrapped, this simply means that it has been disposed of, but the sale proceeds are nil. Therefore, there is nothing to offset against the net book value, which represents a loss.

Assets Accounting & Report

Fully Reserved Assets Report

Use this report to find the assets that became fully depreciated in a range of accounting periods. The report is sorted by period, balancing segment, asset account, and asset number. It prints totals for each asset account, balancing segment, and period.
The report prints a line for each of the periods the asset is fully reserved which fall in the period range you requested. If you adjust a fully reserved asset, the report only shows the asset in the period you adjusted it if it again becomes fully reserved. If you run the report for a range of periods an asset may appear more than once on the report.

You must enter a Book and From/To Period range when you request this report.

Asset Accounting
Asset Addition
Asset Cost A/C Dr.
                               Asset Clearing A/C Cr.

Asset Depreciation
Asset Depreciation A/C Dr.
                                       Depreciation Reserve A/C Cr.

1.1 Adjusting Accounting Information

You can adjust financial, depreciation, distribution, and invoice information for an asset.

Changing Financial and Depreciation Information
You can correct an error or update financial and depreciation information for a single asset or for multiple assets. You can also override depreciation information for an asset while adding it using the Detail Additions process.

Before running depreciation (in the period in which you added the asset), you can change any field. After you have run depreciation (in any period after the one in which you added the asset), you can change asset cost, salvage value, prorate
convention, depreciation method, life, capacity and unit of measure (in the corporate book), rate, bonus rule, depreciation ceiling, and revaluation ceiling.

If the asset is fully reserved, you can adjust the same fields as for an asset for which you have run depreciation. If the asset is fully retired, you cannot change any fields.

You can choose whether to amortize or expense the adjustment.

• CIP assets.
• Retired assets.
•  

• Capitalized
• Group

• Member: The system will select only member assets belonging to a group asset for the mass change transaction.
• Standalone: The system will select only standalone assets for the mass change transaction. All the member assets are excluded from the mass change transaction.
• No Selection: The system will include all assets, regardless of the group association of the assets. For example, the system will include group, member, and standalone assets for the mass change transaction. If you do not select the group asset association in a Before field, you cannot select the Member or Standalone values in the corresponding After field. The default value of the Before and After fields is No Selection.

2.1 Transferring Assets

You can transfer assets between employees, depreciation expense accounts, and locations. When transferring assets, you should consider the following:

• You can change the transfer date to a date in a prior period for a particular transfer, but the transfer must occur within the current fiscal year
• You can change the transfer date of an asset to a prior period only once per asset.
• You cannot transfer an asset to a future period.

 

1.2 Asset Adjustment - Changing Invoice Information

If you brought over mass addition lines from invoices or discounts in your payables system, use the Source Lines window to change invoice information for an asset. You can:

• Add a new invoice line to an asset
• Change the cost of a invoice line
• Delete an invoice line from an asset
• Transfer invoice lines between assets

• Enter a description and cost to manually add a new invoice line to the asset.
• Change the cost of a line for a CIP asset if necessary.
• To delete an invoice line, uncheck Active.

• Add a new invoice line to an asset
• Change the cost of a invoice line
• Delete an invoice line from an asset
• Transfer invoice lines between assets

• Enter a description and cost to manually add a new invoice line to the asset.
• Change the cost of a line for a CIP asset if necessary.
• To delete an invoice line, uncheck Active.

Mass External Transfers of Assets and Source Lines

The Mass External Transfers features provides a mechanism for accepting data about asset transfers and source line transfers from external systems. The system includes an interface table that allows other systems to pass details of assets and source lines to be transferred. A preview screen lets you view, accept, or reject the transfers from external systems. A new process, similar to the existing Post Mass Additions program, processes the transfer detail information from the new table directly to Oracle Assets.

 

5.1 Placing Construction–In–Process (CIP) Assets in Service

Capitalize finished assets that are ready to be placed in service. You can capitalize a single asset or a group of assets in a transaction. If you erroneously capitalize a CIP asset, you can reverse the capitalization.
Note: If you have CIP assets in both your corporate book and your tax book, you capitalize the CIP assets in your corporate
book, and they are automatically capitalized in the tax book.

To capitalize a CIP asset:

4.1 Revaluing Assets

Revalue assets to adjust the value of your capitalized assets in a highly inflationary economy. You can revalue all categories in a book, all assets in a category, or individual assets.
You can revalue all assets using the Mass Revaluation process. The Mass Revaluation process does not use price indexes to revalue assets.  The Mass Revaluation process includes the following steps:

1. Create Mass Revaluation Definition
2. Preview Revaluation
3. Run Revaluation
4. Optionally Review Revaluation

4.2 Asset Management in a Highly Inflationary Economy (Revaluation)

Oracle Assets allows you to periodically adjust the value of your capitalized assets due to inflation or deflation, according to rates you enter. This process is known as revaluation. The rules for revaluation often differ from country to country. Oracle Assets has the flexibility to handle your specific requirements.
Oracle Assets multiplies the asset cost by the revaluation rate you enter in the Mass Revaluations window to determine the adjustment to the asset cost.

A revaluation only affects assets added in a prior period. It does not process:

• Assets added in the current open period
• Fully retired assets
• Assets with pending retirements

• Revaluation reserve account and revaluation amortization account for each category in the Asset Categories window
• Revaluation reserve retired gain and loss accounts in the Book Controls window

5.2 Physical Inventory

Physical inventory is the process of ensuring that the assets a company has listed in its production system match the assets it actually has in inventory. A company takes physical inventory by manually looking at all assets to ensure they exist as recorded, are in the appropriate locations, and consist of the recorded number of units.

A person taking physical inventory can collect physical inventory data in a number of ways, such as by writing down information about the asset manually, or by using a barcode scanner to automatically scan asset information into a file such as an Excel spreadsheet. After this information is collected, any discrepancies need to be reconciled. For example, if a computer is located in Room 549 according to your production data, but is actually in Room 346, you need to either change the record to reflect the true location of the computer, or move it to Room 549.

About Physical Inventory
The Physical Inventory feature in Oracle Assets assists you in comparing and reconciling your physical inventory data. To use the Physical Inventory feature, you must first take physical inventory of your assets. You need to include the following information about your assets:

•  A unique identifier, which can be either the asset number, tag number, or serial number
•  The location
•  The number of units

Setting Up Oracle Assets Data to be Included in Physical Inventory

Assets listed in Oracle Assets will be compared by the Physical Inventory Comparison program only if the In Physical Inventory check box is checked for those assets. If the In Physical Inventory check box is not checked for a particular asset, that asset will be ignored in the comparison.

5.3 Scheduling Asset Maintenance

Oracle Assets allows you to schedule repair and service events for your long–term capital assets, to help ensure you maintain your long–term assets in a timely manner. You can plan for maintenance to occur at appropriate times, such as seasonal downtime. You can also schedule maintenance to occur at specific intervals, for example, monthly. Using Oracle Assets to schedule your asset maintenance also allows you to record the maintenance history of assets, in addition to scheduling
future maintenance events.

To schedule asset maintenance:

Asset Key Flexfield

Oracle Assets uses the asset key flexfield to group your assets by non–financial information. You design your asset key flexfield to record the information you want. Then you group your assets by asset key so you can find them without an asset number.

Group Assets According To Your Needs
Use the asset key flexfield to group your assets. Group your assets according to non–financial information. You can assign the same asset key to many assets to easily find similar assets. All Oracle Assets transaction forms allow you to query using the asset key, and help you find your assets without an asset number.

Asset Key Flexfield Structure
You define your asset key flexfield structure to fit the specific needs of your organization. You choose the number of segments, the length of each segment, and the name and order of each segment in your asset key flexfield. You can define up to ten asset key segments. This key flexfield supports only one structure.

Not Using The Asset Key Flexfield
If you choose not to track assets using the asset key, you must define at least one segment asset key flexfield without validation.

Example
You decide to use a two segment asset key flexfield. A typical asset key  combination might be  ENGINE.MODELNO.MANUFACTURER. To set up your asset key flexfield you must set up value sets, enable your segments, and enter valid segment values.

First, use the Value Set windows to set up a value set for each segment. For example, you create the value sets Project and Component. Then use the Key Flexfield Segments window to enable your segments. Enter each segment and the value set for validation in the Segments window.

Now use the Segment Values windows to enter the valid values for each asset key segment. For example, you enter JET 10 as a valid value for the Project segment. Now, when you enter an asset, you can specify JET 10.ENGINE as the asset key. Since you checked Allow Dynamic Inserts, Oracle Assets creates the combination for you if it doesn’t already exist. Or you can create the combination explicitly in the Define Asset Key Flexfield Combinations form.

Asset Location

Track Asset Location According To Your Needs
Define the location flexfield to fit the way you track your asset locations. Use the location flexfield to track the physical location of your assets. For example, if you do business internationally (or plan to do so in the future), you may want to track the country an asset is in.

Other segments you may want include are state, city, and site. If you track asset location to more detail, such as for barcoding, you can also add segments for building and room number.

Location Flexfield Structure
You define your location flexfield structure to fit the specific needs of your organization. You choose the number of segments, the length of each segment, and the name and order of each segment in your location flexfield. You must define a state segment and you can also define up to six other location segments.

Property Tax Reporting
You can run the Property Tax Report for your states. The Property Tax Report sorts your assets by the location segment with the state qualifier set to Yes.

Mass Transfer By Location
You can transfer assets that share location information as a group. Or you can use the location as a criterion to select assets to transfer between employees or general ledger expense accounts.

State
You must have exactly one State segment in your Location Flexfield. Oracle Assets uses the State segment for property tax reporting.

Setting Up Security by Book

Oracle Assets shares organization and hierarchy information with Oracle Human Resources. If your business does not currently use Oracle Human Resources, you define this data using the Oracle Human Resources windows provided with Oracle Assets.


FA: Security Profile
The FA: Security Profile profile option restricts access to the organizations defined in the security profile. The options available for the FA: Security Profile are the previously defined security profile values.

For example, you may want to set up the security profiles for the ABC Corporation. Since there is a one to one correspondence between an organization and a security profile, a logical naming standard for the security profile value would include the organization name and the organization identification number. In this case, the organization ABC Corporation might have a security profile value of ABC_Corporation_100, the organization Americas might have a profile value of Americas_200, and so forth.

Restrictions
Users associated with a security profile are not able to delete setup data (such as categories and depreciation methods). These types of deletions must be performed by someone with access to the FA Manager responsibility, and who is not associated with a security profile and can therefore, access all data.

You cannot create a tax book for an organization in a node that is higher up in the security hierarchy than its associated corporate book. To prevent the data in your corporate and tax books from becoming corrupted, a tax book must be at the same level or at a lower level than its associated corporate book.

Default Depreciation Rules for a Category

In the Default Depreciation Rules window, enter the date Placed in Service range for which these category defaults are effective. When you add an asset, the depreciation rules default according to the date placed in service of the asset, the category, and the book.

You can specify as many ranges of default depreciation rules as you wish. If you leave the end date blank, Oracle Assets uses that set of depreciation rules indefinitely. To add a new range of valid depreciation rules, terminate your current record by adding an end date, then choose Edit, New Record from the menu to add the new record.


1. Check Depreciate if you normally depreciate assets in this book and category.

Note: Oracle Assets does not depreciate EXPENSED assets, regardless of the default value you enter in this field.

1.1 Enter the depreciation Method that you normally use for assets in this book and category:

If you enter a life-based method, you must enter the asset Life in Years and Months. The method you enter must have the same number of periods as the prorate calendar for this book.

If you enter a flat-rate method, you must enter default values for the Basic Rate and Adjusted Rate that you normally use to depreciate assets in this book and category. If you are defining this category for a tax book, you also can enter a Bonus Rule.

If you enter a units of production method, you must enter the unit of measure (UOM) and production Capacity that you normally use to depreciate assets in this book and category. If you are defining this category a tax book, enter the UOM and capacity you entered for the corporate book.

1.2 Enter the bonus rule that you normally use for assets in this book and category. You can use bonus rules for corporate books and tax books, using all depreciation methods except UOM.

2.1 Enter the Prorate Convention that you normally assign to assets in this book and category.

2.2 Enter the Retirement Convention that you normally assign to assets in this book and category.

2.3 If you chose Use Default Percent from the Salvage Value poplist in the Book Controls window for this book, you can enter a Default Salvage Value percentage for this category, book, and range of dates placed in service. See: Entering Accounting Rules for a Book and Defaulting Asset Salvage Value as a Percentage of Cost.

For example, if you want the salvage value to default to 10% of the cost, enter 10 in this field. When you perform transactions affecting asset cost, Oracle Assets uses this default percentage to calculate the salvage value according to the following formula:

Salvage Value = Cost Default Percentage

System Controls

Use the system controls form to specify your company name, asset numbering scheme, and key flexfield structures.

Prerequisites
Set up your Category, Location, and Asset Key Flexfields. See: Setting Up the Asset Category Flexfield, Setting Up the Asset Key Flexfield, and Setting Up the Location Flexfield.

To specify system controls:
1. Open the System Controls window.

2. Enter the enterprise name as you want it to appear on reports.

3. Enter the Oldest Date Placed In Service, which controls what dates are valid to place assets in service and on what date to begin your calendars.

If you change this field, you do not affect the assets already in the system. However, you cannot place new assets in service before the new date.

Note: You can only update the Oldest Date Placed in Service before you assign any calendars to depreciation books.

4. Enter the Starting Number at which you want Oracle Assets to begin automatically numbering your assets. Note that some asset numbers may be skipped.

Suggestion: If you are converting from another system, enter a starting number greater than the number of assets you want to convert so converted assets keep the same number from the previous system. For example, if you are converting 75,000 assets, you may want to enter 100,000 as the Starting Number to reserve the numbers 1 to 100,000 for manual asset numbering. Note that adding the 75,000 assets will increment the automatic numbering sequence by 75,000 (automatically numbered assets will begin at 175,001).

Note that asset numbers with a letter in them are not reserved for automatic asset numbering, since the automatic numbers are a numerical sequence.

If you are using automatic numbering, then manual numbering must be less than the starting asset number that you have in the System Controls window. Oracle Assets does not support asset numbers that exceed 2,000,000,000.

5. Enter the Location, Category, and Asset Key Flexfield structures you want to use.

Prorate Conventions

You can set up or review prorate and retirement conventions in the Prorate Conventions window.

You must initially set up all your prorate conventions from the convention period corresponding to the oldest date placed in service through the end of the current fiscal year. At the end of each fiscal year, Oracle Assets automatically sets up your prorate conventions for the next fiscal year.

Prerequisites

•       Set up your Oldest Date Placed in Service. See: Specifying System Controls.
•       Set up your fiscal years. See: Creating Fiscal Years.
•       Set up your depreciation and prorate calendars.

Depreciation

Depreciation is a  noncash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence. Most assets lose their value over time (in other words, they depreciate), and must be replaced once the end of their useful life is reached. There are several accounting methods that are used in order to write off an asset's depreciation cost over the period of its useful life. Because it is a non-cash expense, depreciation lowers the company's reported earnings while increasing free cash flow.

Depreciation is used in accounting to try to match the expense of an asset to the income that the asset helps the company earn. For example, if a company buys a piece of equipment for $1 million and expects it to have a useful life of 10 years, it will be depreciated over 10 years. Every accounting year, the company will expense $100,000 (assuming straight-line depreciation), which will be matched with the money that the equipment helps to make each year.

In Oracle, you can run depreciation to process all assets in a book for a period. If you have assets that have not depreciated successfully, these assets are listed in the log file created by Oracle Assets when you run depreciation.

Closing a Depreciation Period
When you run depreciation, Oracle Assets gives you the option of closing the current period if you check the Close Period check box on the Run Depreciation window. If all of your assets depreciate successfully, Oracle Assets automatically closes the period and opens the next period for the book. If you do not check the Close Period
check box when you run depreciation, Oracle Assets does not close the period.

Once depreciation has been processed for an asset in the current open period, you cannot perform any transactions on those assets unless depreciation is rolled back or the current period is closed

Multiple Reporting Currencies
If you are using Multiple Reporting Currencies (MRC), you can only run the Calculate Gains and Losses and depreciation programs using the standard Fixed Assets or MRC primary responsibility. You cannot run these programs using an MRC reporting responsibility. When you run the Calculate Gains and Losses and depreciation
programs using the standard Fixed Assets or MRC primary responsibility, these program will also run automatically for the associated reporting responsibilities.

To run depreciation:
1. Open the Run Depreciation window.
2. Choose the Book for which you want to run depreciation.
3. Choose whether you want Oracle Assets to close the period after successfully depreciating all assets.
4. Choose Run to submit concurrent requests to run the calculate gains and losses, depreciation, and reporting programs.
Attention: You cannot enter transactions for the book while depreciation is running.
Oracle Assets automatically runs the Journal Entry Reserve Ledger report when you run the depreciation program for a corporate book, and the Tax Reserve Ledger report for a tax book, so you can review the depreciation calculated. These reports are run automatically for the primary currency only. You can use the Standard Report Submission (SRS) process to manually run these reports for the reporting currencies.
5. Review the log files and report after the request completes.
6. If the log file lists assets that did not depreciate successfully, correct the errors and re–run depreciation.

Rolling Back Depreciation

If you have run depreciation for a particular period, you can use the Rollback Depreciation feature to restore assets to their state prior to running depreciation. For example, you may have outstanding adjustments or transactions that you need to process for a period. However, you have already run depreciation for that period. If the Close Period check box was not checked when you ran depreciation, you can roll back depreciation to include these outstanding transactions.

You must run depreciation with the Close Period check box checked to open the next period. You can roll back depreciation only for the current open period.

To roll back depreciation:
1. Select Rollback Depreciation from the navigator menu to open the Submit Requests window and the parameters window.
2. On the Parameters window, specify the book for which you want to roll back depreciation. The period automatically defaults to the current open period.
3. Choose Submit Request to roll back the depreciation.

Depreciation Override

Depreciation Override allows you to optionally override the depreciation amounts calculated by Oracle Assets. Using this feature, you can manually override the calculated default depreciation amounts for standalone and group assets.
Before running depreciation or performing adjustments, you must provide the necessary information in the Depreciation Override window or the FA_DEPRN_OVERRIDE table, and indicate whether the override data is for depreciation or adjustments. When running depreciation, the system will upload and use the depreciation amounts provided in the interface table.

If you do not use the Depreciation Override window to input the override amounts, you must first populate the  FA_DEPRN_OVERRIDE table with the necessary depreciation data. Next, the feature uploads and overrides the system calculated depreciation amounts with the amounts you provided in the override interface table.

Note:
1. Set the profile option FA: Enable Depreciation Override to Yes.
2. For MRC–enabled books, you do not need to provide the override amounts for the reporting currency books. The system will derive the reporting book values based on the ratio of asset cost in the reporting book to asset cost in the primary book.

To override the system calculated depreciation amounts using the Depreciation Override window:
1. Navigate to the Depreciation Override window.
2. You can use the Find Assets window to find assets for which you want to change depreciation.
3. If you did not use the Find Assets window, or query, to find the assets records you wish to modify, enter the asset number, book, and period of the asset in the rows of Depreciation Override window.
4. In the Depreciation field, you can enter the override depreciation amount.
5. In the Bonus Depreciation field you can enter the override bonus depreciation amount.
6. In the Use By field, you can select the adjustment type of Depreciation or Adjustment. The default value is Depreciation
when creating a new record.
7. The Status field displays the current status of the override record, which may be New, Post, or Posted. If the status is Post or Posted, you cannot update the record, you can only delete the record and reenter the updated record.
8. Select Save from the menu to save your work.

Depreciation Calculation

• Calculate gains and losses for retired assets and catch up depreciation for retired and reinstated assets
• Calculate depreciation expense and adjustments for the period, and close the current period
• Run the reserve ledger report

• Recoverable Cost Adjustments
• Depreciation Method Adjustments
• Life Adjustments
• Rate Adjustments
• Capacity Adjustments

Suspend Depreciation

You can suspend depreciation by unchecking Depreciate in the Books window. If you suspend depreciation of an asset when you add the asset, Oracle Assets expenses the missed depreciation in the period you start depreciating the asset.
For table and calculated methods, Oracle Assets calculates depreciation expense for the asset based on an asset life that includes the periods you did not depreciate it. If you suspend depreciation after an asset has started depreciating, Oracle Assets catches up the missed depreciation expense in the last period of life.

For flat–rate methods, Oracle Assets continues calculating depreciation expense for the asset based on the flat–rate. For flat–rate methods that use net book value, Oracle Assets uses the asset net book value at the beginning of the fiscal year in which you resume depreciation. The asset continues depreciating until it becomes fully reserved.

Period Close
Oracle Assets automatically closes the book’s current period and opens the next when you run the depreciation program. You cannot have more than one open period for a given depreciation book.

Year–End Processing
You can close the year independently in each depreciation book. The depreciation program automatically resets year–to–date amounts on a book the first time the depreciation program is run on that book in a fiscal year. Oracle Assets automatically creates the depreciation and prorate periods for your new year when you run depreciation for the last period of the previous fiscal year.
Verify the depreciation and prorate periods that Oracle Assets creates before you enter transactions in the new year.

Prior Period Additions
If you enter an asset with a date placed in service before the current accounting period, Oracle Assets automatically calculates the missed depreciation and adjusts the accumulated depreciation on the next depreciation run.
If you provide accumulated depreciation when you add the asset, Oracle Assets does not recalculate the accumulated depreciation. It accepts the amount you entered.

For table and calculated methods, even if the entered accumulated depreciation differs from what Oracle Assets would have calculated, Oracle Assets does not depreciate the asset beyond the recoverable cost. If the accumulated depreciation is too low, Oracle Assets takes additional depreciation in the last period of the asset’s life so that the asset becomes fully reserved. If the asset’s accumulated depreciation is too high, Oracle Assets stops depreciating the asset when it becomes fully reserved, effectively shortening the asset life.

Prior Period Transfers
If you back date an asset transfer, Oracle Assets automatically reallocates depreciation expense by reversing some of the depreciation charged to the ”from” account, and redistributing it proportionally to the ”to” accounts. Retroactive transfers do not impact the total depreciation. You cannot backdate a transfer to a prior fiscal year.

Prior Period Retirements / Reinstatements
If you back date a retirement, Oracle Assets automatically adjusts the depreciation for the year by the appropriate amount, resulting in a one–time adjustment in depreciation expense for the period. Oracle Assets then computes the gain or loss using the resulting net book value.

You cannot backdate a retirement to a previous fiscal year, nor can you reinstate a retirement performed in a previous fiscal year. Prior Period Amortized Adjustments If you back date an amortized adjustment, Oracle Assets automatically calculates depreciation from the retroactive amortization start date, and adds the retroactive depreciation to the current period. You can perform multiple prior period amortized adjustments to an asset.

Credit Assets
You can enter a credit asset as an asset with a negative cost, and Oracle Assets credits depreciation expense and debits accumulated depreciation each period for the life of the asset.

Depreciation Calculation for Flat-Rate Methods

Use a flat-rate method to depreciate the asset over time using a fixed rate. Oracle Assets uses a flat-rate and either the recoverable cost or the recoverable net book value as of the beginning of the fiscal year to calculate depreciation using a flat-rate depreciation method. The asset continues to depreciate until its recoverable cost and accumulated depreciation are the same.

An asset's prorate convention and depreciation method control when Oracle Assets starts to depreciate new assets. For assets using flat-rate methods, depreciation starts in the accounting period that either the date placed in service or the prorate date falls into, depending on the depreciate when placed in service flag. Oracle Assets allocates the first year's depreciation to the accounting periods remaining in the fiscal year.

Example
Suppose your fiscal year ends in May, you have a monthly (12 period) depreciation calendar, and you want to allocate depreciation evenly to each period in the year. You place a $10,000 asset in service in the third period of your fiscal year (AUG-92) using a half-year prorate convention. The rate for the  diminishing value (calculation basis of NBV) depreciation method is 20%.

Since the asset is using a half-year prorate convention, the prorate date is in December--the mid-point of your fiscal year. For assets that have a prorate date at the mid-point of the fiscal year, depreciation expense for the first fiscal year of life is 50% of the amount for a full fiscal year. For the asset in our example, a full fiscal year depreciation amount is $2,000 (20% of $10,000), so the depreciation for the first year (fiscal 1993) is $1,000.

You can specify whether to start taking depreciation in the period of the date placed in service or the prorate date using the depreciate when placed in service flag for the prorate convention. If you elect to start depreciation in the accounting period corresponding to the date placed in service, Oracle Assets starts to depreciate the asset in AUG-92, and the depreciation for each period is $100 ($1000 divided by 10--the number of periods from August to May).

If you elect to start depreciation on the prorate date, Oracle Assets does not start to depreciate the asset until December. The depreciation for each period from DEC-92 to MAY-93 is $166.67 ($1,000 divided by 6--the number of periods from December to May).

Depreciation in the Remaining Years of Life
For methods using the net book value, you use the flat-rate and the recoverable net book value at the beginning of each fiscal year to calculate the annual depreciation. In the second year of the asset life (fiscal 1994), the net book value as of the beginning of the fiscal year is $9,000. Applying the 20% rate yields an annual depreciation amount of $1,800. Oracle Assets divides this amount evenly across all twelve accounting periods in the year, so depreciation expense for each period is $150.

Similarly, the net book value at the beginning of the 1995 fiscal year is $7,200. Oracle Assets calculates annual depreciation of $1,440 and divides this amount evenly to get the depreciation amount for each period. Oracle Assets repeats this process until the asset is fully depreciated or retired

What-If Depreciation

You can use what-if depreciation analysis to forecast depreciation for groups of assets in different scenarios without making changes to your Oracle Assets data. You can run what-if depreciation analysis on assets defined in your Oracle Assets system or on hypothetical assets that are not defined in Oracle Assets.

Notes:
1. You may use What-if Analysis to project depreciation for a group asset. However, you may not create a hypothetical group asset.
2. Note that Prorate Convention has no relevance to group or member assets.

What-if depreciation analysis differs from depreciation projections in that what-if depreciation analysis allows you to forecast depreciation for many different scenarios without changing your Oracle Assets data. Depreciation projection allows projection only for the parameters set up in Oracle Assets.

To perform what-if depreciation analysis in Oracle Assets, you enter different combinations of parameters for a set of assets in the What-If Depreciation Analysis window. When you run what-if analysis based on the parameters you entered, Oracle Assets automatically launches a report, from which you can review the results of the analysis. You can run what-if analysis for as many scenarios as you like. Each time you run what-if analysis, Oracle Assets launches a separate report.

If you are satisfied with the results of your analysis, you can enter the new parameters in the Mass Changes window to update your assets according to the parameters you specified in the what-if analysis.

You may want to run what-if depreciation analysis for several different scenarios for comparison purposes. You can run what-if depreciation analysis for any number of scenarios. The results of an analysis will not overwrite the results of previous analyses.

Forecast depreciation using what-if depreciation analysis:

1. Navigate to the What-If Depreciation Analysis window in Oracle Assets.

2. The value in the Currency field defaults to the book's currency. If the book you chose is an MRC book, the Currency field defaults to the primary currency. If you want to run What-if Analysis for the reporting currency, change the value in the Currency field to the reporting currency.

3. Enter the starting period for which you want to run What-if Analysis.

4. Enter the number of periods for which you want to run What-if Analysis.
Note: You cannot run What-if Analysis for hypothetical assets in the reporting currency.

5. Enter the book containing the assets for which you want to run what-if analysis.

6. In the Assets to Analyze tabbed region, enter the parameters you want to use to identify the set of assets for which you want to run what-if depreciation analysis.
OR
In the Hypothetical Assets tabbed region, enter the parameters to identify the hypothetical asset for which you want to run what-if depreciation analysis.

7. Enter the Depreciation Scenario parameters to identify the depreciation rules to be
used in the analysis.

8. Choose Run to run what-if depreciation analysis.

9. Review the results of the What-If Depreciation Report or the Hypothetical What-If Report by navigating to the View My Requests window.

10. Update your assets according to the specified parameters in the Mass Changes window.
OR
Repeat this procedure using different parameters.

Parameters
You run what-if depreciation analysis based on parameters you specify in the What-If Depreciation Analysis window in Oracle Assets. You enter these parameters for purposes of analysis only. The parameters you enter in these windows do not affect depreciation of your Oracle Assets data.

Assets to Analyze Parameters
Use the Assets to Analyze tabbed region when you want to perform what-if depreciation analysis on assets that exist in your Oracle Assets system. You use this group of parameters to tell Oracle Assets on which assets to perform what-if analysis. If you leave the optional fields blank, Oracle Assets defaults to performing analysis on all
possible assets.

Hypothetical Assets Parameters
Use the Hypothetical Assets tabbed region when you want to perform what-if depreciation analysis on assets that have not been defined in your Oracle Assets system. The following table provides explanations of the parameters:

Asset Retirements

Asset is retired when it is no longer in service. For example, retire an asset that was
stolen, lost, or damaged, or that you sold or returned. You can retire an entire asset or you can partially retire an asset.
• When you retire an asset by units, Oracle Assets automatically calculates the fraction of the cost retired
• When you retire an asset by cost, the units remain unchanged and the cost retired is spread evenly among all assignment lines.

Restrictions
You cannot retire assets by units in your tax books; you can only perform partial and full cost retirements in a tax book. Also, you can only perform full retirements on CIP assets; you cannot retire them by units, or retire them partially by cost.
If you perform multiple partial retirements on an asset within a period, you must run the calculate gains and losses program between transactions.
Gain/Loss = Proceeds of Sale - Cost of Removal - Net Book Value Retired +
Revaluation Reserve Retired

If you partially retire a units of production asset, you must manually adjust the capacity to reflect the portion retired.

Independence Across Depreciation Books
You can retire an asset or a group of assets from any depreciation book without affecting other books. To retire an asset from all books, retire it from each book separately, or set up Mass Copy to copy retirements to the other books in the Book Controls window.

Retirement and Reinstatement Statuses
Each retirement transaction has a status. A new retirement receives the status PENDING. After you run depreciation or calculate gains and losses, the status changes to PROCESSED.
When you reinstate a PENDING retirement, Oracle Assets deletes the retirement transaction and the asset is immediately reinstated. If you reinstate a PROCESSED retirement, Oracle Assets changes the status to REINSTATE, and you must rerun the Calculate Gains and Losses program or run depreciation to process the reinstatement.

When you perform a mass retirement, Oracle Assets creates PENDING retirement transactions. If you submit a mass reinstatement before running the Calculate Gains and Losses program, Oracle Assets immediately reinstates these assets. If you submit a mass reinstatement to reinstate PROCESSED retirements, you must rerun the Calculate Gains and Losses program or run depreciation to process the reinstatements.

Correct Retirement Errors
You can undo asset retirement transactions, and Oracle Assets creates all the necessary journal entries for your general ledger to catch up any missed depreciation expense. You can reinstate an individual or mass retirement transaction. For multiple partial retirements, you can reinstate only the most recent partial retirement. You cannot reinstate an asset retired in a previous fiscal year. You can only reinstate assets retired in the current fiscal year

Retirement Transactions

You cannot retire an asset if you added it in the current period. Instead, you must enter your retirement as a prior period retirement after you run depreciation. Or if you do not want to create any journal entries, use Edit, Delete Record from the menu in the Asset Details window to delete the asset any time in the current period.

For prior-period retirement dates:
You can retire retroactively only in the current fiscal year, and only after the most recent transaction date. You cannot perform prior period retirements to assets having unplanned depreciation
amounts.

You can retire an individual asset in the Retirements window. You can retire a group of assets in the Mass Retirements window.

To FULLY retire an asset:
1. Choose Assets > Asset Workbench from the Navigator window. Find the asset you want to retire and Choose Retirements.
2. Select the depreciation Book from which you want to retire the asset.
3. Enter the date of the retirement. It must be in the current fiscal year, and cannot be before any other transaction on the asset.
4. To fully retire the asset, enter all the units or the entire cost. 
5. If you are retiring an asset before it is fully reserved, enter the Retirement Convention.
6. Enter the Retirement Type.
7. Save your work. Oracle Assets assigns each retirement transaction a unique Reference Number that you can use to track the retirement.
Optionally calculate gains and losses to change the status of the retirement transaction from PENDING to PROCESSED.

To retire asset costs using Source Lines:

1. Select Assets > Asset Workbench from the Navigator window.
2. Find the asset whose invoice information you want to change.
Tip: For best performance, find by unique values, such as asset number or tag number.
3. Select Find to navigate to the Assets window.
4. Choose the asset whose source lines you want to retire.
5. Select Source Lines to navigate to the Source Lines window.
6. Choose the source line or enter the amount you want to retire.
7. Select Retire to navigate to the Source Line Retirement window.
8. Modify the necessary fields.
Note: You cannot modify units retired or cost retired. You must cancel out of the retire window before changing the units or cost information. You can change this information in the Source Lines
window. Source Line window changes are propagated to the Retire window when you navigate to it.
9. Select Done to save your work.

 

Reinstatements

You cannot reinstate assets retired in the previous fiscal year. You can reinstate only the most recent partial retirement. You can reinstate both individual and mass retirement transactions. You can use Oracle Assets to retire a group of assets by populating an external interface table with these assets, setting the line status to POST, and running the Post Mass Retirements process.

Oracle Assets allows both partial cost and partial unit retirements. However, retirements can only be grouped using a Batch Number, which restricts you from fully utilizing the benefit of the Oracle Assets Mass Retirements feature.

To correct a retirement error:
1. Choose Assets > Asset Workbench from the Navigator window.
2. Find the asset you want to reinstate.
3. Choose Retirements.
4. Query the retirement transaction you want to undo.
5. If the retirement has a status of PROCESSED, choose Reinstate. If it is PENDING, choose Undo Retirement.
6. If the retirement has a status of PROCESSED, calculate gains and losses to reinstate the asset. If it is PENDING, Oracle Assets deletes the retirement transaction.

Asset Accounting

Oracle Assets is fully integrated with Oracle Subledger Accounting for generating accounting entries, transaction drilldown, and reporting. The Create Accounting – Assets concurrent program creates journal entries for transaction events in Oracle Assets. The journal entries can be transferred to and posted in General Ledger. If you choose not to transfer the journal entries to General Ledger at
this time, you can run the Transfer Journal Entries to GL – Assets concurrent program to do this at a later time.

If you are upgrading from Release 11i and you have asset books set up, then the upgrade program automatically sets the value of the FA: Use Workflow Account Generation profile option to Yes, meaning the account generation rules set up in Oracle Workflow will be used.

Asset Accounting & Journal Entries
Run the Create Accounting process to create accounting entries.
You do not need to run Depreciation before creating accounting transactions. You can run the Create Accounting process as many times as necessary within a period.

The Create Accounting process creates journal entries for the appropriate ledger. You can review these journal entries in the general ledger and post them.

Adjusting Journal Entries
Prior Period Transactions
Oracle Assets creates adjusting journal entries to depreciation expense, bonus expense, accumulated depreciation accounts, and bonus reserve accounts when you enter prior period additions, transfers, or retirements:
• For a prior period addition, Oracle Assets creates journal entries for the missed depreciation
• For a prior period transfer, Oracle Assets reverses a portion of the depreciation expense posted to the "from" depreciation expense account and posts it to the "to" depreciation expense account
• For prior period retirements, Oracle Assets creates journal entries that reverse the depreciation taken for periods after the retirement prorate date

Depreciation Adjustments
Oracle Assets creates separate journal entries for adjustments to depreciation expense and current period depreciation. You can review the effect of your adjustment transaction and your current period depreciation expense separately in the general ledger. 

Journal Entry Examples

Debit (Dr.) A debit to the asset cost, asset clearing, bonus expense, CIP cost, CIP clearing, depreciation expense,proceeds of sale clearing, or intercompany receivables account is an addition to the account. A debit to the accumulated depreciation, bonus reserve, cost of removal clearing, or intercompany payables account is a subtraction from the account. In the journal entry examples, debits are in the left column.

Credit (Cr.) A credit to the accumulated depreciation, bonus reserve, cost of removal clearing, or intercompanypayables account is an addition to the account. A credit to the asset cost, asset clearing, bonus expense, CIP cost, CIP clearing, depreciation expense, proceeds of sale clearing, or intercompany receivables account is a subtraction from the account. In the journal entry examples, credits are in the right column.

Journal Entries for Depreciation
When you run depreciation, Oracle Assets creates journal entries for your accumulated depreciation accounts and your depreciation expense accounts. Oracle Assets creates journal entries for your bonus reserve accounts and your bonus depreciation accounts, if any. Oracle Assets creates separate journal entries for current period depreciation expense and for adjustments to depreciation expense for prior period transactions and changes to financial information.

Oracle Assets creates the following journal entries for a current period depreciation charge of $200 and a bonus charge of $50:

Journal Entries for Additions and Capitalizations
For manual additions, Oracle Assets gets the clearing account from the category. For mass additions, the clearing account comes from your source system.
Example: The recoverable cost is $4,000 and the method is straight-line 4 years.

You purchase and place the asset into service in Year 1, Quarter 1.

Tax Book

 
The Initial Mass Copy program populates the tax book from the corresponding corporate book. It copies all the existing assets in the corporate book.  You can create as many tax books as you need,
maintain your asset information in your corporate book, and then update your tax books with assets and transactions from your corporate book.

You must allow Mass Copy and choose whether to copy additions, cost adjustments, retirements, and salvage value for your tax book in the Book Controls window before you can run mass copy.

You also specify which corporate book mass copy uses as the source. You cannot copy assets from one corporate book into another corporate book. If you choose to copy adjustments, Oracle Assets copies cost adjustments from the associated corporate book if the unrevalued cost in the corporate book before the adjustment matches the unrevalued cost in the tax book. It copies both adjustments that are ADJUSTMENT type in the tax book and adjustment transactions that create a new
ADDITION type and update the ADDITION/VOID in the tax book.

How Initial Mass Copy Works
Initial Mass Copy copies all the assets added to your corporate book before the end of the current tax fiscal year into the open accounting period in your tax book. The following graphic illustrates the Initial Mass Copy process. In the following example, your fiscal year is from January to December. Your corporate book open accounting period is February 1994 and your tax book open period is December 1993.


When using Initial Mass Copy for the first time in your tax book, you can run it as many times as necessary for the first period to copy all existing assets. When you rerun the process, Initial Mass Copy only looks at assets which it did not copy into the tax book during previous attempts, so no data is duplicated.

If you wish to simultaneously run this program in more than one process to reduce processing time, Oracle Assets can be set up to run this program in parallel.

What Gets Copied
The current fiscal year in your tax book determines which assets Initial Mass Copy copies into your tax book. If the current fiscal year of your tax book is 1994, Initial Mass Copy copies all assets into your tax book as they appeared at the end of 1994 in your corporate book, even if 1995 is the current fiscal year of your corporate book. Only run Initial Mass Copy for the first period of your tax book. For following periods in your tax book, run Periodic Mass Copy.

Initial Mass Copy does not copy assets retired before the end of that year or assets added after the end of that year. You do not need to copy any adjustments or partial retirements you performed before the end of the fiscal year. When you close this initial period, Oracle Assets calculates the net book value of your assets that have zero accumulated depreciation in the tax book, and opens the next period.

When the Initial Mass Copy program copies an asset into a tax book, the following basic financial information comes from the corporate book:

1. Cost
2. Original Cost
3. Units
4. Date Placed in Service
5. Capacity and unit of measure, for units of production assets
6. Salvage Value, if you choose to Copy Salvage Value for the tax book in the Book Controls window

The remaining depreciation information comes from the default category information for your tax book according to the asset category and the date placed in service. You must set up your asset categories with default information for your tax book before you run Initial Mass Copy.

Since tax books share the category and assignments with their associated corporate book, you do not need to copy reclassifications or transfers from one book to another. Tax books also share production amounts with their associated corporate books for assets depreciating under units of production. Initial Mass Copy does not copy any transactions on CIP assets or expensed items.

For subcomponent assets, copy the parent asst first. Then copy the subcomponent asset, defaulting the asset life according to the subcomponent life rule you defined for the tax category and the parent asset life. You must set up the depreciation method for the subcomponent asset life before you can use the method and life. If your subcomponent asset uses straight-line depreciation, Oracle Assets sets up the depreciation method for the calculated life for you. If the depreciation method is not
straight-line and not already set up for the subcomponent life rule default, Oracle Assets uses the asset category default life.

Group and member assets are copied like any other asset in Oracle Assets. As with any asset in Oracle Assets, the group assets must exist in a corporate book before they are added to the associated tax book. Mass copy will copy group assets from a corporate book to the associated tax book only if the same category exist in both books.

Correcting Current Period Addition Errors

 
If you incorrectly added an asset, you can delete it from the system. You can only delete assets added in the current period. Once you run the depreciation and close one period for a book, system won’t allow you to delete any record.
Assets added though mass addition can also be deleted manually.

To delete an asset you added in the current period:
1. Choose Assets > Asset Workbench from the Navigator window.
2. Find the asset you want to delete.
Note: For best performance, query by asset number or tag number since they are unique values.
3. Choose Open.
4. From the menu, select Edit, Delete Record.
5. Save your change to delete the asset from the system

YTD Depriciation, Acc Depriciation for each asset in a corp book

Select fa.asset_number, x.asset_id,
fa.asset_id,fa.asset_category_id, fa.attribute_category_code, fb.book_type_code,
 fb.deprn_method_code,fb.life_in_months,fb.original_cost, fb.eofy_reserve,
 fb.cost, x.D_AMOUNT YTD_DEP, fb.eofy_reserve + x.D_AMOUNT AS ACC_DEP
from FA_ADDITIONS_b fa,
apps. FA_BOOKS_V fb,
(
Select asset_id, SUM(DEPRN_AMOUNT) AS D_AMOUNT
from fa_deprn_detail
where deprn_source_code='D' and book_type_code =:book_type_code
Group By asset_id
) x
where fa.asset_id=x.asset_id
AND fa.asset_id=fb.asset_id