1. System Controls 2. Define Fiscal Years 3. Define Calendars 4. Account Generator 5. Define Prorate Conventions 6. Define QuickCodes 7.

Define Category Key Flexfield Value Sets 8. Define Location Key Flexfield Value Sets 9. Define Asset Key Flexfield Value Set 10. Define Category Key Flexfield Segments 11. Define Location Key Flexfield Segments 12. Define Asset Key Flexfield Segments 13. Define Category Key Flexfield Segment Values 14. Define Location Key Flexfield Segment Values 15. Define Asset Key Flexfield Segment Values 16. Establish Security by Book Create Assets Hierarchy 17. Define Book Controls using Security by Book 18. Establish Security by Book Add site specific OU to Assets Hierarchy 19. Establish Security by Book Security Profile 20. Establish Security by Book Run Security List Maintenance program 21. Assign Profile Option Values 22. Define Value Set Security 23. Assign Value Set Security 24. Define Asset Categories 25. Define Location Codes 26. Define Asset Keys 27. Define Descriptive Flexfields 28. Define Depreciation Methods 29. Define Depreciation Ceilings 30. Define Investment Tax Credit Rates 31. Define Investment Tax Credit Recapture Rates 32. Define Price Indexes 33. Define Leases/Lease Payment Schedules 34. Define Warranties 35. Define Distribution Sets 36. Define Bonus Depreciation Rules

Navigation:Setup-> Financial->Flexifield->Segment

Define Your Asset Category Flexfield The asset category flexfield allows you to define asset categories and subcategories. For example, you can create an asset category for your computer equipment. You can then create subcategories for personal computers, terminals, printers, and software. You must assign the major category segment qualifier to one segment of your category flexfield. The major category segment facilitates capital budgeting. All other segments are optional. You use the same setup windows to create your asset category flexfield as you do for your other key flexfields Default This is a required step. If you skip this step, you will not be able to use Oracle Assets. Context: You need to perform this step only once per installation.

Create the segments

Create the major category values:

Create Location Flexifield: Location:

Enter the physical location of the asset. Oracle Assets uses location information for Property Tax reports.

Click on Segment and create the segment

Create Value set :

Enter the location values into value set .

Defining Additional Depreciation Method

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

Depreciation in the First Year of Life

An assets prorate convention and depreciation method control when Oracle Assets starts to depreciate new assets. For assets using flatrate 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 years 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 (AUG12) using a halfyear prorate convention. The rate for the diminishing value (calculation basis of NBV) depreciation method is 20%. Since the asset is using a halfyear prorate convention, the prorate date is in Decemberthe midpoint of your fiscal year. For assets that have a prorate date at the midpoint 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 1913) 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 AUG12, and the depreciation for each period is $100 ($1000 divided by 10the 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 DEC12 to MAY13 is $166.67 ($1,000 divided by 6the number of periods from December to May).

To define a calculated depreciation method: Navigate to the Depreciation Methods window. Enter a depreciation Method name and Description. Select Calculated from the Method Type poplist. The calculation basis automatically defaults to Cost (NBV is not valid for calculated methods). Choose whether this depreciation method allows you to depreciate an asset in the year it is retired. 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. Save your work. To define a table-based depreciation method: Navigate to the Depreciation Methods window. Enter a depreciation Method name and Description. Select Table from the Method Type poplist. Choose whether to use Cost or NBV as the basis for calculating depreciation from the Calculation Basis poplist. Choose whether this depreciation method allows you to depreciate an asset in the year it is retired. Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis. Choose whether this method is a straight-line method. Enter the number of Years and Months of asset life. Enter the number of Prorate Periods Per Year this method uses. Choose the Rates button to enter rates in the Depreciation Rates window. 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. To define a units of production depreciation method: Navigate to the Depreciation Methods window. Enter a depreciation Method name and Description. Select Production from the Method Type poplist. The calculation basis automatically defaults to Cost (NBV is not valid for units of production methods). Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis. Save your work. To define a flat-rate depreciation method: Navigate to the Depreciation Methods window. Enter a depreciation Method name and Description. 8

Select Flat from the Method Type poplist. Choose whether to use Cost or NBV as the basis for calculating depreciation from the Calculation Basis poplist. Choose whether this depreciation method allows you to depreciate an asset in the year it is retired. In the Depreciable Basis Rule field, select a depreciable basis rule from the poplist. Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis. You can exclude salvage value only if you have a flat-rate method that uses NBV as the calculation basis. Check the Polish Adjustment Calculation Basis check box, if applicable. This check box affects the calculation when creating negative cost adjustments to assets depreciating under Polish tax depreciation. This check box is available only if you have selected one of the Polish tax depreciable basis rules as your depreciable basis rule. Choose the Rates button to enter rates in the Depreciation Rates window. Enter basic rates. Enter the adjusting rate, or loading factor. Defining Bonus Depreciation Rules A bonus rule can have a different bonus rate for each year of the asset's life. You can modify the rate at any time for current and future fiscal years. You can use bonus rules with corporate books as well as tax books. Bonus rates let you increase the annual depreciation expense for assets using flat-rate, straight-line, table-based, and formula-based depreciation methods. Oracle Assets also allows you to set up negative bonus rates to amortize bonus reserve. For reporting purposes, you can set the bonus year and rate to 0. Oracle Assets does not calculate any bonus expense.

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To define your bonus rules: Open the Bonus Depreciation Rules window. Enter a Bonus Rule name and description. Check the One-Time Depreciation check box, if applicable. Enter the fiscal year range of the asset life to which the bonus rate applies. Enter the bonus rate for each fiscal year range.

If you are setting up a bonus rule for use with Polish tax depreciation, enter a depreciation factor and an alternate depreciation factor. When you enter either a depreciation factor or an alternate depreciation factor, the value in the Rate % field is automatically set to 0%. Note: You need to ensure the depreciation factor and alternate depreciation factor are set up appropriately. Oracle Assets does not validate that the factor is between a predetermined range.

Setting Up 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

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Next click on Default Rules And give the depreciation details. Flat rate method:

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Straight line method.

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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.

Specifying Dates for Calendar Periods 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.

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Specifying Dates for 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.

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Prorate Convention and Prorate Date

Oracle Assets uses the prorate convention to determine how much depreciation to take in the first and last years of asset life. Oracle Assets determines the prorate date from the date placed in service and the prorate convention. It uses this date to determine how much depreciation to take during the first and last years of asset life.

Specifying System Controls Use this form to specify your company name, asset numbering scheme, and key flexfield structures.

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Defining 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 ledger, or to the same ledger. 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.

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 toany tax books. You can only assign the asset to a book for which you

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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 general ledger set of books 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 adifferent schedule

Cost
Current Cost The current cost can be positive, zero, or negative. Oracle Assets defaults a cost of zero for constructioninprocess (CIP) assets and you cannot change it. Oracle Assets automatically updates the cost to the sum of the invoice line costs after you add invoice lines to a CIP asset using the Mass Additions process. You can also change the cost of a CIP asset manually by entering noninvoiced items or transferring invoice lines between assets in the Source Lines window. If this is a capitalized leased asset, and you previously calculated the cost to capitalize for the lease in the Lease Payments window and you have not override the result of the capitalization test, Oracle Assets automatically enters the Cost to Capitalize amount in the Current Cost field, and you can change it. Original Cost Oracle Assets displays the original cost of the asset and updates it if you make a cost adjustment in the period you added the asset. After the first period, Oracle Assets does not update the original cost. Recoverable Cost The recoverable cost is the portion of the current cost that can be depreciated. It is the current cost less the salvage value less the Investment Tax Credit basis reduction amount. If you specify a depreciation cost ceiling, and if the recoverable cost is greater than that

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ceiling, Oracle Assets uses the cost ceiling instead

Depreciation Amounts
Depreciation You normally enter zero accumulated depreciation for new capitalized assets. If you are adding an asset that you have already depreciated, you can enter the accumulated depreciation as of the last depreciation run date for this book, or let Oracle Assets calculate it for you. If you enter a value other than zero, Oracle Assets uses that amount as the accumulated depreciation as of the last depreciation run date. If you have bonus reserve, the amount should be added to the accumulated depreciation and is no longer tracked as bonus reserve. If you enter too little accumulated depreciation, Oracle Assets adjusts depreciation to the correct amount for the current fiscal year. If you enter too much accumulated depreciation, the asset becomes fully reserved before the end of its life. If you enter zero accumulated depreciation, Oracle Assets calculates the accumulated depreciation and the bonus reserve, if any, based on the date placed in service. You can have a different accumulated depreciation for each depreciation book. Enter the amount of depreciation taken in the current fiscal year, if any, for the yeartodate depreciation. If the asset is placed in service in the current fiscal year, the accumulated depreciation amount and the yeartodate depreciation amount must be the same. For Oracle Assets to recognize an asset as fully reserved when you add it, enter an accumulated depreciation amount equal to the recoverable cost. You cannot change the accumulated depreciation after the period in which you added the asset. You can, however, change the depreciation taken for prior fiscal years in your tax books using the Tax Reserve Adjustments window. You cannot enter yeartodate or lifetodate depreciation when you add a units of production asset. Instead, enter the asset with zero

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accumulated depreciation, and enter the total lifetodate production as production for the current period to catch up depreciation.

Salvage Value
The salvage value cannot exceed the asset cost, and you cannot enter a salvage value for credit (negative cost) assets.

Net Book Value

The net book value is defined as: Net Book Value = Current Cost Total Reserve (Accumulated Depreciation + Bonus Reserve)

Revaluation Amounts
You can only enter revaluation amounts if you allow revaluation in the Book Controls window. Revaluation Reserve If you are adding an asset, enter the revaluation reserve, if any. You cannot update the revaluation reserve after the period you added the asset. After that, Oracle Assets updates the revaluation reserve when you perform revaluations. Revaluation Reserve = Existing Revaluation Reserve + Change in Net Book Value due to current revaluation

Depreciation Method
The depreciation method you choose determines the way in which Oracle Assets spreads the cost of the asset over the time it is in use. You specify default depreciation rules for a category and book in the Asset Categories window. You can use predefined Calculated, Table, units of Production, or Flatrate type methods, or define your own in the Methods window. Depending on the type of depreciation method you enter in the Books window, Oracle Assets provides additional fields so you can enter related depreciation information. For example, if you enter a Calculated or Table depreciation method, you must also enter a life for the asset. In contrast, for a units of production depreciation method, you must enter a unit of measure and capacity. The table below

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illustrates information related to the depreciation types:

Method Type Related Fields Calculated or Table Life in Years and Months Calculated or Table Bonus Rule FlatRate Basic Rate FlatRate Adjusted Rate FlatRate Bonus Rule Units of Production Unit of Measure Units of Production Capacity Units of Production YeartoDate Production display only Units of Production LifetoDate Production display only Table 2 1 (Page 1 of 1)

Calculated and table methods must be set up with the same number of prorate periods per year as the prorate calendar for the book. The depreciation method must already be defined for the life you enter.

Assets Workbench Use the Assets Workbench windows to add new assets to the system, and to perform transactions, such as retirements, adjustments, source line adjustments, and transfers
Oracle Assets workbenches let you find critical information in a flexible way, see the results in your defined format, and selectively take appropriate action. For example, in the Assets Workbench, you can findyour assets based on asset detail, assignment, invoice, or lease information. Then, for that asset, you can review financial, assignment, and other detailed asset information, perform transfers, review thepurchasing or other source information, or retire the asset. All the windows you need are accessible from just one form; you can query an asset then perform several transactions without having to find it again.

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Click the Addition button

Click on continue button

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Next click on continue and give the details

Next click on Done. Asset Number

An asset number uniquely identifies each asset. When you add an

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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 nonnumeric value.

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

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.

Asset 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.

Category Descriptive Flexfield

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.

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.

Asset Type 24

Valid asset types are: Capitalized: Assets included on the company balance sheet. Capitalized assets usually depreciate. Charged to an asset cost clearing account. CIP (ConstructionInProcess): 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 constructioninprocess clearing account. 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.

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

Lease Information
You can enter lease information only for an asset assigned to a leased asset category. 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.

Source Lines
You can track information about where assets came from, including sources such as invoice lines from your accounts payable system and

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capital assets from Oracle Projects. Each source line that came from another system through Mass Additions may include the following information: Invoice Number Line Description Supplier Purchase Order Number Source Batch Cost Project Number Task Number You change invoice information for a line using the Source Lines window only if you manually added the source line. For example, you can manually add a line, adjust the cost of an existing line, or delete a line for a CIP asset. You also can transfer lines between assets. You cannot change invoice information if the line came from another system through Mass Additions. If the source of the line is Oracle Projects, choose the Project Details button to view detail project information for the line in the Asset Line Details window

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