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Author: Creation Date:
Saudi Arab Projects CO.LTD (SAPCO) 12-FEB-2008
TALAL ABU GAZALEH REPRESENTATIVE ABDUL SAMAD AL QURASHI REPRESENTATIVE
PM: Mazen AL Wahsh PM: Khaled Sheasha
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Table Of Contents
OVERVIEW OF ASSETS WORKBENCH....................................................................4 ASSETS DETAILS............................................................................................................4 ASSET DESCRIPTIVE DETAILS..........................................................................................4 DEPRECIATION RULES (BOOKS).......................................................................................9 ASSIGNMENTS.................................................................................................................15 SOURCE LINES................................................................................................................18 CONSTRUCTION-IN-PROCESS (CIP) ASSETS...................................................................19 ASSET SETUP PROCESSES (ADDITIONS)..............................................................19 ADDING AN ASSET ACCEPTING DEFAULTS (QUICK-ADDITIONS)..................................20 ADDING AN ASSET SPECIFYING DETAILS (DETAIL- ADDITIONS)..................................21 ENTERING FINANCIAL INFORMATION (DETAIL ADDITIONS CONTINUED)......................22 ASSIGNING AN ASSET (DETAIL ADDITIONS CONTINUED)..............................................24 OVERVIEW OF THE MASS ADDITIONS PROCESS..............................................25 CORRECTING CURRENT PERIOD ADDITION ERRORS....................................28 CHANGING ASSET DETAILS.....................................................................................30 CHANGING FINANCIAL AND DEPRECIATION INFORMATION.....................31 CHANGING FINANCIAL INFORMATION FOR A SINGLE ASSET...........................................32 CHANGING FINANCIAL INFORMATION FOR A GROUP OF ASSETS (MASS CHANGE)........33 RECLASSIFYING ASSETS...........................................................................................35 RECLASSIFYING A SINGLE ASSET TO ANOTHER CATEGORY..........................................35 RECLASSIFYING A GROUP OF ASSETS............................................................................36 ADJUSTING UNITS FOR AN ASSET.........................................................................40 TRANSFERRING ASSETS............................................................................................40 TRANSFERRING A SINGLE ASSET....................................................................................41 TRANSFERRING A GROUP OF ASSETS..............................................................................42 TRANSFERRING INVOICE LINES BETWEEN ASSETS........................................................43 CHANGING INVOICE INFORMATION FOR AN ASSET......................................45
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ASSET RETIREMENTS................................................................................................46 ABOUT RETIREMENTS....................................................................................................46 PARTIALLY OR FULLY RETIRING AN ASSET....................................................................50 RETIRING A GROUP OF ASSETS.......................................................................................51 CORRECTING RETIREMENT ERRORS (REINSTATEMENTS)..............................................54 CALCULATING GAINS AND LOSSES FOR RETIREMENTS.................................................55 MASS RETIREMENTS REPORT AND MASS RETIREMENTS EXCEPTION REPORT .............56 DEPRECIATION............................................................................................................57 DEPRECIATION CALCULATION.......................................................................................57 RUNNING DEPRECIATION...............................................................................................58 PROJECTING DEPRECIATION EXPENSE...........................................................................60 DEPRECIATION PROJECTION REPORT ............................................................................62 UNPLANNED DEPRECIATION...........................................................................................63 ENTERING UNPLANNED DEPRECIATION FOR AN ASSET ................................................72 DEPRECIATING ASSETS BEYOND THE USEFUL LIFE ......................................................74 ACCOUNTING................................................................................................................82 ACCOUNT GENERATOR...................................................................................................82 ASSET ACCOUNTING......................................................................................................83 CREATING JOURNAL ENTRIES FOR THE GENERAL LEDGER...........................................84 JOURNAL ENTRIES..........................................................................................................85 CAPITAL BUDGETING..............................................................................................111 BUDGETING FOR ASSET ACQUISITION..........................................................................111 BUDGET OPEN INTERFACE...........................................................................................114 ABOUT PHYSICAL INVENTORY ...........................................................................116 PHYSICAL INVENTORY COMPARISON PROGRAM .........................................................118 FIXED ASSET INSURANCE.......................................................................................121 ONLINE INQUIRIES...................................................................................................127 VIEWING ACCOUNTING LINES......................................................................................130 VIEW ACCOUNTING WINDOWS....................................................................................131 PERFORMING A TRANSACTION HISTORY INQUIRY.......................................................132
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and transfers. When you add an asset. you can enter the asset number. it must be unique and not in the range of numbers reserved for automatic asset Page 4 of 132 . such as retirements. adjustments. or leave the field blank to use automatic asset numbering. Asset Number An asset number uniquely identifies each asset. If you enter an asset number.Overview of Assets Workbench Use the Assets Workbench windows to add new assets to the system. and to perform transactions. Assets Details Asset Descriptive Details This section describes selected fields on the Asset Details window. source line adjustments.
numbering. use the tag number to track asset barcodes. All assets in a category share the same asset cost accounts and depreciation accounts for each depreciation book. and date placed in service. Page 5 of 132 . or enter your own. if you use them. it must be unique. Description Use list of values to choose a standard description you defined in the QuickCodes window. or you can enter any non-numeric value. Asset Category Oracle Assets defaults depreciation rules based on the category. book. For example. Tag Number If you enter a tag number. You can enter any number that is less than the number in the Starting Asset Number field in the System Controls window. A tag number uniquely identifies each asset.
but does not create journal entries for them. Expensed: Items that do NOT depreciate. Asset Key The asset key allows you to group assets or identify groups of assets quickly. rather it can be used to track a group of assets in a different way than the asset category. Charged to an asset cost clearing account. Asset Type Valid asset types are: o Capitalized: Assets included on the company balance sheet. not yet in use and not yet depreciating. CIP (Construction-In-Process): Unfinished assets being built. o o Units The number of units represents the number of components included as part of an asset. but the square footage for buildings. you might want to track the license number for automobiles. For Page 6 of 132 . 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. you can set up a descriptive flexfield to prompt you for additional information based on the asset category you enter. Oracle Assets begins depreciating it. For each asset category. Once you capitalize a CIP asset. For example. Capitalized assets usually depreciate. you can enter your information in a descriptive flexfield. For example. Use units to group together identical assets.Category Descriptive Flexfield Descriptive flexfields allow you to collect and store additional information about your assets. the entire cost is charged in a single period to an expense account. Charged to a construction-in-process clearing account. When you specify a category for a new asset. It does not have financial impact. use an asset key to group assets by project. Oracle Assets tracks expensed items.
while still automatically grouping them to their parent asset. or enter a different number of units. To properly default the subcomponent life. Oracle Assets does not automatically perform the same transaction on a subcomponent asset when you perform it on the parent asset. 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. 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. add the parent asset before the subcomponent. Lease Information You can enter lease information only for an asset assigned to a leased asset category. If your subcomponent asset uses a depreciation method of type Calculated. If you are adding an asset.example. Oracle Assets sets up the depreciation method for you. Parent Asset You can separately track and manage detachable asset components. If the depreciation method is not Calculated and if it is not already set up for the subcomponent life rule default. a monitor can be tracked as a subcomponent of its parent asset. Page 7 of 132 . Enter the parent asset to which your asset belongs if you are adding a subcomponent asset. a computer. Use the Parent Asset Transactions Report to review the transactions that you have performed on parent assets during a period. you might add an asset that is composed of ten separate but identical chairs. You must define the lessor as a valid supplier in the Suppliers window. enter the asset number of the leased asset. You must set up the depreciation method for the subcomponent asset life before you can use the method for that life. The parent asset must be in the same corporate book. and define leases in the Lease Details window. Warranty Number You can set up and track manufacturer and supplier warranties online. For example. If you are adding a leasehold improvement. accept the default value of one. Oracle Assets uses the asset category default life.
When you set up categories. you define whether assets in a particular category should be included in physical inventory. Use this check box to track that it is not in use. Page 8 of 132 . It indicates whether the asset is in use. If you are entering a leasehold improvement and you completed the Parent Asset field in the Asset Details window. In Physical Inventory When you check the In Physical Inventory check box. a computer in storage still depreciates because it becomes obsolete over time whether or not it is in use. Ownership You can track Owned and Leased assets. Oracle Assets displays the related lease information from the parent asset. You can use the In Physical Inventory check box in the Asset Details window to override the default. For example. it indicates that this asset will be included when you run the Physical Inventory comparison.before you can attach a lease to an asset you are adding in the Asset Details window. You cannot provide separate lease information for the leasehold improvement. In Use The In Use check box is for your reference only. You can enter lease information only if you assign the asset to a leased asset category. Choosing the value Leased from the Ownership list does not automatically allow you to enter lease information.
You can only assign the asset to a book for which you defined the asset category. an independent calendar. Oracle Assets defaults a cost of zero for construction-in-process (CIP) assets and you cannot change it.Depreciation Rules (Books) This section describes selected fields on the Books window. Book An asset can belong to any number of depreciation books. so you can run depreciation for each book on a different schedule. and date placed in service. You can choose whether to amortize or expense the adjustment. Cost Current Cost The current cost can be positive. You can also change the cost of a CIP asset manually by entering non-invoiced items or transferring invoice lines between assets in the Source Lines window. The depreciation books are independent. or negative. For example. You can specify for which general ledger set of books a depreciation book creates journal entries. zero. Page 9 of 132 . You can change financial and depreciation information for an asset in a book. you can make the asset cost in your tax book different from the cost in your financial reporting book. The asset can also have different financial information in each book. Oracle Assets defaults financial information from the asset category. but must belong to only one corporate depreciation book. book. You must assign a new asset to a corporate depreciation book before you can assign it to any tax books. 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. Each book can have independent accounts. and independent depreciation rules.
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. If you are adding an asset that you have already depreciated. Oracle Assets automatically enters the Cost to Capitalize amount in the Current Cost field. If you enter too much accumulated depreciation. 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. and if the recoverable cost is greater than that ceiling.If this is a capitalized leased asset. Oracle Assets calculates the accumulated depreciation and the bonus reserve. Recoverable Cost The recoverable cost is the portion of the current cost that can be depreciated. if any. If you have bonus reserve. or let Oracle Assets calculate it for you. After the first period. You can have a different accumulated depreciation for each depreciation book. If you enter too little accumulated depreciation. Oracle Assets adjusts depreciation to the correct amount for the current fiscal year. you can enter the accumulated depreciation as of the last depreciation run date for this book. and you can change it. If you enter zero accumulated depreciation. It is the current cost less the salvage value less the Investment Tax Credit basis reduction amount. If you enter a value other than zero. Oracle Assets uses the cost ceiling instead. Oracle Assets does not update the original cost. the amount should be added to the accumulated depreciation and is no longer tracked as bonus reserve. Oracle Assets uses that amount as the accumulated depreciation as of the last depreciation run date. based on the date placed in service. Depreciation Amounts Depreciation You normally enter zero accumulated depreciation for new capitalized assets. Page 10 of 132 . If you specify a depreciation cost ceiling. the asset becomes fully reserved before the end of its life.
Page 11 of 132 . enter an accumulated depreciation amount equal to the recoverable cost. o Salvage Value The salvage value cannot exceed the asset cost. Allow ITC for a tax book in the Book Controls window and the category in the Asset Categories window. You cannot enter year-to-date or life-to-date depreciation when you add a units of production asset. however. and you cannot enter a salvage value for credit (negative cost) assets. Depreciation Ceiling You can enter a ceiling only for assets in tax depreciation books for which you allow ceilings. the accumulated depreciation amount and the year-to-date depreciation amount must be the same. if any. enter the asset with zero accumulated depreciation. for the year-to-date depreciation. Investment Tax Credit The Investment Tax Credit (ITC) check box displays whether you claimed an ITC on an asset. You cannot change the accumulated depreciation after the period in which you added the asset. Assign ITC to an asset in a tax book in the Investment Tax Credits window. Allow ceilings for a tax book in the Book Controls window. For Oracle Assets to recognize an asset as fully reserved when you add it. You can. Cost Ceilings: Limit the recoverable cost used to calculate annual depreciation expense. change the depreciation taken for prior fiscal years in your tax books using the Tax Reserve Adjustments window. You cannot claim an Investment Tax Credit on an asset unless it is using a life-based depreciation method. If the asset is placed in service in the current fiscal year. and enter the total life-to-date production as production for the current period to catch up depreciation. Instead. Valid depreciation ceiling types are: o Expense Ceilings: Limit the annual depreciation expense that Oracle Assets takes on an asset.Enter the amount of depreciation taken in the current fiscal year.
Depending on the type of depreciation method you enter in the Books window. For example. Oracle Assets updates the revaluation reserve when you perform revaluations. 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. if you enter a Calculated or Table depreciation method. You can use predefined Calculated. Revaluation Reserve = Existing Revaluation Reserve + Change in Net Book Value due to current revaluation Revaluation Ceiling If you try to revalue the asset cost above the ceiling. Oracle Assets provides additional fields so you can enter related depreciation information.Net Book Value The net book value is defined as: Net Book Value = Current Cost . enter the revaluation reserve. or define your own in the Methods window. Table. or Flat-rate type methods. for a units of production depreciation method. You cannot update the revaluation reserve after the period you added the asset. units of Production. you must also enter a life for the asset. you must enter a unit of measure and capacity. Revaluation Reserve If you are adding an asset. After that. You specify default depreciation rules for a category and book in the Asset Categories window. if any. In contrast.Total Reserve (Accumulated Depreciation + Bonus Reserve) Revaluation Amounts You can only enter revaluation amounts if you allow revaluation in the Book Controls window. The table below illustrates information related to the depreciation types: Page 12 of 132 . Oracle Assets uses the revaluation ceiling instead.
You can change the date placed in service at any time.display only Units of Production Life-to-Date Production . and the accumulated depreciation is recalculated accordingly. Oracle Assets treats it as a financial adjustment. If the calendar date is before the current open period. Date Placed In Service If the current date is in the current open period. The depreciation method must already be defined for the life you enter. or enter a different date placed in service in the current accounting period or any prior period. the default date is the last day of the open period. You cannot enter a date placed in service before the oldest date placed in service you specified in the System Controls window.display only Calculated and table methods must be set up with the same number of prorate periods per year as the prorate calendar for the book. If the calendar date is after the current open period. Accept this date. Page 13 of 132 .Method Type Related Fields Calculated or Table Life in Years and Months Calculated or Table Bonus Rule Flat-Rate Flat-Rate Flat-Rate Basic Rate Adjusted Rate Bonus Rule Units of Production Unit of Measure Units of Production Capacity Units of Production Year-to-Date Production . the default date placed in service is the calendar date you enter the asset. If you change the date placed in service after depreciation has been processed for an asset. the default date is the first day of the open period.
Oracle Assets determines the prorate date from the date placed in service and the prorate convention. The amortization start date defaults according to the rules described for the Date Placed in Service.The asset category. and expenses the catchup depreciation in the current period. It uses this date to determine how much depreciation to take during the first and last years of asset life. You can change the default date to another date in the current period or a previous period. If you enter a date placed in service in a prior period and zero accumulated depreciation. and date placed in service determine which default depreciation rules Oracle Assets uses. Oracle Assets automatically calculates catchup depreciation when you run depreciation. 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 automatically updates this field to the date you specify when you capitalize the asset using the Capitalize CIP Assets window. Oracle Assets uses the Amortization Start Date to determine the amount of catchup depreciation to take in the current open period. the date placed in service determines which rules to use. book. If the asset category you entered is set up for more than one date placed in service range for this book. This can only be performed in the period of addition. Amortization Start Date When you choose to amortize an adjustment. The remaining depreciation is spread over the remaining life of the asset. The date placed in service for CIP assets is for your reference only. Page 14 of 132 . Oracle Assets uses the Amortization Start Date to spread the remaining recoverable cost over the remaining useful life of the asset. When adding assets with depreciation reserve. you can choose to amortize the net book value over the remaining life of the asset.
the depreciation program automatically adjusts the accumulated depreciation and year-to-date depreciation amounts for the affected general ledger accounts. however. You can automatically assign distributions to an asset by choosing a predefined Distribution Set. You can transfer an asset between employees. The following are some of the fields that appear on the Assignments window: Transfer Date You can enter a date in the current or a prior accounting period. Changing the expense account has a financial impact. general ledger depreciation expense accounts. Page 15 of 132 . since Oracle Assets creates journal entries for depreciation expense to the general ledger using the account. When you run a transaction report or create journal entries for a tax book. and locations.Assignments Assign assets to employees. has no financial impact because Oracle Assets uses them solely for property tax and responsibility reporting. You also cannot enter a date that is after the last day of the current accounting period. Oracle Assets uses the current assignment information from the associated corporate book. You cannot back-date transfers before the start of your current fiscal year. and locations. Changing the location or employee information. You can share your assets among several assignment lines. expense accounts. When you back-date a transfer. or before the date of the last transaction you performed on the asset.
unless you check the Show Merged Distributions check box.Distribution Set You can use the Distribution Set poplist to choose a predefined distribution set for an asset. Page 16 of 132 . To transfer units into a assignment. The Units to Assign value automatically updates to reflect the assignment you enter or update. enter a positive number. Oracle Assets automatically enters the distributions for you. retired. You can transfer units out of only one assignment line in a single transaction. the Units to Assign starts at zero. You can only view the distribution for a merged parent or a merged child one at a time. on a new line. Show Merged Distributions (Mass Additions only) The Show Merged Distributions check box appears in the Assignments window for a mass addition line only. partial unit retirements. It must be equal to zero before you can save your work. For a two-sided transfer. and unit adjustments) the Units to Assign starts at the number of units added. To transfer units out of a assignment. or adjusted. You can enter whole or fractional units. but you can transfer units into as many lines as you want. Total Units Oracle Assets displays the total of the number of units for the asset. Units to Assign Oracle Assets displays the number of units you must assign. The number of units that you enter tells the depreciation program what fraction of depreciation expense to charge to that account. A distribution set allows you to automatically assign a predefined set of one or more distributions to an asset. When you choose a distribution set. enter a negative number. You can transfer units between existing assignment lines or to a new assignment line. Unit Change The Units field displays the number of units assigned to that assignment. For one-sided transfers (additions.
Location Enter the physical location of the asset.Employee Assign assets to the owner or person responsible for that asset. Page 17 of 132 . Oracle Assets uses location information for Property Tax reports. Expense Account Assign assets to depreciation expense accounts. current employee you created in the Enter Person window. You must enter a valid. Oracle Assets charges depreciation expense to the asset using the expense account and runs Responsibility Reports using the cost center information.
You cannot change invoice information if the line came from another system through Mass Additions. You also can transfer lines between assets. Each source line that came from another system through Mass Additions may include the following information: o o o o o o o o o 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. you can manually add a line. adjust the cost of an existing line. choose the Project Details button to view detail project information for the line in the Asset Line Page 18 of 132 . or delete a line for a CIP asset. including sources such as invoice lines from your accounts payable system and capital assets from Oracle Projects. If the source of the line is Oracle Projects.Source Lines You can track information about where assets came from. For example.
Since a CIP asset is not yet in use. it does not depreciate. When you finish building the CIP asset. you do not need to track them in Oracle Assets. You can enter minimal information in the QuickAdditions window. you can place it in service and begin depreciating it.Construction-in-Process (CIP) Assets A construction-in-process (CIP) asset is an asset you construct over a period of time. Asset Setup Processes (Additions) You can use one of the following processes to enter new assets: QuickAdditions Use the QuickAdditions process to quickly enter ordinary assets when you must enter them manually. and the remaining asset information defaults from the asset category. or you can track detailed information about your CIP assets in Oracle Projects. Detail Additions Use the Detail Additions process to manually add complex assets which the QuickAdditions process does not handle: o Assets that have a salvage value o o o Assets with more than one assignment Assets with more than one source line Assets to which the category default depreciation rules do not apply Page 19 of 132 . You create and maintain your CIP assets as you spend money for raw materials and labor to construct them. You can track CIP assets in Oracle Assets. and the date placed in service. If you use Oracle Projects to track CIP assets. book.
asset information from another assets system. CIP asset lines in Oracle Projects. or information from any other feeder system using the interface. You must prepare the mass additions to become assets before you post them to Oracle Assets.o o Subcomponent assets Leased assets and leasehold improvements Mass Additions Use the Mass Additions process to add assets automatically from an external source. Create assets from one or more invoice distribution lines in Oracle Payables. Adding an Asset Accepting Defaults (QuickAdditions) Page 20 of 132 .
Choose QuickAdditions from the Find Assets window. 5. Enter the asset Category. Adding an Asset Specifying Details (DetailAdditions) Use the Detail Additions process to manually add complex assets that the QuickAdditions process does not handle. Page 21 of 132 . Choose Assets:Asset Workbench from the Navigator window.To add an asset quickly accepting default information: 1. Override default depreciation rules if necessary. Save your work. Assign your asset to a corporate depreciation Book. Assign the asset to an Employee Name (optional). 6. 9. Optionally update the Date Placed In Service. 3. Enter a Description of the asset. 7. 4. Enter the current Cost. 8. 2. a general ledger depreciation Expense Account. and a Location.
Choose Assets:Asset Workbench from the Navigator window. Enter the asset Category. Enter additional information. such as Property Type and Class. If you are adding a subcomponent asset.To add an asset specifying detail information: 1. Optionally choose Source Lines to enter purchasing information such as the Supplier Name and Purchase Order Number for the asset. 8. enter the Parent Asset number. See: Entering Financial Information (Detail Additions Continued) To continue adding your asset using the Detail Additions process. 5. Enter the Manufacturer and Model of your asset. 6. Choose New. 2. 3. Page 22 of 132 . and whether the asset is Owned or Leased and New or Used. 4. In the Asset Details window. Choose Continue to continue adding your asset. enter the leased asset number. 10. you must enter financial information in the Books window. 7. enter a Description of the asset. 9. Enter the number of Units. If you are adding a leasehold improvement.
3. 6.Continue Adding your Asset To enter financial information for a new asset: 1. override the Depreciation Method and associated depreciation information defaulted from the category. Specify the asset's Date In Service. 4. Page 23 of 132 . 5. Indicate whether you want to Depreciate the asset. Choose Continue to continue adding your asset. 7. and you previously calculated the cost to capitalize for the lease in the Lease Analysis form and you have not overriden the result of the capitalization test. If necessary. Note: If this is a leased asset. Assign your asset to a corporate depreciation Book. Enter the current Cost. Enter the Salvage Value. and you can change it. 2. Oracle Assets automatically enters the Cost to Capitalize amount in the Current Cost field.
Enter financial information in the Books window Continue Adding your Asset To assign your asset to an employee. and location in the Assignments window. or choose a predefined distribution set to automatically assign the appropriate distribution(s) to the asset. depreciation expense account.Assigning an Asset (Detail Additions Continued) To continue adding your asset using the Detail Additions process. you must assign your new asset to an employee. and location: Page 24 of 132 . depreciation expense account. Prerequisites Enter descriptive information for a new asset in the Asset Details window. Optionally enter purchasing information for the new asset in the Source Lines window. You can manually enter the distribution(s).
Choose Done to save your work. Oracle Assets defaults the natural account segment from the category and the book. 4. For example.Suggestion: Choose a predefined distribution set from the Distribution Set poplist to automatically assign the appropriate distribution(s) to your new asset. or from CIP asset lines sent from Oracle Projects. 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. Page 25 of 132 . Optionally enter the Employee Name or Number of the person responsible for the asset. 1. you can add new assets from invoice lines brought over to Oracle Assets from Oracle Payables. Enter the default Expense Account to which you want to charge depreciation. Enter the physical Location of the asset. 3. 2.
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You can define your own mass additions hold queues in the QuickCodes form.Mass Addition Queues Each mass addition belongs to a queue that describes its status. The following table describes each Oracle Assets mass addition queue name: Page 27 of 132 . and the queue name changes according to the transactions you perform on the mass addition.
Additions Reports Additions By Source Report Annual Additions Report Asset Additions By Cost Center Report Asset Additions Report Asset Additions Responsibility Report Conversion Assets Report Mass Additions Reports Delete Mass Additions Preview Report Mass Additions Delete Report Mass Additions Create Report Mass Additions Invoice Merge and Split Reports Mass Additions Posting Report Mass Additions Purge Report Mass Additions Status Report Unposted Mass Additions Report Correcting Current Period Addition Errors If you incorrectly added an asset. Page 28 of 132 . you can delete it from the system. Choose Assets: Asset Workbench from the Navigator window. You can only delete assets added in the current period. To delete an asset you added in the current period: 1.
and Assignments. query by asset number or tag number since they are unique values. Books. or assignment information for an asset you added in the current period: o Correct any information for an asset added in the current period in any of the following windows: Asset Details. Note: For best performance. From the menu. Source Lines. Choose Open. Save your change to delete the asset from the system. Find the asset you want to delete. Page 29 of 132 . financial. 3.2. select Edit. Delete Record. 5. To change descriptive. 4.
Page 30 of 132 .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.
Before running depreciation (in the period in which you added the asset). you can change asset cost. bonus rule. depreciation method. If the asset is fully reserved. After you have run depreciation (in any period after the one in which you added the asset). prorate convention. Page 31 of 132 . life. rate. you can adjust the same fields as for an asset for which you have run depreciation. and revaluation ceiling. You can also override depreciation information for an asset while adding it using the Detail Additions process. You can choose whether to amortize or expense the adjustment. salvage value. you can change any field. capacity and unit of measure (in the corporate book).Changing Financial and Depreciation Information Correct an error or update financial and depreciation information for a single asset or a group of assets. If the asset is fully retired. you cannot change any fields. depreciation ceiling.
query by asset number or tag number since they are unique values. 3. Choose Books. Choose whether to Amortize Adjustment or expense it in the current period. 6. Choose the Book to which the asset belongs. 5. Enter the new financial information for the asset. Attention: You can change the depreciation method from units of production to a flat-rate or life-based method if the asset is not depreciating by units of production in any associated tax book. Find the asset for which you want to change financial information. Suggestion: For best performance. 4.Changing financial information for a single asset To change financial information for a single asset: 1. 2. Page 32 of 132 . Choose Asset:Asset Workbench from the Navigator window.
Specify the asset numbers. Save your work. retired assets. Page 33 of 132 . 7. Choose Mass Transactions:Changes from the Navigator window.Attention: You can only change the depreciation method from life-based or flat-rate to units of production in the period you added the asset. 3. Changing financial information for a group of assets (Mass Change) Note: CIP assets. and assets with amortized adjustments are excluded from the mass change transaction. To change financial information for a GROUP of assets 1. and category for which the Mass Change applies. dates placed in service. Select the assets you want to change. 2. Enter the Book to which the assets belong.
Oracle Assets runs the Mass Change Review report. 8. To review a completed mass change. 5. If necessary. Page 34 of 132 . update the definition and run the preview report again. The mass change status determines what action to perform next. 9. When you enter the same value for the Before and After fields. 4. Use this report to preview what effects to expect from the Mass Change before you perform it.You can use the Before and After fields as either information to change or as a selection criterion without changing the information. the mass change affects only assets that match that information. Specify the new financial information for these assets in the After column. Choose whether to Change Fully Reserved Assets. Choose Preview to run the Mass Change Preview report. 6. query the definition and choose Review. Review the log file and report after the request completes.
Page 35 of 132 . 2. This occurs when you create journal entries for your general ledger. Choose Asset:Asset Workbench from the Navigator window. query by asset number or tag number since they are unique values. correct data entry errors.Reclassifying Assets Reclassifying a single Asset to Another Category Reclassify assets to update information. To reclassify an asset to another category: 1. Find the asset you want to reclassify. or when consolidating categories. Oracle Assets also changes the depreciation expense account to the default depreciation expense account for the new category. 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. but does not adjust for prior period expense. Suggestion: For best performance.
the asset will not be reclassified in any of the books to which it belongs. Reclassifying a Group of Assets You can reclassify a group of assets using the Mass Reclassifications window. you have a group of assets assigned to category PC. meaning that if assets do not inherit depreciation rules in one book to which Page 36 of 132 . Oracle Assets reclassifies assets to a new category. Attention: Reclassification does not redefault the depreciation rules to the default rules from the new category. Reclassification Reclassification is done at the asset level. You cannot reclassify an asset in a prior period. Save your changes. 4. even if inheriting depreciation rules fails. Enter the new category. and you run the Mass Reclassification process to reclassify the assets to category PC). Manually change the depreciation rules in the Books or Mass Change windows if necessary. If an asset cannot be reclassified in one book. assets will not inherit the depreciation rules of the new category. Inheriting Depreciation Rules Inheriting depreciation rules is performed at the book level. When you run the Mass Reclassification process. you have the option to have assets inherit the depreciation rules of the new category. when you run the Mass Reclassification process. then changes the depreciation rules. you can also choose to either amortize or expense the resulting depreciation adjustments. if reclassification fails (assets are not changed to the new category). If you attempt to reclassify assets to the same category (for example. If you choose to have the reclassified assets inherit depreciation rules. if you have chosen to have the reclassified assets inherit the depreciation rules of the new category. Oracle Assets first reclassifies the assets (changes the assets from one category to another). 5. the assets will not be reclassified and will not inherit depreciation rules.3. Choose Open. However. In addition to reclassifying assets to a new category.
adjustments will be expensed. even though you checked the Inherit Depreciation Rules of New Category check box on the Mass Reclassifications window. When you choose to have assets inherit depreciation rules. you must also ensure you have checked the Allow Mass Changes check box in the Accounting Rules region of the Book Controls window. the check box will remain checked after reclassification. Setting Up Assets to Depreciate If the Depreciate check box on the Books window is checked for an asset before the asset is reclassified. Note: Depreciation rules are inherited in the corporate book. but the Depreciate check box will remain unchecked. reclassification will fail for any assets for which you have previously amortized an adjustment. that asset will inherit the depreciation rules of the new category. it will not prevent assets from successfully inheriting depreciation rules in other books to which they belong. or no rules by ensuring the check box is not checked. If the Allow Mass Changes check box is not checked. Copying Descriptive Flexfield Information Page 37 of 132 . reclassified assets will not inherit depreciation rules. you can also choose to amortize the resulting adjustments by checking the Amortize Adjustments check box on the Mass Reclassifications window.the assets belong. you can choose to have all rules inherited by checking the Inherit Depreciation Rules of New Category check box on the Mass Reclassifications window. If you do not check the Amortize Adjustments check box. If the Depreciate check box is not checked for an asset before the asset is reclassified. When you choose to have assets inherit the depreciation rules of the new category. The rules set up for the category in the corporate book are inherited in the corporate book. Note that if you choose to expense adjustments on the Mass Reclassifications window (the Amortize Adjustments check box is not checked). for any assets that you want to inherit depreciation rules. Allowing Mass Changes If you check the Inherit Depreciation Rules of New Category check box. You cannot choose to have assets inherit only specified depreciation rules.
The report allows you to preview the changes before actually submitting them. the information will be copied. Page 38 of 132 . If a segment in the old category and a corresponding segment in the new category have different formats (for example. descriptive flexfield information in the old category may be copied incorrectly into an incorrect segment in the new category. Previewing Your Mass Reclassifications You can run the Mass Reclassification Preview Report before submitting the Mass Reclassifications process. Note: You can run the Mass Reclassification Review Report from either Oracle Assets or the ADI Request Center. Choose Mass Transactions > Reclassifications from the Navigator window. the mass reclassification process completes with a warning. the category descriptive flexfield information from the old category will be deleted. run the Mass Reclassification Review Report. Running the Mass Reclassification Process After reviewing the Mass Reclassification Preview Report.You can choose to copy descriptive flexfield information to the new category by checking the Copy Category Descriptive Flexfield to New Category check box on the Mass Reclassifications window. segment 1 in the old category is alphanumeric and segment 1 in the new category is in date format). If reclassification fails for any of the assets. To reclassify a group of assets: 1. but you will need to correct the descriptive information in that segment. The report lists all the assets that the mass reclassification process will reclassify. Otherwise. To review the changes to category and depreciation rules. Note: If you do not choose to copy category descriptive flexfield information to the new category. run the mass reclassification process. The descriptive flexfields should be set up with the same segments in both the old and the new category. You need to review the log file to determine the reasons the assets were not reclassified. Descriptive flexfield information will be copied only if assets are being reclassified within the same major category.
Specify if you want the current category descriptive flexfield information copied to the new category. Specify whether to inherit the depreciation rules of the new category. 8. 7. Choose Preview to run the Mass Reclassification Preview report. the current category descriptive flexfield information will be deleted. Specify the corporate book on which you want to run reclassification. 5. specify whether to amortize the changes. 10. If you do not choose to copy the flexfield information. 4. 3. Page 39 of 132 . 9. Optionally specify other asset selection criteria. Find the assets you want to reclassify. Enter the new category.2. Query the Mass Transaction number and choose Run to submit the Mass Reclassification concurrent process. 6. such as asset number and asset type. If you choose to inherit the depreciation rules of the new category.
4. Save your work.Adjusting Units for an Asset To adjust the number of units for an asset: 1. Choose Open. Find the asset whose units you want to adjust. Update assignment information to reflect the new number of units in the Assignments window. 2. 6. Suggestion: For best performance. Choose Asset:Asset Workbench from the Navigator window. query by asset number or tag number since they are unique values. 5. 3. Change the number of Units. Transferring Assets Page 40 of 132 .
Page 41 of 132 . Suggestion: For best performance. expense accounts. the Transfer Date automatically defaults to the asset's date placed in service and you cannot change it. Transferring a single asset To transfer an asset between employees. 4. 2. enter a negative number for the assignment line from which you want to transfer the asset. Note: If you transfer an asset during the period in which it was added. expense accounts. query by asset number or tag number since they are unique values. 3. and locations. and/or locations. Find the asset you want to transfer between employees. and locations: 1. 5. Optionally update the Transfer Date. Choose Assignments. In the Units Change field. Choose Asset:Asset Workbench from the Navigator window.You can transfer assets between employees. depreciation expense accounts.
4. Choose Mass Transactions:Transfers from the Navigator window. Optionally update the Transfer Date. You also can use the From and To fields as a selection criterion without transferring between them. Enter one or more selection criteria for the mass transfer. 3. Oracle Assets transfers only assets that match that information without changing it. Transfer To: Enter values in the Transfer To fields to tell Oracle Assets to which assignment line you want to transfer the assets you selected.6. Choose the corporate depreciation Book for the assets you want to transfer. 2. Save your changes. and/or Location for the new distribution. Create one or more new lines. entering a positive number in the Units Change field for the assignment lines to which you want to transfer the asset. 7. Page 42 of 132 . expense accounts. Transfer From: Enter values in the Transfer From fields to select the assets you want to transfer. Transferring a group of assets To transfer a GROUP of assets between employees. and locations: 1. When you enter the same value for the From and To fields. 8. Expense Account. Enter the new Employee Name.
Choose Asset:Asset Workbench from the Navigator window. Page 43 of 132 . Jones and Dallas. If necessary. 2. Suggestion: For best performance. you enter different values in the employee fields (From Smith. 5. To Jones) and the location fields (From New York. Oracle Assets submits a concurrent process to perform the transfer. To perform the Mass Transfer. query by asset number or tag number since they are unique values.When you enter different values for the From and To fields for more than one selection criteria. Oracle Assets transfers only assets that match all the criteria you enter in the From fields to all the criteria you enter in the To fields. update the definition and run the preview report again. Find the asset whose invoice information you want to change. Oracle Assets transfers only those assets assigned to both Smith and New York. 6. Transferring Invoice Lines Between Assets 1. 7. Use this report to preview the expected effects of the Mass Transfer before you perform it. For example. To Dallas). Choose Preview to run the Mass Transfers Preview report. Review the log file after the request completes. query the mass transfer and choose Run. to a new employee and location.
7.3. Choose Source Lines. 4. Choose the line(s) you want to transfer. Choose Transfer To. specify the destination asset to which you want to transfer the line. In the Transfer To window. 5. Save your work. Page 44 of 132 . 6.
query by asset number or tag number since they are unique values. o o Change the cost of a line for a CIP asset if necessary. To delete an invoice line. Find the asset whose invoice information you want to change. 3. 2. o Enter a description and cost to manually add a new invoice line to the asset. Choose Source Lines. Choose Asset:Asset Workbench from the Navigator window. 4. uncheck Active. use the Source Lines window to change invoice information for an asset. Save your changes. Page 45 of 132 .Changing Invoice Information for an Asset If you brought over mass addition lines from invoices or discounts in your payables system. Suggestion: For best performance. You can: o Add a new invoice line to an asset o o o Change the cost of a invoice line Delete an invoice line from an asset Transfer invoice lines between assets To change invoice information for an asset 1.
Full Retirement for a Group of Assets (Mass Retirement) Page 46 of 132 . or that you sold or returned. retire an asset that was stolen. o When you retire an asset by units.Asset Retirements About Retirements Retire an asset when it is no longer in service. or damaged. Gain/Loss = Proceeds of Sale . Oracle Assets automatically calculates the fraction of the cost retired o When you retire an asset by cost. If you perform multiple partial retirements on an asset within a period. 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. Also. Full and Partial Retirements by Units or Cost You can retire an entire asset or you can partially retire an asset. you must run the calculate gains and losses program between transactions.Cost of Removal .Net Book Value Retired + Revaluation Reserve Retired If you partially retire a units of production asset. lost. you can only perform partial and full cost retirements in a tax book. For example. you cannot retire them by units. or retire them partially by cost. you must manually adjust the capacity to reflect the portion retired. you can only perform full retirements on CIP assets.
assets retired during a prior fiscal year o o Independence Across Depreciation Books You can retire an asset or a group of assets from any depreciation book without affecting other books. you can choose to immediately submit the concurrent request to retire the selected assets. or you can save the mass retirement definition for future submission. to select the assets you want to retire. including asset category. asset key. location. Exceptions Oracle Assets does not retire the following types of assets. asset number range. When you submit a mass retirement. depreciation expense account segments. When you define a mass retirement. perform a mass reinstatement. Page 47 of 132 . or set up Mass Copy to copy retirements to the other books in the Book Controls form. or adjust an individual retirement transaction if necessary. and date placed in service range. employee. You can change the details of any mass retirement before you submit the concurrent request. Oracle Assets automatically runs the Mass Retirements Report and the Mass Retirements Exception Report.Use the Mass Retirements window to retire a group of assets at one time. You specify selection criteria. To retire an asset from all books. You can also elect to automatically retire subcomponents along with the parent asset. even if they are selected as part of a mass retirements transaction: o Assets added in the current period o Assets with transactions dated after the retirement date you enter Assets that are multiply distributed and one or more values do not meet the mass retirement selection criteria For reinstatements. You can review these reports. retire it from each book separately.
When you perform a mass retirement. For multiple partial retirements. Retirement Conventions Oracle Assets lets you use a different prorate convention when you retire an asset than when you added it. and Oracle Assets creates all the necessary journal entries for your general ledger to catch up any missed depreciation expense. If you submit a mass reinstatement before running the Calculate Gains and Losses program. After you run depreciation or calculate gains and losses. Correct Retirement Errors You can undo asset retirement transactions. You can reinstate an individual or mass retirement transaction. you must rerun the Calculate Gains and Losses program or run depreciation to process the reinstatements. You cannot reinstate an asset retired in a previous fiscal year. Page 48 of 132 . When you reinstate a PENDING retirement. Oracle Assets creates PENDING retirement transactions. You can only reinstate assets retired in the current fiscal year. you can reinstate only the most recent partial retirement. and you must rerun the Calculate Gains and Losses program or run depreciation to process the reinstatement. Oracle Assets automatically calculates it. If you reinstate a PROCESSED retirement. the status changes to PROCESSED. A new retirement receives the status PENDING. Oracle Assets immediately reinstates these assets.Retirement and Reinstatement Statuses Each retirement transaction has a status. Oracle Assets deletes the retirement transaction and the asset is immediately reinstated. The retirement convention in the Retirements window and the Mass Retirements form defaults from the retirement convention you set up in the Asset Categories form. ITC Recapture If you retire an asset for which you took an investment tax credit (ITC) and the ITC recapture applies. Oracle Assets changes the status to REINSTATE. If you submit a mass reinstatement to reinstate PROCESSED retirements.
You cannot perform prior period retirements to assets having unplanned depreciation amounts. use Edit. the date of retirement. Proceeds of Sale and Cost of Removal You can enter proceeds of sale and cost of removal amounts when you perform a retirement or mass retirement. Or if you do not want to create any journal entries. you must enter your retirement as a prior period retirement after you run depreciation. Oracle Assets backs out the depreciation expense through the date of retirement. For a mass retirement. Delete Record from the menu in the Asset Details form to delete the asset any time in the current period.You can change the retirement convention for an individual asset in the Retirements form before running the Calculate Gains and Losses program. Oracle Assets takes depreciation expense for the number of days up to. Instead. but not including. If you perform a prior period retirement. If you reinstate the asset. you enter the total proceeds of sale and/or the total cost of removal amounts. Oracle Assets catches up depreciation expense through the end of the current period. Retirement Transactions For assets added in the current accounting period: You cannot retire an asset if you added it in the current period. and if you retire an asset in that book in the current period. Per Diem Retirements If you set up a book to divide depreciation by days and to use both a daily prorate convention and a daily prorate calendar. For prior-period retirement dates: You can retire retroactively only in the current fiscal year. and Oracle Assets prorates the total amounts over the assets being retired according to each asset's current cost. Oracle Assets uses the following formula to prorate the proceeds of sale amount across the assets you select: Page 49 of 132 . and only after the most recent transaction date.
Page 50 of 132 .Proceeds of Sale (per asset) = Current cost of asset/Total current cost of all selected assets X Proceeds of Sale Oracle Assets uses the following formula to prorate the cost of removal amount across the assets you select: Cost of removal (per asset) = Current cost of asset/Total current cost of all selected assets X Cost of Removal Retiring Assets You can retire an individual asset in the Retirements window. 2. To FULLY retire an asset: 1. You can retire a group of assets in the Mass Retirements window. Partially or fully retiring an asset Partially or fully retire an asset by cost or units. Find the asset you want to retire. Choose Assets:Asset Workbench from the Navigator window.
If you are retiring an asset with a 1250 property class in a tax book: Select the Straight Line Method and life you want Oracle Assets to use for the Form 4797 . query by asset number or tag number since they are unique values. You enter selection criteria in the Mass Retirements window to choose the group of assets you want to retire. enter all the units or the entire cost. Attention: If you partially retire by units. Retiring a group of assets You can retire a group of assets at one time. 4. Save your work. enter the Retirement Convention. To PARTIALLY retire an asset: o Enter the number of units or cost you want to retire. 10. 11. Enter the Retirement Type. Enter the date of the retirement. You can separately retire these subcomponents if necessary. Select the depreciation Book from which you want to retire the asset. 8. 6. you must choose Continue to specify which units to retire in the Assignments window. To fully retire the asset. choose Subcomponents to view the subcomponents asset(s) affected by the retirement transaction. If you are retiring an asset before it is fully reserved. Choose Retirements. 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.Suggestion: For best performance. 5. 7.Gain from Disposition of 1250 Property Report. or you Page 51 of 132 . 12. It must be in the current fiscal year. If you are retiring a parent asset. When you define a mass retirement. and cannot be before any other transaction on the asset. you can choose to immediately submit the concurrent request to retire the selected assets. 3. 9.
Enter the total Proceeds of Sale and the total Cost of Removal for the mass retirement. Enter the Book from which you want to retire the group of assets. 4. You cannot enter a date in a future period. Enter the Retirement Type. if any. Navigate to Mass Retirements window. 5. Note: When you perform a mass retirement. Oracle Assets creates PENDING transactions that are not PROCESSED until you run the Calculate Gains and Losses program. The type you enter applies to all the assets that meet your selection criteria. You can back date retirements to a prior period in the same fiscal year. You can also reinstate a mass retirement transaction.can save the mass retirement definition for future submission. To retire a GROUP of assets: 1. 2. Enter the date for the mass retirement. 3. or enter a date in the current open period. You can change the details of any mass retirement before you submit the concurrent request. or reason for this mass retirement. Oracle Assets prorates these Page 52 of 132 .
or Capitalized. Choose whether to retire all levels of subcomponents of all parent assets that meet your mass retirement selection criteria. 9. If necessary. run the Calculate Gains and Losses program. 7.amounts across the assets you select for the mass retirement according to each asset's cost. When you are ready to process the pending mass retirement transaction. Page 53 of 132 . 8. 6. Enter one or more of the following selection criteria for your mass retirement: o General Ledger Depreciation Expense Account range o o o o o o Location Employee Name and Number Asset Category Asset Key Asset Number range Dates in Service range If you enter a value in more than one field. if you enter a location and employee. 10. you can adjust a resulting individual retirement transaction in the Retirements window. Choose Save if you want to save the mass retirement transaction for future submission. Choose Retire. Oracle Assets does not include assets in that location which are not assigned to the employee. or reinstate the mass retirement transaction in the Mass Retirements form. Choose the blank option to retire both CIP and Capitalized assets. Oracle Assets automatically runs the Mass Retirements Report and the Mass Retirements Exception Report. In the Retirements region. Oracle Assets includes only those assets that meet all the selection criteria in the mass retirement. Review the reports. For example. use the Asset Type poplist to indicate whether you want to retire CIP. 11. Oracle Assets includes all assets assigned to that employee AND location.
Choose Reinstate. Page 54 of 132 . If it is PENDING. To correct a retirement error: 1. Choose Retirements. 4. Oracle Assets deletes the retirement transaction. You can reinstate both individual and mass retirement transactions. 3. You can reinstate only the most recent partial retirement. Use the mass transaction number to query the mass retirement transaction you want to reinstate. Oracle Assets reverses the mass retirement. calculate gains and losses to reinstate the asset. 6. 2. query by asset number or tag number since they are unique values. Choose Assets:Asset Workbench from the Navigator window. If the retirement has a status of PROCESSED. 3. you must rerun the Calculate Gains and Losses program to process the mass reinstatement. To reinstate a mass retirement transaction: 1. Suggestion: For best performance. Note: If you reinstate a mass retirement after you have run the Calculate Gains and Losses program.Correcting Retirement Errors (Reinstatements) You cannot reinstate assets retired in the previous fiscal year. Query the retirement transaction you want to undo. If the retirement has a status of PROCESSED. choose Reinstate. choose Undo Retirement. 2. To correct a reinstatement error: o Query the reinstatement transaction in the Retirements window and choose the Undo Reinstatement button. If it is PENDING. 5. Navigate to the Mass Retirements form. Find the asset you want to reinstate.
Choose Submit to submit a concurrent process to calculate gains and losses. To calculate gains and losses for retirements: 1. 4. Page 55 of 132 . 2. enter the Book for which you want to calculate gains and losses. 3.Calculating Gains and Losses for Retirements Run the calculate gains and losses program to: o Calculate gains and losses resulting from retirements o Correct the accumulated depreciation for reinstated assets Suggestion: Although the depreciation program automatically processes retirements. In the Parameters window. Choose Depreciation:Calculate Gains and Losses from the Navigator window. Review the log file after the request completes. you can run the Calculate Gains and Losses program several times during the period to reduce period end processing time.
the mass retirement might include assets shared among multiple employees. locations. Oracle Assets does not retire assets added in the current period or assets that have transactions dated after the retirement date you enter. You can also reinstate the mass retirement transaction in the Mass Retirements window. and balancing segment. if you mass retire all the assets held by a particular employee. If necessary. asset type. For example. asset type. or employees. where one or more of the values do not meet the selection criteria you entered for the mass retirement transaction. including its multiple distributions. you can delete or make adjustments to an individual retirement transaction in the Retirements window before you calculate gains and losses. Page 56 of 132 . Oracle Assets also does not retire assets that are assigned to multiple general ledger numbers. and asset account. Use the Mass Retirements Exception Report to identify exception assets that were not retired as part of the mass retirement transaction. It prints totals for each cost center. This report prints each exception asset. This report sorts by balancing segment. You can use the Retirements window to fully or partially retire these exception assets. Oracle Assets automatically runs the Mass Retirements Report and the Mass Retirements Exception Report when you choose the Retire button for a mass retirement transaction with a status of New or Error in the Mass Retirements form. account.Mass Retirements Report and Mass Retirements Exception Report Use the Mass Retirements Report to review the effect of a mass retirement before you process it. Oracle Assets does not retire assets which are multiply distributed and one or more of the values do not meet the selection criteria.
Depreciation Depreciation Calculation Run the depreciation program independently for each of your depreciation books. When you run depreciation. and close the current period Run the reserve ledger report o o Depreciation Calendar The depreciation calendar determines the number of accounting periods in your fiscal year. The depreciation program calculates depreciation expense and adjustments. which corresponds to a set of rates in the rate table. Prorate Calendar The prorate calendar determines what rate Oracle Assets uses to calculate annual depreciation by mapping each date to a prorate period. Page 57 of 132 . and updates the accumulated depreciation and year-to-date depreciation. the depreciation program submits three separate requests to: o Calculate gains and losses for retired assets and catch up depreciation for retired and reinstated assets Calculate depreciation expense and adjustments for the period. You cannot have more than one open period for a given depreciation book. Period Close Oracle Assets automatically closes the book's current period and opens the next when you run the depreciation program.
Optionally process retirements regularly throughout the period. Page 58 of 132 . Attention: Ensure that you have entered all transactions for the period before you run depreciation. you cannot reopen it. Prerequisites Run the Assets Not Assigned to Any Cost Centers Listing and the Assets Not Assigned to Any Books Listing to ensure that all assets are assigned to expense accounts and books. Run depreciation to process all assets in a book for a period. 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. Attention: Verify the depreciation and prorate periods that Oracle Assets creates before you enter transactions in the new year.Year-End Processing You can close the year independently in each depreciation book. Once the program closes the period. Running Depreciation Oracle Assets automatically closes the period and opens the next for the book after calculating depreciation. 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.
and the Tax Reserve Ledger report for a tax book. Attention: You cannot enter transactions for the book while depreciation is running. Choose the Book for which you want to run depreciation. Open the Run Depreciation form. depreciation. so you can review the depreciation calculated. Oracle Assets automatically runs the Journal Entry Reserve Ledger report when you run the depreciation program for a corporate book. Review the log files and report after the request completes. 2. 3. Choose Run to submit concurrent requests to run the calculate gains and losses. 4.To run depreciation: 1. Page 59 of 132 . and reporting programs.
You can run depreciation projection only for the current depreciation parameters set up in your system. Page 60 of 132 . If you want to project depreciation for assets depreciating under the units of production method. and prorate conventions for the periods for which you want to run the projection.Projecting Depreciation Expense Depreciation projections are estimates of actual depreciation expense. you can run what-if depreciation using parameters that are not yet set up in your system. If you need to project depreciation for scenarios other than your current setup. Note: You cannot run depreciation projections using the unit of production depreciation method on budget books. depreciation and prorate calendars. Prerequisites Define fiscal years. enter production amounts for the periods for which you want to run the projection. You can project depreciation expense for any depreciation book.
3. 5. The fiscal year name for the Calendar and each Book must be the same. Otherwise. or any other interval. Navigate to the Depreciation Projections window. Page 61 of 132 . Oracle Assets prints a consolidated projection report for each expense account without cost center detail. Check Cost Center Detail to print a separate depreciation projection amount for each cost center. you can choose a monthly or quarterly calendar. You can project depreciation expense for any number of future periods. 2. 6. Enter the Starting Period for your projection. and all of them must use the same Account structure. 7. 4. Save your work. month. Enter the Projection Calendar to specify how you want to summarize the projection.To project depreciation expense: 1. 8. Enter the Number of Periods for which you want to project depreciation. Enter the Book(s) that you want to include in your projection. Check Asset Detail to print a separate depreciation amount for each asset. You can enter a maximum of four books. For example. Otherwise. Oracle Assets prints a consolidated projection report without asset detail. quarter. You can summarize the results by year. on up to four depreciation books at once.
Oracle Assets submits a concurrent process to calculate the projection, and automatically runs the Depreciation Projection Report.
Depreciation Projection Report
Use this report to review projected depreciation expense for your assets for each book you request. The report is sorted by, and prints the total depreciation for each balancing segment, cost center, and expense account. You can request report detail at the Cost Center and/or Asset level. Use the Depreciation Projections window to submit this report.
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Unplanned depreciation is a feature used primarily to comply with special depreciation accounting rules in Germany and the Netherlands. However, you also can use this feature to handle unusual accounting situations in which you need to adjust the net book value and accumulated depreciation amounts for an asset without affecting its cost. You can enter unplanned depreciation amounts by asset and book for any current period during the useful life of an asset. You can enter unplanned depreciation for an asset in both the corporate and/or tax books. When you enter unplanned depreciation, Oracle Assets immediately updates the year-to-date and life-to-date depreciation, and the net book value of the asset. The unplanned depreciation expense you enter must not exceed the current net book value (cost - salvage value - accumulated depreciation) of the asset. If necessary, you can enter multiple unplanned depreciation amounts, both positive and negative, in a single period, provided that the net amount does not exceed the current net book value of the asset. Thus, it is possible to enter unplanned amounts that back out depreciation taken in prior periods, including previously entered unplanned depreciation amounts. When you enter unplanned depreciation expense, you can choose in which period to begin amortization of the asset's remaining net book value. You can begin amortization in the current or a subsequent period, or you can choose not to amortize the remaining net book value. Note that if you do not amortize the unplanned depreciation or make an amortized adjustment in a subsequent period, the asset will be fully reserved before the end of the useful life. If you choose to amortize in a subsequent period, simply enter an unplanned depreciation amount of zero, and check the Amortize from Current Period check box. Oracle Assets will begin to amortize the remaining net book value as of that period. Oracle Assets uses the unplanned depreciation amount, in addition to regular depreciation, to calculate depreciation for the period in which you entered the unplanned depreciation. When you create journal entries for the general ledger, Oracle Assets posts the expense due to unplanned depreciation to the account you selected when you entered the unplanned depreciation for the asset.
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Enable Function Security You can enable or disable unplanned depreciation entry by responsibility if you want to allow or restrict user access to this function. View Unplanned Depreciation Amounts You can use the Financial Information inquiry windows to view the effects of the unplanned depreciation amounts you enter. Oracle Assets includes unplanned depreciation amounts in the current and prior period accumulated depreciation, year-to-date depreciation, and net book value amounts of the asset. The View Depreciation History window includes unplanned depreciation amounts in the depreciation expense per period for each asset and book. Note that unplanned depreciation amounts appear as ADJUSTMENT transactions. If you want to view unplanned depreciation amounts separately, use the Transaction Detail window. In this window, you can view the unplanned depreciation type and the unplanned depreciation expense account for each unplanned amount. Restrictions You cannot enter unplanned depreciation for assets shared between balancing segments. In other words, you cannot allocate unplanned depreciation amounts to specific distributions of an asset. Oracle Assets posts the unplanned depreciation expense only to the depreciation expense account you enter in the Unplanned Depreciation window. You cannot enter unplanned depreciation for assets depreciating under table-based methods. If you need to enter unplanned depreciation for an asset depreciating under a table-based method, you must first change the depreciation method to a method that is not table-based. You cannot make expensed adjustments to assets for which you have previously entered unplanned depreciation and have since amortized the amount. You may, however, perform expensed adjustments to the asset until you choose to amortize the unplanned depreciation amount. In addition, you cannot perform prior period retirements to assets having unplanned depreciation amounts. In addition, you
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cannot perform a mass change for assets that have unplanned depreciation.000 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 1.000 0 0 0 0 0 0 0 6. The following table shows quarterly depreciation amounts for the first seven quarters: Year of Life Net Book Value (Start of period) 120.000 6. Examples Example 1: Unplanned Depreciation You place an asset in service with a life of five years.000 6.000 36. Quarter 4 you enter an unplanned depreciation amount of 10. Q2 Yr 2. Q1 Yr 1.000 84.000 12. Q1 Yr 2.000 Table 1 . Q2 Yr 1. Q4 Yr 2.000 114.000 DEM. Oracle Assets continues depreciating the asset taking the Page 65 of 132 .000 6.000 6.000 24.000 42. The depreciation method is straight-line.000 108.000 18.000 6. There is no salvage value.000 30.000 6. Q3 Yr 1. You choose NOT to amortize the unplanned amount this period. (Page 1 of 1) In Year 2.27. and a cost of 120. The calendar has four periods per year.000 102. Q3 6.000 96.000 DEM.000 90.
000 38.000 6. The following table shows quarterly depreciation amounts for the last twelve quarters: Year of Life Net Book Value (Start of period) 78.000 44. Q4 Yr 3.000 50.000 6.000 0 0 0 0 0 0 0 0 0 0 0 58.000 6. the asset will be fully reserved before the end of the useful life. Q1 Yr 4. Q4 Yr 4.000 88.000 32.000 6.regular depreciation expense in subsequent periods until you choose to amortize the unplanned depreciation or make an amortized adjustment. Q2 Yr 5. Q3 Yr 3.000 70. Q2 Yr 3. Q4 Yr 5.000 64.000 6.000 106.000 100. Q2 Yr 4.000 6.000 6.000 112.000 6.000 10. If you do not amortize the unplanned depreciation or make an amortized adjustment in a subsequent period.000 Page 66 of 132 .000 94.000 76.000 120.000 26. Q1 Yr 3.000 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 2.000 6.000 8.000 118.000 62. Q1 Yr 5.000 20. Q3 6.000 6.000 82. Q3 Yr 4.000 14.000 56.000 6.000 2.
Q3 Yr 2. There is no salvage value. Q1 Yr 2.166 0 0 0 10. Q1 Yr 3.167 5.000 DEM in Year 2. Q3 Yr 3. Quarter 4.000 6. Q4 Yr 3. starting in the period following the unplanned depreciation. The depreciation method is straight-line.000 DEM.000 6.667 Page 67 of 132 . and a cost of 120.000 90. but you choose to amortize the unplanned depreciation expense over the remaining life of the asset.000 *5. The following table shows quarterly depreciation amounts: Year of Life Net Book Value (Start of period) 96. You enter an unplanned depreciation of 10.666 46.000 58.000 0 0 0 0 30.499 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 2.501 78.000 56.28.167 68.000 36. (Page 1 of 1) Example 2: Unplanned Depreciation Amortized from Following Period You place an asset in service with a life of five years.Table 1 .167 5. Q2 Yr 3.167 5.000 42.000 6. Q2 Yr 2.000 63.833 51. Q4 6.000 84.334 73. The calendar has four periods per year.000 78.000 62.
999 25.334 104. The following table shows quarterly depreciation amounts: Page 68 of 132 .165 0 0 0 0 0 0 0 0 83. Q4 41.165 5. Q4 Yr 5. Quarter 4 (See Example 2) for the same asset. which partially reverses the previous unplanned depreciation. Q2 Yr 5.001 94.834 89.668 114.166 30.000 DEM in Year 4.167 5. Q1 Yr 5.832 20.167 5.167 5.666 15.333 36.000 / 12 = 5.835 120. Q3 Yr 5.167 5. Q3 Yr 4.332 5.166 5. you enter another unplanned depreciation of -5. Q2 Yr 4.167 5.499 10.501 109.167 DEM The asset is fully reserved at the end of the useful life.Yr 4. Oracle Assets amortizes the unplanned depreciation amount from the current period since you chose to amortize the unplanned depreciation from Year 2.000 * Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life For Year 3. Quarter 4.167 5. Example 3: Upward and Downward Unplanned Depreciation Using the asset from the previous example. Q1 Yr 4.168 99. Quarter 1 = 62.
Year of Life Net Book Value (Start of period) 41.165 0 0 0 <5.001 94.000> 0 0 0 0 83.834 89.167 5.168 95. Q3 Yr 4. Q1 Yr 4. The depreciation method is straight-line. (Page 1 of 1) * Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life For Year 5. and a cost of 120.832 24.167 5.499 12.999 25.165 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 4. Q4 5.666 18.501 107.166 6.166 30. Q2 Yr 4. Q4 Yr 5.000 DEM.30. Q2 Yr 5.666 / 4 = 6.167 DEM The asset is fully reserved at the end of the useful life. Q1 Yr 5.167 *6.668 113. Quarter 1 = 24. Page 69 of 132 . Q3 Yr 5.167 6. The calendar has four periods per year.167 6. Example 4: Amortized Adjustment after Unplanned Depreciation You place an asset in service with a life of five years.334 101.332 6.167 6.333 36.835 120. There is no salvage value.000 Table 1 .
000 **5. The following table shows quarterly depreciation amounts: Year Net Book Depreciation of Value (Start Expense Life of period) Yr 1.000 DEM.000 33.000 6.000 6. new cost is 150. Q4 Yr 2. Q4 120.287 7. Q4 Yr 3.412 ***7.699 47.000 0 0 0 0 0 0 0 0 6. and then perform an amortized cost adjustment of 30. The new cost is 150.588 109. Q4 Yr 4.286 6.301 102.014 94. which you amortize from the following period. Q2 Yr 1. Q2 Yr 2.286 7.273 62.000 * Cost adjustment of 30. Q1 Yr 1.433 7.000 *116.580 36.000 12.727 65. Q4 Yr 5. Quarter 1. Q3 Yr 1. Q3 Yr 2.000 92.000 28.286 Unplanned Depreciation Accumulated Depreciation 0 0 10.000 114.286 7.287 7. Q1 Yr 2.287 7.286 7.412 40.986 55.000 108. Quarter 3.856 150.000 DEM and there is no catchup depreciation since this is an amortized adjustment.560 91.You enter an unplanned depreciation in Year 1.000 DEM in Year 2.000 DEM Page 70 of 132 .708 120.
Accumulated Depreciation)/ Remaining Periods in Life For Year 2. Quarter 1. You can re-enter the unplanned depreciation for the asset later if necessary Page 71 of 132 .000 / 17 = 5.000 33. and then perform an expensed cost adjustment. Oracle Assets automatically amortizes the cost adjustment as well as the unplanned depreciation amount. the depreciation expense per period is 92.412 DEM *** Depreciation Expense = (New Cost . Oracle Assets will override the unplanned depreciation amount to expense the cost adjustment.412) / 16 = 7. the new depreciation expense is (150.** Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life For Year 1. Note: If you choose to expense an unplanned depreciation amount.287 DEM Oracle Assets includes the unplanned depreciation amount when it calculates the accumulated depreciation. and then perform a cost adjustment on the same asset in the same book. Quarter 4. You cannot expense the cost adjustment. Note: If you choose to amortize unplanned depreciation in the current period.
you must enter it manually. 3. In the Books window. You can enter unplanned depreciation for an asset in a corporate or tax book. Optionally enter a reason for the unplanned depreciation in the Comments field. Page 72 of 132 . You can use this field to find the transaction later if necessary. Navigate to the Asset Workbench. or to handle an unusual accounting situation. you can choose in which period to begin amortization of the asset's remaining net book value. To enter unplanned depreciation for an asset: 1. Note: You cannot mass copy unplanned depreciation amounts from the corporate to the tax book.Entering Unplanned Depreciation for an Asset You can enter unplanned depreciation expense for an asset to comply with your country's accounting rules. If you want to enter the same unplanned depreciation in the tax book. 2. enter a Book. Find the asset for which you want to enter unplanned depreciation. 4. and choose the Books button. When you enter unplanned depreciation.
from the period you make the amortized adjustment. Enter the amount of unplanned depreciation expense as a positive or negative currency amount. the unplanned depreciation amount cannot exceed the net book value of the asset. 6. Unless you are entering unplanned depreciation for a credit asset. Choose the unplanned depreciation Type. Check the Amortize From Current Period check box to amortize the unplanned depreciation starting in the current period. 8. for example a cost or life adjustment. Oracle Assets amortizes the net book value starting in the period you perform this change. 10.5. and check the Amortize From Current Period check box. Attention: If you make any amortized adjustment. Choose the Unplanned Depr button to open the Unplanned Depreciation window. leave the check box unchecked if you want to amortize the remaining net book value in a subsequent period. Alternatively. which includes the unplanned depreciation amount. enter an unplanned depreciation amount of zero for the same asset and expense account. in the period you want amortization to start. Choose Done to save your work Page 73 of 132 . Oracle Assets begins amortizing the remaining net book value. Attention: The value of this check box overrides the value of the Amortize Adjustment check box in the Books window. Then. 9. 7. Enter the complete unplanned depreciation expense account. to the asset after entering an expensed or amortized unplanned depreciation.
You can set up a default limit for each asset category. When you add an asset for which you set up a default depreciation limit percentage. Oracle Assets continues to depreciate the asset at the same rate it depreciated during the last fiscal year of the asset's normal useful life. Oracle Assets shows the recoverable cost in the Books window. an asset cost of 100. in periods after the useful life has ended. up to the depreciation limit you choose. You can override this value if Page 74 of 132 . you can use the Set Extended Life window to control the amount of depreciation expense taken for each period. category.000 yen. and date placed in service range for which you set up a default depreciation limit as an amount. If you add the asset using Detail Additions.1 = 99. Then Oracle Assets continues to depreciate it.Default Depreciation Limit For example.999 yen.000 yen with a depreciation limit of 1 yen has a recoverable cost of 100. Oracle Assets depreciates the asset up to the salvage value during the normal useful life.000 . defined as a flat amount or as a percentage.000 yen with a depreciation limit of 95% has a recoverable cost of 100. You must specify a depreciation limit. and range of dates in service in the Asset Categories window. Oracle Assets calculates the recoverable cost using the following formula: Recoverable Cost = Cost .000 X 95% = 95. an asset cost of 100.Depreciating Assets Beyond the Useful Life You can depreciate an asset in the years following its useful life if the asset uses a straight-line or flat-rate depreciation method. Oracle Assets calculates the recoverable cost using the following formula: Recoverable Cost = Cost X Default Depreciation Limit For example. Additions When you add an asset to a book. For assets using a straight-line depreciation method. If you do not specify an extended life in years. book.
necessary.000 yen and a salvage value of 1000 yen. the amount of depreciation taken per fiscal year depends solely on the cost less the salvage value. This does not affect the depreciation expense during the normal useful life. Depreciation During Extended Life In the years following the useful life. Oracle Assets automatically calculates the recoverable cost for the asset. The asset depreciates using a straight-line method and a nine year life. you place in service an asset with a cost of 100. you must use a straight-line or flatrate depreciation method for the asset. You can adjust the recoverable cost at any time during the normal useful life of the asset. the depreciation expense for this asset is (100.000 . unless the recoverable cost is less than the cost less the salvage value. Regardless of the depreciation limit. For example. the recoverable cost must equal (cost salvage value). Depreciation Depreciation Methods If you define a depreciation limit. the amount of depreciation taken per period is the minimum of the following: o Depreciation expense per period in the last fiscal year of the useful life Recoverable cost less the life-to-date depreciation o Page 75 of 132 . Note: You cannot adjust the recoverable cost for assets that do not depreciate using the special depreciation limits. By default.000 yen per year for the first nine years. Depreciation During Normal Useful Life During the normal useful life of the asset.1000) / 9 = 11. If you add the asset using QuickAdditions or Mass Additions. For these assets. Oracle Assets continues to depreciate the asset until accumulated depreciation equals recoverable cost. Note that recoverable cost is calculated by (cost depreciation limit amount) or (cost X depreciation percent limit).
For assets depreciating under a straight-line method. the corresponding formula is: Depreciation per period = min ( (recoverable cost .000 yen Salvage value = 10.000 yen Depreciation limit = 1 yen Useful life = 10 years Depreciation method = Straight Line Page 76 of 132 . To do this.salvage value) / life in periods) ) For assets using a straight-line depreciation method. Depreciation per period = (1/ periods per year)*(Salvage Value/Extended Life in years) Example 1 You place an asset in service as follows: o o o o o Cost = 100. specify the length of the extended life in years in the Set Extended Life window.life-to-date depreciation). (cost . you can control the depreciation expense taken per period in the extended life.
The example is illustrated by the following table: Year of Life 1 2 : 9 10 11 12 Annual Depreciation (Yen) 9000 9000 : 9000 9000 9000 = less of (9000.000) / 10 = 9000 yen. Oracle Assets takes a depreciation expense of 2250 yen per period. Oracle Assets does not divide the remaining recoverable cost evenly among the periods in the fiscal year. depreciation expense is also 9000 yen for the year.31.999 yen.000 : 81. For the first ten years.10.000 = (cost . when it is equal to the amount necessary to fully reserve the asset.999 Table 1 .000 999 = less of (9000.1) = 99. the depreciation expense is 999 yen. Thus Oracle Assets fully reserves the asset in the first period of this year. (Page 1 of 1) Recoverable cost is (100. or 2250 yen per period.000 . If there are four periods per year and you are dividing depreciation evenly. The depreciation expense per period remains the same in all but the last period of life. In the 12th year.000 90. 9999) Accumulated Depreciation (Yen) 9000 18. Oracle Assets takes an annual depreciation expense of (100.000 .salvage value) 99. Note that in the final year. In the 11th year. Example 2 You place another asset in service as follows: Page 77 of 132 . 999) 99.
000 90. Oracle Assets takes an annual depreciation expense of (500.000 . In the sixth year. Example 3 You place a third asset in service as follows: Page 78 of 132 .000 270. For the first five years. Oracle Assets takes depreciation expense of 7500 yen per period. If there are 12 periods per year and you divide depreciation evenly.000 450. the depreciation expense is 25.000) / 5 = 90.000 Accumulated Depreciation (Yen) 90. (Page 1 of 1) Recoverable cost is (500.salvage value) 475.000 90.000 yen. Depreciation expense is 7500 yen per month for the first three months.000 25.000 yen Salvage Value = 50. and 2500 yen in the fourth month.000 180.000 = (cost .000 90.000 360.000 X 95%) = 475.000 Table 1 .000 yen.000 90.o o o o o Cost = 500.50.32.000 yen Depreciation percent limit = 95% Useful life = 5 years Depreciation method = Straight Line The example is illustrated by the following table: Year of Life 1 2 3 4 5 6 Annual Depreciation (Yen) 90.000 yen for the year.
000 4.000 900.000.000. You enter the number of years to depreciate the salvage value.100. for example.000 400.o o o o Cost = 4. The annual depreciation amount (3.000 2.1.600.000.000.000.000 Salvage Value 400.000.000) is 3. 900. you query the asset in the Set Extended Life window. The depreciation over the useful life of the asset is illustrated in the following table: Year Cost (Won) 4.000 1.000 3.000 3.000 won Useful life = 4 years Salvage value = 400. Page 79 of 132 .000 Based on this information.300.000/4) is 900.33.200.000.000 4. The recoverable cost (4.000 Annual Deprn.000 4.600.000 400.000 400.000 400.999.600.000 3.000.000 400.000.000 900.600. (Page 1 of 1) When the asset has completed its useful life.000 900. three years.000 Table 1 .000) is 3.600.000 Deprn Basis 3. the depreciable basis (4.000 NBV 1 2 3 4 3.000 .600.000.000 won Depreciation limit = 1.
000 400.000 400.333 132. Navigate to the Set Extended Life window. Save your work.334 NBV 5 6 7 266. 3. Select the applicable book.667 133.000.000 4.000. Page 80 of 132 . (Page 1 of 1) To set the extended life of an asset: 1.000 Salvage Value 400. Navigate to the Books field.334 1.333 133.000 Annual Deprn.The depreciation over the extended life of the asset is illustrated in the following table: Year Cost (Won) 4.000 Table 1 .000 Deprn Basis 400.000 400.000 4. 5.34. 6.000 400. Enter the number of years over which you want to depreciate the salvage value.000. Query the asset for which you want to set the extended life by asset number or description. 4. 133. A list of values window appears containing the books in which you can set the extended life of the asset. 2.
Restrictions You cannot perform the following transactions on an asset that is beyond its normal useful life: o o o o o o o o o o o o Cost Adjustments Life Adjustments Salvage Value Adjustments Revaluations Prior Period Transfers Invoice Transfers Addition of a Mass Addition to an Existing Asset Date Placed In Service Change Prorate Convention Change Depreciation Method Change Invoice Adjustments Prior-Period Retirements Page 81 of 132 .
it creates journal entries using the balancing segment from the distribution line in the Assignments window and the account segment from the asset category or book. except for depreciation expense. Using the default assignments. By default. You can specify to what detail to create journal entries. Oracle Assets creates journal entries without cost center level detail. You can modify the default Account Generator process so that Oracle Assets creates journal entries to a different detail level. depending on the account type. Page 82 of 132 . The Account Generator allows you to designate a specific source for each segment in the account for which Oracle Assets creates a journal entry. The Account Generator gives you the flexibility to create journal entries according to your requirements. The Account Generator gets the other segments from the default segment values you entered for the book. and you can specify the detail level for each book and account type.Accounting Account Generator Oracle Assets uses the Account Generator to generate accounting flexfield combinations for which to create journal entries to your general ledger.
Running the depreciation program closes the current period and opens the next period. Run it once for each period in each book for which you allow posting to the general ledger. At the end of each accounting period.Asset Accounting Creating journal entries is a two step process: 1. run the depreciation program for each of your books. 2. Run the Create Journal Entries program to create journal entries to your general ledger. Page 83 of 132 . You can create journal entries for any period for which you have run depreciation for which you have not already created journal entries.
if you have set up the journal entry category for that transaction type for that book. 1. 3. Choose Journal Entries:Standard from the Navigator. Oracle Assets automatically creates transaction journal entries for your general ledger. Oracle Assets creates journal entries that summarize the activity for each account for each transaction type. Prerequisite Run the depreciation program for your depreciation book for this period. To create journal entries for the general ledger: Attention: The general ledger period for which you want to create journal entries must be open. Review the log file after the request completes. Choose Submit to submit a concurrent process to create journal entries for your general ledger.Creating Journal Entries for the General Ledger Oracle Assets creates journal entries for depreciation expense. 4. Page 84 of 132 . 2. asset cost. Enter the Book and the Period for which you want to create journal entries in the Parameters window. and other accounts.
The create journal entries process creates journal entries for the appropriate general ledger set of books. 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 and accumulated depreciation 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.
Any General Ledger
You can create journal entries for any general ledger. If you do not use Oracle General Ledger, you can copy the journal entry information from the GL tables.
Oracle Assets Accounts
Oracle Assets creates journal entries for the following general ledger accounts:
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o o o o o o o o o o o o o o o o o
Accumulated Depreciation Asset Clearing Asset Cost CIP Clearing CIP Cost Cost of Removal Gain, Loss, and Clearing Deferred Accumulated Depreciation Deferred Depreciation Expense Depreciation Adjustment Depreciation Expense Intercompany Payables Intercompany Receivables Net Book Value Retired Gain and Loss Proceeds of Sale Gain, Loss, and Clearing Revaluation Amortization Revaluation Reserve Revaluation Reserve Retired Gain and Loss
Debit (Dr.) A debit to the asset cost, asset clearing, 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, 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, cost of removal clearing, or intercompany payables account is an addition to the account. A credit to the asset cost, asset clearing, CIP cost, CIP
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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.
Reviewing Journal Entries
After sending journal entries from Oracle Assets to your general ledger, you can review or modify journal entries in your general ledger before posting them. If you integrate Oracle Assets with Oracle General Ledger, use the Enter Journals window in Oracle General Ledger to review, change or correct your entries. If you use a different general ledger, you can review or change entries in that general ledger.
Journal Entry Examples
This guide contains examples of asset transactions you can perform and the journal entries that Oracle Assets creates. The journal entries are for the period that the asset transaction was entered into Oracle Assets. Oracle Assets creates these journal entries when you run the Create Journal Entries program. The asset cost, accumulated depreciation, and year-to-date depreciation numbers in the following tables are end of quarter balances. The depreciation expense numbers are per period. Journal Entry Transaction Examples:
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.
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Example: The recoverable cost is $4.00 50.00 50.000 and the method is straightline 4 years. Oracle Assets gets the clearing account from the category. the clearing account comes from your source system. Dr.Oracle Assets creates the following journal entries for a current period depreciation charge of $200 and a bonus charge of $50: Dr. Page 88 of 132 . For mass additions. Cr. Oracle Assets Depreciation Expense Bonus Expense Bonus Reserve 200.00 Journal Entries for Additions and Capitalizations This section includes addition and capitalization journal entry examples for the following transactions: Current and Prior Period Addition Merge Mass Additions Construction-in-Process (CIP) Addition Deleted Mass Additions Capitalization Asset Type Adjustments For manual additions. Cr.00 Accumulated Depreciation 200.
00 Accumulated Depreciation 1500.000. Cr.000. Dr.00 1250.Current and Prior Period Addition You purchase and place the asset into service in Year 1. Asset Cost Depreciation Expense Depreciation Expense (adjustment) Asset Clearing 4.00 250.00 250. Asset Cost Depreciation Expense Asset Clearing 4. Asset Clearing 4.00 250. Quarter 1. Cr. Dr.00 Oracle Assets .000. Dr.PRIOR PERIOD ADDITION Page 89 of 132 .00 4.00 4. Quarter 1. but you do not enter it into Oracle Assets until Year 2.000. Dr. Your payables system creates the same journal entries to asset clearing and accounts payable liability as for a current period addition.000. Cr.000. Dr. Cr. Cr.00 Accounts Payable Liability 4. Quarter 2.00 Accumulated Depreciation Oracle Assets .00 Payables System Dr.CURRENT PERIOD ADDITION You place an asset in service in Year 1.
00 Asset Clearing (mass addition #1 3. (CIP assets do not depreciate) Dr.000. you merge mass addition #1 into mass addition #2. For example. Payables System Construction-In-Process (CIP) Addition You add a CIP asset. the asset cost is the total merged cost. CIP Cost 4.Merge Mass Additions When you merge two mass additions. Oracle Assets does not change the asset clearing account journal entries it creates for each line.00 CIP Clearing 4. so each of the appropriate clearing accounts clears separately. Oracle Assets creates journal entries for each asset clearing account.000. Oracle Assets records the merge when you perform the transaction. Cr. When you create an asset from the merged line. As an audit trail after the merge. Oracle Assets adds the asset cost of the mass addition that you are merging to the asset account of the mass addition you are merging into.00 accounts payables clearing account) Cr.000.000. Cr.00 Oracle Assets Page 90 of 132 . Oracle Assets creates journal entries for the asset cost account for the mass addition into which the others were merged.000. so Oracle Assets creates the following journal entries: Dr. the original cost of the invoice line remains on each line. Asset Cost (mass addition #2 asset cost account) 4.00 accounts payables clearing account) Asset Clearing (mass addition #2 1.
Deleted Mass Additions Oracle Assets creates no journal entries for deleted mass additions and does not clear the asset clearing accounts credited by accounts payable.00 250. or creating manual journal entries in your general ledger. Oracle Assets creates the following journal entries: Dr.00 4.00 Payables System Dr. Dr. Oracle Assets creates journal entries that transfer the cost from the CIP cost account to the asset cost account. Asset Cost Depreciation Expense CIP Cost Accumulated Depreciation 4. You clear the accounts by either reversing the invoice in your payables system. Cr. Cr.00 4. Capitalization A capitalization transaction is similar to an addition transaction: you place the asset in service so you can begin depreciating it.000.000. Cr.00 Accounts Payable Liability 4.000.00 250. CIP Clearing 4. When you capitalize an asset in the period you added it.000. Dr. Dr. Asset Cost Depreciation Expense CIP Clearing 4.00 250.000.00 250.00 Accumulated Depreciation Oracle Assets . Cr.CAPITALIZED IN PERIOD ADDED When you capitalize an asset in a period after the period you added it. The clearing account has already been cleared.000.00 Page 91 of 132 . Cr.
Oracle Assets does not create capitalization or reverse capitalization journal entries for CIP reverse transactions. CIP Cost Asset Clearing 4.Oracle Assets .CHANGE TYPE FROM CAPITALIZED TO CIP (CURRENT PERIOD) Page 92 of 132 . Dr.000.00 4.000. Cr.00 Oracle Assets .CAPITALIZED AFTER PERIOD ADDED Asset Type Adjustments If you change the asset type from capitalized to CIP. Oracle Assets creates journal entries to debit the CIP cost account and credit the asset clearing account.
In Year 1. salvage value. ITC ceilings. The bonus rate is 10%. including a change in cost. Quarter 1.Journal Entries for Adjustments Recoverable Cost Adjustments A cost adjustment includes any adjustment that affects the recoverable cost. Cr.00 Payables System Dr.000. and you are using straight-line depreciation.00 Accounts Payable Liability 800. depreciation expense.00 Asset Clearing 800. The life of your asset is 4 years. depreciation.800. Dr. you receive an additional invoice for the asset and change the recoverable cost to $4. Dr. The recoverable cost is $4. Quarter 4. Cr. Asset Cost 800. You can manually perform a cost adjustment in the Books window or in the Source Lines window.00 Page 93 of 132 . Depreciation Expense Bonus Expense 300.00 Oracle Assets Expensed Dr. Asset Clearing 800. or bonus rules. You can choose to expense or amortize the adjustment Cost Adjustments to Assets Using a Life-Based Depreciation Method Example: You place an asset in service in Year 1. and cost.00 120. You can automatically perform a cost adjustment by adding a mass addition to an existing asset using Mass Additions.
00 Accumulated Depreciation 311.53 120. Cr. Depreciation Expense Bonus Expense Bonus Reserve 311. In Year 2. Depreciation Expense Accumulated Depreciation Depreciation Expense (adjustment) 250. Quarter 1.EXPENSED Amortized Dr.000. Dr.00 1.53 120. Cr. Quarter 1.Dr. you change the depreciation method to straight-line. Dr. and you are using the 200 declining balance depreciation method.000. Dr. Cr. Cr.EXPENSED Page 94 of 132 .00 Accumulated Depreciation 450.00 750. The recoverable cost is $4.00 Oracle Assets . Cr. Depreciation Expense (adjustment) Bonus Expense (adjustment) Bonus Reserve 150.AMORTIZED Depreciation Method Adjustments Example: You place an asset in service in Year 1.00 Oracle Assets .00 60.00 180.00 Oracle Assets . Expensed Dr. the life is 4 years.
Quarter 1. Dr. Cr. Quarter 2.000. Depreciation Expense Accumulated Depreciation 200. Expensed Dr.AMORTIZED Life Adjustments Example: You place an asset in service in Year 1.33 Oracle Assets . Depreciation Expense 183.67 Accumulated Depreciation 166. the life is 4 years.67 Oracle Assets .00 50.33 Accumulated Depreciation 183.Amortized Dr. Cr.00 Oracle Assets . The asset cost is $4. In Year 2.AMORTIZED Page 95 of 132 . Cr.00 Depreciation Expense (adjustment) 250. Depreciation Expense 166. you change the asset life to 5 years. and you are using straightline depreciation.EXPENSED Amortized Dr.
82 Accumulated Depreciation 181.Capacity Adjustments Example: You purchase an oil well for $10. Cr.000. Dr.000 barrels of oil. Expensed Dr. In Year 1. Depreciation Expense 181.EXPENSED Amortized Dr.AMORTIZED Journal Entries for Transfers and Reclassifications Example: You place an asset in service in Year 1. Each quarter you extract 2. Cr.00 4.400. Depreciation Expense Accumulated Depreciation Depreciation Expense (adjustment) 400. This section illustrates the following journal entry examples: o Current Period Transfer Between Cost Centers Page 96 of 132 .00 Oracle Assets . Quarter 1.000 barrels of oil from this well. and you are using straight-line depreciation. You increase the production capacity to 50. You expect to extract 10.000.00 4. The recoverable cost is $4.82 Oracle Assets . Quarter 4 you discover that you entered the wrong capacity.800.000 barrels. the life is 4 years.
Quarter 3.500. Quarter 2. from cost center 100 to cost center 200.TRANSFER ASSET / CHARGE DEPRECIATION Cost Center 200 Dr. Cr.00 Asset Cost 4.250. you transfer the asset from cost center 100 to cost center 200 in the current period. Accumulated Depreciation 1.00 Oracle Assets . Cr.TRANSFER ASSET / CHARGE DEPRECIATION Prior Period Transfer Between Cost Centers In Year 3.000. Cost Center 100 Dr.000.o o o o o Prior Period Transfer Between Cost Centers Current Period Transfer Between Balancing Segments Prior Period Transfer Between Balancing Segments Unit Adjustment Reclassification Current Period Transfer Between Cost Centers In Year 2.00 1. Asset Cost Depreciation Expense 4.00 Accumulated Depreciation Oracle Assets .00 250. Dr. Quarter 4. you discover that an asset was transferred in Year 3. Page 97 of 132 .
750.Q3 4.750.TRANSFER ASSET / ADJUST AND CHARGE DEPRECIATION Page 98 of 132 .Qtr.00 0.Q1 Y3.Q2 4.Q3 Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 0.00 0.00 2.00 250.00 Depreciation Expense 0.250.Q2 Y3. Accumulated Depreciation Asset Cost Depreciation Expense (adjustment) 2.00 500.00 Cost Center 200 Period (Yr.00 3.00 Y3.000.) Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 2.00 4.00 0.00 250.00 Y3.00 Cost Center 100 Dr.00 0.00 0.00 0.00 0.500.00 0.00 0.00* Y3.000..00 Oracle Assets . Cr.000.00 500.00 0.00 750.00 -250.000.00 0.00 2.Q4 0.000.Q4 4. Cr.00 250.00 500.Q1 4.00 500.00 250..Qtr.00* Y3.00 Depreciation Expense 250.) Y3.000.00 Y3.Cost Center 100 Period (Yr.
TRANSFER ASSET XYZ Distribution Dr.00 Accumulated Depreciation 3.TRANSFER ASSET / ADJUST AND CHARGE DEPRECIATION Current Period Transfer Between Balancing Segments In Year 3.00 Oracle Assets . Asset Cost Depreciation Expense Depreciation Expense (adjustment) Accumulated Depreciation 4.000.00 3.00 Asset Cost 4.TRANSFER ASSET Page 99 of 132 .000. Cr.00 250. Dr. Cr.00 Intercompany Payables Oracle Assets . Asset Cost Depreciation Expense 4. Cr.250.Cost Center 200 Dr.00 250.000.00 1. Cr. Accumulated Depreciation 2.000.00 Intercompany Receivables 1.00 250.00 Oracle Assets . Dr. Dr.750. you transfer the asset from the ABC Manufacturing Company to the XYZ Distribution Company.000. ABC Manufacturing Dr. Dr. Quarter 4.250.
000.00 3.Q1 4. ABC Manufacturing Period (Yr.000.00 0.00 0.00 500.00* Y3.00 250.00 Oracle Assets ..00 XYZ Distribution Period (Yr.000.Qtr.Q4 4. Quarter 3.00 500.00 0.Q3 Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 0.) Y3.00 Y3.00 ABC Manufacturing Dr.00 Y3. Accumulated Depreciation Intercompany Receivables Asset Cost Depreciation Expense (adjustment) 2.500.Q2 Y3. you discover that the asset was transferred in Year 3.00 250.00 2. from the ABC Manufacturing Company to the XYZ Distribution Company.Q3 4.Prior Period Transfer Between Balancing Segments In Year 3.00 2.000.00 250.00 0.000.00 0.Qtr.00 Y3.00 250.00 0.00 0.00 500.000. Cr.) Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 2.00 Depreciation Expense 0.00 500.00 Depreciation Expense 250.00 1.ADJUST AND CHARGE DEPRECIATION Page 100 of 132 .750. Dr.00 0.00 -250.500.00 750. Cr.Q4 0.00 0. Quarter 4.00 4.00 0..250.Q1 Y3.00* Y3.Q2 4.750.00 0.
XYZ Distribution Dr. Dr. Dr. Cr. Cr. Asset Cost Depreciation Expense Depreciation Expense (adjustment) 4,000.00 250.00 250.00 1,500.00 Accumulated Depreciation 3,000.00 Intercompany Payables
Oracle Assets - ADJUST AND CHARGE DEPRECIATION
A unit adjustment is similar to a transfer, since you must update assignment information when you change the number of units for an asset. For example, you place the same $4,000 asset in service with two units assigned to cost center 100. In Year 2, Quarter 3, you realize the asset actually has four units, two of which belong to cost center 200. Cost Center 100 Dr. Cr. Accumulated Depreciation 750.00 Asset Cost 2,000.00
Oracle Assets - ADJUST UNITS
Cost Center 200 Dr. Cr. Asset Cost 2,000.00
Accumulated Depreciation 750.00
Oracle Assets - ADJUST UNITS
Page 101 of 132
Note: If all units remain in the original cost center, Oracle Assets does not create any journal entries.
Example: You reclassify an asset from office equipment to computers in Year 1, Quarter 3. The asset cost is $4,000, the life is 4 years, and you are using straight-line depreciation. 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 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 expense.
Period (Yr., Qtr.) Asset Cost Accumulated Depreciation 250.00 500.00 0.00 0.00 Yr-to-Date Depreciation 250.00 500.00 500.00 500.00 Depreciation Expense 250.00 250.00 0.00* 0.00
Yr1,Q1 4,000.00 Yr1,Q2 4,000.00 Yr1,Q3 Yr1,Q4 0.00 0.00
Page 102 of 132
Period (Yr.,Qtr.) Yr1,Q1 Yr1,Q2 Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 0.00 0.00 0.00 0.00 750.00 1,000.00 0.00 0.00 250.00 500.00 Depreciation Expense 0.00 0.00 250.00* 250.00
Yr1,Q3 4,000.00 Yr1,Q4 4,000.00
Office Equipment Dr. Cr. Accumulated Depreciation 500.00 Asset Cost 4,000.00
Oracle Assets - TRANSFER COST AND ACCUMULATED DEPRECIATION
Computers Dr. Dr. Cr. Asset Cost Depreciation Expense 4,000.00 250.00 Accumulated Depreciation 750.00
Oracle Assets - TRANSFER COST AND ACCUMULATED DEPRECIATION
Page 103 of 132
Depreciation for Retirements The retirement convention. Oracle Assets reverses the year-to-date depreciation if the asset's depreciation method does not depreciate it in the year of retirement. cost of removal. and revaluation reserve retired. Oracle Assets creates journal entries for your general ledger for each component of the gain/loss amount. Oracle Assets also creates journal entries to clear the proceeds of sale and cost of removal. If the depreciation method takes depreciation in the year of retirement. For partial retirements. Oracle Assets creates multiple journal entries for these accounts.Journal Entries for Retirements and Reinstatements When you retire an asset and create journal entries for that period. Oracle Assets reverses the year-to-date depreciation of the asset. net book value retired. You can enter different sets of retirement accounts for retirements that result in a gain and retirements that result in a loss. Page 104 of 132 . date retired. Oracle Assets reverses the appropriate fraction of the year-to-date depreciation and computes the gain or loss using the appropriate fraction of the resulting net book value. when you perform a full retirement. If you enter distinct gain and loss accounts for each component of the gain/loss amount. and depreciation method control how much depreciation Oracle Assets takes when you retire an asset. In this case. Oracle Assets creates journal entries for either the gain or the loss accounts for the following components: proceeds of sale. and computes the gain or loss using the resulting net book value. Oracle Assets creates journal entries for the retirement accounts you set up in the Book Controls window. Oracle Assets uses your retirement convention to determine whether the asset is eligible for additional depreciation in that year or whether some of that year's depreciation must be reversed.
however. and then you reinstate the asset before the retirement prorate date. Sometimes. a reinstatement results in a reversal of depreciation. date retired.When you perform a partial retirement. Page 105 of 132 . If your depreciation method multiplies a flat-rate by the cost. Oracle Assets depreciates the remaining fraction of the asset's net book value as of the beginning of the fiscal year. This additional depreciation is the depreciation that would have been taken if you had not retired the asset. unless you perform it in the same period that you retired the asset. This occurs if the retirement convention caused some additional depreciation when you retired the asset. and period in which you reinstate an asset control how much depreciation Oracle Assets calculates when you reinstate an asset. Oracle Assets depreciates the asset's cost remaining after a partial retirement. Then Oracle Assets reverses the extra depreciation that it took at retirement. and waits until the appropriate accounting periods to take it. When you reinstate a retired asset. Oracle Assets usually calculates some additional depreciation expense in the period in which you perform the reinstatement. Oracle Assets depreciates the portion of the asset you did not retire based on the method you use. Depreciation for Reinstatements The retirement convention. For assets that use a diminishing value method.
000. Cost of Removal Clearing 500. Dr.00 2.00 600.00 500. you sell the asset for $2.000. Dr.00 Accounts Payable 500.00 Payables System Dr. Cr.00 2. Cr. Dr.000.000.00 4. the life is 4 years.Current Period Retirements Example: You place an asset in service in Year 1. The cost to remove the asset is $500. Quarter 1.00 Proceeds of Sale Clearing 2. Cr. The asset uses a retirement convention and depreciation method which take depreciation in the period of retirement. Quarter 3. Receivables System Accounts Receivable 2.500.00 Cost of Removal Clearing Revaluation Reserve Retired Gain Oracle Assets .500. In Year 3. Dr.00 1.000.00 600. Cr. Accumulated Depreciation Proceeds of Sale Clearing Cost of Removal Gain Revaluation Reserve Net Book Value Retired Gain Asset Cost Proceeds of Sale Gain 2. Cr. Dr.MULTIPLE GAIN/LOSS ACCOUNTS Page 106 of 132 . Cr. and you are using straightline depreciation.000. The asset cost is $4.000.00 Dr. You retire revaluation reserve in this book.00 500.
00 4. Cr. Oracle Assets creates a single journal entry for the net gain or loss.00 600. the life is 4 years. you discover that the asset was sold in Year 3.000. for $2. Dr. Quarter 1.00 500.SINGLE GAIN/LOSS ACCOUNT Prior Period Retirement Example: You place an asset in service in Year 1. Quarter 1.000. Accumulated Depreciation Proceeds of Sale Clearing Revaluation Reserve Asset Cost 2. Dr.00 2. In Year 3.If you enter the same account for each gain and loss account.00 Cost of Removal Clearing Gain/Loss Oracle Assets . Cr. Cr.000. The asset cost is $4.000. and you are using straightline depreciation. Book Controls window: Accounts Gain Loss Proceeds of Sale 1000 1000 Cost of Removal 1000 1000 Net Book Value Retired 1000 1000 Revaluation Reserve Retired 1000 1000 Dr.500. Quarter 3. The removal cost was $500. The asset uses a retirement convention and depreciation Page 107 of 132 .00 600.
00 Proceeds of Sale Loss Cost of Removal Clearing Asset Cost Depreciation Expense Oracle Assets Current Period Reinstatement Example: You discover that you retired the wrong asset.00 2. Dr. Oracle Assets creates journal entries for the reinstatement to debit asset cost. and revaluation reserve retired. Cr.000.000.00 Payables System Dr. Cost of Removal Clearing 500.00 Accounts Payable 500. credit accumulated depreciation. Cr. Oracle Assets also reverses the Page 108 of 132 . Cr.00 500. and reverse the gain or loss you recognized for the retirement.000.500.00 1. Accumulated Depreciation Proceeds of Sale Clearing Cost of Removal Loss Net Book Value Retired Loss 2. Cr.00 Proceeds of Sale Clearing 2. Oracle Assets reverses the journal entries for proceeds of sale. Receivables System Accounts Receivable 2. Cr. Dr.00 500.00 4. Dr.000.00 Dr. net book value retired.method which allow you to take depreciation in the period of retirement. cost of removal.00 250.750. Dr.000.00 2. Cr.
Quarter 1. Cr. the life is 4 years. Dr.00 500.000. Cr.00 2.00 2. Quarter 4. Dr. Dr. Dr.750.000.journal entries you made to clear the proceeds of sale and cost of removal. you realize that you retired the wrong asset so you reinstate it.00 Page 109 of 132 . Cr.00 500. In Year 2. Cr. The asset cost is $4.00 2.00 Net Book Value Retired Loss Cost of Removal Loss Proceeds of Sale Clearing Accumulated Depreciation 2.00 Proceeds of Sale Clearing 2.00 250. Oracle Assets Asset Cost Cost of Removal Clearing Gain / Loss Depreciation Expense 4. Dr. Cr.000. Dr. Dr. Cr.00 Accumulated Depreciation 2. you retire the asset.000.00 600. Dr. Cr. Dr. Oracle Assets also creates journal entries to recover the depreciation not charged to the asset and for the current period depreciation expense. In Year 2.00 Revaluation Reserve 600.00 Prior Period Reinstatement Example: You place an asset in service in Year 1.000.750.000.00 500. and you are using straightline depreciation.000.00 500. Oracle Assets Asset Cost Cost of Removal Clearing Proceeds of Sale Loss Depreciation Expense Depreciation Expense (adjustment) 4.00 250. Quarter 1.
Oracle Assets does not create journal entries to catch up depreciation to the retirement prorate date. Non-Depreciated Capitalized/Construction-InProcess (CIP) Assets A non-depreciated capitalized asset or a CIP asset has no accumulated depreciation. it is fully reserved upon addition. and does not remove the accumulated depreciation. and the asset is immediately reinstated. Oracle Assets does not back out any depreciation. the existing retirement transaction gets a new Status REINSTATE. Reinstatement Transactions PENDING Asset Retirement When you reinstate an asset retired in the current accounting period that the calculate gains and losses program has not yet processed. Page 110 of 132 . it creates all the other journal entries associated with retiring a capitalized asset. No journal entries are created. Oracle Assets creates journal entries to catch up any missed depreciation expense. the retirement transaction is deleted. even if you assigned the asset a depreciation method that backs out all depreciation in the year of retirement. and the asset is reinstated when you process retirements. However. When you retire it. Oracle Assets creates all other journal entries associated with retiring a capitalized asset. Therefore. However.Assets Fully Reserved Upon Addition If you add an asset with an accumulated depreciation equal to the recoverable cost. PROCESSED Asset Retirement When you reinstate an asset retired in a previous accounting period or already processed in the current period.
To prepare the budget book for budget information: o Open the Upload Capital Budgets window and enter a new budget Book name. Page 111 of 132 . or for each major category. You can change the budget amounts for your existing budget assets at any time. Then you can project depreciation expense for each category you entered. You must delete the existing budget before uploading a new capital budget from a spreadsheet. Attention: The budget book must use the same calendar as its associated corporate book so you can compare actual and budgeted spending.Capital Budgeting Budgeting for Asset Acquisition After you create a budget book. You can enter budget information for each full category combination. you can enter or upload capital budget information. Use the budget reports to review your capital budgets.
Enter the name of your budget Book. Page 112 of 132 . Choose Delete Existing Budget. 3.To delete a budget: 1. 2. Save your work. 4. Open the Upload Capital Budgets window.
2. Review the capital budget for the year using the Budget Report. Save your work. Page 113 of 132 . Enter or update the budget amounts for this period. 3. asset Category.To manually enter or update a budget: 1. Open the Capital Budgets window. The budget amount is the amount you plan to spend on new assets in this category in this period for this expense account. 4. 5. Choose the budget Book. and general ledger Expense Account for which you want to budget.
The period is determined by the calendar you assigned to the budget book. Oracle Assets creates a budget asset for each category. Budget Open Interface If you maintain your budget information in a spreadsheet. 3. Choose Create Budget Assets. 6. you can upload it to Oracle Assets using the budget interface. 2. 3. Open the Upload Capital Budget window. Open the Upload Capital Budget window.To automatically upload a budget: 1. and budget amount you enter for each period in the Capital Budgets window. 4. You can transfer budget data from any software package that prints to an ASCII file. Steps in the Capital Budgeting Process 1. Choose Delete Existing Budget to remove your old budget. Enter the name of your budget Book. expense account. and then use SQL*Loader to load the FA_BUDGET_INTERFACE table. Return to the Upload Capital Budgets window and choose Upload Capital Budget. Enter the name of your budget Book. Page 114 of 132 . To create budget assets in a budget book: 1. Save your work. 5. Save your work. 4. Develop your budget in the environment you prefer. Load your budget information into the budget interface from a feeder system. 2. Save your work. 7.
Use the Upload Capital Budget window to move your budget into the budget worksheet. 3. 5. Run depreciation projections and other reports on your budget book. 4. Transfer your budget data from the system where you maintain your budget to the system where you have Oracle Assets. Use the Upload Capital Budget window to move your budget into a budget book.2. Page 115 of 132 . Use SQL*Loader to move your budget data into the budget interface. 6.
or serial number The location The number of units o o You can include other information that may make it easier for you to keep track of the assets you are comparing. When you finish entering physical inventory data into Oracle Assets. you run the Physical Inventory comparison program. You need to include the following information about your assets: o A unique identifier. This program compares your physical inventory data with your Oracle Assets data for all assets that have the In Physical Inventory check box checked. which can be either the asset number. The comparison results highlight differences between the assets in your production system and those in physical inventory You can reconcile the differences between physical inventory and the information in your database by updating each asset manually. but only the information listed above is required. You can view the results of the comparison online in the Physical Inventory Comparison window. such as a description of each asset. To use the Physical Inventory feature. which allows you to import data from an Excel spreadsheet. which highlights the differences between the asset information in Oracle Assets and the actual assets in physical inventory. tag number. You load your physical inventory data into Oracle Assets using the Physical Inventory Entries window. or you can use the Record Physical Inventory process in the Applications Desktop Integrator (ADI). or by running the Physical Inventory Comparison Report. or you can use the mass additions process to add assets that are missing from the production system. You can also use SQL*Loader to import physical inventory data from a non-Oracle file system. Page 116 of 132 .About Physical Inventory The Physical Inventory feature in Oracle Assets assists you in comparing and reconciling your physical inventory data. you must first take physical inventory of your assets.
Enter the inventory name (for example. Entering an end date indicates that the physical inventory is complete. Q2 Physical Inventory USA) and the start date.When you have completed your physical inventory. Change Oracle Assets data to reconcile with the physical inventory data and ensure you have accounted for all assets. 3. and a unique identifier. Prerequisites Ensure that the In Physical Inventory check box is checked for all assets in Oracle Assets that you want included in the physical inventory comparison program. Run the Physical Inventory Comparison Report or review the results online using the Find Physical Inventory Comparison window. so you should not enter an end date until you have completed all physical inventory tasks. 8. To gather and reconcile physical inventory information: 1. or SQL*Loader 6. which lists all assets that have not been accounted for in the physical inventory process. Analyze the report results. you can run the Missing Assets Report. Navigate to the Physical Inventory window. 9. 10. Take physical inventory of your assets by using a barcode scanner (if your assets are set up with barcodes) or by manually noting the location. number of units. 5. 2. Run the Physical Inventory Comparison program 7. Run the Missing Assets Report. the Record Physical Inventory process in ADI. Load the physical inventory data into Oracle Assets using the Physical Inventory window. Save your changes. Page 117 of 132 . 4.
The matching unique identifier can be either the asset number. If it finds a matching asset number. the category. or serial number. the comparison program attempts to match each asset in the physical inventory data to an asset in the production system. tag number. you must change the status of that entry back to NEW in the Inventory Entries window. If an entry has been compared and you want it to be compared again. Physical Inventory Comparison Program To run the Physical Inventory Comparison program. the program continues the comparison by determining whether the Page 118 of 132 . Purge the physical inventory data. If you do not enter either of these parameters.11. the comparison program compares all assets in the physical inventory with the assets in your production system. The program first determines whether the physical inventory data includes an asset number. It begins the comparison by searching for matching unique identifiers. or both. navigate to the Run Comparison window. the comparison program searches the Oracle Assets production system for a matching asset number. During the comparison. You must enter the name of the physical inventory being compared. Note: The Physical Inventory Comparison program only compares physical inventory entries with a status of NEW. If an asset number has been provided. if you want to narrow the search criteria. You can also enter either the location.
the type of adjustment that needs to be made Page 119 of 132 . If they do not match. If none of the three unique identifiers are present for that asset. tag number. it terminates the comparison for that asset and continues on to the next asset. the comparison program updates the FA_INV_INTERFACE table. indicating the assets in physical inventory that cannot be reconciled with the assets in Oracle Assets. If an asset number has not been recorded as part of the physical inventory. if necessary. the program updates the status of that asset to DIFFERENCE If the program cannot find a matching asset number in the Oracle Asset production system. Note: When the program attempts to match assets using criteria other than the three unique identifiers. the matching criteria may not be unique and the program may not be able to uniquely identify an asset. In both cases. and. it searches the Oracle Assets production system for a matching serial number. it terminates the comparison for that asset and continues on to the next asset. If there is a tag number. After completing the comparison. the program searches the Oracle Assets production system for a matching tag number. In both cases. it will continue the comparison to determine whether the location and number of units match. the program next determines whether the physical inventory data includes a tag number. the program determines whether a serial number has been recorded for the asset. If they do not match. Therefore. the program updates the status of that asset to DIFFERENCE. such as description and asset key CCID. if the program finds a match. If so. or serial number). the program attempts to match the asset using other criteria. if the physical inventory data includes neither an asset number nor a tag number. we strongly recommend that when bringing physical inventory data into Oracle Assets using any method other than the Physical Inventory window (which does not allow you to save your changes unless you have entered an asset number. Similarly.location and number of units match. that you include at least one of the three unique identifiers for each asset in physical inventory. if the program cannot find a matching identifier in the Oracle Assets production system.
or the asset does not meet the requirements for inclusion in the physical inventory process. one of the other status codes described in the Units Reconciliation table will be assigned to the asset. the asset will automatically have a status of RECONCILED. and the asset meets the other requirements for inclusion in the physical inventory process. or by running the Physical Inventory Comparison Report. Page 120 of 132 . If there are no differences between the Oracle Assets data and the physical inventory data for a particular asset. If there are differences between the Oracle Assets data and the physical inventory data for a particular asset.(either a unit adjustment or location adjustment). You can view the comparison data online using the Find Physical Inventory Comparison window.
which can be indexed annually. Insurance Company.Fixed Asset Insurance Fixed Asset Insurance Window Reference Assets Region Asset Number. The list of values for this field will only display suppliers that have been set up in Oracle Payables with a supplier type of Insurance Company. Asset Key. The company address for the supplier site displays automatically. Policy Region Policy Number. Contains the tag number of the asset on which you queried. Description. Contains the asset key of the asset on which you queried. Enter a valid insurance company name. Contains the description of the asset on which you queried. Calculation Method. Tag Number. Enter the supplier site for the insurance company. Contains the asset number of the asset on which you queried. Address. Contains the asset depreciation book of the asset on which you queried. Page 121 of 132 . Enter the insurance policy number.the base insurance value. Asset Book. Enter the method of calculation to use for this asset insurance: o Value as New . Supplier Site.
enter the date the asset was placed in service. Enter the date that is used as the base date for indexation. calculated as the base insurance value less depreciation. check the Special Swiss Asset check box.a value you enter manually. If the Base Index Date is set to a date in the future. you will be able to update the Current Insurance Value. You can record this by defining a new Price Index and then updating the Insurance Index field. If the asset is a Swiss special-case asset.the current market value. If an asset is marked as a Swiss special asset. Base Index Date. The insurance company may provide a new series of indexation factors to be applied to the asset. This calculation method allows you to update the Current Value field. This field will not be enabled unless you have set the profile option FA: Allow Swiss Special Assets to Yes. The period up to this date represents a manual maintenance period for the asset.o Market Value . Manual Value . Insurance Index. The Calculation Method must be the same for all occurrences of the same insurance policy. Page 122 of 132 . The Base Index Date must be one of the following: o For new assets. the Calculation Method automatically defaults to the method that was defined on the existing policy. which can be indexed annually. Record the new insurance value provided by the insurance company. the insurance value will not be indexed again until that date is reached. o Note: If you enter a duplicate policy to cover another asset with the same policy number and insurance company as an existing insurance record. by updating the Current Value field and recording the effective date for this new valuation in the Base Index Date field. and Base Index Date for the asset to reflect the reassessment of the insurance value by the insurance company. Any adjustments or retirements affecting the asset value during this period will not be incorporated into the new insurance value when the automatic insurance calculations begin again. Special Swiss Asset.
Enter one of the following: o For new assets. retirements. The value displayed depends upon the calculation method: Page 123 of 132 . you can enter a maintenance date.o For assets purchased second-hand. For assets purchased second-hand. This represents the date the optional indexation of the manual value begins. For the Manual Value calculation method. For Manual Value assets. o Current Value. Base Insurance Value. instead. If you want the Insurance Calculation process to automatically take account of cost adjustments. you should maintain the insurance value manually o o Insurance Index. For Current Market Value assets. the insurance value is derived from the asset net book value. and so on. the value is shown in this field but is disabled. record the date on which automatic indexation of the insurance value will begin again. The value is disabled because the Base Insurance Value is not used in this asset insurance calculation. calculated automatically. you can overwrite this default with another value. the Base Insurance Value field is disabled because the Base Insurance Value is not used. you can manually enter a Current Value. For Value as New assets. enter the original construction cost of the asset. unless you chose the Manual Value calculation method or your asset is flagged as a Swiss special-case asset. This field displays the current insurance value of the asset. For updated Swiss assets. but do not enter an Insurance Index. instead. Oracle Assets displays the current cost of the asset. Enter the base insurance value of the asset as defined in the insurance policy. but you do not want indexation adjustment factors to be used. Enter the name of the price index that is used to calculate the annual adjusted insurance value. enter the original date of construction of the asset. Until this date. then enter a value in the Base Index Date field.
the value displayed can be updated. This field displays the end date of the closed depreciation period for which the indexation process was last run. For Swiss Assets with a calculation method of Value as New. and then follows the Value as New calculation method. indexation of the manual value begins with this date. the value displayed is the indexed net book value of the asset (original cost less depreciation). Also note that the calculated Current Value for Swiss Assets can be manually updated. For Swiss Assets with a calculation method of Current Market Value. The information in this field is for reference only and is not used in the Oracle Assets calculations. If you enter a maintenance date for the asset in the Base Index Date field. or Market Value. o o o Insured Amount. that affect the asset value. Page 124 of 132 . Last Indexation Date. the calculated value will be the same as for all other assets. that affect the asset value. such as adjustments or retirements. This value will also be updated to account for transactions. For Manual Value. This value will also be updated to account for transactions. such as adjustments or retirements. the value displayed is the indexed base insurance value.o For Value as New. Enter the amount for which the asset is insured under that policy. the Current Value will calculate the insurance value following the Value as New calculation method and adjust this value using the fraction Asset Remaining Life / Asset Total Life.
Use the Maintenance button to launch the Fixed Asset Insurance Policy Maintenance window.Buttons Maintenance. Page 125 of 132 .
Lines. Use the Lines button to launch the Fixed Asset Insurance Policy Lines window Page 126 of 132 .
To view descriptive and financial information for an asset: 1. Note: For best performance. You can enter search criteria in one or more tabbed regions. Find by Asset Detail: Enter asset descriptive information. You can review the transactions. and/or Category. depreciation. Description. Invoice. or Warranty Number. you can use the poplist to Find assets by Detail. Assignment. In the Find Assets window. or Project. 2. as your search criteria.Online Inquiries Use the Financial Information windows to view descriptive and financial information for an asset. Choose Inquiry > Financial Information from the Navigator window. and cost history of the asset you select. Page 127 of 132 . such as Asset Number. query by asset number or tag number since they are unique values. Lease.
supplier. employee. and lists. Find by Lease: Enter lease information as your search criteria. and nonlabor organization. Choose Transactions to review transaction history of this asset in the Transaction History window. To view individual transaction details for this asset. 6. quantity. you must enter a Book first. If you want to search using the Expense Account. Choose the Books button to view financial information for the asset. such as Supplier and/or Invoice Number. Find by Source Line: Enter invoice information. non-labor resource. check a transaction and choose Details to open the Transaction Detail window. or project information. as your search criteria. expenditure organization. To view the current assignment(s) for an asset. Choose the Find button to query the asset(s) you want to review. Choose the Project Details button to view detail project information about the asset. 3.Find by Assignment: Enter assignment information as your search criteria. The View Assets window shows you detail information for the asset(s) you query. such as Project Number and/or Task Number. click on the asset you want to review and choose the Assignments button. Oracle Assets displays the Project Number and Task Number of the asset. The View Financial Information window includes the asset you choose in the title. financial information for the asset. Choose Source Lines to view source line information. The Asset Line Details window includes the following project information for your asset: expenditure type. Page 128 of 132 . item date. 4. 5. If the asset was created from capital asset lines in Oracle Projects. by depreciation book. CIP cost.
Page 129 of 132 . debits equal credits).Choose Depreciation to review depreciation history for this asset. Choose Cost History to review cost history of this asset. You can also choose to view the detail accounting as t-accounts. Note: You can view the detail accounting lines for the transaction in the form of a balanced accounting entry (i. not the ADDITION transaction. Note: If you change any information except cost for the asset in the period you added it.e. the Cost History window shows you the ADDITION/VOID transaction..
. choose the primary or reporting set of books whose transactions you want to view. Use these features to see how a transaction will affect the account balances in your general ledger. Query the transaction for which you want to view accounting lines. if you are viewing the accounting in your primary functional currency (e.e. (Optional) If your organization uses Multiple Reporting Currencies.. you can choose to view the detail accounting lines for the queried transaction in the form of a balanced accounting entry (i. BEF). Choose View Accounting from the Tools menu. From the poplist that appears after you choose the Alternate Currency button.Viewing Accounting Lines When you query a transaction in Oracle Assets. You can also choose to view the detail accounting as t-accounts. For example. To view accounting lines: 1. 3. debits equal credits). The View Transaction Page 130 of 132 . you can switch to EUR (reporting functional currency). 2.g. choose the Alternate Currency button to view the accounting using an alternate currency.
4. choose the T-Accounts button. the system displays additional information at the bottom of the View Transaction Accounting window. View Accounting Windows The View Transaction Accounting window is a folder. When you select a detailed accounting line. You can easily customize the information that is displayed in the window. Page 131 of 132 . (Optional) To view the accounting detail as t-accounts. When customizing the View Transaction Accounting window. you can hide the columns that normally appear in the window and you can choose to display any additional columns that are available.Accounting window will change to reflect amounts in the appropriate currency for the chosen set of books.
You can also choose to view the detail accounting as t-accounts. or range of assets. 4. accounting period. Note: You can view the detail accounting lines for the transaction in the form of a balanced accounting entry (i. You can see a summary of the transactions for the asset. enter search criteria for your inquiry. To perform a transaction history inquiry: 1. 2. including Periods. You can optionally enter other search criteria. You must enter a Book and Reference Number or Asset Numbers to query a transaction history. To view details. In the Find Transactions window. and Category.. Transaction Type. transaction type. 3. Choose Find. check an asset and then choose the Details button. Page 132 of 132 . debits equal credits).e. Choose Inquiry > Transaction History from the Navigator window.Performing a Transaction History Inquiry Use the Transaction History windows to review all the transactions for any book.
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