User Manual FA Txns | Depreciation | Book Value

Training User Manual Transactions ABDUL SAMAD-ALQURASHI ORACLE FIXED ASSETS (FA

)

Author: Creation Date:

Saudi Arab Projects CO.LTD (SAPCO) 12-FEB-2008

APPROVALS
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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When you add an asset. it must be unique and not in the range of numbers reserved for automatic asset Page 4 of 132 . such as retirements. Asset Number An asset number uniquely identifies each asset. or leave the field blank to use automatic asset numbering. and transfers. If you enter an asset number. you can enter the asset number. adjustments. source line adjustments. and to perform transactions. Assets Details Asset Descriptive Details This section describes selected fields on the Asset Details window.Overview of Assets Workbench Use the Assets Workbench windows to add new assets to the system.

Description Use list of values to choose a standard description you defined in the QuickCodes window. it must be unique. book. if you use them. and date placed in service. Asset Category Oracle Assets defaults depreciation rules based on the category. A tag number uniquely identifies each asset.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. For example. or you can enter any non-numeric value. Tag Number If you enter a tag number. Page 5 of 132 . or enter your own. You can enter any number that is less than the number in the Starting Asset Number field in the System Controls window.

you might want to track the license number for automobiles. rather it can be used to track a group of assets in a different way than the asset category. but does not create journal entries for them. the entire cost is charged in a single period to an expense account. not yet in use and not yet depreciating. CIP (Construction-In-Process): Unfinished assets being built. Once you capitalize a CIP asset. Asset Key The asset key allows you to group assets or identify groups of assets quickly. you can enter your information in a descriptive flexfield. you can set up a descriptive flexfield to prompt you for additional information based on the asset category you enter. Oracle Assets tracks expensed items. Oracle Assets begins depreciating it. It does not have financial impact. Charged to an asset cost clearing account. For example. For each asset category. Oracle Assets does not depreciate expensed assets. When you specify a category for a new asset. but the square footage for buildings.Category Descriptive Flexfield Descriptive flexfields allow you to collect and store additional information about your assets. o o Units The number of units represents the number of components included as part of an asset. Asset Type Valid asset types are: o Capitalized: Assets included on the company balance sheet. Capitalized assets usually depreciate. Expensed: Items that do NOT depreciate. Use units to group together identical assets. For example. use an asset key to group assets by project. For Page 6 of 132 . Charged to a construction-in-process clearing account. even if the Depreciate check box in the Books and Mass Additions Prepare windows is checked for that asset.

If your subcomponent asset uses a depreciation method of type Calculated. The parent asset must be in the same corporate book. Oracle Assets uses the asset category default life. Parent Asset You can separately track and manage detachable asset components. a computer. accept the default value of one. add the parent asset before the subcomponent. If the depreciation method is not Calculated and if it is not already set up for the subcomponent life rule default. Oracle Assets sets up the depreciation method for you. If you are adding a leasehold improvement. 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. while still automatically grouping them to their parent asset. Oracle Assets does not automatically perform the same transaction on a subcomponent asset when you perform it on the parent asset. Use the list of values or enter a previously defined warranty number to assign the asset to the coinciding warranty. You must set up the depreciation method for the subcomponent asset life before you can use the method for that life. To properly default the subcomponent life. Each warranty has a unique warranty number. you might add an asset that is composed of ten separate but identical chairs. If you are adding an asset.example. Lease Information You can enter lease information only for an asset assigned to a leased asset category. and define leases in the Lease Details window. Enter the parent asset to which your asset belongs if you are adding a subcomponent asset. a monitor can be tracked as a subcomponent of its parent asset. Page 7 of 132 . or enter a different number of units. Warranty Number You can set up and track manufacturer and supplier warranties online. enter the asset number of the leased asset. For example. Use the Parent Asset Transactions Report to review the transactions that you have performed on parent assets during a period. You must define the lessor as a valid supplier in the Suppliers window.

When you set up categories. Use this check box to track that it is not in use. it indicates that this asset will be included when you run the Physical Inventory comparison. Oracle Assets displays the related lease information from the parent asset. Choosing the value Leased from the Ownership list does not automatically allow you to enter lease information. For example. Ownership You can track Owned and Leased assets. If you are entering a leasehold improvement and you completed the Parent Asset field in the Asset Details window. You cannot provide separate lease information for the leasehold improvement. You can enter lease information only if you assign the asset to a leased asset category. In Use The In Use check box is for your reference only. It indicates whether the asset is in use. you define whether assets in a particular category should be included in physical inventory. Page 8 of 132 . You can use the In Physical Inventory check box in the Asset Details window to override the default. a computer in storage still depreciates because it becomes obsolete over time whether or not it is in use.before you can attach a lease to an asset you are adding in the Asset Details window. In Physical Inventory When you check the In Physical Inventory check box.

Depreciation Rules (Books) This section describes selected fields on the Books window. You can change financial and depreciation information for an asset in a book. so you can run depreciation for each book on a different schedule. Page 9 of 132 . Oracle Assets defaults financial information from the asset category. and independent depreciation rules. You can only assign the asset to a book for which you defined the asset category. you can make the asset cost in your tax book different from the cost in your financial reporting book. The depreciation books are independent. book. For example. You must assign a new asset to a corporate depreciation book before you can assign it to any tax books. but must belong to only one corporate depreciation book. Book An asset can belong to any number of depreciation books. Each book can have independent accounts. an independent calendar. Oracle Assets defaults a cost of zero for construction-in-process (CIP) assets and you cannot change it. Oracle Assets automatically updates the cost to the sum of the invoice line costs after you add invoice lines to a CIP asset using the Mass Additions process. or negative. The asset can also have different financial information in each book. and date placed in service. Cost Current Cost The current cost can be positive. You can specify for which general ledger set of books a depreciation book creates journal entries. You can choose whether to amortize or expense the adjustment. zero. 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.

Oracle Assets automatically enters the Cost to Capitalize amount in the Current Cost field. If you are adding an asset that you have already depreciated. If you enter a value other than zero. If you specify a depreciation cost ceiling. and if the recoverable cost is greater than that ceiling. If you enter too little accumulated depreciation. the asset becomes fully reserved before the end of its life. Depreciation Amounts Depreciation You normally enter zero accumulated depreciation for new capitalized assets. Oracle Assets does not update the original cost. 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. based on the date placed in service. you can enter the accumulated depreciation as of the last depreciation run date for this book. Oracle Assets uses the cost ceiling instead. After the first period. Page 10 of 132 . If you enter zero accumulated depreciation. Oracle Assets adjusts depreciation to the correct amount for the current fiscal year. You can have a different accumulated depreciation for each depreciation book. or let Oracle Assets calculate it for you. If you have bonus reserve. and you can change it. Oracle Assets calculates the accumulated depreciation and the bonus reserve. Oracle Assets uses that amount as the accumulated depreciation as of the last depreciation run date. If you enter too much accumulated depreciation.If this is a capitalized leased asset. if any. the amount should be added to the accumulated depreciation and is no longer tracked as bonus reserve. Recoverable Cost The recoverable cost is the portion of the current cost that can be depreciated. It is the current cost less the salvage value less the Investment Tax Credit basis reduction amount. 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.

Valid depreciation ceiling types are: o Expense Ceilings: Limit the annual depreciation expense that Oracle Assets takes on an asset. 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. for the year-to-date depreciation. You cannot claim an Investment Tax Credit on an asset unless it is using a life-based depreciation method. if any. Instead. change the depreciation taken for prior fiscal years in your tax books using the Tax Reserve Adjustments window. Cost Ceilings: Limit the recoverable cost used to calculate annual depreciation expense. Depreciation Ceiling You can enter a ceiling only for assets in tax depreciation books for which you allow ceilings.Enter the amount of depreciation taken in the current fiscal year. enter the asset with zero accumulated depreciation. You cannot enter year-to-date or life-to-date depreciation when you add a units of production asset. the accumulated depreciation amount and the year-to-date depreciation amount must be the same. 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. Page 11 of 132 . o Salvage Value The salvage value cannot exceed the asset cost. enter an accumulated depreciation amount equal to the recoverable cost. and you cannot enter a salvage value for credit (negative cost) assets. and enter the total life-to-date production as production for the current period to catch up depreciation. If the asset is placed in service in the current fiscal year. however. You can. For Oracle Assets to recognize an asset as fully reserved when you add it. Allow ITC for a tax book in the Book Controls window and the category in the Asset Categories window.

For example. You cannot update the revaluation reserve after the period you added the asset. Oracle Assets updates the revaluation reserve when you perform revaluations.Total Reserve (Accumulated Depreciation + Bonus Reserve) Revaluation Amounts You can only enter revaluation amounts if you allow revaluation in the Book Controls window. Oracle Assets provides additional fields so you can enter related depreciation information. 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.Net Book Value The net book value is defined as: Net Book Value = Current Cost . you must also enter a life for the asset. Depending on the type of depreciation method you enter in the Books window. Oracle Assets uses the revaluation ceiling instead. or Flat-rate type methods. for a units of production depreciation method. 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. The table below illustrates information related to the depreciation types: Page 12 of 132 . Table. if any. In contrast. or define your own in the Methods window. enter the revaluation reserve. After that. units of Production. Revaluation Reserve If you are adding an asset. if you enter a Calculated or Table depreciation method. you must enter a unit of measure and capacity. You can use predefined Calculated. You specify default depreciation rules for a category and book in the Asset Categories window.

If the calendar date is after the current open period. If the calendar date is before the current open period. If you change the date placed in service after depreciation has been processed for an asset. 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 placed in service is the calendar date you enter the asset.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 .display only Units of Production Life-to-Date Production .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. You can change the date placed in service at any time. and the accumulated depreciation is recalculated accordingly. Page 13 of 132 . Accept this date. the default date is the first day of the open 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. Oracle Assets treats it as a financial adjustment.

The asset category. Amortization Start Date When you choose to amortize an adjustment. Oracle Assets automatically calculates catchup depreciation when you run depreciation. Oracle Assets determines the prorate date from the date placed in service and the prorate convention. It uses this date to determine how much depreciation to take during the first and last years of asset life. You can change the default date to another date in the current period or a previous period. When adding assets with depreciation reserve. Page 14 of 132 . and expenses the catchup depreciation in the current period. Oracle Assets automatically updates this field to the date you specify when you capitalize the asset using the Capitalize CIP Assets window. you can choose to amortize the net book value over the remaining life of the asset. 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. 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 uses the Amortization Start Date to determine the amount of catchup depreciation to take in the current open period. The amortization start date defaults according to the rules described for the Date Placed in Service. If you enter a date placed in service in a prior period and zero accumulated depreciation. This can only be performed in the period of addition. book. and date placed in service determine which default depreciation rules Oracle Assets uses. the date placed in service determines which rules to use. If the asset category you entered is set up for more than one date placed in service range for this book. Oracle Assets uses the Amortization Start Date to spread the remaining recoverable cost over the remaining useful life of the asset.

the depreciation program automatically adjusts the accumulated depreciation and year-to-date depreciation amounts for the affected general ledger accounts. You can share your assets among several assignment lines. general ledger depreciation expense accounts. 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. You can transfer an asset between employees. Changing the expense account has a financial impact. and locations. 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.Assignments Assign assets to employees. since Oracle Assets creates journal entries for depreciation expense to the general ledger using the account. however. You can automatically assign distributions to an asset by choosing a predefined Distribution Set. or before the date of the last transaction you performed on the asset. You also cannot enter a date that is after the last day of the current accounting period. When you back-date a transfer. Page 15 of 132 . When you run a transaction report or create journal entries for a tax book. Changing the location or employee information. has no financial impact because Oracle Assets uses them solely for property tax and responsibility reporting. expense accounts.

To transfer units out of a assignment. but you can transfer units into as many lines as you want. partial unit retirements. For a two-sided transfer. and unit adjustments) the Units to Assign starts at the number of units added. You can only view the distribution for a merged parent or a merged child one at a time. You can transfer units between existing assignment lines or to a new assignment line. Oracle Assets automatically enters the distributions for you. enter a positive number.Distribution Set You can use the Distribution Set poplist to choose a predefined distribution set for an asset. unless you check the Show Merged Distributions check box. Units to Assign Oracle Assets displays the number of units you must assign. Unit Change The Units field displays the number of units assigned to that assignment. For one-sided transfers (additions. or adjusted. on a new line. enter a negative number. the Units to Assign starts at zero. retired. To transfer units into a assignment. When you choose a distribution set. You can enter whole or fractional units. 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. Show Merged Distributions (Mass Additions only) The Show Merged Distributions check box appears in the Assignments window for a mass addition line only. Page 16 of 132 . The Units to Assign value automatically updates to reflect the assignment you enter or update. Total Units Oracle Assets displays the total of the number of units for the asset. It must be equal to zero before you can save your work. You can transfer units out of only one assignment line in a single transaction.

You must enter a valid.Employee Assign assets to the owner or person responsible for that asset. Expense Account Assign assets to depreciation expense accounts. Page 17 of 132 . Oracle Assets charges depreciation expense to the asset using the expense account and runs Responsibility Reports using the cost center information. current employee you created in the Enter Person window. Oracle Assets uses location information for Property Tax reports. Location Enter the physical location of the asset.

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 cannot change invoice information if the line came from another system through Mass Additions. including sources such as invoice lines from your accounts payable system and capital assets from Oracle Projects. or delete a line for a CIP asset. If the source of the line is Oracle Projects. you can manually add a line. choose the Project Details button to view detail project information for the line in the Asset Line Page 18 of 132 . For example. adjust the cost of an existing line.Source Lines You can track information about where assets came from.

Since a CIP asset is not yet in use. If you use Oracle Projects to track CIP assets. When you finish building the CIP asset. you can place it in service and begin depreciating it. you do not need to track them in Oracle Assets. or you can track detailed information about your CIP assets in Oracle Projects. book. and the date placed in service. You can enter minimal information in the QuickAdditions window. 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 . it does not depreciate. You create and maintain your CIP assets as you spend money for raw materials and labor to construct them. 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.Construction-in-Process (CIP) Assets A construction-in-process (CIP) asset is an asset you construct over a period of time. You can track CIP assets in Oracle Assets. and the remaining asset information defaults from the asset category.

Adding an Asset Accepting Defaults (QuickAdditions) Page 20 of 132 . asset information from another assets system. CIP asset lines in Oracle Projects.o o Subcomponent assets Leased assets and leasehold improvements Mass Additions Use the Mass Additions process to add assets automatically from an external source. 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. Create assets from one or more invoice distribution lines in Oracle Payables.

9. 4. Assign your asset to a corporate depreciation Book. 5. Enter a Description of the asset. Enter the current Cost. 3. 7. and a Location. a general ledger depreciation Expense Account.To add an asset quickly accepting default information: 1. Override default depreciation rules if necessary. Optionally update the Date Placed In Service. 2. 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. Assign the asset to an Employee Name (optional). Page 21 of 132 . 8. Choose Assets:Asset Workbench from the Navigator window. 6. Save your work. Choose QuickAdditions from the Find Assets window.

Optionally choose Source Lines to enter purchasing information such as the Supplier Name and Purchase Order Number for the asset. enter the leased asset number. Enter the asset Category. and whether the asset is Owned or Leased and New or Used. Choose Assets:Asset Workbench from the Navigator window. enter a Description of the asset. 3.To add an asset specifying detail information: 1. Page 22 of 132 . such as Property Type and Class. Enter additional information. In the Asset Details window. 6. enter the Parent Asset number. 9. you must enter financial information in the Books window. Choose New. 8. See: Entering Financial Information (Detail Additions Continued) To continue adding your asset using the Detail Additions process. 5. Choose Continue to continue adding your asset. 2. Enter the Manufacturer and Model of your asset. 7. Enter the number of Units. 4. If you are adding a subcomponent asset. If you are adding a leasehold improvement. 10.

2. Enter the Salvage Value. Oracle Assets automatically enters the Cost to Capitalize amount in the Current Cost field. Assign your asset to a corporate depreciation Book. and you can change it. Page 23 of 132 . Choose Continue to continue adding your asset.Continue Adding your Asset To enter financial information for a new asset: 1. Indicate whether you want to Depreciate the asset. Specify the asset's Date In Service. Enter the current Cost. 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. 3. 6. Note: If this is a leased asset. 4. 5. override the Depreciation Method and associated depreciation information defaulted from the category. 7. If necessary.

or choose a predefined distribution set to automatically assign the appropriate distribution(s) to the asset. Optionally enter purchasing information for the new asset in the Source Lines window. and location: Page 24 of 132 . You can manually enter the distribution(s). you must assign your new asset to an employee. and location in the Assignments window. depreciation expense account. Enter financial information in the Books window Continue Adding your Asset To assign your asset to an employee. Prerequisites Enter descriptive information for a new asset in the Asset Details window.Assigning an Asset (Detail Additions Continued) To continue adding your asset using the Detail Additions process. depreciation expense account.

Suggestion: Choose a predefined distribution set from the Distribution Set poplist to automatically assign the appropriate distribution(s) to your new asset. 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. you can add new assets from invoice lines brought over to Oracle Assets from Oracle Payables. Choose Done to save your work. Page 25 of 132 . Enter the default Expense Account to which you want to charge depreciation. 4. For example. 3. Enter the physical Location of the asset. 1. 2. Optionally enter the Employee Name or Number of the person responsible for the asset. Oracle Assets defaults the natural account segment from the category and the book. or from CIP asset lines sent from Oracle Projects.

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The following table describes each Oracle Assets mass addition queue name: Page 27 of 132 . 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. and the queue name changes according to the transactions you perform on the mass addition.

You can only delete assets added in the current period. you can delete it from the system. Choose Assets: Asset Workbench from the Navigator window.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 . To delete an asset you added in the current period: 1.

Delete Record. 3. select Edit. Find the asset you want to delete. Save your change to delete the asset from the system. query by asset number or tag number since they are unique values. 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. Page 29 of 132 .2. and Assignments. Books. Source Lines. Choose Open. financial. From the menu. 4. 5. To change descriptive.

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. Page 30 of 132 .

and revaluation ceiling. you can adjust the same fields as for an asset for which you have run depreciation. rate. you can change asset cost. you cannot change any fields. You can also override depreciation information for an asset while adding it using the Detail Additions process. If the asset is fully reserved. prorate convention. depreciation ceiling. you can change any field. You can choose whether to amortize or expense the adjustment. depreciation method. bonus rule. Page 31 of 132 . 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. After you have run depreciation (in any period after the one in which you added the asset). salvage value. life. If the asset is fully retired. Before running depreciation (in the period in which you added the asset).

6.Changing financial information for a single asset To change financial information for a single asset: 1. Choose whether to Amortize Adjustment or expense it in the current period. Choose Asset:Asset Workbench from the Navigator window. query by asset number or tag number since they are unique values. Suggestion: For best performance. 3. Find the asset for which you want to change financial information. 5. Enter the new financial information for the asset. Choose Books. Page 32 of 132 . 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. 4. Choose the Book to which the asset belongs. 2.

Save your work. To change financial information for a GROUP of assets 1. dates placed in service. 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. Enter the Book to which the assets belong. retired assets. 7. Changing financial information for a group of assets (Mass Change) Note: CIP assets. Page 33 of 132 . Specify the asset numbers. 2. Select the assets you want to change. and category for which the Mass Change applies. 3. and assets with amortized adjustments are excluded from the mass change transaction.

query the definition and choose Review. Choose whether to Change Fully Reserved Assets. 8. When you enter the same value for the Before and After fields. update the definition and run the preview report again. 5. Oracle Assets runs the Mass Change Review report. The mass change status determines what action to perform next.You can use the Before and After fields as either information to change or as a selection criterion without changing the information. 4. 6. Specify the new financial information for these assets in the After column. To review a completed mass change. Review the log file and report after the request completes. the mass change affects only assets that match that information. 9. Use this report to preview what effects to expect from the Mass Change before you perform it. Page 34 of 132 . If necessary. Choose Preview to run the Mass Change Preview report.

Choose Asset:Asset Workbench from the Navigator window. 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. To reclassify an asset to another category: 1. Page 35 of 132 . Oracle Assets also changes the depreciation expense account to the default depreciation expense account for the new category.Reclassifying Assets Reclassifying a single Asset to Another Category Reclassify assets to update information. Note: When you reclassify an asset in a period after the period you entered it. query by asset number or tag number since they are unique values. 2. Suggestion: For best performance. correct data entry errors. or when consolidating categories. This occurs when you create journal entries for your general ledger. Find the asset you want to reclassify. but does not adjust for prior period expense.

If an asset cannot be reclassified in one book. Enter the new category. you can also choose to either amortize or expense the resulting depreciation adjustments.3. Reclassifying a Group of Assets You can reclassify a group of assets using the Mass Reclassifications window. You cannot reclassify an asset in a prior period. if you have chosen to have the reclassified assets inherit the depreciation rules of the new category. However. If you attempt to reclassify assets to the same category (for example. Reclassification Reclassification is done at the asset level. you have the option to have assets inherit the depreciation rules of the new category. when you run the Mass Reclassification process. you have a group of assets assigned to category PC. assets will not inherit the depreciation rules of the new category. and you run the Mass Reclassification process to reclassify the assets to category PC). Oracle Assets first reclassifies the assets (changes the assets from one category to another). then changes the depreciation rules. Save your changes. If you choose to have the reclassified assets inherit depreciation rules. Choose Open. 4. the asset will not be reclassified in any of the books to which it belongs. even if inheriting depreciation rules fails. In addition to reclassifying assets to a new category. the assets will not be reclassified and will not inherit depreciation rules. Manually change the depreciation rules in the Books or Mass Change windows if necessary. 5. When you run the Mass Reclassification process. Oracle Assets reclassifies assets to a new category. Inheriting Depreciation Rules Inheriting depreciation rules is performed at the book level. if reclassification fails (assets are not changed to the new category). meaning that if assets do not inherit depreciation rules in one book to which Page 36 of 132 . Attention: Reclassification does not redefault the depreciation rules to the default rules from the new category.

you can also choose to amortize the resulting adjustments by checking the Amortize Adjustments check box on the Mass Reclassifications window. 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. Setting Up Assets to Depreciate If the Depreciate check box on the Books window is checked for an asset before the asset is reclassified. When you choose to have assets inherit depreciation rules. that asset will inherit the depreciation rules of the new category. When you choose to have assets inherit the depreciation rules of the new category. If the Depreciate check box is not checked for an asset before the asset is reclassified. 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. you must also ensure you have checked the Allow Mass Changes check box in the Accounting Rules region of the Book Controls window. Note: Depreciation rules are inherited in the corporate book. adjustments will be expensed. it will not prevent assets from successfully inheriting depreciation rules in other books to which they belong. even though you checked the Inherit Depreciation Rules of New Category check box on the Mass Reclassifications window. If the Allow Mass Changes check box is not checked. the check box will remain checked after reclassification. Allowing Mass Changes If you check the Inherit Depreciation Rules of New Category check box. but the Depreciate check box will remain unchecked.the assets belong. or no rules by ensuring the check box is not checked. You cannot choose to have assets inherit only specified depreciation rules. reclassified assets will not inherit depreciation rules. reclassification will fail for any assets for which you have previously amortized an adjustment. Copying Descriptive Flexfield Information Page 37 of 132 .

Page 38 of 132 . Note: If you do not choose to copy category descriptive flexfield information to the new category. the information will be copied. run the Mass Reclassification Review Report. To review the changes to category and depreciation rules. descriptive flexfield information in the old category may be copied incorrectly into an incorrect segment in the new category. Otherwise. If reclassification fails for any of the assets. You need to review the log file to determine the reasons the assets were not reclassified. the mass reclassification process completes with a warning. Previewing Your Mass Reclassifications You can run the Mass Reclassification Preview Report before submitting the Mass Reclassifications process. To reclassify a group of assets: 1. The descriptive flexfields should be set up with the same segments in both the old and the new category. Choose Mass Transactions > Reclassifications from the Navigator window. Note: You can run the Mass Reclassification Review Report from either Oracle Assets or the ADI Request Center. but you will need to correct the descriptive information in that segment. Descriptive flexfield information will be copied only if assets are being reclassified within the same major category. the category descriptive flexfield information from the old category will be deleted. Running the Mass Reclassification Process After reviewing the Mass Reclassification Preview Report. If a segment in the old category and a corresponding segment in the new category have different formats (for example. The report lists all the assets that the mass reclassification process will reclassify. The report allows you to preview the changes before actually submitting them. segment 1 in the old category is alphanumeric and segment 1 in the new category is in date format). run the mass reclassification process.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.

Specify whether to inherit the depreciation rules of the new category. If you choose to inherit the depreciation rules of the new category. Optionally specify other asset selection criteria. Query the Mass Transaction number and choose Run to submit the Mass Reclassification concurrent process. 8. the current category descriptive flexfield information will be deleted. Enter the new category. Choose Preview to run the Mass Reclassification Preview report.2. specify whether to amortize the changes. 6. 3. 10. Find the assets you want to reclassify. Page 39 of 132 . Specify if you want the current category descriptive flexfield information copied to the new category. 4. such as asset number and asset type. If you do not choose to copy the flexfield information. 5. 9. Specify the corporate book on which you want to run reclassification. 7.

Change the number of Units. Choose Asset:Asset Workbench from the Navigator window. 4. Choose Open. query by asset number or tag number since they are unique values. Save your work. Suggestion: For best performance. 3. Transferring Assets Page 40 of 132 .Adjusting Units for an Asset To adjust the number of units for an asset: 1. 6. 5. Update assignment information to reflect the new number of units in the Assignments window. Find the asset whose units you want to adjust. 2.

Choose Asset:Asset Workbench from the Navigator window.You can transfer assets between employees. Page 41 of 132 . Transferring a single asset To transfer an asset between employees. depreciation expense accounts. and locations. and/or locations. the Transfer Date automatically defaults to the asset's date placed in service and you cannot change it. Choose Assignments. 2. expense accounts. enter a negative number for the assignment line from which you want to transfer the asset. and locations: 1. 3. query by asset number or tag number since they are unique values. In the Units Change field. Find the asset you want to transfer between employees. Optionally update the Transfer Date. 5. Note: If you transfer an asset during the period in which it was added. Suggestion: For best performance. 4. expense accounts.

Save your changes. 4. 7. Oracle Assets transfers only assets that match that information without changing it. Transfer From: Enter values in the Transfer From fields to select the assets you want to transfer. When you enter the same value for the From and To fields. 8. and locations: 1. and/or Location for the new distribution. Create one or more new lines. Expense Account. Choose Mass Transactions:Transfers from the Navigator window. 3. You also can use the From and To fields as a selection criterion without transferring between them. expense accounts. Choose the corporate depreciation Book for the assets you want to transfer. Optionally update the Transfer Date. Enter one or more selection criteria for the mass transfer. 2. Enter the new Employee Name.6. 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. entering a positive number in the Units Change field for the assignment lines to which you want to transfer the asset. Transferring a group of assets To transfer a GROUP of assets between employees. Page 42 of 132 .

Oracle Assets submits a concurrent process to perform the transfer. you enter different values in the employee fields (From Smith. query by asset number or tag number since they are unique values. If necessary. Jones and Dallas. query the mass transfer and choose Run. To Dallas). 2. Use this report to preview the expected effects of the Mass Transfer before you perform it. update the definition and run the preview report again. Suggestion: For best performance. Find the asset whose invoice information you want to change. Choose Preview to run the Mass Transfers Preview report.When you enter different values for the From and To fields for more than one selection criteria. To Jones) and the location fields (From New York. Review the log file after the request completes. Transferring Invoice Lines Between Assets 1. For example. 6. to a new employee and location. Oracle Assets transfers only those assets assigned to both Smith and New York. 5. 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. Page 43 of 132 . To perform the Mass Transfer. 7. Choose Asset:Asset Workbench from the Navigator window.

Choose Source Lines. Choose Transfer To. 4. Save your work. specify the destination asset to which you want to transfer the line. 6. Choose the line(s) you want to transfer. 5. 7.3. In the Transfer To window. Page 44 of 132 .

4. use the Source Lines window to change invoice information for an asset. 3. 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. Choose Asset:Asset Workbench from the Navigator window. 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. Save your changes. Suggestion: For best performance. o Enter a description and cost to manually add a new invoice line to the asset. Choose Source Lines. uncheck Active. Find the asset whose invoice information you want to change. To delete an invoice line. Page 45 of 132 . 2.Changing Invoice Information for an Asset If you brought over mass addition lines from invoices or discounts in your payables system.

or damaged.Asset Retirements About Retirements Retire an asset when it is no longer in service. Full and Partial Retirements by Units or Cost You can retire an entire asset or you can partially retire an asset. Also. you must run the calculate gains and losses program between transactions. 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.Net Book Value Retired + Revaluation Reserve Retired If you partially retire a units of production asset. Gain/Loss = Proceeds of Sale . or retire them partially by cost. you must manually adjust the capacity to reflect the portion retired. you can only perform partial and full cost retirements in a tax book. you cannot retire them by units. you can only perform full retirements on CIP assets. For example. or that you sold or returned.Cost of Removal . lost. retire an asset that was stolen. Oracle Assets automatically calculates the fraction of the cost retired o When you retire an asset by cost. o When you retire an asset by units. Full Retirement for a Group of Assets (Mass Retirement) Page 46 of 132 .

You can review these reports. and date placed in service range. When you define a mass retirement. Exceptions Oracle Assets does not retire the following types of assets. Page 47 of 132 . employee. location. asset number range. asset key. You can also elect to automatically retire subcomponents along with the parent asset. Oracle Assets automatically runs the Mass Retirements Report and the Mass Retirements Exception Report. or set up Mass Copy to copy retirements to the other books in the Book Controls form. 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. perform a mass reinstatement. or adjust an individual retirement transaction if necessary. 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 change the details of any mass retirement before you submit the concurrent request. you can choose to immediately submit the concurrent request to retire the selected assets. retire it from each book separately. You specify selection criteria. to select the assets you want to retire.Use the Mass Retirements window to retire a group of assets at one time. including asset category. or you can save the mass retirement definition for future submission. When you submit a mass retirement. depreciation expense account segments. To retire an asset from all books.

and Oracle Assets creates all the necessary journal entries for your general ledger to catch up any missed depreciation expense. Page 48 of 132 . you can reinstate only the most recent partial retirement. Correct Retirement Errors You can undo asset retirement transactions. You can only reinstate assets retired in the current fiscal year. and you must rerun the Calculate Gains and Losses program or run depreciation to process the reinstatement. If you reinstate a PROCESSED retirement. For multiple partial retirements. If you submit a mass reinstatement to reinstate PROCESSED retirements. Oracle Assets automatically calculates it. You can reinstate an individual or mass retirement transaction. Retirement Conventions Oracle Assets lets you use a different prorate convention when you retire an asset than when you added it. you must rerun the Calculate Gains and Losses program or run depreciation to process the reinstatements. Oracle Assets deletes the retirement transaction and the asset is immediately reinstated. When you reinstate a PENDING retirement. Oracle Assets creates PENDING retirement transactions. Oracle Assets immediately reinstates these assets.Retirement and Reinstatement Statuses Each retirement transaction has a status. When you perform a mass retirement. A new retirement receives the status PENDING. the status changes to PROCESSED. You cannot reinstate an asset retired in a previous fiscal year. 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. After you run depreciation or calculate gains and losses. Oracle Assets changes the status to REINSTATE. If you submit a mass reinstatement before running the Calculate Gains and Losses program. ITC Recapture If you retire an asset for which you took an investment tax credit (ITC) and the ITC recapture applies.

Instead. You cannot perform prior period retirements to assets having unplanned depreciation amounts. Oracle Assets takes depreciation expense for the number of days up to. For prior-period retirement dates: You can retire retroactively only in the current fiscal year. you enter the total proceeds of sale and/or the total cost of removal amounts. 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. Oracle Assets catches up depreciation expense through the end of the current period. but not including. 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. Oracle Assets uses the following formula to prorate the proceeds of sale amount across the assets you select: Page 49 of 132 . If you reinstate the asset. If you perform a prior period retirement. Oracle Assets backs out the depreciation expense through the date of retirement. Delete Record from the menu in the Asset Details form to delete the asset any time in the current period. and Oracle Assets prorates the total amounts over the assets being retired according to each asset's current cost. For a mass retirement. use Edit. you must enter your retirement as a prior period retirement after you run depreciation. and if you retire an asset in that book 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. Retirement Transactions For assets added in the current accounting period: You cannot retire an asset if you added it in the current period. Or if you do not want to create any journal entries. and only after the most recent transaction date. the date of retirement.

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. You can retire a group of assets in the Mass Retirements window. Find the asset you want to retire. Choose Assets:Asset Workbench from the Navigator window. Page 50 of 132 . 2. Partially or fully retiring an asset Partially or fully retire an asset by cost or units. To FULLY retire an asset: 1.

You can separately retire these subcomponents if necessary. Enter the date of the retirement. you must choose Continue to specify which units to retire in the Assignments window. To PARTIALLY retire an asset: o Enter the number of units or cost you want to retire. Choose Retirements. 7. 11. and cannot be before any other transaction on the asset. Save your work. 12. When you define a mass retirement. Enter the Retirement Type. Retiring a group of assets You can retire a group of assets at one time. 10. If you are retiring a parent asset. 3. Select the depreciation Book from which you want to retire the asset. 5. choose Subcomponents to view the subcomponents asset(s) affected by the retirement transaction. If you are retiring an asset before it is fully reserved.Gain from Disposition of 1250 Property Report. Optionally calculate gains and losses to change the status of the retirement transaction from PENDING to PROCESSED. you can choose to immediately submit the concurrent request to retire the selected assets. Oracle Assets assigns each retirement transaction a unique Reference Number that you can use to track the retirement. enter all the units or the entire cost. or you Page 51 of 132 . To fully retire the asset. 9. 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 . You enter selection criteria in the Mass Retirements window to choose the group of assets you want to retire. It must be in the current fiscal year. 6. Attention: If you partially retire by units. 8. 4. query by asset number or tag number since they are unique values.Suggestion: For best performance. enter the Retirement Convention.

2. 3. Oracle Assets creates PENDING transactions that are not PROCESSED until you run the Calculate Gains and Losses program. Enter the Retirement Type. 4. Enter the Book from which you want to retire the group of assets. Navigate to Mass Retirements window.can save the mass retirement definition for future submission. 5. if any. Enter the total Proceeds of Sale and the total Cost of Removal for the mass retirement. You can change the details of any mass retirement before you submit the concurrent request. or enter a date in the current open period. or reason for this mass retirement. Enter the date for the mass retirement. Note: When you perform a mass retirement. You can also reinstate a mass retirement transaction. To retire a GROUP of assets: 1. You cannot enter a date in a future period. You can back date retirements to a prior period in the same fiscal year. Oracle Assets prorates these Page 52 of 132 . The type you enter applies to all the assets that meet your selection criteria.

Oracle Assets includes all assets assigned to that employee AND location. run the Calculate Gains and Losses program. you can adjust a resulting individual retirement transaction in the Retirements window. Oracle Assets does not include assets in that location which are not assigned to the employee. Review the reports. if you enter a location and employee. Choose Retire. 6. 8. If necessary. For example. In the Retirements region. 7. Oracle Assets includes only those assets that meet all the selection criteria in the mass retirement. Choose Save if you want to save the mass retirement transaction for future submission. or reinstate the mass retirement transaction in the Mass Retirements form. 10. Choose the blank option to retire both CIP and Capitalized assets. or Capitalized. 9. use the Asset Type poplist to indicate whether you want to retire CIP. 11. When you are ready to process the pending mass retirement transaction.amounts across the assets you select for the mass retirement according to each asset's cost. Choose whether to retire all levels of subcomponents of all parent assets that meet your mass retirement selection criteria. 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. Oracle Assets automatically runs the Mass Retirements Report and the Mass Retirements Exception Report. Page 53 of 132 .

Use the mass transaction number to query the mass retirement transaction you want to reinstate. If it is PENDING.Correcting Retirement Errors (Reinstatements) You cannot reinstate assets retired in the previous fiscal year. If it is PENDING. Note: If you reinstate a mass retirement after you have run the Calculate Gains and Losses program. To reinstate a mass retirement transaction: 1. calculate gains and losses to reinstate the asset. Oracle Assets deletes the retirement transaction. Query the retirement transaction you want to undo. choose Reinstate. If the retirement has a status of PROCESSED. Choose Retirements. Find the asset you want to reinstate. 2. To correct a retirement error: 1. query by asset number or tag number since they are unique values. You can reinstate only the most recent partial retirement. 3. If the retirement has a status of PROCESSED. 5. choose Undo Retirement. 2. 6. You can reinstate both individual and mass retirement transactions. 4. Choose Reinstate. 3. Navigate to the Mass Retirements form. Suggestion: For best performance. Page 54 of 132 . To correct a reinstatement error: o Query the reinstatement transaction in the Retirements window and choose the Undo Reinstatement button. you must rerun the Calculate Gains and Losses program to process the mass reinstatement. Oracle Assets reverses the mass retirement. Choose Assets:Asset Workbench from the Navigator window.

Choose Depreciation:Calculate Gains and Losses from the Navigator window. To calculate gains and losses for retirements: 1. In the Parameters 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. 3. Choose Submit to submit a concurrent process to calculate gains and losses. Page 55 of 132 . 2. enter the Book for which you want to calculate gains and losses.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. 4.

For example. including its multiple distributions. This report prints each exception asset. It prints totals for each cost center. You can also reinstate the mass retirement transaction in the Mass Retirements window. or employees.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 also does not retire assets that are assigned to multiple general ledger numbers. asset type. 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. Use the Mass Retirements Exception Report to identify exception assets that were not retired as part of the mass retirement transaction. You can use the Retirements window to fully or partially retire these exception assets. This report sorts by balancing segment. Page 56 of 132 . If necessary. locations. the mass retirement might include assets shared among multiple employees. Oracle Assets does not retire assets which are multiply distributed and one or more of the values do not meet the selection criteria. where one or more of the values do not meet the selection criteria you entered for the mass retirement transaction. Oracle Assets does not retire assets added in the current period or assets that have transactions dated after the retirement date you enter. asset type. and balancing segment. account. and asset account. you can delete or make adjustments to an individual retirement transaction in the Retirements window before you calculate gains and losses. if you mass retire all the assets held by a particular employee.

The depreciation program calculates depreciation expense and adjustments. When you run depreciation. which corresponds to a set of rates in the rate table. Page 57 of 132 . 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. Period Close Oracle Assets automatically closes the book's current period and opens the next when you run the depreciation program. 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. Prorate Calendar The prorate calendar determines what rate Oracle Assets uses to calculate annual depreciation by mapping each date to a prorate period.Depreciation Depreciation Calculation Run the depreciation program independently for each of your depreciation books. You cannot have more than one open period for a given depreciation book. and updates the accumulated depreciation and year-to-date depreciation.

Run depreciation to process all assets in a book for a period. Page 58 of 132 .Year-End Processing You can close the year independently in each depreciation book. Once the program closes the period. 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. Running Depreciation Oracle Assets automatically closes the period and opens the next for the book after calculating 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. Attention: Verify the depreciation and prorate periods that Oracle Assets creates before you enter transactions in the new year. Optionally process retirements regularly throughout the period. Attention: Ensure that you have entered all transactions for the period before you run depreciation. 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.

Choose Run to submit concurrent requests to run the calculate gains and losses. 4. Review the log files and report after the request completes. Attention: You cannot enter transactions for the book while depreciation is running. and reporting programs. so you can review the depreciation calculated. Open the Run Depreciation form. 3. Oracle Assets automatically runs the Journal Entry Reserve Ledger report when you run the depreciation program for a corporate book. Page 59 of 132 . and the Tax Reserve Ledger report for a tax book. Choose the Book for which you want to run depreciation. depreciation. 2.To run depreciation: 1.

If you need to project depreciation for scenarios other than your current setup. 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. you can run what-if depreciation using parameters that are not yet set up in your system. Note: You cannot run depreciation projections using the unit of production depreciation method on budget books. Page 60 of 132 . enter production amounts for the periods for which you want to run the projection. You can run depreciation projection only for the current depreciation parameters set up in your system. Prerequisites Define fiscal years. You can project depreciation expense for any depreciation book.Projecting Depreciation Expense Depreciation projections are estimates of actual depreciation expense. depreciation and prorate calendars.

and all of them must use the same Account structure. 2. 6. Save your work. You can enter a maximum of four books. Oracle Assets prints a consolidated projection report without asset detail. you can choose a monthly or quarterly calendar. Otherwise. You can summarize the results by year. Navigate to the Depreciation Projections window. 3. Enter the Starting Period for your projection. quarter. Enter the Book(s) that you want to include in your projection. 7. The fiscal year name for the Calendar and each Book must be the same. Enter the Projection Calendar to specify how you want to summarize the projection. month. 4. Otherwise. Check Asset Detail to print a separate depreciation amount for each asset. Page 61 of 132 . For example. Enter the Number of Periods for which you want to project depreciation. You can project depreciation expense for any number of future periods. 8. 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.To project depreciation expense: 1. or any other interval. 5. 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
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. Examples Example 1: Unplanned Depreciation You place an asset in service with a life of five years. Q3 6.000 Table 1 . Quarter 4 you enter an unplanned depreciation amount of 10.000 30.000 6.000 DEM.000 12. (Page 1 of 1) In Year 2. The depreciation method is straight-line. Q3 Yr 1.000 108.000 6.000 96.000 24.000 6.000 84. There is no salvage value. Q2 Yr 2.000 114. Oracle Assets continues depreciating the asset taking the Page 65 of 132 . Q2 Yr 1.000 DEM. Q1 Yr 2.000 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 18.000 90.000 102. The calendar has four periods per year.27. Q1 Yr 1.000 6.000 42. You choose NOT to amortize the unplanned amount this period.000 6. and a cost of 120. Q4 Yr 2.000 6.000 36.

000 6.000 88.000 62. Q1 Yr 4.000 6.000 6.000 0 0 0 0 0 0 0 0 0 0 0 58.000 26.000 Page 66 of 132 .000 14.000 32.000 2.000 20.000 44. Q2 Yr 4.000 6. Q2 Yr 5.000 6.000 100. Q2 Yr 3.000 120. If you do not amortize the unplanned depreciation or make an amortized adjustment in a subsequent period.000 56. Q4 Yr 5.000 6. Q1 Yr 5. Q3 6.regular depreciation expense in subsequent periods until you choose to amortize the unplanned depreciation or make an amortized adjustment.000 70. Q4 Yr 3.000 6.000 6.000 94.000 112. Q4 Yr 4. Q3 Yr 3. the asset will be fully reserved before the end of the useful life. The following table shows quarterly depreciation amounts for the last twelve quarters: Year of Life Net Book Value (Start of period) 78.000 64.000 118.000 6.000 8. Q1 Yr 3.000 106.000 76.000 38.000 6. Q3 Yr 4.000 6.000 10.000 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 2.000 50.000 82.

000 90.000 6. and a cost of 120.501 78. Quarter 4.499 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 2.000 84.000 DEM.666 46. Q1 Yr 3. Q4 Yr 3.000 62. The following table shows quarterly depreciation amounts: Year of Life Net Book Value (Start of period) 96.166 0 0 0 10.000 6.Table 1 .167 5. (Page 1 of 1) Example 2: Unplanned Depreciation Amortized from Following Period You place an asset in service with a life of five years. The depreciation method is straight-line.334 73.000 0 0 0 0 30.000 36. You enter an unplanned depreciation of 10.000 *5.000 6. Q1 Yr 2.000 56. but you choose to amortize the unplanned depreciation expense over the remaining life of the asset.833 51.000 DEM in Year 2. The calendar has four periods per year.000 58. Q4 6. There is no salvage value.167 5.667 Page 67 of 132 . Q3 Yr 3. Q2 Yr 2.167 5.167 68. Q3 Yr 2.000 42. Q2 Yr 3.28.000 63. starting in the period following the unplanned depreciation.000 78.

835 120.666 15.166 30.333 36.165 0 0 0 0 0 0 0 0 83.Yr 4.167 5.334 104.167 5. Q2 Yr 5. Q3 Yr 4.834 89. Quarter 1 = 62.000 DEM in Year 4.499 10.501 109. Q4 Yr 5. you enter another unplanned depreciation of -5. Q4 41.167 5.999 25.000 * Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life For Year 3.168 99.332 5.167 DEM The asset is fully reserved at the end of the useful life. Q1 Yr 5.166 5. The following table shows quarterly depreciation amounts: Page 68 of 132 . which partially reverses the previous unplanned depreciation.165 5.668 114.167 5.832 20. Q1 Yr 4. Quarter 4. Quarter 4 (See Example 2) for the same asset. Example 3: Upward and Downward Unplanned Depreciation Using the asset from the previous example.001 94.167 5. Q2 Yr 4. Oracle Assets amortizes the unplanned depreciation amount from the current period since you chose to amortize the unplanned depreciation from Year 2.167 5. Q3 Yr 5.000 / 12 = 5.

Q4 5. The depreciation method is straight-line. Q2 Yr 5. and a cost of 120. Example 4: Amortized Adjustment after Unplanned Depreciation You place an asset in service with a life of five years.666 / 4 = 6.167 *6.167 DEM The asset is fully reserved at the end of the useful life.001 94.167 6.167 6.000 DEM.000> 0 0 0 0 83.165 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 4.835 120. Page 69 of 132 .832 24. Q4 Yr 5.332 6.000 Table 1 .333 36.165 0 0 0 <5.167 6.666 18.Year of Life Net Book Value (Start of period) 41. Q3 Yr 4.168 95.30. Q3 Yr 5.999 25.167 5. The calendar has four periods per year.166 6.668 113.501 107.166 30. Q2 Yr 4.499 12.167 5.834 89.334 101. (Page 1 of 1) * Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life For Year 5. There is no salvage value. Quarter 1 = 24. Q1 Yr 4. Q1 Yr 5.

560 91. Q4 Yr 4.000 6. and then perform an amortized cost adjustment of 30. Q4 Yr 3.580 36.000 6.000 0 0 0 0 0 0 0 0 6. The new cost is 150. Q4 120.287 7. Q1 Yr 2.000 108.000 92.699 47.986 55.000 DEM Page 70 of 132 . Quarter 3.412 ***7.287 7.433 7.286 7.727 65.You enter an unplanned depreciation in Year 1.000 **5.000 *116.000 DEM and there is no catchup depreciation since this is an amortized adjustment. Q4 Yr 5. Q2 Yr 2.286 7. Quarter 1. The following table shows quarterly depreciation amounts: Year Net Book Depreciation of Value (Start Expense Life of period) Yr 1.286 6.273 62.856 150. Q2 Yr 1. Q3 Yr 2.287 7.000 28. which you amortize from the following period. Q4 Yr 2.000 33.000 DEM. Q1 Yr 1.286 7.286 Unplanned Depreciation Accumulated Depreciation 0 0 10.412 40.301 102.014 94. new cost is 150.000 * Cost adjustment of 30.708 120.588 109.000 12.000 DEM in Year 2. Q3 Yr 1.000 114.

the new depreciation expense is (150. You cannot expense the cost adjustment. You can re-enter the unplanned depreciation for the asset later if necessary Page 71 of 132 . and then perform a cost adjustment on the same asset in the same book.287 DEM Oracle Assets includes the unplanned depreciation amount when it calculates the accumulated depreciation. Note: If you choose to amortize unplanned depreciation in the current period. Quarter 1.** Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life For Year 1.412) / 16 = 7. Note: If you choose to expense an unplanned depreciation amount. Oracle Assets will override the unplanned depreciation amount to expense the cost adjustment.412 DEM *** Depreciation Expense = (New Cost . Oracle Assets automatically amortizes the cost adjustment as well as the unplanned depreciation amount. Quarter 4. the depreciation expense per period is 92.Accumulated Depreciation)/ Remaining Periods in Life For Year 2. and then perform an expensed cost adjustment.000 / 17 = 5.000 33.

Navigate to the Asset Workbench. If you want to enter the same unplanned depreciation in the tax book. To enter unplanned depreciation for an asset: 1. 3. In the Books window. Optionally enter a reason for the unplanned depreciation in the Comments field. 4. You can enter unplanned depreciation for an asset in a corporate or tax book. you can choose in which period to begin amortization of the asset's remaining net book value. or to handle an unusual accounting situation.Entering Unplanned Depreciation for an Asset You can enter unplanned depreciation expense for an asset to comply with your country's accounting rules. Note: You cannot mass copy unplanned depreciation amounts from the corporate to the tax book. enter a Book. 2. you must enter it manually. You can use this field to find the transaction later if necessary. and choose the Books button. When you enter unplanned depreciation. Page 72 of 132 . Find the asset for which you want to enter unplanned depreciation.

and check the Amortize From Current Period check box. Then. Unless you are entering unplanned depreciation for a credit asset. 9. enter an unplanned depreciation amount of zero for the same asset and expense account. Attention: The value of this check box overrides the value of the Amortize Adjustment check box in the Books window. for example a cost or life adjustment. 6. Alternatively. Attention: If you make any amortized adjustment. Choose Done to save your work Page 73 of 132 . 10. Choose the unplanned depreciation Type. 7. the unplanned depreciation amount cannot exceed the net book value of the asset. leave the check box unchecked if you want to amortize the remaining net book value in a subsequent period. Enter the amount of unplanned depreciation expense as a positive or negative currency amount. from the period you make the amortized adjustment. Enter the complete unplanned depreciation expense account. to the asset after entering an expensed or amortized unplanned depreciation. Oracle Assets begins amortizing the remaining net book value. Choose the Unplanned Depr button to open the Unplanned Depreciation window. Oracle Assets amortizes the net book value starting in the period you perform this change. in the period you want amortization to start. which includes the unplanned depreciation amount. 8.5. Check the Amortize From Current Period check box to amortize the unplanned depreciation starting in the current period.

Oracle Assets depreciates the asset up to the salvage value during the normal useful life. Oracle Assets shows the recoverable cost in the Books window. 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. When you add an asset for which you set up a default depreciation limit percentage. category. in periods after the useful life has ended. an asset cost of 100. Additions When you add an asset to a book. For assets using a straight-line depreciation method. and range of dates in service in the Asset Categories window. If you add the asset using Detail Additions.1 = 99.999 yen. Then Oracle Assets continues to depreciate it. an asset cost of 100.000 X 95% = 95. Oracle Assets calculates the recoverable cost using the following formula: Recoverable Cost = Cost X Default Depreciation Limit For example. and date placed in service range for which you set up a default depreciation limit as an amount.000 yen with a depreciation limit of 95% has a recoverable cost of 100. Oracle Assets calculates the recoverable cost using the following formula: Recoverable Cost = Cost .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.000 yen with a depreciation limit of 1 yen has a recoverable cost of 100. You must specify a depreciation limit. book.000 . If you do not specify an extended life in years. you can use the Set Extended Life window to control the amount of depreciation expense taken for each period.000 yen. You can set up a default limit for each asset category. You can override this value if Page 74 of 132 . up to the depreciation limit you choose.Default Depreciation Limit For example. defined as a flat amount or as a percentage.

you must use a straight-line or flatrate depreciation method for the asset. Depreciation Depreciation Methods If you define a depreciation limit. you place in service an asset with a cost of 100. By default.000 yen per year for the first nine years. Note: You cannot adjust the recoverable cost for assets that do not depreciate using the special depreciation limits.necessary. The asset depreciates using a straight-line method and a nine year life. If you add the asset using QuickAdditions or Mass Additions. 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 . This does not affect the depreciation expense during the normal useful life. For example. You can adjust the recoverable cost at any time during the normal useful life of the asset.1000) / 9 = 11. For these assets. the recoverable cost must equal (cost salvage value). the depreciation expense for this asset is (100.000 yen and a salvage value of 1000 yen. Oracle Assets automatically calculates the recoverable cost for the asset. unless the recoverable cost is less than the cost less the salvage value. Depreciation During Normal Useful Life During the normal useful life of the asset. the amount of depreciation taken per fiscal year depends solely on the cost less the salvage value. Depreciation During Extended Life In the years following the useful life. Regardless of the depreciation limit. Note that recoverable cost is calculated by (cost depreciation limit amount) or (cost X depreciation percent limit).000 . Oracle Assets continues to depreciate the asset until accumulated depreciation equals recoverable cost.

specify the length of the extended life in years in the Set Extended Life window.000 yen Depreciation limit = 1 yen Useful life = 10 years Depreciation method = Straight Line Page 76 of 132 .salvage value) / life in periods) ) For assets using a straight-line depreciation method. the corresponding formula is: Depreciation per period = min ( (recoverable cost .For assets depreciating under a straight-line 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 = 100.000 yen Salvage value = 10. (cost . you can control the depreciation expense taken per period in the extended life. To do this.life-to-date depreciation).

10.000 : 81.999 Table 1 .000 . the depreciation expense is 999 yen.000 . depreciation expense is also 9000 yen for the year. If there are four periods per year and you are dividing depreciation evenly. Note that in the final year. For the first ten years. In the 12th year. In the 11th year.999 yen. Thus Oracle Assets fully reserves the asset in the first period of this year. (Page 1 of 1) Recoverable cost is (100. 9999) Accumulated Depreciation (Yen) 9000 18.000) / 10 = 9000 yen.000 999 = less of (9000. when it is equal to the amount necessary to fully reserve the asset. or 2250 yen per period. 999) 99. Oracle Assets takes a depreciation expense of 2250 yen per period.000 90. Oracle Assets does not divide the remaining recoverable cost evenly among the periods in the fiscal year.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. Oracle Assets takes an annual depreciation expense of (100. Example 2 You place another asset in service as follows: Page 77 of 132 .000 = (cost .31.1) = 99. The depreciation expense per period remains the same in all but the last period of life.salvage value) 99.

For the first five years.000 90.000 90.000 360. Oracle Assets takes depreciation expense of 7500 yen per period.o o o o o Cost = 500.000 X 95%) = 475. In the sixth year.000 yen.32. Example 3 You place a third asset in service as follows: Page 78 of 132 .000 90.salvage value) 475.000 yen for the year. Depreciation expense is 7500 yen per month for the first three months.000) / 5 = 90.50.000 90.000 = (cost . and 2500 yen in the fourth month.000 180.000 25. the depreciation expense is 25.000 Table 1 .000 yen Salvage Value = 50. If there are 12 periods per year and you divide depreciation evenly.000 yen.000 450.000 Accumulated Depreciation (Yen) 90. (Page 1 of 1) Recoverable cost is (500.000 .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. Oracle Assets takes an annual depreciation expense of (500.000 270.

000 900.600.000 400.000 NBV 1 2 3 4 3.000 Table 1 .000/4) is 900.000 3.000 400. The recoverable cost (4.000 4.000 900.000.000 3. the depreciable basis (4.000 400.000 Annual Deprn.000 Based on this information.000 900.33.000.000.000 400. 900.000 won Depreciation limit = 1. The depreciation over the useful life of the asset is illustrated in the following table: Year Cost (Won) 4.200.600.000 1.000.600.000. three years.600.000 .000.000.000 3.000 400.000 4.000.999.000 Deprn Basis 3.000 won Useful life = 4 years Salvage value = 400. (Page 1 of 1) When the asset has completed its useful life.000. The annual depreciation amount (3.000.1. Page 79 of 132 .600.100. you query the asset in the Set Extended Life window. for example.000 4.000) is 3.o o o o Cost = 4.000 Salvage Value 400.000) is 3. You enter the number of years to depreciate the salvage value.600.000 2.300.

The depreciation over the extended life of the asset is illustrated in the following table: Year Cost (Won) 4. Query the asset for which you want to set the extended life by asset number or description.000 400.667 133.000 400.000.000 Annual Deprn.000.000 Deprn Basis 400. Enter the number of years over which you want to depreciate the salvage value. Select the applicable book.000 400. Page 80 of 132 . (Page 1 of 1) To set the extended life of an asset: 1. Save your work.34. Navigate to the Books field.000 4. 133.000 4. 4. 3.000 Table 1 . 2.000 Salvage Value 400. 5.333 133.000 400.334 NBV 5 6 7 266.334 1. A list of values window appears containing the books in which you can set the extended life of the asset.000. Navigate to the Set Extended Life window.333 132. 6.

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 .

Accounting Account Generator Oracle Assets uses the Account Generator to generate accounting flexfield combinations for which to create journal entries to your general ledger. The Account Generator allows you to designate a specific source for each segment in the account for which Oracle Assets creates a journal entry. except for depreciation expense. By default. Page 82 of 132 . Using the default assignments. The Account Generator gets the other segments from the default segment values you entered for the book. depending on the account type. The Account Generator gives you the flexibility to create journal entries according to your requirements. You can modify the default Account Generator process so that Oracle Assets creates journal entries to a different detail level. 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. Oracle Assets creates journal entries without cost center level detail. You can specify to what detail to create journal entries. and you can specify the detail level for each book and account type.

Asset Accounting Creating journal entries is a two step process: 1. Run the Create Journal Entries program to create journal entries to your general ledger. run the depreciation program for each of your books. Run it once for each period in each book for which you allow posting to the general ledger. You can create journal entries for any period for which you have run depreciation for which you have not already created journal entries. At the end of each accounting period. Running the depreciation program closes the current period and opens the next period. Page 83 of 132 . 2.

Review the log file after the request completes. if you have set up the journal entry category for that transaction type for that book. 3. Oracle Assets automatically creates transaction journal entries for your general ledger.Creating Journal Entries for the General Ledger Oracle Assets creates journal entries for depreciation expense. Enter the Book and the Period for which you want to create journal entries in the Parameters window. Page 84 of 132 . Choose Submit to submit a concurrent process to create journal entries for your general ledger. 1. 2. 4. To create journal entries for the general ledger: Attention: The general ledger period for which you want to create journal entries must be open. and other accounts. asset cost. Choose Journal Entries:Standard from the Navigator. 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.

Journal Entries
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:
o

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

o

o

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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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.00 50. Cr. the clearing account comes from your source system. Dr. Page 88 of 132 . Cr.00 50.000 and the method is straightline 4 years. Oracle Assets gets the clearing account from the category. For mass additions.Oracle Assets creates the following journal entries for a current period depreciation charge of $200 and a bonus charge of $50: Dr.00 Accumulated Depreciation 200. Example: The recoverable cost is $4.

Asset Cost Depreciation Expense Asset Clearing 4.PRIOR PERIOD ADDITION Page 89 of 132 . Dr. Quarter 1.Current and Prior Period Addition You purchase and place the asset into service in Year 1. Cr.CURRENT PERIOD ADDITION You place an asset in service in Year 1.00 Accumulated Depreciation 1500.000. Quarter 2.00 4. Asset Clearing 4.000.000.000.000. Dr.00 250.000. Dr. Quarter 1. Cr.00 4.00 250. Cr. Cr. Asset Cost Depreciation Expense Depreciation Expense (adjustment) Asset Clearing 4.00 Oracle Assets . Cr.00 Accounts Payable Liability 4.00 250. but you do not enter it into Oracle Assets until Year 2. Dr.00 Accumulated Depreciation Oracle Assets . Your payables system creates the same journal entries to asset clearing and accounts payable liability as for a current period addition.00 1250. Dr.00 Payables System Dr.

so Oracle Assets creates the following journal entries: Dr.000. Payables System Construction-In-Process (CIP) Addition You add a CIP asset. 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. For example. Oracle Assets creates journal entries for the asset cost account for the mass addition into which the others were merged. Oracle Assets creates journal entries for each asset clearing account.00 Oracle Assets Page 90 of 132 . so each of the appropriate clearing accounts clears separately. (CIP assets do not depreciate) Dr. Oracle Assets does not change the asset clearing account journal entries it creates for each line.000.00 Asset Clearing (mass addition #1 3. Oracle Assets records the merge when you perform the transaction. you merge mass addition #1 into mass addition #2.00 CIP Clearing 4. Cr.000. Cr. the original cost of the invoice line remains on each line.Merge Mass Additions When you merge two mass additions. the asset cost is the total merged cost. As an audit trail after the merge.00 accounts payables clearing account) Asset Clearing (mass addition #2 1. Asset Cost (mass addition #2 asset cost account) 4.000.000. CIP Cost 4.00 accounts payables clearing account) Cr. When you create an asset from the merged line.

00 Payables System Dr.00 4.00 250.000. Capitalization A capitalization transaction is similar to an addition transaction: you place the asset in service so you can begin depreciating it. Asset Cost Depreciation Expense CIP Cost Accumulated Depreciation 4. Asset Cost Depreciation Expense CIP Clearing 4. Cr.000. You clear the accounts by either reversing the invoice in your payables system. Cr. Cr.00 Page 91 of 132 . The clearing account has already been cleared.00 250. When you capitalize an asset in the period you added it. Dr. Oracle Assets creates the following journal entries: Dr.00 Accounts Payable Liability 4.000.00 4.000.00 250.00 Accumulated Depreciation Oracle Assets . CIP Clearing 4. Oracle Assets creates journal entries that transfer the cost from the CIP cost account to the asset cost account.000. Dr. Cr. Dr.CAPITALIZED IN PERIOD ADDED When you capitalize an asset in a period after the period you added it.00 250.000. or creating manual journal entries in your general ledger.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. Cr.

Oracle Assets does not create capitalization or reverse capitalization journal entries for CIP reverse transactions.000. Cr. CIP Cost Asset Clearing 4.CAPITALIZED AFTER PERIOD ADDED Asset Type Adjustments If you change the asset type from capitalized to CIP.00 Oracle Assets .00 4. Dr.Oracle Assets . Oracle Assets creates journal entries to debit the CIP cost account and credit the asset clearing account.CHANGE TYPE FROM CAPITALIZED TO CIP (CURRENT PERIOD) Page 92 of 132 .000.

including a change in cost. Dr. ITC ceilings. The life of your asset is 4 years. Quarter 4. Dr. In Year 1.00 Oracle Assets Expensed Dr. depreciation. You can manually perform a cost adjustment in the Books window or in the Source Lines window.00 120. Cr. depreciation expense. Asset Cost 800. 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. you receive an additional invoice for the asset and change the recoverable cost to $4.Journal Entries for Adjustments Recoverable Cost Adjustments A cost adjustment includes any adjustment that affects the recoverable cost. The recoverable cost is $4. The bonus rate is 10%.00 Page 93 of 132 . and cost. and you are using straight-line depreciation. You can automatically perform a cost adjustment by adding a mass addition to an existing asset using Mass Additions.00 Accounts Payable Liability 800. Cr. salvage value. Asset Clearing 800.800.00 Payables System Dr.00 Asset Clearing 800.000. Quarter 1. or bonus rules. Depreciation Expense Bonus Expense 300.

Cr.000. The recoverable cost is $4.00 Accumulated Depreciation 450. Dr.00 60. Cr. and you are using the 200 declining balance depreciation method.00 Oracle Assets . the life is 4 years.EXPENSED Amortized Dr. Depreciation Expense (adjustment) Bonus Expense (adjustment) Bonus Reserve 150. Dr. Quarter 1. Quarter 1. Depreciation Expense Bonus Expense Bonus Reserve 311.00 180.00 Accumulated Depreciation 311.00 750. you change the depreciation method to straight-line. Expensed Dr.53 120.00 Oracle Assets . Cr. Cr.00 1.Dr.00 Oracle Assets .EXPENSED Page 94 of 132 . Dr. Cr. In Year 2.000. Depreciation Expense Accumulated Depreciation Depreciation Expense (adjustment) 250.AMORTIZED Depreciation Method Adjustments Example: You place an asset in service in Year 1.53 120.

Amortized Dr. In Year 2. The asset cost is $4. the life is 4 years. Dr.000.AMORTIZED Page 95 of 132 .67 Accumulated Depreciation 166. Cr.AMORTIZED Life Adjustments Example: You place an asset in service in Year 1. Cr. and you are using straightline depreciation.EXPENSED Amortized Dr. Cr.00 Depreciation Expense (adjustment) 250.00 Oracle Assets .00 50.33 Accumulated Depreciation 183. Expensed Dr.33 Oracle Assets . Depreciation Expense 183. you change the asset life to 5 years. Quarter 1. Depreciation Expense Accumulated Depreciation 200. Depreciation Expense 166. Quarter 2.67 Oracle Assets .

82 Oracle Assets .400.800. Depreciation Expense 181.Capacity Adjustments Example: You purchase an oil well for $10. Depreciation Expense Accumulated Depreciation Depreciation Expense (adjustment) 400.00 4.000. This section illustrates the following journal entry examples: o Current Period Transfer Between Cost Centers Page 96 of 132 . Expensed Dr.AMORTIZED Journal Entries for Transfers and Reclassifications Example: You place an asset in service in Year 1.EXPENSED Amortized Dr. Dr. Cr. You expect to extract 10.00 Oracle Assets .000 barrels of oil from this well.00 4.000 barrels. the life is 4 years. and you are using straight-line depreciation. Each quarter you extract 2.000. You increase the production capacity to 50. The recoverable cost is $4. Quarter 1. Cr. In Year 1.000 barrels of oil.82 Accumulated Depreciation 181. Quarter 4 you discover that you entered the wrong capacity.

00 Asset Cost 4. Cr.TRANSFER ASSET / CHARGE DEPRECIATION Prior Period Transfer Between Cost Centers In Year 3. Accumulated Depreciation 1. Asset Cost Depreciation Expense 4.250. Quarter 4. Quarter 2.TRANSFER ASSET / CHARGE DEPRECIATION Cost Center 200 Dr. Page 97 of 132 . you transfer the asset from cost center 100 to cost center 200 in the current period.000.000.00 1.00 250.500. Quarter 3. Cost Center 100 Dr.00 Oracle Assets . from cost center 100 to cost center 200.00 Accumulated Depreciation Oracle Assets . you discover that an asset was transferred in Year 3. Dr.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. Cr.

Q2 4. Cr.00 Cost Center 100 Dr.00 250.250.00 4.00 250.00 0.00 -250. Accumulated Depreciation Asset Cost Depreciation Expense (adjustment) 2.00 0.00 Y3.00 Oracle Assets .00 250.00 Depreciation Expense 250.00 Depreciation Expense 0.00 0.) Y3..Qtr.Q2 Y3.Q1 Y3.Qtr.00 Cost Center 200 Period (Yr.750.00 3.500.00 750.00 0.Q4 0.00 Y3.Q4 4.00 500.750.00 0.00 0..00 0.00 500.Q1 4.00 Y3.00 0.00 500.000.00 2.00 500.00 0.000.00* Y3.000.00 2.TRANSFER ASSET / ADJUST AND CHARGE DEPRECIATION Page 98 of 132 .Q3 Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 0.00 250.00 0.000.00 0.000. Cr.Cost Center 100 Period (Yr.) Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 2.000.Q3 4.00* Y3.

Cr. Cr.00 Oracle Assets .00 Oracle Assets . Dr. Dr.750. ABC Manufacturing Dr. you transfer the asset from the ABC Manufacturing Company to the XYZ Distribution Company. Accumulated Depreciation 2.00 250.000.00 250.TRANSFER ASSET XYZ Distribution Dr.00 1. Asset Cost Depreciation Expense Depreciation Expense (adjustment) Accumulated Depreciation 4.00 250. Cr.000.250. Dr. Asset Cost Depreciation Expense 4.000.00 Intercompany Payables Oracle Assets .TRANSFER ASSET Page 99 of 132 .Cost Center 200 Dr.000.000.00 Intercompany Receivables 1. Quarter 4. Dr.TRANSFER ASSET / ADJUST AND CHARGE DEPRECIATION Current Period Transfer Between Balancing Segments In Year 3.00 Asset Cost 4.250. Cr.00 3.00 Accumulated Depreciation 3.

Qtr.000. Cr.Q2 Y3.Q3 4.00 1.Q3 Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 0..Q2 4.ADJUST AND CHARGE DEPRECIATION Page 100 of 132 .00 Y3.00 2.750.Q4 4.00 Y3.00 250. ABC Manufacturing Period (Yr..Qtr.00 -250.00 0. from the ABC Manufacturing Company to the XYZ Distribution Company.000.000.00 0. Dr.00 0.00 ABC Manufacturing Dr.00* Y3.000.00 Y3.00 250.00 0. Accumulated Depreciation Intercompany Receivables Asset Cost Depreciation Expense (adjustment) 2.00 3.00 250. you discover that the asset was transferred in Year 3.) Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 2.00 500.00 Oracle Assets .00 0.00 XYZ Distribution Period (Yr.00 250. Cr.00 750.750.Q4 0.00* Y3.00 2.00 500.000.Q1 4. Quarter 4.) Y3.Q1 Y3.500.00 0.00 4.500.00 0.00 Depreciation Expense 0.00 500.00 0.00 Depreciation Expense 250.00 0.00 0.00 0.Prior Period Transfer Between Balancing Segments In Year 3.00 500.000.250. Quarter 3.

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

Unit Adjustment
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.

Reclassification
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.

Office Equipment
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

Computers
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

If you enter distinct gain and loss accounts for each component of the gain/loss amount. Oracle Assets reverses the year-to-date depreciation of the asset. In this case. cost of removal. 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. Oracle Assets creates multiple journal entries for these accounts. Depreciation for Retirements The retirement convention. Oracle Assets also creates journal entries to clear the proceeds of sale and cost of removal. Oracle Assets creates journal entries for your general ledger for each component of the gain/loss amount. 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. and revaluation reserve retired. 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. and depreciation method control how much depreciation Oracle Assets takes when you retire an asset. Oracle Assets reverses the year-to-date depreciation if the asset's depreciation method does not depreciate it in the year of retirement. date retired. Oracle Assets creates journal entries for either the gain or the loss accounts for the following components: proceeds of sale. Oracle Assets creates journal entries for the retirement accounts you set up in the Book Controls window. Page 104 of 132 .Journal Entries for Retirements and Reinstatements When you retire an asset and create journal entries for that period. and computes the gain or loss using the resulting net book value. If the depreciation method takes depreciation in the year of retirement. For partial retirements.

Then Oracle Assets reverses the extra depreciation that it took at retirement. If your depreciation method multiplies a flat-rate by the cost. When you reinstate a retired asset. unless you perform it in the same period that you retired the asset. Oracle Assets depreciates the remaining fraction of the asset's net book value as of the beginning of the fiscal year. Oracle Assets usually calculates some additional depreciation expense in the period in which you perform the reinstatement. and then you reinstate the asset before the retirement prorate date. This occurs if the retirement convention caused some additional depreciation when you retired the asset. and waits until the appropriate accounting periods to take it. and period in which you reinstate an asset control how much depreciation Oracle Assets calculates when you reinstate an asset. Page 105 of 132 . however. date retired. Oracle Assets depreciates the portion of the asset you did not retire based on the method you use. Oracle Assets depreciates the asset's cost remaining after a partial retirement.When you perform a partial retirement. Depreciation for Reinstatements The retirement convention. Sometimes. a reinstatement results in a reversal of depreciation. This additional depreciation is the depreciation that would have been taken if you had not retired the asset. For assets that use a diminishing value method.

you sell the asset for $2.MULTIPLE GAIN/LOSS ACCOUNTS Page 106 of 132 .Current Period Retirements Example: You place an asset in service in Year 1. The cost to remove the asset is $500. Cr.000. Receivables System Accounts Receivable 2.000. Dr.500. the life is 4 years. The asset cost is $4.00 Cost of Removal Clearing Revaluation Reserve Retired Gain Oracle Assets . Dr.000.00 4. Cost of Removal Clearing 500.000.000. Dr. You retire revaluation reserve in this book. Cr. Cr.00 Payables System Dr.00 2.000. Cr.00 2.00 Proceeds of Sale Clearing 2.00 1. Cr.00 500.00 Accounts Payable 500.00 600.00 Dr. Quarter 3. Dr. Cr. and you are using straightline depreciation.00 500.000. Quarter 1.500. The asset uses a retirement convention and depreciation method which take depreciation in the period of retirement. Accumulated Depreciation Proceeds of Sale Clearing Cost of Removal Gain Revaluation Reserve Net Book Value Retired Gain Asset Cost Proceeds of Sale Gain 2. In Year 3. Dr.00 600.

The asset cost is $4.000. Dr. The asset uses a retirement convention and depreciation Page 107 of 132 .00 600.00 Cost of Removal Clearing Gain/Loss Oracle Assets . The removal cost was $500.500.If you enter the same account for each gain and loss account. the life is 4 years. Quarter 3. Accumulated Depreciation Proceeds of Sale Clearing Revaluation Reserve Asset Cost 2.000. Quarter 1. Oracle Assets creates a single journal entry for the net gain or loss.000. you discover that the asset was sold in Year 3.00 500. Cr. Cr. Quarter 1. Cr.000. for $2. 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.00 2.00 4.00 600. and you are using straightline depreciation. In Year 3.SINGLE GAIN/LOSS ACCOUNT Prior Period Retirement Example: You place an asset in service in Year 1. Dr.

Cr.00 Dr.500.750.000.00 2.00 Payables System Dr. and reverse the gain or loss you recognized for the retirement. Dr. Oracle Assets reverses the journal entries for proceeds of sale.00 2. Dr. Cr.00 Proceeds of Sale Clearing 2.00 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. Receivables System Accounts Receivable 2. Cr. Dr.00 Accounts Payable 500. credit accumulated depreciation. Cr.00 1. Cr. cost of removal.000. Cr.000. Oracle Assets also reverses the Page 108 of 132 . Accumulated Depreciation Proceeds of Sale Clearing Cost of Removal Loss Net Book Value Retired Loss 2.method which allow you to take depreciation in the period of retirement.00 500.000. net book value retired. Oracle Assets creates journal entries for the reinstatement to debit asset cost.000.00 250. and revaluation reserve retired.00 500. Dr.00 4. Cost of Removal Clearing 500.

Dr. Cr.00 500. In Year 2. Dr. In Year 2. Cr. The asset cost is $4. Cr.000. Dr. Oracle Assets also creates journal entries to recover the depreciation not charged to the asset and for the current period depreciation expense.00 Prior Period Reinstatement Example: You place an asset in service in Year 1. Cr.00 Accumulated Depreciation 2.750.00 2.00 600. Dr.journal entries you made to clear the proceeds of sale and cost of removal. Quarter 1.000.00 2.00 Proceeds of Sale Clearing 2. Quarter 4.000.00 Page 109 of 132 . Cr.00 250.00 500. you realize that you retired the wrong asset so you reinstate it.000.00 250. you retire the asset. Dr.000.000. the life is 4 years.00 Revaluation Reserve 600.000. Cr. Dr. Dr. Dr.00 500.00 Net Book Value Retired Loss Cost of Removal Loss Proceeds of Sale Clearing Accumulated Depreciation 2.750. Cr. Oracle Assets Asset Cost Cost of Removal Clearing Gain / Loss Depreciation Expense 4. Quarter 1. Oracle Assets Asset Cost Cost of Removal Clearing Proceeds of Sale Loss Depreciation Expense Depreciation Expense (adjustment) 4. and you are using straightline depreciation. Dr.00 500.00 2.

it creates all the other journal entries associated with retiring a capitalized asset. PROCESSED Asset Retirement When you reinstate an asset retired in a previous accounting period or already processed in the current period. However. However. it is fully reserved upon addition. Oracle Assets creates journal entries to catch up any missed depreciation expense. No journal entries are created. and the asset is reinstated when you process retirements. Non-Depreciated Capitalized/Construction-InProcess (CIP) Assets A non-depreciated capitalized asset or a CIP asset has no accumulated depreciation. Oracle Assets does not create journal entries to catch up depreciation to the retirement prorate date. even if you assigned the asset a depreciation method that backs out all depreciation in the year of retirement. and does not remove the accumulated depreciation. When you retire it. Oracle Assets does not back out any depreciation. 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. Therefore. Oracle Assets creates all other journal entries associated with retiring a capitalized asset. Page 110 of 132 .Assets Fully Reserved Upon Addition If you add an asset with an accumulated depreciation equal to the recoverable cost. and the asset is immediately reinstated. the retirement transaction is deleted. the existing retirement transaction gets a new Status REINSTATE.

or for each major category. Then you can project depreciation expense for each category you entered.Capital Budgeting Budgeting for Asset Acquisition After you create a budget book. Page 111 of 132 . You can change the budget amounts for your existing budget assets at any time. you can enter or upload capital budget information. Use the budget reports to review your capital budgets. You can enter budget information for each full category combination. You must delete the existing budget before uploading a new capital budget from a spreadsheet. To prepare the budget book for budget information: o Open the Upload Capital Budgets window and enter a new budget Book name. Attention: The budget book must use the same calendar as its associated corporate book so you can compare actual and budgeted spending.

3. Choose Delete Existing Budget. Save your work. Page 112 of 132 . Enter the name of your budget Book. Open the Upload Capital Budgets window.To delete a budget: 1. 4. 2.

5. and general ledger Expense Account for which you want to budget.To manually enter or update a budget: 1. 3. Page 113 of 132 . asset Category. Enter or update the budget amounts for this period. Open the Capital Budgets window. Review the capital budget for the year using the Budget Report. Choose the budget Book. Save your work. The budget amount is the amount you plan to spend on new assets in this category in this period for this expense account. 2. 4.

Save your work. 3. The period is determined by the calendar you assigned to the budget book. Enter the name of your budget Book. Return to the Upload Capital Budgets window and choose Upload Capital Budget. and then use SQL*Loader to load the FA_BUDGET_INTERFACE table. 7. Save your work. 6. Steps in the Capital Budgeting Process 1. Page 114 of 132 . 4. Save your work. Open the Upload Capital Budget window. Choose Create Budget Assets. To create budget assets in a budget book: 1. Develop your budget in the environment you prefer. expense account. 2. Load your budget information into the budget interface from a feeder system.To automatically upload a budget: 1. You can transfer budget data from any software package that prints to an ASCII file. 4. Enter the name of your budget Book. 2. Budget Open Interface If you maintain your budget information in a spreadsheet. 3. Oracle Assets creates a budget asset for each category. 5. Open the Upload Capital Budget window. you can upload it to Oracle Assets using the budget interface. and budget amount you enter for each period in the Capital Budgets window. Choose Delete Existing Budget to remove your old budget.

6.2. 5. Run depreciation projections and other reports on your budget book. Use the Upload Capital Budget window to move your budget into a budget book. Use the Upload Capital Budget window to move your budget into the budget worksheet. Page 115 of 132 . Use SQL*Loader to move your budget data into the budget interface. 4. Transfer your budget data from the system where you maintain your budget to the system where you have Oracle Assets. 3.

which allows you to import data from an Excel spreadsheet. which can be either the asset number. This program compares your physical inventory data with your Oracle Assets data for all assets that have the In Physical Inventory check box checked. such as a description of each asset. you must first take physical inventory of your assets. To use the Physical Inventory feature. Page 116 of 132 . When you finish entering physical inventory data into Oracle Assets. You need to include the following information about your assets: o A unique identifier. 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. but only the information listed above is required. 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. or you can use the mass additions process to add assets that are missing from the production system. you run the Physical Inventory comparison program.About Physical Inventory The Physical Inventory feature in Oracle Assets assists you in comparing and reconciling your physical inventory data. You load your physical inventory data into Oracle Assets using the Physical Inventory Entries window. You can also use SQL*Loader to import physical inventory data from a non-Oracle file system. tag number. You can view the results of the comparison online in the Physical Inventory Comparison window. which highlights the differences between the asset information in Oracle Assets and the actual assets in physical inventory. or by running the Physical Inventory Comparison Report. or you can use the Record Physical Inventory process in the Applications Desktop Integrator (ADI).

Run the Missing Assets Report. Navigate to the Physical Inventory window. Page 117 of 132 . 4. Change Oracle Assets data to reconcile with the physical inventory data and ensure you have accounted for all assets. Analyze the report results. you can run the Missing Assets Report. Run the Physical Inventory Comparison program 7. Entering an end date indicates that the physical inventory is complete. Load the physical inventory data into Oracle Assets using the Physical Inventory window. 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.When you have completed your physical inventory. Save your changes. 8. 9. Enter the inventory name (for example. Q2 Physical Inventory USA) and the start date. Run the Physical Inventory Comparison Report or review the results online using the Find Physical Inventory Comparison window. 2. so you should not enter an end date until you have completed all physical inventory tasks. and a unique identifier. which lists all assets that have not been accounted for in the physical inventory process. number of units. the Record Physical Inventory process in ADI. 5. 3. 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. 10. To gather and reconcile physical inventory information: 1. or SQL*Loader 6.

During the comparison. the comparison program searches the Oracle Assets production system for a matching asset number. It begins the comparison by searching for matching unique identifiers. if you want to narrow the search criteria. You can also enter either the location. the comparison program compares all assets in the physical inventory with the assets in your production system. the comparison program attempts to match each asset in the physical inventory data to an asset in the production system. the program continues the comparison by determining whether the Page 118 of 132 . or serial number. If an asset number has been provided. If it finds a matching asset number. navigate to the Run Comparison window. the category. The program first determines whether the physical inventory data includes an asset 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. Purge the physical inventory data. If you do not enter either of these parameters. Physical Inventory Comparison Program To run the Physical Inventory Comparison program.11. tag number. 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. or both. The matching unique identifier can be either the asset number.

and. the program determines whether a serial number has been recorded for the asset. the program next determines whether the physical inventory data includes a tag number. if the physical inventory data includes neither an asset number nor a tag number. if the program finds a match. or serial number). If there is a tag number. If they do not match. 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. that you include at least one of the three unique identifiers for each asset in physical inventory.location and number of units match. the matching criteria may not be unique and the program may not be able to uniquely identify an asset. the program searches the Oracle Assets production system for a matching tag number. if necessary. if the program cannot find a matching identifier in the Oracle Assets production system. In both cases. tag number. it terminates the comparison for that asset and continues on to the next asset. After completing the comparison. such as description and asset key CCID. If so. If none of the three unique identifiers are present for that asset. the comparison program updates the FA_INV_INTERFACE table. Therefore. If an asset number has not been recorded as part of the physical inventory. Note: When the program attempts to match assets using criteria other than the three unique identifiers. If they do not match. indicating the assets in physical inventory that cannot be reconciled with the assets in Oracle Assets. Similarly. 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. it terminates the comparison for that asset and continues on to the next asset. it will continue the comparison to determine whether the location and number of units match. the program updates the status of that asset to DIFFERENCE. In both cases. it searches the Oracle Assets production system for a matching serial number. the type of adjustment that needs to be made Page 119 of 132 . the program attempts to match the asset using other criteria.

the asset will automatically have a status of RECONCILED. and the asset meets the other requirements for inclusion in the physical inventory process. Page 120 of 132 . or by running the Physical Inventory Comparison Report. If there are differences between the Oracle Assets data and the physical inventory data for a particular asset. one of the other status codes described in the Units Reconciliation table will be assigned to the asset. If there are no differences between the Oracle Assets data and the physical inventory data for a particular asset. or the asset does not meet the requirements for inclusion in the physical inventory process. You can view the comparison data online using the Find Physical Inventory Comparison window.(either a unit adjustment or location adjustment).

Enter the method of calculation to use for this asset insurance: o Value as New . Asset Book. The company address for the supplier site displays automatically. Page 121 of 132 . Calculation Method. Insurance Company. Asset Key. Contains the description of the asset on which you queried. Enter the insurance policy number. Enter a valid insurance company name. Supplier Site. Tag Number. Contains the asset key of the asset on which you queried. Contains the asset number of the asset on which you queried. Enter the supplier site for the insurance company.Fixed Asset Insurance Fixed Asset Insurance Window Reference Assets Region Asset Number.the base insurance value. Policy Region Policy Number. Address. Contains the tag number of the asset on which you queried. 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. which can be indexed annually. Description. Contains the asset depreciation book of the asset on which you queried.

enter the date the asset was placed in service.the current market value. Manual Value . you will be able to update the Current Insurance Value. Page 122 of 132 . 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. Base Index Date. Record the new insurance value provided by the insurance company. check the Special Swiss Asset check box. which can be indexed annually. the Calculation Method automatically defaults to the method that was defined on the existing policy. Special Swiss Asset. Enter the date that is used as the base date for indexation. The Calculation Method must be the same for all occurrences of the same insurance policy. the insurance value will not be indexed again until that date is reached. This field will not be enabled unless you have set the profile option FA: Allow Swiss Special Assets to Yes. by updating the Current Value field and recording the effective date for this new valuation in the Base Index Date field.a value you enter manually.o Market Value . The period up to this date represents a manual maintenance period for the asset. The insurance company may provide a new series of indexation factors to be applied to the asset. If the asset is a Swiss special-case asset. This calculation method allows you to update the Current Value field. If an asset is marked as a Swiss special asset. The Base Index Date must be one of the following: o For new assets. You can record this by defining a new Price Index and then updating the Insurance Index field. calculated as the base insurance value less depreciation. Insurance Index. If the Base Index Date is set to a date in the future. 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.

o Current Value. calculated automatically. unless you chose the Manual Value calculation method or your asset is flagged as a Swiss special-case asset. but you do not want indexation adjustment factors to be used. The value is disabled because the Base Insurance Value is not used in this asset insurance calculation. the insurance value is derived from the asset net book value. This field displays the current insurance value of the asset. For Current Market Value assets. you should maintain the insurance value manually o o Insurance Index. For Value as New assets. you can enter a maintenance date. Oracle Assets displays the current cost of the asset. If you want the Insurance Calculation process to automatically take account of cost adjustments. but do not enter an Insurance Index. enter the original construction cost of the asset. This represents the date the optional indexation of the manual value begins. and so on. For the Manual Value calculation method. the Base Insurance Value field is disabled because the Base Insurance Value is not used. the value is shown in this field but is disabled. you can overwrite this default with another value. Enter the name of the price index that is used to calculate the annual adjusted insurance value. The value displayed depends upon the calculation method: Page 123 of 132 . Base Insurance Value. For Manual Value assets. then enter a value in the Base Index Date field. Enter one of the following: o For new assets. For updated Swiss assets. instead. Until this date. enter the original date of construction of the asset. instead. For assets purchased second-hand. record the date on which automatic indexation of the insurance value will begin again.o For assets purchased second-hand. you can manually enter a Current Value. retirements. Enter the base insurance value of the asset as defined in the insurance policy.

that affect the asset value. such as adjustments or retirements. and then follows the Value as New calculation method. 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. the value displayed is the indexed base insurance value. o o o Insured Amount. For Swiss Assets with a calculation method of Value as New. 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. Page 124 of 132 . indexation of the manual value begins with this date. that affect the asset value. For Manual Value. or Market Value.o For Value as New. Enter the amount for which the asset is insured under that policy. This field displays the end date of the closed depreciation period for which the indexation process was last run. Also note that the calculated Current Value for Swiss Assets can be manually updated. This value will also be updated to account for transactions. the value displayed is the indexed net book value of the asset (original cost less depreciation). Last Indexation Date. For Swiss Assets with a calculation method of Current Market Value. the value displayed can be updated. This value will also be updated to account for transactions. such as adjustments or retirements. the calculated value will be the same as for all other assets.

Page 125 of 132 .Buttons Maintenance. Use the Maintenance button to launch the Fixed Asset Insurance Policy Maintenance window.

Lines. Use the Lines button to launch the Fixed Asset Insurance Policy Lines window Page 126 of 132 .

you can use the poplist to Find assets by Detail. You can enter search criteria in one or more tabbed regions. Find by Asset Detail: Enter asset descriptive information. such as Asset Number. and/or Category. Page 127 of 132 . or Warranty Number. and cost history of the asset you select. Choose Inquiry > Financial Information from the Navigator window. query by asset number or tag number since they are unique values. To view descriptive and financial information for an asset: 1. Lease. or Project. In the Find Assets window. 2. Note: For best performance.Online Inquiries Use the Financial Information windows to view descriptive and financial information for an asset. depreciation. Assignment. You can review the transactions. Description. as your search criteria. Invoice.

Choose the Find button to query the asset(s) you want to review. non-labor resource. such as Supplier and/or Invoice Number. Find by Source Line: Enter invoice information. To view individual transaction details for this asset. and nonlabor organization. supplier.Find by Assignment: Enter assignment information as your search criteria. financial information for the asset. by depreciation book. Find by Lease: Enter lease information as your search criteria. expenditure organization. To view the current assignment(s) for an asset. check a transaction and choose Details to open the Transaction Detail window. If you want to search using the Expense Account. CIP cost. such as Project Number and/or Task Number. Choose Transactions to review transaction history of this asset in the Transaction History window. 3. The View Financial Information window includes the asset you choose in the title. The Asset Line Details window includes the following project information for your asset: expenditure type. Page 128 of 132 . Choose Source Lines to view source line information. Choose the Project Details button to view detail project information about the asset. employee. or project information. and lists. click on the asset you want to review and choose the Assignments button. item date. as your search criteria. 4. The View Assets window shows you detail information for the asset(s) you query. quantity. Oracle Assets displays the Project Number and Task Number of the asset. If the asset was created from capital asset lines in Oracle Projects. 6. you must enter a Book first. Choose the Books button to view financial information for the asset. 5.

You can also choose to view the detail accounting as t-accounts. the Cost History window shows you the ADDITION/VOID transaction. Page 129 of 132 . Choose Cost History to review cost history of this asset. Note: You can view the detail accounting lines for the transaction in the form of a balanced accounting entry (i. debits equal credits).Choose Depreciation to review depreciation history for this asset. Note: If you change any information except cost for the asset in the period you added it..e. not the ADDITION transaction.

e.. debits equal credits). Choose View Accounting from the Tools menu. (Optional) If your organization uses Multiple Reporting Currencies. To view accounting lines: 1. Query the transaction for which you want to view accounting lines. 2.Viewing Accounting Lines When you query a transaction in Oracle Assets. choose the Alternate Currency button to view the accounting using an alternate currency. you can switch to EUR (reporting functional currency). you can choose to view the detail accounting lines for the queried transaction in the form of a balanced accounting entry (i. For example.. 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. You can also choose to view the detail accounting as t-accounts. if you are viewing the accounting in your primary functional currency (e. BEF). 3. The View Transaction Page 130 of 132 . From the poplist that appears after you choose the Alternate Currency button.g.

When customizing the View Transaction Accounting window. 4. (Optional) To view the accounting detail as t-accounts. When you select a detailed accounting line. Page 131 of 132 . 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. choose the T-Accounts button. You can easily customize the information that is displayed in the window. 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.

transaction type. Choose Inquiry > Transaction History from the Navigator window. 2.e. Choose Find. or range of assets. You can also choose to view the detail accounting as t-accounts. To perform a transaction history inquiry: 1.. including Periods. 3. Note: You can view the detail accounting lines for the transaction in the form of a balanced accounting entry (i. Transaction Type. check an asset and then choose the Details button. In the Find Transactions window. You must enter a Book and Reference Number or Asset Numbers to query a transaction history. You can optionally enter other search criteria. accounting period. enter search criteria for your inquiry. To view details. debits equal credits). and Category. 4. You can see a summary of the transactions for the asset.Performing a Transaction History Inquiry Use the Transaction History windows to review all the transactions for any book. Page 132 of 132 .

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