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Author: Creation Date:
Saudi Arab Projects CO.LTD (SAPCO) 12-FEB-2008
TALAL ABU GAZALEH REPRESENTATIVE ABDUL SAMAD AL QURASHI REPRESENTATIVE
PM: Mazen AL Wahsh PM: Khaled Sheasha
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Table Of Contents
OVERVIEW OF ASSETS WORKBENCH....................................................................4 ASSETS DETAILS............................................................................................................4 ASSET DESCRIPTIVE DETAILS..........................................................................................4 DEPRECIATION RULES (BOOKS).......................................................................................9 ASSIGNMENTS.................................................................................................................15 SOURCE LINES................................................................................................................18 CONSTRUCTION-IN-PROCESS (CIP) ASSETS...................................................................19 ASSET SETUP PROCESSES (ADDITIONS)..............................................................19 ADDING AN ASSET ACCEPTING DEFAULTS (QUICK-ADDITIONS)..................................20 ADDING AN ASSET SPECIFYING DETAILS (DETAIL- ADDITIONS)..................................21 ENTERING FINANCIAL INFORMATION (DETAIL ADDITIONS CONTINUED)......................22 ASSIGNING AN ASSET (DETAIL ADDITIONS CONTINUED)..............................................24 OVERVIEW OF THE MASS ADDITIONS PROCESS..............................................25 CORRECTING CURRENT PERIOD ADDITION ERRORS....................................28 CHANGING ASSET DETAILS.....................................................................................30 CHANGING FINANCIAL AND DEPRECIATION INFORMATION.....................31 CHANGING FINANCIAL INFORMATION FOR A SINGLE ASSET...........................................32 CHANGING FINANCIAL INFORMATION FOR A GROUP OF ASSETS (MASS CHANGE)........33 RECLASSIFYING ASSETS...........................................................................................35 RECLASSIFYING A SINGLE ASSET TO ANOTHER CATEGORY..........................................35 RECLASSIFYING A GROUP OF ASSETS............................................................................36 ADJUSTING UNITS FOR AN ASSET.........................................................................40 TRANSFERRING ASSETS............................................................................................40 TRANSFERRING A SINGLE ASSET....................................................................................41 TRANSFERRING A GROUP OF ASSETS..............................................................................42 TRANSFERRING INVOICE LINES BETWEEN ASSETS........................................................43 CHANGING INVOICE INFORMATION FOR AN ASSET......................................45
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ASSET RETIREMENTS................................................................................................46 ABOUT RETIREMENTS....................................................................................................46 PARTIALLY OR FULLY RETIRING AN ASSET....................................................................50 RETIRING A GROUP OF ASSETS.......................................................................................51 CORRECTING RETIREMENT ERRORS (REINSTATEMENTS)..............................................54 CALCULATING GAINS AND LOSSES FOR RETIREMENTS.................................................55 MASS RETIREMENTS REPORT AND MASS RETIREMENTS EXCEPTION REPORT .............56 DEPRECIATION............................................................................................................57 DEPRECIATION CALCULATION.......................................................................................57 RUNNING DEPRECIATION...............................................................................................58 PROJECTING DEPRECIATION EXPENSE...........................................................................60 DEPRECIATION PROJECTION REPORT ............................................................................62 UNPLANNED DEPRECIATION...........................................................................................63 ENTERING UNPLANNED DEPRECIATION FOR AN ASSET ................................................72 DEPRECIATING ASSETS BEYOND THE USEFUL LIFE ......................................................74 ACCOUNTING................................................................................................................82 ACCOUNT GENERATOR...................................................................................................82 ASSET ACCOUNTING......................................................................................................83 CREATING JOURNAL ENTRIES FOR THE GENERAL LEDGER...........................................84 JOURNAL ENTRIES..........................................................................................................85 CAPITAL BUDGETING..............................................................................................111 BUDGETING FOR ASSET ACQUISITION..........................................................................111 BUDGET OPEN INTERFACE...........................................................................................114 ABOUT PHYSICAL INVENTORY ...........................................................................116 PHYSICAL INVENTORY COMPARISON PROGRAM .........................................................118 FIXED ASSET INSURANCE.......................................................................................121 ONLINE INQUIRIES...................................................................................................127 VIEWING ACCOUNTING LINES......................................................................................130 VIEW ACCOUNTING WINDOWS....................................................................................131 PERFORMING A TRANSACTION HISTORY INQUIRY.......................................................132
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Assets Details Asset Descriptive Details This section describes selected fields on the Asset Details window. or leave the field blank to use automatic asset numbering. it must be unique and not in the range of numbers reserved for automatic asset Page 4 of 132 . and transfers. If you enter an asset number. adjustments.Overview of Assets Workbench Use the Assets Workbench windows to add new assets to the system. Asset Number An asset number uniquely identifies each asset. and to perform transactions. When you add an asset. such as retirements. you can enter the asset number. source line adjustments.
Asset Category Oracle Assets defaults depreciation rules based on the category. use the tag number to track asset barcodes. Tag Number If you enter a tag number. book.numbering. it must be unique. Description Use list of values to choose a standard description you defined in the QuickCodes window. or you can enter any non-numeric value. You can enter any number that is less than the number in the Starting Asset Number field in the System Controls window. or enter your own. All assets in a category share the same asset cost accounts and depreciation accounts for each depreciation book. and date placed in service. if you use them. For example. A tag number uniquely identifies each asset. Page 5 of 132 .
For Page 6 of 132 . even if the Depreciate check box in the Books and Mass Additions Prepare windows is checked for that asset. When you specify a category for a new asset. you can set up a descriptive flexfield to prompt you for additional information based on the asset category you enter. For example. Asset Type Valid asset types are: o Capitalized: Assets included on the company balance sheet. Use units to group together identical assets. the entire cost is charged in a single period to an expense account. Charged to an asset cost clearing account. but the square footage for buildings. For example. use an asset key to group assets by project. Expensed: Items that do NOT depreciate. Oracle Assets tracks expensed items. Asset Key The asset key allows you to group assets or identify groups of assets quickly.Category Descriptive Flexfield Descriptive flexfields allow you to collect and store additional information about your assets. Capitalized assets usually depreciate. Once you capitalize a CIP asset. Oracle Assets begins depreciating it. you might want to track the license number for automobiles. you can enter your information in a descriptive flexfield. 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. not yet in use and not yet depreciating. o o Units The number of units represents the number of components included as part of an asset. CIP (Construction-In-Process): Unfinished assets being built. For each asset category. Oracle Assets does not depreciate expensed assets. Charged to a construction-in-process clearing account. It does not have financial impact.
a computer. Parent Asset You can separately track and manage detachable asset components. you might add an asset that is composed of ten separate but identical chairs. a monitor can be tracked as a subcomponent of its parent asset. The parent asset must be in the same corporate book. while still automatically grouping them to their parent asset. You must set up the depreciation method for the subcomponent asset life before you can use the method for that life.example. If the depreciation method is not Calculated and if it is not already set up for the subcomponent life rule default. Use the list of values or enter a previously defined warranty number to assign the asset to the coinciding warranty. Enter the parent asset to which your asset belongs if you are adding a subcomponent asset. To properly default the subcomponent life. You must define the lessor as a valid supplier in the Suppliers window. Lease Information You can enter lease information only for an asset assigned to a leased asset category. Use the Parent Asset Transactions Report to review the transactions that you have performed on parent assets during a period. Page 7 of 132 . Oracle Assets does not automatically perform the same transaction on a subcomponent asset when you perform it on the parent asset. add the parent asset before the subcomponent. Each warranty has a unique warranty number. If you are adding a leasehold improvement. accept the default value of one. If your subcomponent asset uses a depreciation method of type Calculated. or enter a different number of units. For example. Oracle Assets sets up the depreciation method for you. If you are adding an asset. Warranty Number You can set up and track manufacturer and supplier warranties online. Oracle Assets uses the asset category default life. You can specify a rule in the Asset Categories window by which Oracle Assets defaults the life for a subcomponent asset based on the category and the parent asset life. enter the asset number of the leased asset. and define leases in the Lease Details window.
For example. You can enter lease information only if you assign the asset to a leased asset category. Page 8 of 132 . In Physical Inventory When you check the In Physical Inventory check box. Oracle Assets displays the related lease information from the parent asset. a computer in storage still depreciates because it becomes obsolete over time whether or not it is in use. In Use The In Use check box is for your reference only. You can use the In Physical Inventory check box in the Asset Details window to override the default. When you set up categories. You cannot provide separate lease information for the leasehold improvement. you define whether assets in a particular category should be included in physical inventory.before you can attach a lease to an asset you are adding in the Asset Details window. Ownership You can track Owned and Leased assets. it indicates that this asset will be included when you run the Physical Inventory comparison. Use this check box to track that it is not in use. Choosing the value Leased from the Ownership list does not automatically allow you to enter lease information. If you are entering a leasehold improvement and you completed the Parent Asset field in the Asset Details window. It indicates whether the asset is in use.
Page 9 of 132 . Book An asset can belong to any number of depreciation books. For example. The depreciation books are independent. or negative. so you can run depreciation for each book on a different schedule.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. Oracle Assets automatically updates the cost to the sum of the invoice line costs after you add invoice lines to a CIP asset using the Mass Additions process. You can choose whether to amortize or expense the adjustment. Each book can have independent accounts. 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. an independent calendar. The asset can also have different financial information in each book. You can specify for which general ledger set of books a depreciation book creates journal entries. Oracle Assets defaults financial information from the asset category. zero. You must assign a new asset to a corporate depreciation book before you can assign it to any tax books. You can only assign the asset to a book for which you defined the asset category. Cost Current Cost The current cost can be positive. and date placed in service. but must belong to only one corporate depreciation book. Oracle Assets defaults a cost of zero for construction-in-process (CIP) assets and you cannot change it. book. and independent depreciation rules. you can make the asset cost in your tax book different from the cost in your financial reporting book.
Depreciation Amounts Depreciation You normally enter zero accumulated depreciation for new capitalized assets. Oracle Assets uses that amount as the accumulated depreciation as of the last depreciation run date. Recoverable Cost The recoverable cost is the portion of the current cost that can be depreciated. If you are adding an asset that you have already depreciated. If you enter too little accumulated depreciation. Oracle Assets automatically enters the Cost to Capitalize amount in the Current Cost field. Oracle Assets calculates the accumulated depreciation and the bonus reserve. After the first period. If you specify a depreciation cost ceiling. or let Oracle Assets calculate it for you. the amount should be added to the accumulated depreciation and is no longer tracked as bonus reserve. you can enter the accumulated depreciation as of the last depreciation run date for this book.If this is a capitalized leased asset. 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. Oracle Assets does not update the original cost. and you can change it. the asset becomes fully reserved before the end of its life. It is the current cost less the salvage value less the Investment Tax Credit basis reduction amount. If you enter too much accumulated depreciation. If you enter a value other than zero. and if the recoverable cost is greater than that ceiling. You can have a different accumulated depreciation for each depreciation book. Oracle Assets uses the cost ceiling instead. 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. If you enter zero accumulated depreciation. If you have bonus reserve. if any. Page 10 of 132 . Oracle Assets adjusts depreciation to the correct amount for the current fiscal year.
Depreciation Ceiling You can enter a ceiling only for assets in tax depreciation books for which you allow ceilings. Instead. o Salvage Value The salvage value cannot exceed the asset cost. and enter the total life-to-date production as production for the current period to catch up depreciation. Investment Tax Credit The Investment Tax Credit (ITC) check box displays whether you claimed an ITC on an asset. the accumulated depreciation amount and the year-to-date depreciation amount must be the same. Allow ceilings for a tax book in the Book Controls window. Page 11 of 132 . For Oracle Assets to recognize an asset as fully reserved when you add it. Cost Ceilings: Limit the recoverable cost used to calculate annual depreciation expense. Valid depreciation ceiling types are: o Expense Ceilings: Limit the annual depreciation expense that Oracle Assets takes on an asset. however. You cannot enter year-to-date or life-to-date depreciation when you add a units of production asset.Enter the amount of depreciation taken in the current fiscal year. change the depreciation taken for prior fiscal years in your tax books using the Tax Reserve Adjustments window. and you cannot enter a salvage value for credit (negative cost) assets. You cannot change the accumulated depreciation after the period in which you added the asset. enter the asset with zero accumulated depreciation. You cannot claim an Investment Tax Credit on an asset unless it is using a life-based depreciation method. enter an accumulated depreciation amount equal to the recoverable cost. if any. for the year-to-date depreciation. If the asset is placed in service in the current fiscal year. Allow ITC for a tax book in the Book Controls window and the category in the Asset Categories window. Assign ITC to an asset in a tax book in the Investment Tax Credits window. You can.
if any.Net Book Value The net book value is defined as: Net Book Value = Current Cost . In contrast. or Flat-rate type methods. you must enter a unit of measure and capacity. You specify default depreciation rules for a category and book in the Asset Categories window. Oracle Assets uses the revaluation ceiling instead. Table. The table below illustrates information related to the depreciation types: Page 12 of 132 . you must also enter a life for the asset. You can use predefined Calculated. Revaluation Reserve = Existing Revaluation Reserve + Change in Net Book Value due to current revaluation Revaluation Ceiling If you try to revalue the asset cost above the ceiling. or define your own in the Methods window. 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. Depending on the type of depreciation method you enter in the Books window. if you enter a Calculated or Table depreciation method. For example. After that. enter the revaluation reserve.Total Reserve (Accumulated Depreciation + Bonus Reserve) Revaluation Amounts You can only enter revaluation amounts if you allow revaluation in the Book Controls window. units of Production. Revaluation Reserve If you are adding an asset. Oracle Assets updates the revaluation reserve when you perform revaluations. You cannot update the revaluation reserve after the period you added the asset. for a units of production depreciation method. Oracle Assets provides additional fields so you can enter related depreciation information.
or enter a different date placed in service in the current accounting period or any prior period. If the calendar date is after the current 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. If the calendar date is before the current open period.display only Units of Production Life-to-Date Production . and the accumulated depreciation is recalculated accordingly.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 . If you change the date placed in service after depreciation has been processed for an asset. Page 13 of 132 . the default date is the last day of the open period. the default date is the first day of the open period. Date Placed In Service If the current date is in the current open period. You can change the date placed in service at any time. the default date placed in service is the calendar date you enter the asset. Accept this date. The depreciation method must already be defined for the life you enter.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.
The amortization start date defaults according to the rules described for the Date Placed in Service. Oracle Assets determines the prorate date from the date placed in service and the prorate convention. When adding assets with depreciation reserve. This can only be performed in the period of addition. It uses this date to determine how much depreciation to take during 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. and expenses the catchup depreciation in the current period. The date placed in service for CIP assets is for your reference only.The asset category. If the asset category you entered is set up for more than one date placed in service range for this book. The remaining depreciation is spread over the remaining life of the asset. Oracle Assets automatically updates this field to the date you specify when you capitalize the asset using the Capitalize CIP Assets window. Amortization Start Date When you choose to amortize an adjustment. 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. and date placed in service determine which default depreciation rules Oracle Assets uses. Page 14 of 132 . If you enter a date placed in service in a prior period and zero accumulated depreciation. the date placed in service determines which rules to use. Oracle Assets uses the Amortization Start Date to spread the remaining recoverable cost over the remaining useful life of the asset. you can choose to amortize the net book value over the remaining life of the asset. book. Oracle Assets automatically calculates catchup depreciation when you run depreciation. You can change the default date to another date in the current period or a previous period.
or before the date of the last transaction you performed on the asset. and locations. Changing the location or employee information. and locations. Oracle Assets uses the current assignment information from the associated corporate book. You can automatically assign distributions to an asset by choosing a predefined Distribution Set. has no financial impact because Oracle Assets uses them solely for property tax and responsibility reporting. When you back-date a transfer. You cannot back-date transfers before the start of your current fiscal year. You can transfer an asset between employees. since Oracle Assets creates journal entries for depreciation expense to the general ledger using the account. 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. however. Changing the expense account has a financial impact. general ledger depreciation expense accounts.Assignments Assign assets to employees. You can share your assets among several assignment lines. Page 15 of 132 . expense accounts. When you run a transaction report or create journal entries for a tax book. You also cannot enter a date that is after the last day of the current accounting period. the depreciation program automatically adjusts the accumulated depreciation and year-to-date depreciation amounts for the affected general ledger accounts.
Total Units Oracle Assets displays the total of the number of units for the asset. You can enter whole or fractional units. Show Merged Distributions (Mass Additions only) The Show Merged Distributions check box appears in the Assignments window for a mass addition line only. To transfer units out of a assignment. Page 16 of 132 . retired. and unit adjustments) the Units to Assign starts at the number of units added.Distribution Set You can use the Distribution Set poplist to choose a predefined distribution set for an asset. You can transfer units out of only one assignment line in a single transaction. The Units to Assign value automatically updates to reflect the assignment you enter or update. A distribution set allows you to automatically assign a predefined set of one or more distributions to an asset. Units to Assign Oracle Assets displays the number of units you must assign. the Units to Assign starts at zero. or adjusted. You can only view the distribution for a merged parent or a merged child one at a time. Unit Change The Units field displays the number of units assigned to that assignment. partial unit retirements. but you can transfer units into as many lines as you want. The number of units that you enter tells the depreciation program what fraction of depreciation expense to charge to that account. You can transfer units between existing assignment lines or to a new assignment line. When you choose a distribution set. For one-sided transfers (additions. To transfer units into a assignment. For a two-sided transfer. enter a positive number. Oracle Assets automatically enters the distributions for you. unless you check the Show Merged Distributions check box. It must be equal to zero before you can save your work. on a new line. enter a negative number.
Expense Account Assign assets to depreciation expense accounts. Location Enter the physical location of the asset. Page 17 of 132 .Employee Assign assets to the owner or person responsible for that asset. current employee you created in the Enter Person window. You must enter a valid. Oracle Assets uses location information for Property Tax reports. Oracle Assets charges depreciation expense to the asset using the expense account and runs Responsibility Reports using the cost center information.
adjust the cost of an existing line. or delete a line for a CIP 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. For example. choose the Project Details button to view detail project information for the line in the Asset Line Page 18 of 132 . If the source of the line is Oracle Projects.Source Lines You can track information about where assets came from. you can manually add a line.
You can enter minimal information in the QuickAdditions window. 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. 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 . If you use Oracle Projects to track CIP assets. or you can track detailed information about your CIP assets in Oracle Projects. it does not depreciate. You create and maintain your CIP assets as you spend money for raw materials and labor to construct them. and the remaining asset information defaults from the asset category. Since a CIP asset is not yet in use. book. You can track CIP assets in Oracle Assets. When you finish building the CIP asset. you can place it in service and begin depreciating it.Construction-in-Process (CIP) Assets A construction-in-process (CIP) asset is an asset you construct over a period of time. and the date placed in service. you do not need to track them in Oracle Assets.
or information from any other feeder system using the interface. Create assets from one or more invoice distribution lines in Oracle Payables. 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. Adding an Asset Accepting Defaults (QuickAdditions) Page 20 of 132 . asset information from another assets system. You must prepare the mass additions to become assets before you post them to Oracle Assets.
Enter the asset Category. Override default depreciation rules if necessary. 6. 9. Choose Assets:Asset Workbench from the Navigator window. 4. Assign the asset to an Employee Name (optional). 3. 5. Enter a Description of the asset. Choose QuickAdditions from the Find Assets window. 8. Page 21 of 132 . and a Location.To add an asset quickly accepting default information: 1. 7. a general ledger depreciation Expense Account. Enter the current Cost. Assign your asset to a corporate depreciation Book. Optionally update the Date Placed In Service. Save your work. 2. Adding an Asset Specifying Details (DetailAdditions) Use the Detail Additions process to manually add complex assets that the QuickAdditions process does not handle.
Page 22 of 132 . 2.To add an asset specifying detail information: 1. enter the leased asset number. you must enter financial information in the Books window. 8. Optionally choose Source Lines to enter purchasing information such as the Supplier Name and Purchase Order Number for the asset. Enter the number of Units. If you are adding a leasehold improvement. In the Asset Details window. 9. enter the Parent Asset number. Choose New. If you are adding a subcomponent asset. 7. 3. enter a Description of the asset. 10. 6. Choose Continue to continue adding your asset. 4. Enter the asset Category. 5. See: Entering Financial Information (Detail Additions Continued) To continue adding your asset using the Detail Additions process. Enter additional information. and whether the asset is Owned or Leased and New or Used. Choose Assets:Asset Workbench from the Navigator window. such as Property Type and Class. Enter the Manufacturer and Model of your asset.
Note: If this is a leased asset. override the Depreciation Method and associated depreciation information defaulted from the category. Assign your asset to a corporate depreciation Book. Indicate whether you want to Depreciate the asset. Choose Continue to continue adding your asset. 7. 6. Page 23 of 132 . Enter the current Cost. If necessary. 3.Continue Adding your Asset To enter financial information for a new asset: 1. Enter the Salvage Value. 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. Oracle Assets automatically enters the Cost to Capitalize amount in the Current Cost field. 2. and you can change it. 5. 4. Specify the asset's Date In Service.
you must assign your new asset to an employee. Prerequisites Enter descriptive information for a new asset in the Asset Details window. and location: Page 24 of 132 . or choose a predefined distribution set to automatically assign the appropriate distribution(s) to the asset. You can manually enter the distribution(s). Optionally enter purchasing information for the new asset in the Source Lines window. and location in the Assignments window. depreciation expense account. depreciation expense account. Enter financial information in the Books window Continue Adding your Asset To assign your asset to an employee.Assigning an Asset (Detail Additions Continued) To continue adding your asset using the Detail Additions process.
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. Enter the physical Location of the asset. or from CIP asset lines sent from Oracle Projects.Suggestion: Choose a predefined distribution set from the Distribution Set poplist to automatically assign the appropriate distribution(s) to your new asset. 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. Enter the default Expense Account to which you want to charge depreciation. 2. For example. 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 . 1. 4. 3.
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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.
Choose Assets: Asset Workbench from the Navigator window. you can delete it from the system. Page 28 of 132 . You can only delete assets added in the current period. To delete an asset you added in the current period: 1.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.
4. 5. and Assignments. To change descriptive. Choose Open. Find the asset you want to delete. query by asset number or tag number since they are unique values. From the menu. Source Lines. Books. Delete Record. Save your change to delete the asset from the system. 3. 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.2. Note: For best performance. financial. Page 29 of 132 . select Edit.
Changing asset descriptive information other than category and units has no financial impact on the asset.Changing Asset Details You can change descriptive information for an asset at any time. Page 30 of 132 .
You can choose whether to amortize or expense the adjustment. you cannot change any fields. bonus rule. salvage value. prorate convention. capacity and unit of measure (in the corporate book). and revaluation ceiling. You can also override depreciation information for an asset while adding it using the Detail Additions process. depreciation method. If the asset is fully retired. If the asset is fully reserved.Changing Financial and Depreciation Information Correct an error or update financial and depreciation information for a single asset or a group of assets. Before running depreciation (in the period in which you added the asset). After you have run depreciation (in any period after the one in which you added the asset). life. Page 31 of 132 . you can change asset cost. depreciation ceiling. you can adjust the same fields as for an asset for which you have run depreciation. you can change any field. rate.
Changing financial information for a single asset To change financial information for a single asset: 1. 6. 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. Choose Asset:Asset Workbench from the Navigator window. Choose the Book to which the asset belongs. 2. Suggestion: For best performance. Choose whether to Amortize Adjustment or expense it in the current period. 4. Page 32 of 132 . 3. Find the asset for which you want to change financial information. Enter the new financial information for the asset. 5. query by asset number or tag number since they are unique values. Choose Books.
Specify the asset numbers. and assets with amortized adjustments are excluded from the mass change transaction. Enter the Book to which the assets belong. and category for which the Mass Change applies. dates placed in service.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. Select the assets you want to change. Save your work. Page 33 of 132 . To change financial information for a GROUP of assets 1. 3. 7. 2. retired assets. Changing financial information for a group of assets (Mass Change) Note: CIP assets. Choose Mass Transactions:Changes from the Navigator window.
query the definition and choose Review. Specify the new financial information for these assets in the After column. the mass change affects only assets that match that information. 5. The mass change status determines what action to perform next. Choose whether to Change Fully Reserved Assets. Choose Preview to run the Mass Change Preview report. Oracle Assets runs the Mass Change Review report. 4. Review the log file and report after the request completes.You can use the Before and After fields as either information to change or as a selection criterion without changing the information. 6. 8. To review a completed mass change. When you enter the same value for the Before and After fields. Use this report to preview what effects to expect from the Mass Change before you perform it. Page 34 of 132 . If necessary. update the definition and run the preview report again. 9.
2.Reclassifying Assets Reclassifying a single Asset to Another Category Reclassify assets to update information. Page 35 of 132 . query by asset number or tag number since they are unique values. Find the asset you want to reclassify. but does not adjust for prior period expense. 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. This occurs when you create journal entries for your general ledger. Note: When you reclassify an asset in a period after the period you entered it. To reclassify an asset to another category: 1. correct data entry errors. Suggestion: For best performance. or when consolidating categories. Oracle Assets also changes the depreciation expense account to the default depreciation expense account for the new category.
even if inheriting depreciation rules fails. Oracle Assets reclassifies assets to a new category. the assets will not be reclassified and will not inherit depreciation rules. meaning that if assets do not inherit depreciation rules in one book to which Page 36 of 132 . you can also choose to either amortize or expense the resulting depreciation adjustments. 4. However. assets will not inherit the depreciation rules of the new category. Reclassifying a Group of Assets You can reclassify a group of assets using the Mass Reclassifications window. if reclassification fails (assets are not changed to the new category). Inheriting Depreciation Rules Inheriting depreciation rules is performed at the book level. the asset will not be reclassified in any of the books to which it belongs. you have the option to have assets inherit the depreciation rules of the new category. and you run the Mass Reclassification process to reclassify the assets to category PC). You cannot reclassify an asset in a prior period. When you run the Mass Reclassification process. In addition to reclassifying assets to a new category. if you have chosen to have the reclassified assets inherit the depreciation rules of the new category. then changes the depreciation rules. when you run the Mass Reclassification process. If you attempt to reclassify assets to the same category (for example. Manually change the depreciation rules in the Books or Mass Change windows if necessary. If you choose to have the reclassified assets inherit depreciation rules.3. Choose Open. you have a group of assets assigned to category PC. Oracle Assets first reclassifies the assets (changes the assets from one category to another). 5. Save your changes. Attention: Reclassification does not redefault the depreciation rules to the default rules from the new category. If an asset cannot be reclassified in one book. Enter the new category. Reclassification Reclassification is done at the asset level.
reclassification will fail for any assets for which you have previously amortized an adjustment. even though you checked the Inherit Depreciation Rules of New Category check box on the Mass Reclassifications window. The rules set up for the category in the corporate book are inherited in the corporate book. you must also ensure you have checked the Allow Mass Changes check box in the Accounting Rules region of the Book Controls window.the assets belong. Note that if you choose to expense adjustments on the Mass Reclassifications window (the Amortize Adjustments check box is not checked). If you do not check the Amortize Adjustments check box. it will not prevent assets from successfully inheriting depreciation rules in other books to which they belong. Allowing Mass Changes If you check the Inherit Depreciation Rules of New Category check box. you can choose to have all rules inherited by checking the Inherit Depreciation Rules of New Category check box on the Mass Reclassifications window. you can also choose to amortize the resulting adjustments by checking the Amortize Adjustments check box on the Mass Reclassifications window. for any assets that you want to inherit depreciation rules. Note: Depreciation rules are inherited in the corporate book. You cannot choose to have assets inherit only specified depreciation rules. Setting Up Assets to Depreciate If the Depreciate check box on the Books window is checked for an asset before the asset is reclassified. Copying Descriptive Flexfield Information Page 37 of 132 . If the Depreciate check box is not checked for an asset before the asset is reclassified. or no rules by ensuring the check box is not checked. adjustments will be expensed. the check box will remain checked after reclassification. When you choose to have assets inherit the depreciation rules of the new category. When you choose to have assets inherit depreciation rules. but the Depreciate check box will remain unchecked. that asset will inherit the depreciation rules of the new category. If the Allow Mass Changes check box is not checked. reclassified assets will not inherit depreciation rules.
If reclassification fails for any of the assets. The descriptive flexfields should be set up with the same segments in both the old and the new category. Running the Mass Reclassification Process After reviewing the Mass Reclassification Preview Report. Page 38 of 132 . run the mass reclassification process. Descriptive flexfield information will be copied only if assets are being reclassified within the same major category. Choose Mass Transactions > Reclassifications from the Navigator window. the information will be copied. The report lists all the assets that the mass reclassification process will reclassify. but you will need to correct the descriptive information in that segment. Previewing Your Mass Reclassifications You can run the Mass Reclassification Preview Report before submitting the Mass Reclassifications process. the category descriptive flexfield information from the old category will be deleted. 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). To reclassify a group of assets: 1. descriptive flexfield information in the old category may be copied incorrectly into an incorrect segment in the new category. run the Mass Reclassification Review Report. Otherwise. Note: If you do not choose to copy category descriptive flexfield information to the new category. Note: You can run the Mass Reclassification Review Report from either Oracle Assets or the ADI Request Center. To review the changes to category and depreciation rules. If a segment in the old category and a corresponding segment in the new category have different formats (for example. You need to review the log file to determine the reasons the assets were not reclassified. the mass reclassification process completes with a warning.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.
5. Choose Preview to run the Mass Reclassification Preview report. specify whether to amortize the changes. the current category descriptive flexfield information will be deleted. If you do not choose to copy the flexfield information. 10. Specify if you want the current category descriptive flexfield information copied to the new category. 9. 8. Enter the new category. Specify the corporate book on which you want to run reclassification. 3. 7. Specify whether to inherit the depreciation rules of the new category. Find the assets you want to reclassify. 4. such as asset number and asset type. If you choose to inherit the depreciation rules of the new category. Query the Mass Transaction number and choose Run to submit the Mass Reclassification concurrent process.2. Optionally specify other asset selection criteria. Page 39 of 132 . 6.
Change the number of Units. 6. Save your work. 2. Choose Open. 4. Find the asset whose units you want to adjust. Transferring Assets Page 40 of 132 . 3. Suggestion: For best performance.Adjusting Units for an Asset To adjust the number of units for an asset: 1. 5. query by asset number or tag number since they are unique values. Update assignment information to reflect the new number of units in the Assignments window. Choose Asset:Asset Workbench from the Navigator window.
Optionally update the Transfer Date. Page 41 of 132 .You can transfer assets between employees. and locations. expense accounts. 2. 3. 4. Choose Asset:Asset Workbench from the Navigator window. 5. and/or locations. depreciation expense accounts. expense accounts. Note: If you transfer an asset during the period in which it was added. Choose Assignments. enter a negative number for the assignment line from which you want to transfer the asset. In the Units Change field. Transferring a single asset To transfer an asset between employees. query by asset number or tag number since they are unique values. Suggestion: For best performance. the Transfer Date automatically defaults to the asset's date placed in service and you cannot change it. and locations: 1. Find the asset you want to transfer between employees.
Choose Mass Transactions:Transfers from the Navigator window. Expense Account. 2. 3. and/or Location for the new distribution. entering a positive number in the Units Change field for the assignment lines to which you want to transfer the asset. 7. Create one or more new lines. Oracle Assets transfers only assets that match that information without changing it. When you enter the same value for the From and To fields. 8. You also can use the From and To fields as a selection criterion without transferring between them.6. Enter one or more selection criteria for the mass transfer. Choose the corporate depreciation Book for the assets you want to transfer. expense accounts. and locations: 1. Transferring a group of assets To transfer a GROUP of assets between employees. Enter the new Employee Name. 4. Save your changes. 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. Transfer From: Enter values in the Transfer From fields to select the assets you want to transfer. Page 42 of 132 . Optionally update the Transfer Date.
6.When you enter different values for the From and To fields for more than one selection criteria. Find the asset whose invoice information you want to change. Review the log file after the request completes. update the definition and run the preview report again. If necessary. Jones and Dallas. Transferring Invoice Lines Between Assets 1. you enter different values in the employee fields (From Smith. Choose Asset:Asset Workbench from the Navigator window. 2. To perform the Mass Transfer. Choose Preview to run the Mass Transfers Preview report. query by asset number or tag number since they are unique values. Use this report to preview the expected effects of the Mass Transfer before you perform it. 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. To Jones) and the location fields (From New York. 7. query the mass transfer and choose Run. to a new employee and location. For example. 5. To Dallas). Suggestion: For best performance. Oracle Assets submits a concurrent process to perform the transfer. Page 43 of 132 . Oracle Assets transfers only those assets assigned to both Smith and New York.
specify the destination asset to which you want to transfer the line.3. 7. 5. 6. Choose Source Lines. Save your work. Choose Transfer To. 4. Page 44 of 132 . Choose the line(s) you want to transfer. In the Transfer To window.
Page 45 of 132 . Suggestion: For best performance. o Enter a description and cost to manually add a new invoice line to the asset. Find the asset whose invoice information you want to change. Choose Source Lines. To delete an invoice line. use the Source Lines window to change invoice information for an asset. 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. uncheck Active. o o Change the cost of a line for a CIP asset if necessary. Choose Asset:Asset Workbench from the Navigator window. 2. 4. 3. query by asset number or tag number since they are unique values.Changing Invoice Information for an Asset If you brought over mass addition lines from invoices or discounts in your payables system. Save your changes.
or damaged. o When you retire an asset by units. Also. you can only perform partial and full cost retirements in a tax book. you can only perform full retirements on CIP assets. 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. or retire them partially by cost.Net Book Value Retired + Revaluation Reserve Retired If you partially retire a units of production asset. Oracle Assets automatically calculates the fraction of the cost retired o When you retire an asset by cost.Cost of Removal . retire an asset that was stolen. or that you sold or returned. you must manually adjust the capacity to reflect the portion retired. lost. you cannot retire them by units. For example. Full Retirement for a Group of Assets (Mass Retirement) Page 46 of 132 . you must run the calculate gains and losses program between transactions. Gain/Loss = Proceeds of Sale .Asset Retirements About Retirements Retire an asset when it is no longer in service. If you perform multiple partial retirements on an asset within a period. Full and Partial Retirements by Units or Cost You can retire an entire asset or you can partially retire an asset.
depreciation expense account segments. retire it from each book separately. You specify selection criteria. 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. asset number range. Oracle Assets automatically runs the Mass Retirements Report and the Mass Retirements Exception Report. 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. Page 47 of 132 . you can choose to immediately submit the concurrent request to retire the selected assets. or adjust an individual retirement transaction if necessary. or set up Mass Copy to copy retirements to the other books in the Book Controls form. employee. To retire an asset from all books. perform a mass reinstatement. location. asset key. You can review these reports. When you define a mass retirement. You can also elect to automatically retire subcomponents along with the parent asset. When you submit a mass retirement. and date placed in service range. or you can save the mass retirement definition for future submission. You can change the details of any mass retirement before you submit the concurrent request. Exceptions Oracle Assets does not retire the following types of assets.Use the Mass Retirements window to retire a group of assets at one time. including asset category. to select the assets you want to retire.
you must rerun the Calculate Gains and Losses program or run depreciation to process the reinstatements. Page 48 of 132 . Oracle Assets immediately reinstates these assets. Oracle Assets deletes the retirement transaction and the asset is immediately reinstated. ITC Recapture If you retire an asset for which you took an investment tax credit (ITC) and the ITC recapture applies. Oracle Assets creates PENDING retirement transactions. You cannot reinstate an asset retired in a previous fiscal year. and you must rerun the Calculate Gains and Losses program or run depreciation to process the reinstatement. 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. You can reinstate an individual or mass retirement transaction. You can only reinstate assets retired in the current fiscal year. When you reinstate a PENDING retirement. A new retirement receives the status PENDING. If you submit a mass reinstatement to reinstate PROCESSED retirements. and Oracle Assets creates all the necessary journal entries for your general ledger to catch up any missed depreciation expense. If you reinstate a PROCESSED retirement. Correct Retirement Errors You can undo asset retirement transactions. When you perform a mass retirement. Oracle Assets automatically calculates it. If you submit a mass reinstatement before running the Calculate Gains and Losses program. For multiple partial retirements.Retirement and Reinstatement Statuses Each retirement transaction has a status. the status changes to PROCESSED. you can reinstate only the most recent partial retirement. Retirement Conventions Oracle Assets lets you use a different prorate convention when you retire an asset than when you added it. Oracle Assets changes the status to REINSTATE. After you run depreciation or calculate gains and losses.
Instead. Delete Record from the menu in the Asset Details form to delete the asset any time in the current period. If you perform a prior period retirement. the date of retirement. Proceeds of Sale and Cost of Removal You can enter proceeds of sale and cost of removal amounts when you perform a retirement or mass retirement. 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 catches up depreciation expense through the end of the current period. Oracle Assets backs out the depreciation expense through the date of retirement. You cannot perform prior period retirements to assets having unplanned depreciation amounts. If you reinstate the asset. use Edit.You can change the retirement convention for an individual asset in the Retirements form before running the Calculate Gains and Losses program. you must enter your retirement as a prior period retirement after you run depreciation. but not including. For a mass retirement. Oracle Assets takes depreciation expense for the number of days up to. Retirement Transactions For assets added in the current accounting period: You cannot retire an asset if you added it in the current period. For prior-period retirement dates: You can retire retroactively only in the current fiscal year. and Oracle Assets prorates the total amounts over the assets being retired according to each asset's current cost. Or if you do not want to create any journal entries. you enter the total proceeds of sale and/or the total cost of removal amounts. Oracle Assets uses the following formula to prorate the proceeds of sale amount across the assets you select: Page 49 of 132 . and if you retire an asset in that book in the current period. and only after the most recent transaction date.
To FULLY retire an asset: 1. Partially or fully retiring an asset Partially or fully retire an asset by cost or units. Find the asset you want to retire. You can retire a group of assets in the Mass Retirements window. 2.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. Page 50 of 132 . Choose Assets:Asset Workbench from the Navigator window.
Enter the date of the retirement. Attention: If you partially retire by units. 3. or you Page 51 of 132 . 6. 7. enter the Retirement Convention. When you define a mass retirement. 5. you can choose to immediately submit the concurrent request to retire the selected assets. enter all the units or the entire cost. you must choose Continue to specify which units to retire in the Assignments window. Select the depreciation Book from which you want to retire the asset. 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 . Choose Retirements. 11. 8. Oracle Assets assigns each retirement transaction a unique Reference Number that you can use to track the retirement. To fully retire the asset. You can separately retire these subcomponents if necessary. 10. Enter the Retirement Type. Retiring a group of assets You can retire a group of assets at one time. Save your work. query by asset number or tag number since they are unique values. To PARTIALLY retire an asset: o Enter the number of units or cost you want to retire. You enter selection criteria in the Mass Retirements window to choose the group of assets you want to retire. 12. choose Subcomponents to view the subcomponents asset(s) affected by the retirement transaction.Gain from Disposition of 1250 Property Report.Suggestion: For best performance. 4. and cannot be before any other transaction on the asset. It must be in the current fiscal year. If you are retiring a parent asset. Optionally calculate gains and losses to change the status of the retirement transaction from PENDING to PROCESSED. 9. If you are retiring an asset before it is fully reserved.
4. or reason for this mass retirement. or enter a date in the current open period. Enter the total Proceeds of Sale and the total Cost of Removal for the mass retirement. if any. You can back date retirements to a prior period in the same fiscal year. Note: When you perform a mass retirement. 5. To retire a GROUP of assets: 1. Oracle Assets prorates these Page 52 of 132 . 2. Oracle Assets creates PENDING transactions that are not PROCESSED until you run the Calculate Gains and Losses program. Enter the Retirement Type. The type you enter applies to all the assets that meet your selection criteria. Navigate to Mass Retirements window. You cannot enter a date in a future period. 3. You can also reinstate a mass retirement transaction. Enter the Book from which you want to retire the group of assets.can save the mass retirement definition for future submission. You can change the details of any mass retirement before you submit the concurrent request. Enter the date for the mass retirement.
or Capitalized. Choose Save if you want to save the mass retirement transaction for future submission. 8. Choose Retire. you can adjust a resulting individual retirement transaction in the Retirements window. 10. Choose whether to retire all levels of subcomponents of all parent assets that meet your mass retirement selection criteria. In the Retirements region. For example. 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. run the Calculate Gains and Losses program. 7. Oracle Assets automatically runs the Mass Retirements Report and the Mass Retirements Exception Report. Page 53 of 132 . if you enter a location and employee.amounts across the assets you select for the mass retirement according to each asset's cost. If necessary. 9. 6. Choose the blank option to retire both CIP and Capitalized assets. Oracle Assets includes all assets assigned to that employee AND location. When you are ready to process the pending mass retirement transaction. use the Asset Type poplist to indicate whether you want to retire CIP. or reinstate the mass retirement transaction in the Mass Retirements form. Oracle Assets includes only those assets that meet all the selection criteria in the mass retirement. Review the reports. 11. Oracle Assets does not include assets in that location which are not assigned to the employee.
Choose Reinstate. 5. Note: If you reinstate a mass retirement after you have run the Calculate Gains and Losses program. If it is PENDING. Oracle Assets deletes the retirement transaction. Oracle Assets reverses the mass retirement. calculate gains and losses to reinstate the asset. you must rerun the Calculate Gains and Losses program to process the mass reinstatement. Choose Retirements. To reinstate a mass retirement transaction: 1. To correct a reinstatement error: o Query the reinstatement transaction in the Retirements window and choose the Undo Reinstatement button. 3. If it is PENDING. Page 54 of 132 . choose Undo Retirement. Find the asset you want to reinstate. Navigate to the Mass Retirements form. To correct a retirement error: 1. Suggestion: For best performance. 2. If the retirement has a status of PROCESSED. Choose Assets:Asset Workbench from the Navigator window. Use the mass transaction number to query the mass retirement transaction you want to reinstate. You can reinstate only the most recent partial retirement. 2.Correcting Retirement Errors (Reinstatements) You cannot reinstate assets retired in the previous fiscal year. query by asset number or tag number since they are unique values. choose Reinstate. You can reinstate both individual and mass retirement transactions. 3. 6. Query the retirement transaction you want to undo. If the retirement has a status of PROCESSED. 4.
you can run the Calculate Gains and Losses program several times during the period to reduce period end processing time.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. Page 55 of 132 . In the Parameters window. Choose Depreciation:Calculate Gains and Losses from the Navigator window. enter the Book for which you want to calculate gains and losses. Choose Submit to submit a concurrent process to calculate gains and losses. 3. Review the log file after the request completes. 4. To calculate gains and losses for retirements: 1. 2.
This report prints each exception asset. or employees. and balancing segment. where one or more of the values do not meet the selection criteria you entered for the mass retirement transaction. You can also reinstate the mass retirement transaction in the Mass Retirements window. if you mass retire all the assets held by a particular employee. 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. This report sorts by balancing segment. Use the Mass Retirements Exception Report to identify exception assets that were not retired as part of the mass retirement transaction. you can delete or make adjustments to an individual retirement transaction in the Retirements window before you calculate gains and losses. You can use the Retirements window to fully or partially retire these exception assets.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. the mass retirement might include assets shared among multiple employees. It prints totals for each cost center. asset type. Oracle Assets also does not retire assets that are assigned to multiple general ledger numbers. Oracle Assets does not retire assets added in the current period or assets that have transactions dated after the retirement date you enter. Page 56 of 132 . Oracle Assets does not retire assets which are multiply distributed and one or more of the values do not meet the selection criteria. including its multiple distributions. asset type. locations. and asset account. If necessary. account. For example.
Period Close Oracle Assets automatically closes the book's current period and opens the next when you run the depreciation program. 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. Prorate Calendar The prorate calendar determines what rate Oracle Assets uses to calculate annual depreciation by mapping each date to a prorate period. The depreciation program calculates depreciation expense and adjustments. When you run depreciation. You cannot have more than one open period for a given depreciation book. which corresponds to a set of rates in the rate table.Depreciation Depreciation Calculation Run the depreciation program independently for each of your depreciation books. Page 57 of 132 . 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. and updates the accumulated depreciation and year-to-date depreciation.
Attention: Ensure that you have entered all transactions for the period before you run depreciation. you cannot reopen it. Prerequisites Run the Assets Not Assigned to Any Cost Centers Listing and the Assets Not Assigned to Any Books Listing to ensure that all assets are assigned to expense accounts and books. Run depreciation to process all assets in a book for a period. Page 58 of 132 . Optionally process retirements regularly throughout the period. Once the program closes the period. Oracle Assets automatically creates the depreciation and prorate periods for your new year when you run depreciation for the last period of the previous fiscal year.Year-End Processing You can close the year independently in each depreciation book. Attention: Verify the depreciation and prorate periods that Oracle Assets creates before you enter transactions in the new year. 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.
Page 59 of 132 . Choose the Book for which you want to run depreciation. Oracle Assets automatically runs the Journal Entry Reserve Ledger report when you run the depreciation program for a corporate book. 2. so you can review the depreciation calculated.To run depreciation: 1. depreciation. 3. Review the log files and report after the request completes. and the Tax Reserve Ledger report for a tax book. and reporting programs. Choose Run to submit concurrent requests to run the calculate gains and losses. 4. Open the Run Depreciation form. Attention: You cannot enter transactions for the book while depreciation is running.
If you want to project depreciation for assets depreciating under the units of production method. depreciation and prorate calendars. If you need to project depreciation for scenarios other than your current setup. Note: You cannot run depreciation projections using the unit of production depreciation method on budget books. Page 60 of 132 . You can run depreciation projection only for the current depreciation parameters set up in your system.Projecting Depreciation Expense Depreciation projections are estimates of actual depreciation expense. and prorate conventions for the periods for which you want to run the projection. enter production amounts for the periods for which you want to run the projection. Prerequisites Define fiscal years. you can run what-if depreciation using parameters that are not yet set up in your system. You can project depreciation expense for any depreciation book.
and all of them must use the same Account structure. The fiscal year name for the Calendar and each Book must be the same. You can summarize the results by year. For example. Oracle Assets prints a consolidated projection report without asset detail. or any other interval. you can choose a monthly or quarterly calendar. Page 61 of 132 . month. Check Cost Center Detail to print a separate depreciation projection amount for each cost center. 5. on up to four depreciation books at once. Otherwise. 2. You can enter a maximum of four books. 7. Save your work. Enter the Number of Periods for which you want to project depreciation. Navigate to the Depreciation Projections window. 4. Oracle Assets prints a consolidated projection report for each expense account without cost center detail. You can project depreciation expense for any number of future periods. 8. 6. 3. Enter the Book(s) that you want to include in your projection. Check Asset Detail to print a separate depreciation amount for each asset. Enter the Projection Calendar to specify how you want to summarize the projection. Enter the Starting Period for your projection.To project depreciation expense: 1. quarter. Otherwise.
Oracle Assets submits a concurrent process to calculate the projection, and automatically runs the Depreciation Projection Report.
Depreciation Projection Report
Use this report to review projected depreciation expense for your assets for each book you request. The report is sorted by, and prints the total depreciation for each balancing segment, cost center, and expense account. You can request report detail at the Cost Center and/or Asset level. Use the Depreciation Projections window to submit this report.
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Unplanned depreciation is a feature used primarily to comply with special depreciation accounting rules in Germany and the Netherlands. However, you also can use this feature to handle unusual accounting situations in which you need to adjust the net book value and accumulated depreciation amounts for an asset without affecting its cost. You can enter unplanned depreciation amounts by asset and book for any current period during the useful life of an asset. You can enter unplanned depreciation for an asset in both the corporate and/or tax books. When you enter unplanned depreciation, Oracle Assets immediately updates the year-to-date and life-to-date depreciation, and the net book value of the asset. The unplanned depreciation expense you enter must not exceed the current net book value (cost - salvage value - accumulated depreciation) of the asset. If necessary, you can enter multiple unplanned depreciation amounts, both positive and negative, in a single period, provided that the net amount does not exceed the current net book value of the asset. Thus, it is possible to enter unplanned amounts that back out depreciation taken in prior periods, including previously entered unplanned depreciation amounts. When you enter unplanned depreciation expense, you can choose in which period to begin amortization of the asset's remaining net book value. You can begin amortization in the current or a subsequent period, or you can choose not to amortize the remaining net book value. Note that if you do not amortize the unplanned depreciation or make an amortized adjustment in a subsequent period, the asset will be fully reserved before the end of the useful life. If you choose to amortize in a subsequent period, simply enter an unplanned depreciation amount of zero, and check the Amortize from Current Period check box. Oracle Assets will begin to amortize the remaining net book value as of that period. Oracle Assets uses the unplanned depreciation amount, in addition to regular depreciation, to calculate depreciation for the period in which you entered the unplanned depreciation. When you create journal entries for the general ledger, Oracle Assets posts the expense due to unplanned depreciation to the account you selected when you entered the unplanned depreciation for the asset.
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Enable Function Security You can enable or disable unplanned depreciation entry by responsibility if you want to allow or restrict user access to this function. View Unplanned Depreciation Amounts You can use the Financial Information inquiry windows to view the effects of the unplanned depreciation amounts you enter. Oracle Assets includes unplanned depreciation amounts in the current and prior period accumulated depreciation, year-to-date depreciation, and net book value amounts of the asset. The View Depreciation History window includes unplanned depreciation amounts in the depreciation expense per period for each asset and book. Note that unplanned depreciation amounts appear as ADJUSTMENT transactions. If you want to view unplanned depreciation amounts separately, use the Transaction Detail window. In this window, you can view the unplanned depreciation type and the unplanned depreciation expense account for each unplanned amount. Restrictions You cannot enter unplanned depreciation for assets shared between balancing segments. In other words, you cannot allocate unplanned depreciation amounts to specific distributions of an asset. Oracle Assets posts the unplanned depreciation expense only to the depreciation expense account you enter in the Unplanned Depreciation window. You cannot enter unplanned depreciation for assets depreciating under table-based methods. If you need to enter unplanned depreciation for an asset depreciating under a table-based method, you must first change the depreciation method to a method that is not table-based. You cannot make expensed adjustments to assets for which you have previously entered unplanned depreciation and have since amortized the amount. You may, however, perform expensed adjustments to the asset until you choose to amortize the unplanned depreciation amount. In addition, you cannot perform prior period retirements to assets having unplanned depreciation amounts. In addition, you
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000 114.000 90.000 30.000 96.27.000 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 1. Q2 Yr 2. Q3 6.cannot perform a mass change for assets that have unplanned depreciation. Q1 Yr 2.000 6.000 6.000 12.000 102.000 84.000 6. Examples Example 1: Unplanned Depreciation You place an asset in service with a life of five years.000 42. The calendar has four periods per year.000 DEM. and a cost of 120.000 0 0 0 0 0 0 0 6.000 24.000 6.000 36. Q2 Yr 1. You choose NOT to amortize the unplanned amount this period. Quarter 4 you enter an unplanned depreciation amount of 10.000 6. Q3 Yr 1. The depreciation method is straight-line. Q4 Yr 2.000 18. (Page 1 of 1) In Year 2. Q1 Yr 1.000 108.000 6.000 Table 1 . The following table shows quarterly depreciation amounts for the first seven quarters: Year of Life Net Book Value (Start of period) 120.000 DEM. There is no salvage value. Oracle Assets continues depreciating the asset taking the Page 65 of 132 .
000 20.000 64.000 6.000 56.000 10.000 88.000 112.000 50.000 6.000 6.000 2.000 62. Q2 Yr 5. Q1 Yr 3.000 70. Q4 Yr 5. Q1 Yr 4. the asset will be fully reserved before the end of the useful life.000 32.000 44.000 6. Q4 Yr 3.000 6.000 6.000 38.000 118.000 100. Q1 Yr 5.000 6.000 Page 66 of 132 . Q2 Yr 4.000 6.000 120.000 82. If you do not amortize the unplanned depreciation or make an amortized adjustment in a subsequent period.000 94.000 0 0 0 0 0 0 0 0 0 0 0 58.000 8.000 14.000 106. Q3 Yr 3.regular depreciation expense in subsequent periods until you choose to amortize the unplanned depreciation or make an amortized adjustment. Q3 6.000 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 2. Q3 Yr 4.000 6. The following table shows quarterly depreciation amounts for the last twelve quarters: Year of Life Net Book Value (Start of period) 78.000 76.000 6. Q4 Yr 4.000 26.000 6. Q2 Yr 3.
The calendar has four periods per year. Q4 Yr 3. but you choose to amortize the unplanned depreciation expense over the remaining life of the asset. The depreciation method is straight-line.000 0 0 0 0 30.Table 1 . Q1 Yr 3.166 0 0 0 10.000 62. and a cost of 120. Q3 Yr 3.499 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 2.167 68. starting in the period following the unplanned depreciation. Q4 6.501 78. Q1 Yr 2. There is no salvage value. Quarter 4.167 5.000 6.000 6.000 42. The following table shows quarterly depreciation amounts: Year of Life Net Book Value (Start of period) 96.666 46.334 73.167 5.000 58. Q2 Yr 3.833 51.000 36. Q2 Yr 2.000 63.000 84.000 56.000 90.167 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.000 78.28. You enter an unplanned depreciation of 10.667 Page 67 of 132 . Q3 Yr 2.000 DEM in Year 2.000 6.000 *5.000 DEM.
Quarter 1 = 62.832 20.168 99.499 10.666 15.167 DEM The asset is fully reserved at the end of the useful life. Q4 41.332 5. Oracle Assets amortizes the unplanned depreciation amount from the current period since you chose to amortize the unplanned depreciation from Year 2.167 5.165 5. Q2 Yr 4. Quarter 4 (See Example 2) for the same asset.333 36. which partially reverses the previous unplanned depreciation.501 109. Example 3: Upward and Downward Unplanned Depreciation Using the asset from the previous example. Q1 Yr 4.001 94.668 114.000 DEM in Year 4. Q2 Yr 5. Quarter 4.835 120. you enter another unplanned depreciation of -5.334 104.167 5.167 5.834 89.167 5. The following table shows quarterly depreciation amounts: Page 68 of 132 . Q4 Yr 5.167 5.166 5.000 * Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life For Year 3. Q1 Yr 5. Q3 Yr 4.Yr 4.165 0 0 0 0 0 0 0 0 83.167 5.166 30. Q3 Yr 5.999 25.000 / 12 = 5.
999 25.334 101.000 Table 1 . Q3 Yr 5. Q3 Yr 4.832 24.167 5.001 94.333 36. Quarter 1 = 24. Page 69 of 132 . Q1 Yr 5. The calendar has four periods per year. Example 4: Amortized Adjustment after Unplanned Depreciation You place an asset in service with a life of five years.167 6.165 0 0 0 <5.166 30.501 107.666 / 4 = 6.668 113. Q1 Yr 4. The depreciation method is straight-line. and a cost of 120. (Page 1 of 1) * Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life For Year 5.Year of Life Net Book Value (Start of period) 41.167 6. Q2 Yr 5.167 DEM The asset is fully reserved at the end of the useful life. Q4 Yr 5.165 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 4.30.332 6.499 12.168 95.167 *6.835 120.167 6.167 5. There is no salvage value.000> 0 0 0 0 83.000 DEM.666 18. Q2 Yr 4. Q4 5.834 89.166 6.
which you amortize from the following period. Q4 Yr 3. Q1 Yr 1.286 7.708 120.301 102.412 ***7.412 40.000 0 0 0 0 0 0 0 0 6.000 28.000 92.699 47.287 7.286 6.000 33.286 Unplanned Depreciation Accumulated Depreciation 0 0 10. The new cost is 150. Quarter 3.286 7.000 6.You enter an unplanned depreciation in Year 1.000 **5. The following table shows quarterly depreciation amounts: Year Net Book Depreciation of Value (Start Expense Life of period) Yr 1. Q2 Yr 2. Q3 Yr 1.433 7. Quarter 1.000 114. and then perform an amortized cost adjustment of 30.000 DEM in Year 2.000 DEM Page 70 of 132 . Q3 Yr 2.727 65.000 108.000 *116. Q1 Yr 2.986 55.000 6.580 36.000 DEM.560 91. Q4 Yr 4. new cost is 150.287 7.000 12.588 109. Q2 Yr 1.287 7.014 94.286 7. Q4 Yr 2.273 62. Q4 Yr 5.856 150. Q4 120.000 DEM and there is no catchup depreciation since this is an amortized adjustment.000 * Cost adjustment of 30.
and then perform an expensed cost adjustment. Note: If you choose to amortize unplanned depreciation in the current period.000 / 17 = 5. Oracle Assets automatically amortizes the cost adjustment as well as the unplanned depreciation amount.Accumulated Depreciation)/ Remaining Periods in Life For Year 2.412 DEM *** Depreciation Expense = (New Cost .** Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life For Year 1. Quarter 1. Oracle Assets will override the unplanned depreciation amount to expense the cost adjustment. Note: If you choose to expense an unplanned depreciation amount. and then perform a cost adjustment on the same asset in the same book. the depreciation expense per period is 92.000 33. You cannot expense the cost adjustment. the new depreciation expense is (150. Quarter 4. You can re-enter the unplanned depreciation for the asset later if necessary Page 71 of 132 .412) / 16 = 7.287 DEM Oracle Assets includes the unplanned depreciation amount when it calculates the accumulated depreciation.
In the Books window. Optionally enter a reason for the unplanned depreciation in the Comments field. You can use this field to find the transaction later if necessary. and choose the Books button. 3. Find the asset for which you want to enter unplanned depreciation. or to handle an unusual accounting situation. To enter unplanned depreciation for an asset: 1. enter a Book. You can enter unplanned depreciation for an asset in a corporate or tax book. you must enter it manually. If you want to enter the same unplanned depreciation in the tax book. Navigate to the Asset Workbench. 4. Page 72 of 132 .Entering Unplanned Depreciation for an Asset You can enter unplanned depreciation expense for an asset to comply with your country's accounting rules. When you enter unplanned depreciation. 2. Note: You cannot mass copy unplanned depreciation amounts from the corporate to the tax book. you can choose in which period to begin amortization of the asset's remaining net book value.
enter an unplanned depreciation amount of zero for the same asset and expense account. Choose Done to save your work Page 73 of 132 . for example a cost or life adjustment. the unplanned depreciation amount cannot exceed the net book value of the asset. in the period you want amortization to start.5. which includes the unplanned depreciation amount. Choose the unplanned depreciation Type. Unless you are entering unplanned depreciation for a credit asset. Oracle Assets amortizes the net book value starting in the period you perform this change. Choose the Unplanned Depr button to open the Unplanned Depreciation window. Oracle Assets begins amortizing the remaining net book value. 9. Check the Amortize From Current Period check box to amortize the unplanned depreciation starting in the current period. Attention: The value of this check box overrides the value of the Amortize Adjustment check box in the Books window. 10. Enter the amount of unplanned depreciation expense as a positive or negative currency amount. 6. 7. from the period you make the amortized adjustment. and check the Amortize From Current Period check box. 8. to the asset after entering an expensed or amortized unplanned depreciation. leave the check box unchecked if you want to amortize the remaining net book value in a subsequent period. Attention: If you make any amortized adjustment. Then. Enter the complete unplanned depreciation expense account. Alternatively.
defined as a flat amount or as a percentage. You can override this value if Page 74 of 132 . For assets using a straight-line depreciation method. Additions When you add an asset to a book. book. category.Depreciating Assets Beyond the Useful Life You can depreciate an asset in the years following its useful life if the asset uses a straight-line or flat-rate depreciation method. Oracle Assets depreciates the asset up to the salvage value during the normal useful life. If you do not specify an extended life in years. You can set up a default limit for each asset category. and range of dates in service in the Asset Categories window.000 yen with a depreciation limit of 1 yen has a recoverable cost of 100. an asset cost of 100.999 yen. If you add the asset using Detail Additions.1 = 99.000 yen with a depreciation limit of 95% has a recoverable cost of 100.000 .000 X 95% = 95. You must specify a depreciation limit. Oracle Assets calculates the recoverable cost using the following formula: Recoverable Cost = Cost X Default Depreciation Limit For example.000 yen. an asset cost of 100. 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. Then Oracle Assets continues to depreciate it. you can use the Set Extended Life window to control the amount of depreciation expense taken for each period. Oracle Assets calculates the recoverable cost using the following formula: Recoverable Cost = Cost . and date placed in service range for which you set up a default depreciation limit as an amount. When you add an asset for which you set up a default depreciation limit percentage. up to the depreciation limit you choose. Oracle Assets shows the recoverable cost in the Books window.Default Depreciation Limit For example. in periods after the useful life has ended.
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 . Oracle Assets continues to depreciate the asset until accumulated depreciation equals recoverable cost. By default.necessary.000 yen per year for the first nine years. If you add the asset using QuickAdditions or Mass Additions. Note: You cannot adjust the recoverable cost for assets that do not depreciate using the special depreciation limits. For these assets. Depreciation During Normal Useful Life During the normal useful life of the asset. the depreciation expense for this asset is (100.000 . unless the recoverable cost is less than the cost less the salvage value. you must use a straight-line or flatrate depreciation method for the asset. the amount of depreciation taken per fiscal year depends solely on the cost less the salvage value. Note that recoverable cost is calculated by (cost depreciation limit amount) or (cost X depreciation percent limit). you place in service an asset with a cost of 100. Regardless of the depreciation limit. Depreciation Depreciation Methods If you define a depreciation limit. Depreciation During Extended Life In the years following the useful life. the recoverable cost must equal (cost salvage value). You can adjust the recoverable cost at any time during the normal useful life of the asset. Oracle Assets automatically calculates the recoverable cost for the asset.000 yen and a salvage value of 1000 yen. This does not affect the depreciation expense during the normal useful life. The asset depreciates using a straight-line method and a nine year life.1000) / 9 = 11. For example.
To do this. specify the length of the extended life in years in the Set Extended Life window. (cost . you can control the depreciation expense taken per period in the extended life.life-to-date depreciation). 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.For assets depreciating under a straight-line method.000 yen Depreciation limit = 1 yen Useful life = 10 years Depreciation method = Straight Line Page 76 of 132 .000 yen Salvage value = 10. the corresponding formula is: Depreciation per period = min ( (recoverable cost .salvage value) / life in periods) ) For assets using a straight-line depreciation method.
000 90.31. when it is equal to the amount necessary to fully reserve the asset. If there are four periods per year and you are dividing depreciation evenly. In the 12th year.000 . (Page 1 of 1) Recoverable cost is (100. The depreciation expense per period remains the same in all but the last period of life.000 = (cost . In the 11th year.999 yen. Oracle Assets takes a depreciation expense of 2250 yen per period. the depreciation expense is 999 yen. 9999) Accumulated Depreciation (Yen) 9000 18.10. Thus Oracle Assets fully reserves the asset in the first period of this year.000 999 = less of (9000. Note that in the final year. Example 2 You place another asset in service as follows: Page 77 of 132 .999 Table 1 . 999) 99. 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 (9000.000 . depreciation expense is also 9000 yen for the year.salvage value) 99.1) = 99. For the first ten years. or 2250 yen per period.000 : 81.000) / 10 = 9000 yen. Oracle Assets takes an annual depreciation expense of (100.
000 90.000 = (cost . In the sixth year.000 Accumulated Depreciation (Yen) 90.32.000 Table 1 .000 270. If there are 12 periods per year and you divide depreciation evenly.000 X 95%) = 475.000 90.000 180. Oracle Assets takes an annual depreciation expense of (500. (Page 1 of 1) Recoverable cost is (500.000 yen. For the first five years.000) / 5 = 90. Example 3 You place a third asset in service as follows: Page 78 of 132 .000 yen.000 yen for the year.000 yen Depreciation percent limit = 95% Useful life = 5 years Depreciation method = Straight Line The example is illustrated by the following table: Year of Life 1 2 3 4 5 6 Annual Depreciation (Yen) 90.000 . the depreciation expense is 25.000 25.salvage value) 475.000 450.000 90.o o o o o Cost = 500.000 360. and 2500 yen in the fourth month. Oracle Assets takes depreciation expense of 7500 yen per period. Depreciation expense is 7500 yen per month for the first three months.50.000 yen Salvage Value = 50.000 90.
000 won Depreciation limit = 1. 900.000 900.000 900.600.000 4.999.000.200.000.000 400.100.000.600.000 3.000 Based on this information.000 400.000.000 3.000 1.000) is 3.000 400.000 NBV 1 2 3 4 3.000 .000 4.000 900.000.000 4.600.000) is 3.300.000 Salvage Value 400.000.000 2. You enter the number of years to depreciate the salvage value. three years.600.000.600.000/4) is 900. The recoverable cost (4.000 Table 1 .000.o o o o Cost = 4. The annual depreciation amount (3.000 3.000 Deprn Basis 3. Page 79 of 132 . for example. the depreciable basis (4. The depreciation over the useful life of the asset is illustrated in the following table: Year Cost (Won) 4. (Page 1 of 1) When the asset has completed its useful life.000 400.000 Annual Deprn.33.1.000.000 400.600.000 won Useful life = 4 years Salvage value = 400. you query the asset in the Set Extended Life window.000.
34.000 400.333 132.334 1. 5.000 4. 4. Navigate to the Books field. Enter the number of years over which you want to depreciate the salvage value. 2.000 Salvage Value 400.667 133. Navigate to the Set Extended Life window.000 400.000 4.The depreciation over the extended life of the asset is illustrated in the following table: Year Cost (Won) 4.334 NBV 5 6 7 266. 3.000 400.000 Deprn Basis 400.000.000 Table 1 . Save your work. Select the applicable book. Page 80 of 132 . 6. A list of values window appears containing the books in which you can set the extended life of the asset.000 Annual Deprn. 133.000. (Page 1 of 1) To set the extended life of an asset: 1. Query the asset for which you want to set the extended life by asset number or description.333 133.000.000 400.
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 .
You can specify to what detail to create journal entries. 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. Page 82 of 132 . and you can specify the detail level for each book and account type. Using the default assignments.Accounting Account Generator Oracle Assets uses the Account Generator to generate accounting flexfield combinations for which to create journal entries to your general ledger. Oracle Assets creates journal entries without cost center level detail. 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. The Account Generator gets the other segments from the default segment values you entered for the book. except for depreciation expense. The Account Generator allows you to designate a specific source for each segment in the account for which Oracle Assets creates a journal entry. depending on the account type. By default.
Asset Accounting Creating journal entries is a two step process: 1. run the depreciation program for each of your books. You can create journal entries for any period for which you have run depreciation for which you have not already created journal entries. Run the Create Journal Entries program to create journal entries to your general ledger. Running the depreciation program closes the current period and opens the next period. Page 83 of 132 . At the end of each accounting period. 2. Run it once for each period in each book for which you allow posting to the general ledger.
3. Page 84 of 132 . 4. asset cost. 1. Choose Submit to submit a concurrent process to create journal entries for your general ledger. Prerequisite Run the depreciation program for your depreciation book for this period. if you have set up the journal entry category for that transaction type for that book. Oracle Assets creates journal entries that summarize the activity for each account for each transaction type. Review the log file after the request completes. To create journal entries for the general ledger: Attention: The general ledger period for which you want to create journal entries must be open.Creating Journal Entries for the General Ledger Oracle Assets creates journal entries for depreciation expense. Oracle Assets automatically creates transaction journal entries for your general ledger. Choose Journal Entries:Standard from the Navigator. Enter the Book and the Period for which you want to create journal entries in the Parameters window. 2. and other accounts.
The create journal entries process creates journal entries for the appropriate general ledger set of books. You can review these journal entries in the general ledger and post them.
Adjusting Journal Entries
Prior Period Transactions Oracle Assets creates adjusting journal entries to depreciation expense and accumulated depreciation accounts when you enter prior period additions, transfers, or retirements:
For a prior period addition, Oracle Assets creates journal entries for the missed depreciation For a prior period transfer, Oracle Assets reverses a portion of the depreciation expense posted to the "from" depreciation expense account and posts it to the "to" depreciation expense account For prior period retirements, Oracle Assets creates journal entries that reverse the depreciation taken for periods after the retirement prorate date
Depreciation Adjustments Oracle Assets creates separate journal entries for adjustments to depreciation expense and current period depreciation. You can review the effect of your adjustment transaction and your current period depreciation expense separately in the general ledger.
Any General Ledger
You can create journal entries for any general ledger. If you do not use Oracle General Ledger, you can copy the journal entry information from the GL tables.
Oracle Assets Accounts
Oracle Assets creates journal entries for the following general ledger accounts:
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o o o o o o o o o o o o o o o o o
Accumulated Depreciation Asset Clearing Asset Cost CIP Clearing CIP Cost Cost of Removal Gain, Loss, and Clearing Deferred Accumulated Depreciation Deferred Depreciation Expense Depreciation Adjustment Depreciation Expense Intercompany Payables Intercompany Receivables Net Book Value Retired Gain and Loss Proceeds of Sale Gain, Loss, and Clearing Revaluation Amortization Revaluation Reserve Revaluation Reserve Retired Gain and Loss
Debit (Dr.) A debit to the asset cost, asset clearing, CIP cost, CIP clearing, depreciation expense, proceeds of sale clearing, or intercompany receivables account is an addition to the account. A debit to the accumulated depreciation, cost of removal clearing, or intercompany payables account is a subtraction from the account. In the journal entry examples, debits are in the left column. Credit (Cr.) A credit to the accumulated depreciation, cost of removal clearing, or intercompany payables account is an addition to the account. A credit to the asset cost, asset clearing, CIP cost, CIP
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clearing, depreciation expense, proceeds of sale clearing, or intercompany receivables account is a subtraction from the account. In the journal entry examples, credits are in the right column.
Reviewing Journal Entries
After sending journal entries from Oracle Assets to your general ledger, you can review or modify journal entries in your general ledger before posting them. If you integrate Oracle Assets with Oracle General Ledger, use the Enter Journals window in Oracle General Ledger to review, change or correct your entries. If you use a different general ledger, you can review or change entries in that general ledger.
Journal Entry Examples
This guide contains examples of asset transactions you can perform and the journal entries that Oracle Assets creates. The journal entries are for the period that the asset transaction was entered into Oracle Assets. Oracle Assets creates these journal entries when you run the Create Journal Entries program. The asset cost, accumulated depreciation, and year-to-date depreciation numbers in the following tables are end of quarter balances. The depreciation expense numbers are per period. Journal Entry Transaction Examples:
Journal Entries for Depreciation
When you run depreciation, Oracle Assets creates journal entries for your accumulated depreciation accounts and your depreciation expense accounts. Oracle Assets creates journal entries for your bonus reserve accounts and your bonus depreciation accounts, if any. Oracle Assets creates separate journal entries for current period depreciation expense and for adjustments to depreciation expense for prior period transactions and changes to financial information.
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00 Accumulated Depreciation 200. Oracle Assets Depreciation Expense Bonus Expense Bonus Reserve 200. For mass additions. Cr.Oracle Assets creates the following journal entries for a current period depreciation charge of $200 and a bonus charge of $50: Dr. Page 88 of 132 . Example: The recoverable cost is $4. Dr. the clearing account comes from your source system. Cr. Oracle Assets gets the clearing account from the category.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.000 and the method is straightline 4 years.00 50.00 50.
Asset Cost Depreciation Expense Depreciation Expense (adjustment) Asset Clearing 4. Asset Clearing 4.00 250. Cr.000.00 Oracle Assets .00 Payables System Dr. Dr.00 Accounts Payable Liability 4.CURRENT PERIOD ADDITION You place an asset in service in Year 1.000. Dr.00 250.00 1250. Quarter 1. Quarter 2. Cr.PRIOR PERIOD ADDITION Page 89 of 132 . but you do not enter it into Oracle Assets until Year 2. Your payables system creates the same journal entries to asset clearing and accounts payable liability as for a current period addition.00 250. Quarter 1.000. Dr.00 4. Dr.00 4.Current and Prior Period Addition You purchase and place the asset into service in Year 1. Cr. Cr. Asset Cost Depreciation Expense Asset Clearing 4.000.000.00 Accumulated Depreciation Oracle Assets . Cr.00 Accumulated Depreciation 1500. Dr.000.
000. Oracle Assets records the merge when you perform the transaction. the original cost of the invoice line remains on each line. Cr.000. so Oracle Assets creates the following journal entries: Dr.00 accounts payables clearing account) Asset Clearing (mass addition #2 1.00 CIP Clearing 4.Merge Mass Additions When you merge two mass additions. Asset Cost (mass addition #2 asset cost account) 4. (CIP assets do not depreciate) Dr. Oracle Assets does not change the asset clearing account journal entries it creates for each line. Oracle Assets creates journal entries for each asset clearing account. For example.000. CIP Cost 4. so each of the appropriate clearing accounts clears separately.00 Asset Clearing (mass addition #1 3. When you create an asset from the merged line. 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. the asset cost is the total merged cost. Payables System Construction-In-Process (CIP) Addition You add a CIP asset.00 accounts payables clearing account) Cr.000. you merge mass addition #1 into mass addition #2. As an audit trail after the merge. Cr. Oracle Assets creates journal entries for the asset cost account for the mass addition into which the others were merged.000.00 Oracle Assets Page 90 of 132 .
00 Accounts Payable Liability 4.00 4. You clear the accounts by either reversing the invoice in your payables system.000. Cr. Oracle Assets creates the following journal entries: Dr.00 4. Dr.00 Accumulated Depreciation Oracle Assets .00 Payables System Dr. Oracle Assets creates journal entries that transfer the cost from the CIP cost account to the asset cost account.000. Cr.00 250. Dr. Capitalization A capitalization transaction is similar to an addition transaction: you place the asset in service so you can begin depreciating it.CAPITALIZED IN PERIOD ADDED When you capitalize an asset in a period after the period you added it. Cr. Asset Cost Depreciation Expense CIP Cost Accumulated Depreciation 4. Cr.00 250. When you capitalize an asset in the period you added it.000. CIP Clearing 4.00 250. Asset Cost Depreciation Expense CIP Clearing 4.000. or creating manual journal entries in your general ledger.00 250.000. Dr.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. The clearing account has already been cleared.00 Page 91 of 132 . Cr.000.
00 4.CHANGE TYPE FROM CAPITALIZED TO CIP (CURRENT PERIOD) Page 92 of 132 . Oracle Assets creates journal entries to debit the CIP cost account and credit the asset clearing account. Oracle Assets does not create capitalization or reverse capitalization journal entries for CIP reverse transactions.000.00 Oracle Assets . Dr. Cr. CIP Cost Asset Clearing 4.000.Oracle Assets .CAPITALIZED AFTER PERIOD ADDED Asset Type Adjustments If you change the asset type from capitalized to CIP.
including a change in cost. Cr. Asset Clearing 800. Asset Cost 800. you receive an additional invoice for the asset and change the recoverable cost to $4. depreciation. Depreciation Expense Bonus Expense 300. or bonus rules.00 Page 93 of 132 . The life of your asset is 4 years. and you are using straight-line depreciation. Dr.00 Asset Clearing 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. In Year 1. Quarter 4. and cost.00 Accounts Payable Liability 800.00 Payables System Dr. ITC ceilings. salvage value. You can manually perform a cost adjustment in the Books window or in the Source Lines window. Quarter 1.Journal Entries for Adjustments Recoverable Cost Adjustments A cost adjustment includes any adjustment that affects the recoverable cost.00 120. depreciation expense.800.00 Oracle Assets Expensed Dr. The recoverable cost is $4. Cr. Dr. The bonus rate is 10%.000. You can automatically perform a cost adjustment by adding a mass addition to an existing asset using Mass Additions.
Cr. Dr.000. you change the depreciation method to straight-line. Dr. Cr.53 120.53 120. Cr. Quarter 1.EXPENSED Page 94 of 132 . Depreciation Expense Accumulated Depreciation Depreciation Expense (adjustment) 250.00 Oracle Assets . The recoverable cost is $4.00 60.000. Depreciation Expense (adjustment) Bonus Expense (adjustment) Bonus Reserve 150.00 1.EXPENSED Amortized Dr.00 750.00 Accumulated Depreciation 311.00 180. Cr. Depreciation Expense Bonus Expense Bonus Reserve 311. Quarter 1.00 Oracle Assets . In Year 2.AMORTIZED Depreciation Method Adjustments Example: You place an asset in service in Year 1. Expensed Dr. the life is 4 years. and you are using the 200 declining balance depreciation method. Cr.Dr.00 Oracle Assets .00 Accumulated Depreciation 450. Dr.
00 Oracle Assets .AMORTIZED Page 95 of 132 .67 Accumulated Depreciation 166. and you are using straightline depreciation.000. Depreciation Expense Accumulated Depreciation 200. Dr. In Year 2.AMORTIZED Life Adjustments Example: You place an asset in service in Year 1. you change the asset life to 5 years. Quarter 2. Expensed Dr.00 50. the life is 4 years. Quarter 1. Cr. Depreciation Expense 183. Cr.33 Oracle Assets .33 Accumulated Depreciation 183. The asset cost is $4.EXPENSED Amortized Dr.00 Depreciation Expense (adjustment) 250.Amortized Dr. Depreciation Expense 166.67 Oracle Assets . Cr.
000 barrels of oil from this well. Each quarter you extract 2. Cr. The recoverable cost is $4.00 4.EXPENSED Amortized Dr.000. the life is 4 years. In Year 1. You increase the production capacity to 50. Depreciation Expense 181. Quarter 4 you discover that you entered the wrong capacity. Quarter 1. Depreciation Expense Accumulated Depreciation Depreciation Expense (adjustment) 400.82 Oracle Assets .Capacity Adjustments Example: You purchase an oil well for $10.000 barrels of oil.AMORTIZED Journal Entries for Transfers and Reclassifications Example: You place an asset in service in Year 1. You expect to extract 10. Cr.00 Oracle Assets . Expensed Dr.000 barrels. Dr. This section illustrates the following journal entry examples: o Current Period Transfer Between Cost Centers Page 96 of 132 .400. and you are using straight-line depreciation.000.00 4.800.82 Accumulated Depreciation 181.
00 250. Cost Center 100 Dr. you discover that an asset was transferred in Year 3. Asset Cost Depreciation Expense 4. Quarter 3.00 Oracle Assets . Quarter 2. from cost center 100 to cost center 200.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 2.250.500.TRANSFER ASSET / CHARGE DEPRECIATION Prior Period Transfer Between Cost Centers In Year 3. Cr. Quarter 4. you transfer the asset from cost center 100 to cost center 200 in the current period. Page 97 of 132 .00 Accumulated Depreciation Oracle Assets .000. Accumulated Depreciation 1. Cr.000.00 1.00 Asset Cost 4.TRANSFER ASSET / CHARGE DEPRECIATION Cost Center 200 Dr. Dr.
Qtr.) Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 2..00 4.00 500.00 250.00 250.00 500.Q3 4.750.00 0.750.00 Y3.000.000.Q3 Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 0.Q2 Y3.Q4 0.Q2 4.00 2.00 750.00 250.TRANSFER ASSET / ADJUST AND CHARGE DEPRECIATION Page 98 of 132 . Accumulated Depreciation Asset Cost Depreciation Expense (adjustment) 2.00 500. Cr.00 0.) Y3.000.Q4 4.Qtr.00 0.00 Y3.00 Cost Center 200 Period (Yr.00* Y3.Q1 4.00 Y3.00 0.00 Cost Center 100 Dr..00 500.00 Depreciation Expense 250.00 Depreciation Expense 0.00 0.00 Oracle Assets .00 -250.000.000.00 3.Q1 Y3.00 0.00 0. Cr.000.00* Y3.00 250.00 0.Cost Center 100 Period (Yr.00 0.00 0.00 2.00 0.250.500.
00 Asset Cost 4.00 Accumulated Depreciation 3.00 250. Cr.00 Oracle Assets . Dr.TRANSFER ASSET / ADJUST AND CHARGE DEPRECIATION Current Period Transfer Between Balancing Segments In Year 3. Dr.750.250.00 250.00 250. Asset Cost Depreciation Expense 4.TRANSFER ASSET XYZ Distribution Dr.TRANSFER ASSET Page 99 of 132 .000.00 Intercompany Receivables 1. Cr.00 Intercompany Payables Oracle Assets .00 3. Quarter 4.000. Asset Cost Depreciation Expense Depreciation Expense (adjustment) Accumulated Depreciation 4. Accumulated Depreciation 2. Cr.000.000.Cost Center 200 Dr.00 Oracle Assets .00 1. you transfer the asset from the ABC Manufacturing Company to the XYZ Distribution Company.000.250. Cr. Dr. ABC Manufacturing Dr. Dr.
00 500.Q4 4.500. Quarter 3.00 4. from the ABC Manufacturing Company to the XYZ Distribution Company.500.00 500.000.00 0.250. Accumulated Depreciation Intercompany Receivables Asset Cost Depreciation Expense (adjustment) 2.00 Depreciation Expense 250.Prior Period Transfer Between Balancing Segments In Year 3.000.) Y3.Q4 0.00 Y3.000.00 1.00 XYZ Distribution Period (Yr.00 0.00 500.00 Y3.00 0.00 0.. Cr.00 0. Cr.ADJUST AND CHARGE DEPRECIATION Page 100 of 132 .00 0.00 2.) Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 2.00 0.00 -250.Q2 4.00 2.00 0.00 250.00 250..00 250.00 Oracle Assets .00 0.Q1 4.00 3.Q3 Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 0. Quarter 4.000.00* Y3. you discover that the asset was transferred in Year 3. ABC Manufacturing Period (Yr.00 Y3.00 500.00 Depreciation Expense 0.000.Qtr.750.00 ABC Manufacturing Dr.00 750.00 0.00 250.750.00 0.Q1 Y3.Q3 4.Qtr.00* Y3.Q2 Y3.000. Dr.
XYZ Distribution Dr. Dr. Dr. Cr. Cr. Asset Cost Depreciation Expense Depreciation Expense (adjustment) 4,000.00 250.00 250.00 1,500.00 Accumulated Depreciation 3,000.00 Intercompany Payables
Oracle Assets - ADJUST AND CHARGE DEPRECIATION
A unit adjustment is similar to a transfer, since you must update assignment information when you change the number of units for an asset. For example, you place the same $4,000 asset in service with two units assigned to cost center 100. In Year 2, Quarter 3, you realize the asset actually has four units, two of which belong to cost center 200. Cost Center 100 Dr. Cr. Accumulated Depreciation 750.00 Asset Cost 2,000.00
Oracle Assets - ADJUST UNITS
Cost Center 200 Dr. Cr. Asset Cost 2,000.00
Accumulated Depreciation 750.00
Oracle Assets - ADJUST UNITS
Page 101 of 132
Note: If all units remain in the original cost center, Oracle Assets does not create any journal entries.
Example: You reclassify an asset from office equipment to computers in Year 1, Quarter 3. The asset cost is $4,000, the life is 4 years, and you are using straight-line depreciation. When you reclassify an asset in a period after the period you entered it, Oracle Assets creates journal entries to transfer the cost and accumulated depreciation to the asset and accumulated depreciation accounts of the new asset category. This occurs when you create journal entries for your general ledger. Oracle Assets also changes the depreciation expense account to the default depreciation expense account for the new category, but does not adjust for prior period expense.
Period (Yr., Qtr.) Asset Cost Accumulated Depreciation 250.00 500.00 0.00 0.00 Yr-to-Date Depreciation 250.00 500.00 500.00 500.00 Depreciation Expense 250.00 250.00 0.00* 0.00
Yr1,Q1 4,000.00 Yr1,Q2 4,000.00 Yr1,Q3 Yr1,Q4 0.00 0.00
Page 102 of 132
Period (Yr.,Qtr.) Yr1,Q1 Yr1,Q2 Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 0.00 0.00 0.00 0.00 750.00 1,000.00 0.00 0.00 250.00 500.00 Depreciation Expense 0.00 0.00 250.00* 250.00
Yr1,Q3 4,000.00 Yr1,Q4 4,000.00
Office Equipment Dr. Cr. Accumulated Depreciation 500.00 Asset Cost 4,000.00
Oracle Assets - TRANSFER COST AND ACCUMULATED DEPRECIATION
Computers Dr. Dr. Cr. Asset Cost Depreciation Expense 4,000.00 250.00 Accumulated Depreciation 750.00
Oracle Assets - TRANSFER COST AND ACCUMULATED DEPRECIATION
Page 103 of 132
Oracle Assets also creates journal entries to clear the proceeds of sale and cost of removal. In this case. Oracle Assets reverses the year-to-date depreciation if the asset's depreciation method does not depreciate it in the year of retirement.Journal Entries for Retirements and Reinstatements When you retire an asset and create journal entries for that period. Depreciation for Retirements The retirement convention. net book value retired. Oracle Assets creates journal entries for either the gain or the loss accounts for the following components: proceeds of sale. and computes the gain or loss using the resulting net book value. If the depreciation method takes depreciation in the year of retirement. cost of removal. when you perform a full retirement. date 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. and depreciation method control how much depreciation Oracle Assets takes when you retire an asset. and revaluation reserve retired. Oracle Assets creates journal entries for your general ledger for each component of the gain/loss amount. Oracle Assets reverses the year-to-date depreciation of the asset. If you enter distinct gain and loss accounts for each component of the gain/loss amount. For partial retirements. Oracle Assets creates journal entries for the retirement accounts you set up in the Book Controls window. 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. 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. Page 104 of 132 .
This additional depreciation is the depreciation that would have been taken if you had not retired the asset. Then Oracle Assets reverses the extra depreciation that it took at retirement. If your depreciation method multiplies a flat-rate by the cost. however. unless you perform it in the same period that you retired the asset. and waits until the appropriate accounting periods to take it. Oracle Assets depreciates the remaining fraction of the asset's net book value as of the beginning of the fiscal year. Page 105 of 132 .When you perform a partial retirement. Oracle Assets depreciates the portion of the asset you did not retire based on the method you use. Oracle Assets usually calculates some additional depreciation expense in the period in which you perform the reinstatement. a reinstatement results in a reversal of depreciation. date retired. When you reinstate a retired asset. This occurs if the retirement convention caused some additional depreciation when you retired the asset. Sometimes. Depreciation for Reinstatements The retirement convention. and period in which you reinstate an asset control how much depreciation Oracle Assets calculates when you reinstate an asset. Oracle Assets depreciates the asset's cost remaining after a partial retirement. and then you reinstate the asset before the retirement prorate date. For assets that use a diminishing value method.
000. Cr. you sell the asset for $2.00 1.00 2. Cr.00 4.000.00 500. Cr.500.00 500. Dr. Dr.00 Proceeds of Sale Clearing 2.000. Dr. The cost to remove the asset is $500. Cr.500.00 Payables System Dr. Quarter 3. Cost of Removal Clearing 500.Current Period Retirements Example: You place an asset in service in Year 1. The asset cost is $4. Receivables System Accounts Receivable 2. The asset uses a retirement convention and depreciation method which take depreciation in the period of retirement. Cr. Cr.000. Accumulated Depreciation Proceeds of Sale Clearing Cost of Removal Gain Revaluation Reserve Net Book Value Retired Gain Asset Cost Proceeds of Sale Gain 2. Dr. Dr.00 Dr.00 600.000.MULTIPLE GAIN/LOSS ACCOUNTS Page 106 of 132 .00 600.00 2.00 Cost of Removal Clearing Revaluation Reserve Retired Gain Oracle Assets . In Year 3. the life is 4 years.000. You retire revaluation reserve in this book.00 Accounts Payable 500.000. and you are using straightline depreciation. Quarter 1.
for $2. Accumulated Depreciation Proceeds of Sale Clearing Revaluation Reserve Asset Cost 2.000.00 600. Oracle Assets creates a single journal entry for the net gain or loss.000. and you are using straightline depreciation. The removal cost was $500.If you enter the same account for each gain and loss account.SINGLE GAIN/LOSS ACCOUNT Prior Period Retirement Example: You place an asset in service in Year 1. Dr.000. Dr.00 500.00 600. you discover that the asset was sold in Year 3. Quarter 1. Quarter 3. Cr. In Year 3.00 2. Cr. Quarter 1.500. Cr. The asset cost is $4. the life is 4 years. 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 4.00 Cost of Removal Clearing Gain/Loss Oracle Assets . The asset uses a retirement convention and depreciation Page 107 of 132 .000.
750. net book value retired. Cost of Removal Clearing 500. Dr.000.00 Accounts Payable 500. and revaluation reserve retired.00 2.500. Dr.000.00 500.000. Oracle Assets creates journal entries for the reinstatement to debit asset cost. Oracle Assets reverses the journal entries for proceeds of sale.00 Payables System Dr.00 1. Cr.00 Dr. Cr. Dr. Cr. and reverse the gain or loss you recognized for the retirement. Cr. Cr. Receivables System Accounts Receivable 2.00 4.00 250.00 Proceeds of Sale Clearing 2. Accumulated Depreciation Proceeds of Sale Clearing Cost of Removal Loss Net Book Value Retired Loss 2.000.method which allow you to take depreciation in the period of retirement.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.000.00 500.00 2. credit accumulated depreciation. Dr. Cr. Oracle Assets also reverses the Page 108 of 132 . cost of removal.
Dr. Dr.750.00 500. The asset cost is $4.00 250.00 2. In Year 2. you retire the asset.750. Dr.00 Proceeds of Sale Clearing 2.000.000.000.00 2. Quarter 1. In Year 2. Dr. Dr. Quarter 4.00 2. Cr. Cr.00 Page 109 of 132 . Cr.00 500. Dr.00 Revaluation Reserve 600.000. Dr. Oracle Assets Asset Cost Cost of Removal Clearing Proceeds of Sale Loss Depreciation Expense Depreciation Expense (adjustment) 4.00 Accumulated Depreciation 2. Dr. the life is 4 years.00 Net Book Value Retired Loss Cost of Removal Loss Proceeds of Sale Clearing Accumulated Depreciation 2. Cr. Dr. you realize that you retired the wrong asset so you reinstate it.journal entries you made to clear the proceeds of sale and cost of removal.000.00 500. Cr.000.000.00 250. Oracle Assets Asset Cost Cost of Removal Clearing Gain / Loss Depreciation Expense 4. Quarter 1. Cr. Cr. 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. and you are using straightline depreciation.00 500.00 600.
Oracle Assets creates journal entries to catch up any missed depreciation expense. it is fully reserved upon addition. and the asset is immediately reinstated. and the asset is reinstated when you process retirements. PROCESSED Asset Retirement When you reinstate an asset retired in a previous accounting period or already processed in the current period. 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. Oracle Assets creates all other journal entries associated with retiring a capitalized asset. Therefore. even if you assigned the asset a depreciation method that backs out all depreciation in the year of retirement.Assets Fully Reserved Upon Addition If you add an asset with an accumulated depreciation equal to the recoverable cost. However. Oracle Assets does not back out any depreciation. the retirement transaction is deleted. 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. No journal entries are created. However. Page 110 of 132 . it creates all the other journal entries associated with retiring a capitalized asset. and does not remove the accumulated depreciation. the existing retirement transaction gets a new Status REINSTATE. When you retire it.
You can change the budget amounts for your existing budget assets at any time. To prepare the budget book for budget information: o Open the Upload Capital Budgets window and enter a new budget Book name. Then you can project depreciation expense for each category you entered. or for each major category. You must delete the existing budget before uploading a new capital budget from a spreadsheet. Page 111 of 132 . You can enter budget information for each full category combination. Attention: The budget book must use the same calendar as its associated corporate book so you can compare actual and budgeted spending. you can enter or upload capital budget information. Use the budget reports to review your capital budgets.Capital Budgeting Budgeting for Asset Acquisition After you create a budget book.
2. 4. Choose Delete Existing Budget. Open the Upload Capital Budgets window. Enter the name of your budget Book.To delete a budget: 1. 3. Save your work. Page 112 of 132 .
5. 2. asset Category. Enter or update the budget amounts for this period. The budget amount is the amount you plan to spend on new assets in this category in this period for this expense account.To manually enter or update a budget: 1. Open the Capital Budgets window. 3. Save your work. 4. and general ledger Expense Account for which you want to budget. Page 113 of 132 . Review the capital budget for the year using the Budget Report. Choose the budget Book.
Steps in the Capital Budgeting Process 1. Budget Open Interface If you maintain your budget information in a spreadsheet. Load your budget information into the budget interface from a feeder system. 7. You can transfer budget data from any software package that prints to an ASCII file. 4. and then use SQL*Loader to load the FA_BUDGET_INTERFACE table. Choose Create Budget Assets. Oracle Assets creates a budget asset for each category. 2. Return to the Upload Capital Budgets window and choose Upload Capital Budget. you can upload it to Oracle Assets using the budget interface. Open the Upload Capital Budget window. Enter the name of your budget Book. Save your work. and budget amount you enter for each period in the Capital Budgets window. 3. expense account. Enter the name of your budget Book. To create budget assets in a budget book: 1. 5. Choose Delete Existing Budget to remove your old budget.To automatically upload a budget: 1. Page 114 of 132 . 6. 4. 3. 2. Save your work. The period is determined by the calendar you assigned to the budget book. Develop your budget in the environment you prefer. Save your work. Open the Upload Capital Budget window.
5. Page 115 of 132 . 3. Use SQL*Loader to move your budget data into the budget interface.2. Use the Upload Capital Budget window to move your budget into the budget worksheet. 4. Transfer your budget data from the system where you maintain your budget to the system where you have Oracle Assets. Run depreciation projections and other reports on your budget book. Use the Upload Capital Budget window to move your budget into a budget book. 6.
About Physical Inventory The Physical Inventory feature in Oracle Assets assists you in comparing and reconciling your physical inventory data. which can be either the asset number. or you can use the Record Physical Inventory process in the Applications Desktop Integrator (ADI). or by running the Physical Inventory Comparison Report. such as a description of each asset. which allows you to import data from an Excel spreadsheet. or you can use the mass additions process to add assets that are missing from the production system. 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. 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. tag number. you run the Physical Inventory comparison program. When you finish entering physical inventory data into Oracle Assets. To use the Physical Inventory feature. This program compares your physical inventory data with your Oracle Assets data for all assets that have the In Physical Inventory check box checked. Page 116 of 132 . but only the information listed above is required. 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. You need to include the following information about your assets: o A unique identifier. you must first take physical inventory of your assets. You can also use SQL*Loader to import physical inventory data from a non-Oracle file system. You load your physical inventory data into Oracle Assets using the Physical Inventory Entries window.
Page 117 of 132 . Enter the inventory name (for example. Navigate to the Physical Inventory window. Run the Physical Inventory Comparison program 7. 3. Run the Missing Assets Report. 8. 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. which lists all assets that have not been accounted for in the physical inventory process. Change Oracle Assets data to reconcile with the physical inventory data and ensure you have accounted for all assets. and a unique identifier. 9. 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. Save your changes. you can run the Missing Assets Report. Analyze the report results. Q2 Physical Inventory USA) and the start date. or SQL*Loader 6. Entering an end date indicates that the physical inventory is complete. 4. number of units. Load the physical inventory data into Oracle Assets using the Physical Inventory window. To gather and reconcile physical inventory information: 1. 2. the Record Physical Inventory process in ADI.When you have completed your physical inventory. so you should not enter an end date until you have completed all physical inventory tasks. Run the Physical Inventory Comparison Report or review the results online using the Find Physical Inventory Comparison window. 5. 10.
If an asset number has been provided. or serial number. the program continues the comparison by determining whether the Page 118 of 132 . If you do not enter either of these parameters. the comparison program searches the Oracle Assets production system for a matching asset number. the comparison program compares all assets in the physical inventory with the assets in your production system. tag number.11. If it finds a matching asset number. you must change the status of that entry back to NEW in the Inventory Entries window. or both. navigate to the Run Comparison window. Note: The Physical Inventory Comparison program only compares physical inventory entries with a status of NEW. During the comparison. You must enter the name of the physical inventory being compared. The matching unique identifier can be either the asset number. the category. The program first determines whether the physical inventory data includes an asset number. the comparison program attempts to match each asset in the physical inventory data to an asset in the production system. Purge the physical inventory data. It begins the comparison by searching for matching unique identifiers. if you want to narrow the search criteria. Physical Inventory Comparison Program To run the Physical Inventory Comparison program. You can also enter either the location. If an entry has been compared and you want it to be compared again.
the program determines whether a serial number has been recorded for the asset. If they do not match. the program attempts to match the asset using other criteria. and. If so. the comparison program updates the FA_INV_INTERFACE table. if the program cannot find a matching identifier in the Oracle Assets production system. If none of the three unique identifiers are present for that asset. In both cases. or serial number). tag number. the program updates the status of that asset to DIFFERENCE. the program searches the Oracle Assets production system for a matching tag number. After completing the comparison. that you include at least one of the three unique identifiers for each asset in physical inventory. 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. If they do not match. it searches the Oracle Assets production system for a matching serial number. such as description and asset key CCID. it terminates the comparison for that asset and continues on to the next asset. If there is a tag number. Therefore. the program next determines whether the physical inventory data includes a tag number. if the program finds a match. it will continue the comparison to determine whether the location and number of units match. Note: When the program attempts to match assets using criteria other than the three unique identifiers. indicating the assets in physical inventory that cannot be reconciled with the assets in Oracle Assets. if necessary. If an asset number has not been recorded as part of the physical inventory. In both cases. if the physical inventory data includes neither an asset number nor a tag number. the type of adjustment that needs to be made Page 119 of 132 . 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. Similarly. the matching criteria may not be unique and the program may not be able to uniquely identify an asset.location and number of units match. it terminates the comparison for that asset and continues on to the next asset.
(either a unit adjustment or location adjustment). one of the other status codes described in the Units Reconciliation table will be assigned to the 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. the asset will automatically have a status of RECONCILED. or by running the Physical Inventory Comparison Report. and the asset meets the other requirements for inclusion in the physical inventory process. If there are no differences between the Oracle Assets data and the physical inventory data for a particular asset. Page 120 of 132 . If there are differences between the Oracle Assets data and the physical inventory data for a particular asset.
Supplier Site.Fixed Asset Insurance Fixed Asset Insurance Window Reference Assets Region Asset Number. Enter the supplier site for the insurance company. Enter a valid insurance company name. Contains the asset key of the asset on which you queried. Enter the method of calculation to use for this asset insurance: o Value as New . Description. The company address for the supplier site displays automatically. Page 121 of 132 . Calculation Method. Contains the asset depreciation book of the asset on which you queried. Asset Book.the base insurance value. Tag Number. Insurance Company. Asset Key. 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. Contains the description of the asset on which you queried. Contains the tag number of the asset on which you queried. Contains the asset number of the asset on which you queried. Enter the insurance policy number. Address. Policy Region Policy Number. which can be indexed annually.
o Market Value . Base Index Date. enter the date the asset was placed in service. by updating the Current Value field and recording the effective date for this new valuation in the Base Index Date field. Page 122 of 132 . The insurance company may provide a new series of indexation factors to be applied to the asset. which can be indexed annually. If the Base Index Date is set to a date in the future. If the asset is a Swiss special-case asset. Special Swiss Asset. The Base Index Date must be one of the following: o For new assets. If an asset is marked as a Swiss special asset. Manual Value . Enter the date that is used as the base date for indexation.the current market value. the insurance value will not be indexed again until that date is reached. calculated as the base insurance value less depreciation. 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. check the Special Swiss Asset check box. 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. The period up to this date represents a manual maintenance period for the asset. The Calculation Method must be the same for all occurrences of the same insurance policy. You can record this by defining a new Price Index and then updating the Insurance Index field. and Base Index Date for the asset to reflect the reassessment of the insurance value by the insurance company. Insurance Index. you will be able to update the Current Insurance Value. Record the new insurance value provided by the insurance company. the Calculation Method automatically defaults to the method that was defined on the existing policy.a value you enter manually. This field will not be enabled unless you have set the profile option FA: Allow Swiss Special Assets to Yes. This calculation method allows you to update the Current Value field.
This represents the date the optional indexation of the manual value begins. Oracle Assets displays the current cost of the asset. retirements. o Current Value. enter the original date of construction of the asset. and so on. but you do not want indexation adjustment factors to be used. the Base Insurance Value field is disabled because the Base Insurance Value is not used. Enter the name of the price index that is used to calculate the annual adjusted insurance value. The value is disabled because the Base Insurance Value is not used in this asset insurance calculation. The value displayed depends upon the calculation method: Page 123 of 132 . you should maintain the insurance value manually o o Insurance Index. enter the original construction cost of the asset. Enter one of the following: o For new assets. If you want the Insurance Calculation process to automatically take account of cost adjustments. but do not enter an Insurance Index. then enter a value in the Base Index Date field. you can enter a maintenance date. Enter the base insurance value of the asset as defined in the insurance policy. For updated Swiss assets. For assets purchased second-hand. you can manually enter a Current Value. Base Insurance Value. unless you chose the Manual Value calculation method or your asset is flagged as a Swiss special-case asset. For Current Market Value assets.o For assets purchased second-hand. For the Manual Value calculation method. Until this date. instead. For Value as New assets. the value is shown in this field but is disabled. For Manual Value assets. This field displays the current insurance value of the asset. the insurance value is derived from the asset net book value. record the date on which automatic indexation of the insurance value will begin again. instead. you can overwrite this default with another value. calculated automatically.
For Swiss Assets with a calculation method of Current Market Value. For Manual Value. and then follows the Value as New calculation method. indexation of the manual value begins with this date. Also note that the calculated Current Value for Swiss Assets can be manually updated. If you enter a maintenance date for the asset in the Base Index Date field. 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 calculated value will be the same as for all other assets. such as adjustments or retirements. Enter the amount for which the asset is insured under that policy. Page 124 of 132 . or Market Value. 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). such as adjustments or retirements.o For Value as New. 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. Last Indexation Date. that affect the asset value. The information in this field is for reference only and is not used in the Oracle Assets calculations. the value displayed can be updated. This value will also be updated to account for transactions. This field displays the end date of the closed depreciation period for which the indexation process was last run. that affect the asset value.
Page 125 of 132 . Use the Maintenance button to launch the Fixed Asset Insurance Policy Maintenance window.Buttons Maintenance.
Use the Lines button to launch the Fixed Asset Insurance Policy Lines window Page 126 of 132 .Lines.
Online Inquiries Use the Financial Information windows to view descriptive and financial information for an asset. You can review the transactions. Page 127 of 132 . To view descriptive and financial information for an asset: 1. Invoice. and cost history of the asset you select. You can enter search criteria in one or more tabbed regions. query by asset number or tag number since they are unique values. depreciation. and/or Category. as your search criteria. Note: For best performance. or Project. Assignment. Lease. Find by Asset Detail: Enter asset descriptive information. Choose Inquiry > Financial Information from the Navigator window. 2. such as Asset Number. In the Find Assets window. Description. or Warranty Number. you can use the poplist to Find assets by Detail.
quantity. 4. Find by Lease: Enter lease information as your search criteria. Choose Source Lines to view source line information. The View Assets window shows you detail information for the asset(s) you query. supplier. 3. and lists. expenditure organization. item date. click on the asset you want to review and choose the Assignments button.Find by Assignment: Enter assignment information as your search criteria. To view the current assignment(s) for an asset. as your search criteria. you must enter a Book first. Find by Source Line: Enter invoice information. check a transaction and choose Details to open the Transaction Detail window. and nonlabor organization. CIP cost. Oracle Assets displays the Project Number and Task Number of the asset. such as Supplier and/or Invoice Number. by depreciation book. The Asset Line Details window includes the following project information for your asset: expenditure type. To view individual transaction details for this asset. financial information for the asset. Choose the Find button to query the asset(s) you want to review. non-labor resource. Choose Transactions to review transaction history of this asset in the Transaction History window. employee. Page 128 of 132 . If the asset was created from capital asset lines in Oracle Projects. If you want to search using the Expense Account. or project information. 5. Choose the Project Details button to view detail project information about the asset. The View Financial Information window includes the asset you choose in the title. Choose the Books button to view financial information for the asset. such as Project Number and/or Task Number. 6.
You can also choose to view the detail accounting as t-accounts.Choose Depreciation to review depreciation history for this asset..e. Choose Cost History to review cost history of this asset. debits equal credits). Note: You can view the detail accounting lines for the transaction in the form of a balanced accounting entry (i. not the ADDITION transaction. Note: If you change any information except cost for the asset in the period you added it. Page 129 of 132 . the Cost History window shows you the ADDITION/VOID transaction.
e. From the poplist that appears after you choose the Alternate Currency button. For example.g. debits equal credits). 2. you can choose to view the detail accounting lines for the queried transaction in the form of a balanced accounting entry (i. You can also choose to view the detail accounting as t-accounts. if you are viewing the accounting in your primary functional currency (e. To view accounting lines: 1.Viewing Accounting Lines When you query a transaction in Oracle Assets. you can switch to EUR (reporting functional currency). 3. choose the primary or reporting set of books whose transactions you want to view. The View Transaction Page 130 of 132 . Choose View Accounting from the Tools menu.. BEF). Query the transaction for which you want to view accounting lines. choose the Alternate Currency button to view the accounting using an alternate currency.. Use these features to see how a transaction will affect the account balances in your general ledger. (Optional) If your organization uses Multiple Reporting Currencies.
You can easily customize the information that is displayed in the window. When customizing the View Transaction Accounting window. (Optional) To view the accounting detail as t-accounts. 4. View Accounting Windows The View Transaction Accounting window is a folder. the system displays additional information at the bottom of the View Transaction Accounting window. When you select a detailed accounting line. 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. Page 131 of 132 .
To perform a transaction history inquiry: 1. Choose Find. Choose Inquiry > Transaction History from the Navigator window.e. enter search criteria for your inquiry. 4. You can also choose to view the detail accounting as t-accounts. You can optionally enter other search criteria. In the Find Transactions window. including Periods. accounting period. To view details. or range of assets.Performing a Transaction History Inquiry Use the Transaction History windows to review all the transactions for any book. transaction type. You must enter a Book and Reference Number or Asset Numbers to query a transaction history. check an asset and then choose the Details button. 2. You can see a summary of the transactions for the asset. Transaction Type.. Page 132 of 132 . Note: You can view the detail accounting lines for the transaction in the form of a balanced accounting entry (i. debits equal credits). 3. and Category.
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