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

)

Author: Creation Date:

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

APPROVALS
TALAL ABU GAZALEH REPRESENTATIVE ABDUL SAMAD AL QURASHI REPRESENTATIVE
PM: Mazen AL Wahsh PM: Khaled Sheasha

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Table Of Contents
OVERVIEW OF ASSETS WORKBENCH....................................................................4 ASSETS DETAILS............................................................................................................4 ASSET DESCRIPTIVE DETAILS..........................................................................................4 DEPRECIATION RULES (BOOKS).......................................................................................9 ASSIGNMENTS.................................................................................................................15 SOURCE LINES................................................................................................................18 CONSTRUCTION-IN-PROCESS (CIP) ASSETS...................................................................19 ASSET SETUP PROCESSES (ADDITIONS)..............................................................19 ADDING AN ASSET ACCEPTING DEFAULTS (QUICK-ADDITIONS)..................................20 ADDING AN ASSET SPECIFYING DETAILS (DETAIL- ADDITIONS)..................................21 ENTERING FINANCIAL INFORMATION (DETAIL ADDITIONS CONTINUED)......................22 ASSIGNING AN ASSET (DETAIL ADDITIONS CONTINUED)..............................................24 OVERVIEW OF THE MASS ADDITIONS PROCESS..............................................25 CORRECTING CURRENT PERIOD ADDITION ERRORS....................................28 CHANGING ASSET DETAILS.....................................................................................30 CHANGING FINANCIAL AND DEPRECIATION INFORMATION.....................31 CHANGING FINANCIAL INFORMATION FOR A SINGLE ASSET...........................................32 CHANGING FINANCIAL INFORMATION FOR A GROUP OF ASSETS (MASS CHANGE)........33 RECLASSIFYING ASSETS...........................................................................................35 RECLASSIFYING A SINGLE ASSET TO ANOTHER CATEGORY..........................................35 RECLASSIFYING A GROUP OF ASSETS............................................................................36 ADJUSTING UNITS FOR AN ASSET.........................................................................40 TRANSFERRING ASSETS............................................................................................40 TRANSFERRING A SINGLE ASSET....................................................................................41 TRANSFERRING A GROUP OF ASSETS..............................................................................42 TRANSFERRING INVOICE LINES BETWEEN ASSETS........................................................43 CHANGING INVOICE INFORMATION FOR AN ASSET......................................45

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ASSET RETIREMENTS................................................................................................46 ABOUT RETIREMENTS....................................................................................................46 PARTIALLY OR FULLY RETIRING AN ASSET....................................................................50 RETIRING A GROUP OF ASSETS.......................................................................................51 CORRECTING RETIREMENT ERRORS (REINSTATEMENTS)..............................................54 CALCULATING GAINS AND LOSSES FOR RETIREMENTS.................................................55 MASS RETIREMENTS REPORT AND MASS RETIREMENTS EXCEPTION REPORT .............56 DEPRECIATION............................................................................................................57 DEPRECIATION CALCULATION.......................................................................................57 RUNNING DEPRECIATION...............................................................................................58 PROJECTING DEPRECIATION EXPENSE...........................................................................60 DEPRECIATION PROJECTION REPORT ............................................................................62 UNPLANNED DEPRECIATION...........................................................................................63 ENTERING UNPLANNED DEPRECIATION FOR AN ASSET ................................................72 DEPRECIATING ASSETS BEYOND THE USEFUL LIFE ......................................................74 ACCOUNTING................................................................................................................82 ACCOUNT GENERATOR...................................................................................................82 ASSET ACCOUNTING......................................................................................................83 CREATING JOURNAL ENTRIES FOR THE GENERAL LEDGER...........................................84 JOURNAL ENTRIES..........................................................................................................85 CAPITAL BUDGETING..............................................................................................111 BUDGETING FOR ASSET ACQUISITION..........................................................................111 BUDGET OPEN INTERFACE...........................................................................................114 ABOUT PHYSICAL INVENTORY ...........................................................................116 PHYSICAL INVENTORY COMPARISON PROGRAM .........................................................118 FIXED ASSET INSURANCE.......................................................................................121 ONLINE INQUIRIES...................................................................................................127 VIEWING ACCOUNTING LINES......................................................................................130 VIEW ACCOUNTING WINDOWS....................................................................................131 PERFORMING A TRANSACTION HISTORY INQUIRY.......................................................132

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

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

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

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

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

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

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

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

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

Page 13 of 132 . the default date is the first day of the open period. The depreciation method must already be defined for the life you enter. If the calendar date is after the current open period. Accept this date. and the accumulated depreciation is recalculated accordingly. You cannot enter a date placed in service before the oldest date placed in service you specified in the System Controls window. Oracle Assets treats it as a financial adjustment. the default date placed in service is the calendar date you enter the asset.Method Type Related Fields Calculated or Table Life in Years and Months Calculated or Table Bonus Rule Flat-Rate Flat-Rate Flat-Rate Basic Rate Adjusted Rate Bonus Rule Units of Production Unit of Measure Units of Production Capacity Units of Production Year-to-Date Production . If the calendar date is before the current open period. the default date is the last day of the open period.display only Units of Production Life-to-Date Production . or enter a different date placed in service in the current accounting period or any prior 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. If you change the date placed in service after depreciation has been processed for an asset.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.

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

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

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

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

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. 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. adjust the cost of an existing line. including sources such as invoice lines from your accounts payable system and capital assets from Oracle Projects. You cannot change invoice information if the line came from another system through Mass Additions.Source Lines You can track information about where assets came from. For example. You also can transfer lines between assets. or delete a line for a CIP asset. you can manually add a line.

you can place it in service and begin depreciating it. When you finish building the CIP asset. and the remaining asset information defaults from the asset category. and the date placed in service. or you can track detailed information about your CIP assets in Oracle Projects. Detail Additions Use the Detail Additions process to manually add complex assets which the QuickAdditions process does not handle: o Assets that have a salvage value o o o Assets with more than one assignment Assets with more than one source line Assets to which the category default depreciation rules do not apply Page 19 of 132 . book. you do not need to track them in Oracle Assets. it does not depreciate.Construction-in-Process (CIP) Assets A construction-in-process (CIP) asset is an asset you construct over a period of time. You can track CIP assets in Oracle Assets. You create and maintain your CIP assets as you spend money for raw materials and labor to construct them. You can enter minimal information in the QuickAdditions window. Since a CIP asset is not yet in use. If you use Oracle Projects to track CIP assets. 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.

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. or information from any other feeder system using the interface. asset information from another assets system. Adding an Asset Accepting Defaults (QuickAdditions) Page 20 of 132 . You must prepare the mass additions to become assets before you post them to Oracle Assets.

Optionally update the Date Placed In Service. Assign the asset to an Employee Name (optional). Enter the current Cost. 6. Enter the asset Category. Assign your asset to a corporate depreciation Book. 7. Adding an Asset Specifying Details (DetailAdditions) Use the Detail Additions process to manually add complex assets that the QuickAdditions process does not handle. 2. 4. Override default depreciation rules if necessary. and a Location. Enter a Description of the asset. 9. Choose QuickAdditions from the Find Assets window. 3. Page 21 of 132 . a general ledger depreciation Expense Account. 8.To add an asset quickly accepting default information: 1. 5. Choose Assets:Asset Workbench from the Navigator window. Save your work.

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

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

and location: Page 24 of 132 . Optionally enter purchasing information for the new asset in the Source Lines window. You can manually enter the distribution(s). or choose a predefined distribution set to automatically assign the appropriate distribution(s) to the asset. depreciation expense account. Prerequisites Enter descriptive information for a new asset in the Asset Details window. you must assign your new asset to an employee. and location in the Assignments window. Enter financial information in the Books window Continue Adding your Asset To assign your asset to an employee. depreciation expense account.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. 2. Oracle Assets defaults the natural account segment from the category and the book. Page 25 of 132 . Enter the physical Location of the asset.Suggestion: Choose a predefined distribution set from the Distribution Set poplist to automatically assign the appropriate distribution(s) to your new asset. or from CIP asset lines sent from Oracle Projects. Optionally enter the Employee Name or Number of the person responsible for the asset. Choose Done to save your work. 4. For example. you can add new assets from invoice lines brought over to Oracle Assets from Oracle Payables. Enter the default Expense Account to which you want to charge depreciation. 3. 1.

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and the queue name changes according to the transactions you perform on the mass addition. You can define your own mass additions hold queues in the QuickCodes form.Mass Addition Queues Each mass addition belongs to a queue that describes its status. The following table describes each Oracle Assets mass addition queue name: Page 27 of 132 .

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.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. To delete an asset you added in the current period: 1.

Note: For best performance.2. Books. Find the asset you want to delete. 3. Save your change to delete the asset from the system. From the menu. select Edit. query by asset number or tag number since they are unique values. or assignment information for an asset you added in the current period: o Correct any information for an asset added in the current period in any of the following windows: Asset Details. Choose Open. Delete Record. Source Lines. and Assignments. 4. 5. Page 29 of 132 . financial. To change descriptive.

Changing asset descriptive information other than category and units has no financial impact on the asset. Page 30 of 132 .Changing Asset Details You can change descriptive information for an asset at any time.

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

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

Changing financial information for a group of assets (Mass Change) Note: CIP assets. 2. Choose Mass Transactions:Changes from the Navigator window. and category for which the Mass Change applies. Save your work. retired assets. dates placed in service. Select the assets you want to change. 7. To change financial information for a GROUP of assets 1.Attention: You can only change the depreciation method from life-based or flat-rate to units of production in the period you added the asset. 3. Page 33 of 132 . Specify the asset numbers. Enter the Book to which the assets belong. and assets with amortized adjustments are excluded from the mass change transaction.

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

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

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

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. When you choose to have assets inherit depreciation rules. You cannot choose to have assets inherit only specified depreciation rules. for any assets that you want to inherit depreciation rules. that asset will inherit the depreciation rules of the new category. 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 . Note that if you choose to expense adjustments on the Mass Reclassifications window (the Amortize Adjustments check box is not checked). it will not prevent assets from successfully inheriting depreciation rules in other books to which they belong. reclassified assets will not inherit depreciation rules. When you choose to have assets inherit the depreciation rules of the new category. or no rules by ensuring the check box is not checked. reclassification will fail for any assets for which you have previously amortized an adjustment. you can also choose to amortize the resulting adjustments by checking the Amortize Adjustments check box on the Mass Reclassifications window. adjustments will be expensed. but the Depreciate check box will remain unchecked. If the Depreciate check box is not checked for an asset before the asset is reclassified. If you do not check the Amortize Adjustments check box. 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. the check box will remain checked after reclassification. Note: Depreciation rules are inherited in the corporate book. If the Allow Mass Changes check box is not checked. The rules set up for the category in the corporate book are inherited in the corporate book. even though you checked the Inherit Depreciation Rules of New Category check box on the Mass Reclassifications window.

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

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

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

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

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

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

Choose Transfer To. 5. Choose the line(s) you want to transfer.3. 4. Page 44 of 132 . specify the destination asset to which you want to transfer the line. 6. 7. Save your work. In the Transfer To window. Choose Source Lines.

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

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

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

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

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

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

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

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

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

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

In the Parameters window. Page 55 of 132 . To calculate gains and losses for retirements: 1. 4. 2. you can run the Calculate Gains and Losses program several times during the period to reduce period end processing time. Choose Depreciation:Calculate Gains and Losses from the Navigator window. 3. Choose Submit to submit a concurrent process to calculate gains and losses. enter the Book for which you want to calculate gains and losses. Review the log file after the request completes.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.

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

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

you cannot reopen it. Optionally process retirements regularly throughout the period.Year-End Processing You can close the year independently in each depreciation book. Once the program closes the period. Attention: Ensure that you have entered all transactions for the period before you run depreciation. 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. Oracle Assets automatically creates the depreciation and prorate periods for your new year when you run depreciation for the last period of the previous fiscal year. Attention: Verify the depreciation and prorate periods that Oracle Assets creates before you enter transactions in the new year. Running Depreciation Oracle Assets automatically closes the period and opens the next for the book after calculating depreciation. Run depreciation to process all assets in a book for a period. The depreciation program automatically resets year-to-date amounts on a book the first time the depreciation program is run on that book in a fiscal year. Page 58 of 132 .

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

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

Enter the Starting Period for your projection. you can choose a monthly or quarterly calendar. Check Asset Detail to print a separate depreciation amount for each asset. or any other interval. Enter the Projection Calendar to specify how you want to summarize the projection. Otherwise. The fiscal year name for the Calendar and each Book must be the same. 8. 6. Enter the Number of Periods for which you want to project depreciation.To project depreciation expense: 1. Oracle Assets prints a consolidated projection report for each expense account without cost center detail. For example. Navigate to the Depreciation Projections window. Page 61 of 132 . 7. You can enter a maximum of four books. 5. Save your work. and all of them must use the same Account structure. quarter. 4. on up to four depreciation books at once. Otherwise. 2. Check Cost Center Detail to print a separate depreciation projection amount for each cost center. month. You can summarize the results by year. 3. You can project depreciation expense for any number of future periods. Oracle Assets prints a consolidated projection report without asset detail. Enter the Book(s) that you want to include in your projection.

Oracle Assets submits a concurrent process to calculate the projection, and automatically runs the Depreciation Projection Report.

Depreciation Projection Report
Use this report to review projected depreciation expense for your assets for each book you request. The report is sorted by, and prints the total depreciation for each balancing segment, cost center, and expense account. You can request report detail at the Cost Center and/or Asset level. Use the Depreciation Projections window to submit this report.

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Unplanned Depreciation
Unplanned depreciation is a feature used primarily to comply with special depreciation accounting rules in Germany and the Netherlands. However, you also can use this feature to handle unusual accounting situations in which you need to adjust the net book value and accumulated depreciation amounts for an asset without affecting its cost. You can enter unplanned depreciation amounts by asset and book for any current period during the useful life of an asset. You can enter unplanned depreciation for an asset in both the corporate and/or tax books. When you enter unplanned depreciation, Oracle Assets immediately updates the year-to-date and life-to-date depreciation, and the net book value of the asset. The unplanned depreciation expense you enter must not exceed the current net book value (cost - salvage value - accumulated depreciation) of the asset. If necessary, you can enter multiple unplanned depreciation amounts, both positive and negative, in a single period, provided that the net amount does not exceed the current net book value of the asset. Thus, it is possible to enter unplanned amounts that back out depreciation taken in prior periods, including previously entered unplanned depreciation amounts. When you enter unplanned depreciation expense, you can choose in which period to begin amortization of the asset's remaining net book value. You can begin amortization in the current or a subsequent period, or you can choose not to amortize the remaining net book value. Note that if you do not amortize the unplanned depreciation or make an amortized adjustment in a subsequent period, the asset will be fully reserved before the end of the useful life. If you choose to amortize in a subsequent period, simply enter an unplanned depreciation amount of zero, and check the Amortize from Current Period check box. Oracle Assets will begin to amortize the remaining net book value as of that period. Oracle Assets uses the unplanned depreciation amount, in addition to regular depreciation, to calculate depreciation for the period in which you entered the unplanned depreciation. When you create journal entries for the general ledger, Oracle Assets posts the expense due to unplanned depreciation to the account you selected when you entered the unplanned depreciation for the asset.

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Enable Function Security You can enable or disable unplanned depreciation entry by responsibility if you want to allow or restrict user access to this function. View Unplanned Depreciation Amounts You can use the Financial Information inquiry windows to view the effects of the unplanned depreciation amounts you enter. Oracle Assets includes unplanned depreciation amounts in the current and prior period accumulated depreciation, year-to-date depreciation, and net book value amounts of the asset. The View Depreciation History window includes unplanned depreciation amounts in the depreciation expense per period for each asset and book. Note that unplanned depreciation amounts appear as ADJUSTMENT transactions. If you want to view unplanned depreciation amounts separately, use the Transaction Detail window. In this window, you can view the unplanned depreciation type and the unplanned depreciation expense account for each unplanned amount. Restrictions You cannot enter unplanned depreciation for assets shared between balancing segments. In other words, you cannot allocate unplanned depreciation amounts to specific distributions of an asset. Oracle Assets posts the unplanned depreciation expense only to the depreciation expense account you enter in the Unplanned Depreciation window. You cannot enter unplanned depreciation for assets depreciating under table-based methods. If you need to enter unplanned depreciation for an asset depreciating under a table-based method, you must first change the depreciation method to a method that is not table-based. You cannot make expensed adjustments to assets for which you have previously entered unplanned depreciation and have since amortized the amount. You may, however, perform expensed adjustments to the asset until you choose to amortize the unplanned depreciation amount. In addition, you cannot perform prior period retirements to assets having unplanned depreciation amounts. In addition, you

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000 6. Q3 Yr 1.000 6. Oracle Assets continues depreciating the asset taking the Page 65 of 132 .000 18. Q2 Yr 2.000 36.000 114. Q4 Yr 2.000 12. Q3 6. There is no salvage value. Q1 Yr 1. The following table shows quarterly depreciation amounts for the first seven quarters: Year of Life Net Book Value (Start of period) 120.000 6. Q1 Yr 2. and a cost of 120.000 108. The depreciation method is straight-line. You choose NOT to amortize the unplanned amount this period.000 0 0 0 0 0 0 0 6.000 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 1.cannot perform a mass change for assets that have unplanned depreciation.000 30. (Page 1 of 1) In Year 2. Q2 Yr 1.000 6.000 6.000 DEM.27.000 24.000 84.000 6. Quarter 4 you enter an unplanned depreciation amount of 10. The calendar has four periods per year.000 102.000 Table 1 . Examples Example 1: Unplanned Depreciation You place an asset in service with a life of five years.000 42.000 90.000 96.000 DEM.

000 6.000 26.000 8.000 64.000 56.000 44.000 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 2.000 94.000 106. Q2 Yr 5.000 6. Q3 6.000 0 0 0 0 0 0 0 0 0 0 0 58. Q1 Yr 4.000 6.000 88. Q3 Yr 3.000 6.000 120.000 50.regular depreciation expense in subsequent periods until you choose to amortize the unplanned depreciation or make an amortized adjustment.000 10.000 100.000 38.000 82.000 32. If you do not amortize the unplanned depreciation or make an amortized adjustment in a subsequent period. Q1 Yr 5.000 70.000 6.000 2. Q2 Yr 4. Q3 Yr 4. the asset will be fully reserved before the end of the useful life.000 62. Q2 Yr 3.000 6. Q4 Yr 5.000 6.000 6. The following table shows quarterly depreciation amounts for the last twelve quarters: Year of Life Net Book Value (Start of period) 78. Q1 Yr 3. Q4 Yr 4.000 20.000 6.000 Page 66 of 132 .000 76.000 112.000 14.000 6.000 6.000 118. Q4 Yr 3.

starting in the period following the unplanned depreciation. Q3 Yr 2.000 6.000 DEM. and a cost of 120.000 58.334 73.Table 1 . There is no salvage value.000 DEM in Year 2. Q2 Yr 2. Q3 Yr 3.666 46. Q4 6.000 36. but you choose to amortize the unplanned depreciation expense over the remaining life of the asset.167 5. You enter an unplanned depreciation of 10.28. Q2 Yr 3.167 5. The depreciation method is straight-line.000 62. (Page 1 of 1) Example 2: Unplanned Depreciation Amortized from Following Period You place an asset in service with a life of five years. Quarter 4.166 0 0 0 10.000 6.000 0 0 0 0 30.000 56.167 68.167 5. Q1 Yr 2.667 Page 67 of 132 .000 63.000 90. The following table shows quarterly depreciation amounts: Year of Life Net Book Value (Start of period) 96.833 51.000 42.000 6. Q4 Yr 3.000 84.000 78. The calendar has four periods per year.501 78.000 *5.499 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 2. Q1 Yr 3.

Q1 Yr 4.000 DEM in Year 4.167 5.167 5. Q3 Yr 4.167 5.499 10.334 104.666 15. Q4 41.333 36. Q4 Yr 5.168 99. The following table shows quarterly depreciation amounts: Page 68 of 132 .000 * Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life For Year 3.Yr 4.835 120.165 0 0 0 0 0 0 0 0 83.165 5.166 30.501 109.999 25.167 5. Oracle Assets amortizes the unplanned depreciation amount from the current period since you chose to amortize the unplanned depreciation from Year 2. Q1 Yr 5. Quarter 1 = 62.832 20.834 89. Example 3: Upward and Downward Unplanned Depreciation Using the asset from the previous example.167 DEM The asset is fully reserved at the end of the useful life.167 5.167 5. Q3 Yr 5.332 5. Quarter 4 (See Example 2) for the same asset.166 5. Q2 Yr 5.000 / 12 = 5.668 114. Quarter 4. Q2 Yr 4. which partially reverses the previous unplanned depreciation. you enter another unplanned depreciation of -5.001 94.

168 95.000 Table 1 . Q2 Yr 5. The calendar has four periods per year.30.167 *6. Q4 Yr 5. Page 69 of 132 .166 6. and a cost of 120.167 6.167 5. Q3 Yr 4.167 6.001 94.333 36.000 DEM.499 12. Q3 Yr 5. The depreciation method is straight-line.832 24.167 5.666 / 4 = 6.166 30.666 18.835 120. (Page 1 of 1) * Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life For Year 5.165 Depreciation Expense Unplanned Depreciation Accumulated Depreciation Yr 4. Q2 Yr 4.167 6. Q1 Yr 4. Example 4: Amortized Adjustment after Unplanned Depreciation You place an asset in service with a life of five years. Q4 5.000> 0 0 0 0 83.668 113.501 107. Quarter 1 = 24.165 0 0 0 <5.999 25.834 89.Year of Life Net Book Value (Start of period) 41. Q1 Yr 5.167 DEM The asset is fully reserved at the end of the useful life.332 6.334 101. There is no salvage value.

Q4 120.580 36.000 DEM Page 70 of 132 .000 DEM and there is no catchup depreciation since this is an amortized adjustment.000 92.856 150.287 7. Q4 Yr 4. Q2 Yr 1.000 12.412 40.000 0 0 0 0 0 0 0 0 6.000 **5.286 Unplanned Depreciation Accumulated Depreciation 0 0 10.588 109.286 7. Q4 Yr 2.287 7.000 6.000 DEM in Year 2. Quarter 3. The new cost is 150.000 * Cost adjustment of 30.286 7.000 114.560 91.286 6.000 108. Q1 Yr 1.You enter an unplanned depreciation in Year 1.287 7.000 *116.000 6.986 55. Q4 Yr 5.273 62. The following table shows quarterly depreciation amounts: Year Net Book Depreciation of Value (Start Expense Life of period) Yr 1. Q2 Yr 2.014 94.727 65. new cost is 150.708 120. and then perform an amortized cost adjustment of 30.000 28.000 DEM.000 33. Q3 Yr 2. Q3 Yr 1.412 ***7. Q4 Yr 3.699 47. Quarter 1. which you amortize from the following period. Q1 Yr 2.433 7.301 102.286 7.

Note: If you choose to amortize unplanned depreciation in the current period. and then perform an expensed cost adjustment. and then perform a cost adjustment on the same asset in the same book.412) / 16 = 7.** Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life For Year 1. Oracle Assets will override the unplanned depreciation amount to expense the cost adjustment. You cannot expense the cost adjustment.Accumulated Depreciation)/ Remaining Periods in Life For Year 2.412 DEM *** Depreciation Expense = (New Cost .287 DEM Oracle Assets includes the unplanned depreciation amount when it calculates the accumulated depreciation. Quarter 4. Note: If you choose to expense an unplanned depreciation amount.000 33.000 / 17 = 5. You can re-enter the unplanned depreciation for the asset later if necessary Page 71 of 132 . Oracle Assets automatically amortizes the cost adjustment as well as the unplanned depreciation amount. the depreciation expense per period is 92. Quarter 1. the new depreciation expense is (150.

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

Choose the Unplanned Depr button to open the Unplanned Depreciation window. to the asset after entering an expensed or amortized unplanned depreciation. in the period you want amortization to start. Then. Unless you are entering unplanned depreciation for a credit asset. and check the Amortize From Current Period check box. 7. Alternatively. Attention: The value of this check box overrides the value of the Amortize Adjustment check box in the Books window. which includes the unplanned depreciation amount. Choose the unplanned depreciation Type.5. 9. 10. Check the Amortize From Current Period check box to amortize the unplanned depreciation starting in the current period. Enter the amount of unplanned depreciation expense as a positive or negative currency amount. Oracle Assets amortizes the net book value starting in the period you perform this change. leave the check box unchecked if you want to amortize the remaining net book value in a subsequent period. enter an unplanned depreciation amount of zero for the same asset and expense account. Attention: If you make any amortized adjustment. the unplanned depreciation amount cannot exceed the net book value of the asset. Oracle Assets begins amortizing the remaining net book value. 8. for example a cost or life adjustment. Enter the complete unplanned depreciation expense account. from the period you make the amortized adjustment. Choose Done to save your work Page 73 of 132 . 6.

You can override this value if Page 74 of 132 . When you add an asset for which you set up a default depreciation limit percentage. you can use the Set Extended Life window to control the amount of depreciation expense taken for each period. You can set up a default limit for each asset category. Then Oracle Assets continues to depreciate it.Default Depreciation Limit For example. Oracle Assets calculates the recoverable cost using the following formula: Recoverable Cost = Cost X Default Depreciation Limit For example. an asset cost of 100. and date placed in service range for which you set up a default depreciation limit as an amount. For assets using a straight-line depreciation method.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. category.1 = 99. Additions When you add an asset to a book.999 yen. You must specify a depreciation limit. in periods after the useful life has ended. Oracle Assets shows the recoverable cost in the Books window. Oracle Assets calculates the recoverable cost using the following formula: Recoverable Cost = Cost .000 X 95% = 95.000 . book. 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. an asset cost of 100.000 yen with a depreciation limit of 1 yen has a recoverable cost of 100.000 yen.000 yen with a depreciation limit of 95% has a recoverable cost of 100. and range of dates in service in the Asset Categories window. If you do not specify an extended life in years. Oracle Assets depreciates the asset up to the salvage value during the normal useful life. up to the depreciation limit you choose. defined as a flat amount or as a percentage. If you add the asset using Detail Additions.

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

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

000 . For the first ten years.999 Table 1 .1) = 99.000 . when it is equal to the amount necessary to fully reserve the asset.10. Note that in the final year.000 90. 999) 99. In the 12th year. the depreciation expense is 999 yen. Oracle Assets does not divide the remaining recoverable cost evenly among the periods in the fiscal year. or 2250 yen per period. Oracle Assets takes a depreciation expense of 2250 yen per period.31. Oracle Assets takes an annual depreciation expense of (100. (Page 1 of 1) Recoverable cost is (100. Example 2 You place another asset in service as follows: Page 77 of 132 .000 999 = less of (9000. Thus Oracle Assets fully reserves the asset in the first period of this 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) / 10 = 9000 yen.000 : 81. If there are four periods per year and you are dividing depreciation evenly. 9999) Accumulated Depreciation (Yen) 9000 18. The depreciation expense per period remains the same in all but the last period of life.000 = (cost . In the 11th year.salvage value) 99.999 yen. depreciation expense is also 9000 yen for the year.

salvage value) 475.32.000 90.000 Accumulated Depreciation (Yen) 90.000 yen. the depreciation expense is 25. Oracle Assets takes depreciation expense of 7500 yen per period.000) / 5 = 90.000 yen.000 = (cost . Oracle Assets takes an annual depreciation expense of (500.000 X 95%) = 475.000 90. In the sixth year.o o o o o Cost = 500.000 yen for the year.000 90.000 yen Salvage Value = 50. and 2500 yen in the fourth month. Example 3 You place a third asset in service as follows: Page 78 of 132 . (Page 1 of 1) Recoverable cost is (500.000 . For the first five years.000 450.000 25. Depreciation expense is 7500 yen per month for the first three months. If there are 12 periods per year and you divide depreciation evenly.000 90.000 270.000 360.50.000 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 Table 1 .000 180.

000.000.000.000 4.000 2. You enter the number of years to depreciate the salvage value.000.000 Based on this information.1.300.600.999.000 400.000 Table 1 .000.600.100. you query the asset in the Set Extended Life window.000 400.000 Salvage Value 400.000. three years.600.000 900.000 400.600.000 won Depreciation limit = 1.000.600. for example.000 3.000 4.000.33.000) is 3.000 won Useful life = 4 years Salvage value = 400.000 400.o o o o Cost = 4.000.000 .000 4.600.000 Annual Deprn.000 3.000/4) is 900. (Page 1 of 1) When the asset has completed its useful life. 900.000 400.000 Deprn Basis 3. The recoverable cost (4. the depreciable basis (4. The annual depreciation amount (3.000 3.000 900.000 900.000.200.000 NBV 1 2 3 4 3. The depreciation over the useful life of the asset is illustrated in the following table: Year Cost (Won) 4.000) is 3. Page 79 of 132 .000 1.

334 NBV 5 6 7 266. A list of values window appears containing the books in which you can set the extended life of the asset.333 133. (Page 1 of 1) To set the extended life of an asset: 1.000 400.000 Annual Deprn.000 4. 5. Navigate to the Set Extended Life window. 6.667 133.000 Table 1 .334 1. Page 80 of 132 .34.000 Salvage Value 400. 2.000 400.The depreciation over the extended life of the asset is illustrated in the following table: Year Cost (Won) 4.333 132.000 400. 133. Enter the number of years over which you want to depreciate the salvage value. Query the asset for which you want to set the extended life by asset number or description. Save your work.000 400. Select the applicable book.000 Deprn Basis 400.000 4. Navigate to the Books field.000. 4.000. 3.000.

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 .

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

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

Enter the Book and the Period for which you want to create journal entries in the Parameters window. Review the log file after the request completes. 3. Choose Journal Entries:Standard from the Navigator. 1. Choose Submit to submit a concurrent process to create journal entries for your general ledger. 4. asset cost. 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. Prerequisite Run the depreciation program for your depreciation book for this period. Page 84 of 132 . 2. Oracle Assets automatically creates transaction journal entries for your general ledger. and other accounts. 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.

Journal Entries
The create journal entries process creates journal entries for the appropriate general ledger set of books. You can review these journal entries in the general ledger and post them.

Adjusting Journal Entries
Prior Period Transactions Oracle Assets creates adjusting journal entries to depreciation expense and accumulated depreciation accounts when you enter prior period additions, transfers, or retirements:
o

For a prior period addition, Oracle Assets creates journal entries for the missed depreciation For a prior period transfer, Oracle Assets reverses a portion of the depreciation expense posted to the "from" depreciation expense account and posts it to the "to" depreciation expense account For prior period retirements, Oracle Assets creates journal entries that reverse the depreciation taken for periods after the retirement prorate date

o

o

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

Any General Ledger
You can create journal entries for any general ledger. If you do not use Oracle General Ledger, you can copy the journal entry information from the GL tables.

Oracle Assets Accounts
Oracle Assets creates journal entries for the following general ledger accounts:

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o o o o o o o o o o o o o o o o o

Accumulated Depreciation Asset Clearing Asset Cost CIP Clearing CIP Cost Cost of Removal Gain, Loss, and Clearing Deferred Accumulated Depreciation Deferred Depreciation Expense Depreciation Adjustment Depreciation Expense Intercompany Payables Intercompany Receivables Net Book Value Retired Gain and Loss Proceeds of Sale Gain, Loss, and Clearing Revaluation Amortization Revaluation Reserve Revaluation Reserve Retired Gain and Loss

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

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clearing, depreciation expense, proceeds of sale clearing, or intercompany receivables account is a subtraction from the account. In the journal entry examples, credits are in the right column.

Reviewing Journal Entries
After sending journal entries from Oracle Assets to your general ledger, you can review or modify journal entries in your general ledger before posting them. If you integrate Oracle Assets with Oracle General Ledger, use the Enter Journals window in Oracle General Ledger to review, change or correct your entries. If you use a different general ledger, you can review or change entries in that general ledger.

Journal Entry Examples
This guide contains examples of asset transactions you can perform and the journal entries that Oracle Assets creates. The journal entries are for the period that the asset transaction was entered into Oracle Assets. Oracle Assets creates these journal entries when you run the Create Journal Entries program. The asset cost, accumulated depreciation, and year-to-date depreciation numbers in the following tables are end of quarter balances. The depreciation expense numbers are per period. Journal Entry Transaction Examples:

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

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00 50. Example: The recoverable cost is $4. For mass additions.00 50.00 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.Oracle Assets creates the following journal entries for a current period depreciation charge of $200 and a bonus charge of $50: Dr. Oracle Assets gets the clearing account from the category. Page 88 of 132 . Oracle Assets Depreciation Expense Bonus Expense Bonus Reserve 200. the clearing account comes from your source system. Cr. Dr.00 Accumulated Depreciation 200.000 and the method is straightline 4 years. Cr.

00 1250.CURRENT PERIOD ADDITION You place an asset in service in Year 1.00 Accounts Payable Liability 4. Asset Cost Depreciation Expense Depreciation Expense (adjustment) Asset Clearing 4.00 Accumulated Depreciation Oracle Assets . Dr.000. Quarter 1.000. Your payables system creates the same journal entries to asset clearing and accounts payable liability as for a current period addition. Dr. Dr.000.00 Oracle Assets . Cr. Cr. Dr.00 250. Asset Clearing 4. Quarter 1.Current and Prior Period Addition You purchase and place the asset into service in Year 1.000. Quarter 2.00 4. Dr. Asset Cost Depreciation Expense Asset Clearing 4.00 Payables System Dr.00 4. Cr. Cr. Cr.00 Accumulated Depreciation 1500.00 250.000.PRIOR PERIOD ADDITION Page 89 of 132 .00 250.000. but you do not enter it into Oracle Assets until Year 2.

you merge mass addition #1 into mass addition #2.000. the asset cost is the total merged cost. 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. so Oracle Assets creates the following journal entries: Dr. Asset Cost (mass addition #2 asset cost account) 4. For example.00 accounts payables clearing account) Cr.00 Asset Clearing (mass addition #1 3.00 CIP Clearing 4. (CIP assets do not depreciate) Dr.Merge Mass Additions When you merge two mass additions. Oracle Assets creates journal entries for each asset clearing account. CIP Cost 4. the original cost of the invoice line remains on each line. 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 . Payables System Construction-In-Process (CIP) Addition You add a CIP asset. Oracle Assets records the merge when you perform the transaction.00 accounts payables clearing account) Asset Clearing (mass addition #2 1. Cr. When you create an asset from the merged line. Cr. Oracle Assets does not change the asset clearing account journal entries it creates for each line.000. As an audit trail after the merge.000.000. so each of the appropriate clearing accounts clears separately.

00 250. Cr. You clear the accounts by either reversing the invoice in your payables system. CIP Clearing 4.000. Dr.000.00 4.00 4. Asset Cost Depreciation Expense CIP Cost Accumulated Depreciation 4. Capitalization A capitalization transaction is similar to an addition transaction: you place the asset in service so you can begin depreciating it.00 Payables System Dr. Asset Cost Depreciation Expense CIP Clearing 4.00 Accounts Payable Liability 4. Cr.CAPITALIZED IN PERIOD ADDED When you capitalize an asset in a period after the period you added it.000.000. The clearing account has already been cleared.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.000.00 Accumulated Depreciation Oracle Assets . or creating manual journal entries in your general ledger. Dr.00 250.00 Page 91 of 132 . Oracle Assets creates the following journal entries: Dr. Cr. Cr.000. Oracle Assets creates journal entries that transfer the cost from the CIP cost account to the asset cost account. Dr. Cr.00 250.00 250. When you capitalize an asset in the period you added it.

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

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 1.00 120. Quarter 1. Quarter 4. Asset Clearing 800. depreciation.00 Page 93 of 132 .00 Oracle Assets Expensed Dr. including a change in cost.00 Payables System Dr. and cost. Dr. Asset Cost 800. Dr. or bonus rules. The recoverable cost is $4. You can automatically perform a cost adjustment by adding a mass addition to an existing asset using Mass Additions. salvage value. You can manually perform a cost adjustment in the Books window or in the Source Lines window.00 Asset Clearing 800. The life of your asset is 4 years. The bonus rate is 10%. In Year 1. Depreciation Expense Bonus Expense 300.000.00 Accounts Payable Liability 800. you receive an additional invoice for the asset and change the recoverable cost to $4.Journal Entries for Adjustments Recoverable Cost Adjustments A cost adjustment includes any adjustment that affects the recoverable cost. and you are using straight-line depreciation. Cr. depreciation expense. Cr. ITC ceilings.800.

EXPENSED Page 94 of 132 .00 Accumulated Depreciation 450. Cr. you change the depreciation method to straight-line.00 Accumulated Depreciation 311.000. Depreciation Expense Bonus Expense Bonus Reserve 311. the life is 4 years.53 120.AMORTIZED Depreciation Method Adjustments Example: You place an asset in service in Year 1. Cr. Quarter 1. Expensed Dr.00 60. Depreciation Expense Accumulated Depreciation Depreciation Expense (adjustment) 250. In Year 2. and you are using the 200 declining balance depreciation method.53 120. Cr.000. The recoverable cost is $4.00 1.00 750. Depreciation Expense (adjustment) Bonus Expense (adjustment) Bonus Reserve 150. Cr.00 Oracle Assets .00 Oracle Assets . Dr. Cr.00 Oracle Assets .EXPENSED Amortized Dr. Dr. Quarter 1.00 180. Dr.Dr.

Depreciation Expense Accumulated Depreciation 200.Amortized Dr.EXPENSED Amortized Dr. Cr. you change the asset life to 5 years.67 Accumulated Depreciation 166.33 Oracle Assets .00 50.AMORTIZED Life Adjustments Example: You place an asset in service in Year 1.AMORTIZED Page 95 of 132 .00 Oracle Assets . Dr.67 Oracle Assets . Depreciation Expense 183. Cr. In Year 2. Quarter 2.000.33 Accumulated Depreciation 183.00 Depreciation Expense (adjustment) 250. The asset cost is $4. and you are using straightline depreciation. the life is 4 years. Quarter 1. Depreciation Expense 166. Expensed Dr. Cr.

Depreciation Expense Accumulated Depreciation Depreciation Expense (adjustment) 400.Capacity Adjustments Example: You purchase an oil well for $10. the life is 4 years.82 Oracle Assets .000. You increase the production capacity to 50. Quarter 4 you discover that you entered the wrong capacity. In Year 1.00 4. You expect to extract 10. and you are using straight-line depreciation.000 barrels. Dr.EXPENSED Amortized Dr. Cr. This section illustrates the following journal entry examples: o Current Period Transfer Between Cost Centers Page 96 of 132 . Quarter 1. Expensed Dr.00 4.400. Cr.00 Oracle Assets .800.000 barrels of oil from this well.000.82 Accumulated Depreciation 181.000 barrels of oil. Each quarter you extract 2.AMORTIZED Journal Entries for Transfers and Reclassifications Example: You place an asset in service in Year 1. The recoverable cost is $4. Depreciation Expense 181.

TRANSFER ASSET / CHARGE DEPRECIATION Cost Center 200 Dr.o o o o o Prior Period Transfer Between Cost Centers Current Period Transfer Between Balancing Segments Prior Period Transfer Between Balancing Segments Unit Adjustment Reclassification Current Period Transfer Between Cost Centers In Year 2. Page 97 of 132 . Accumulated Depreciation 1. Dr.000.TRANSFER ASSET / CHARGE DEPRECIATION Prior Period Transfer Between Cost Centers In Year 3. Quarter 2.00 Asset Cost 4.000. Cost Center 100 Dr. Quarter 4. Quarter 3. Asset Cost Depreciation Expense 4. from cost center 100 to cost center 200. Cr.00 250. you discover that an asset was transferred in Year 3.500. you transfer the asset from cost center 100 to cost center 200 in the current period.00 Accumulated Depreciation Oracle Assets .250.00 1. Cr.00 Oracle Assets .

000.00 0.00 500.00* Y3.00 0.Q1 Y3.Qtr.) Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 2.000.00 Y3.00 0.00 0.750.Qtr.00 2.Q3 Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 0.00 Y3.00 250.00 250.00 0.Cost Center 100 Period (Yr. Accumulated Depreciation Asset Cost Depreciation Expense (adjustment) 2.00 Depreciation Expense 250.00 Cost Center 100 Dr. Cr.000.) Y3.Q4 0.00 0.00 750.00* Y3.000.TRANSFER ASSET / ADJUST AND CHARGE DEPRECIATION Page 98 of 132 .00 Y3. Cr.00 -250.00 4.00 Oracle Assets .Q4 4.Q3 4.000.00 250.00 Cost Center 200 Period (Yr.00 500.00 0.00 0.00 250.500.250.00 500.00 0.Q2 Y3.Q1 4.750.00 0.00 Depreciation Expense 0.Q2 4.00 3..000.00 500..00 2.00 0.

Cr. Cr. Asset Cost Depreciation Expense 4.00 1. ABC Manufacturing Dr.000.Cost Center 200 Dr.00 250.00 Intercompany Receivables 1. Asset Cost Depreciation Expense Depreciation Expense (adjustment) Accumulated Depreciation 4.00 250.00 3. you transfer the asset from the ABC Manufacturing Company to the XYZ Distribution Company.TRANSFER ASSET Page 99 of 132 .00 Oracle Assets .00 Oracle Assets . Dr. Accumulated Depreciation 2. Dr.250. Quarter 4.00 Asset Cost 4.TRANSFER ASSET XYZ Distribution Dr.TRANSFER ASSET / ADJUST AND CHARGE DEPRECIATION Current Period Transfer Between Balancing Segments In Year 3.000.000. Cr. Cr.250.750.000. Dr.00 Accumulated Depreciation 3. Dr.000.00 250.00 Intercompany Payables Oracle Assets .

000.00 500.00 500. Accumulated Depreciation Intercompany Receivables Asset Cost Depreciation Expense (adjustment) 2.Q1 4. ABC Manufacturing Period (Yr.00 0.00 750.00 Y3.00 4.000.000.00 0.00* Y3.750.500.00 0.ADJUST AND CHARGE DEPRECIATION Page 100 of 132 .Q4 0. Quarter 4.00 Oracle Assets .00 0.00 3.Q1 Y3.00 0. Cr.00 250.) Y3.00 XYZ Distribution Period (Yr.00 0.Qtr.00 2. from the ABC Manufacturing Company to the XYZ Distribution Company.Q2 Y3.Q2 4.. Cr. you discover that the asset was transferred in Year 3. Dr.00 Y3.750.Qtr.00 -250.Prior Period Transfer Between Balancing Segments In Year 3.00 ABC Manufacturing Dr.00 500.00 0.000.Q3 Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 0.500.00 1.000.) Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 2.00 0.00 2.00 250.250.. Quarter 3.00 500.00 Depreciation Expense 250.00 250.00 Depreciation Expense 0.00* Y3.000.Q4 4.00 250.Q3 4.00 0.00 0.00 0.00 Y3.

XYZ Distribution Dr. Dr. Dr. Cr. Cr. Asset Cost Depreciation Expense Depreciation Expense (adjustment) 4,000.00 250.00 250.00 1,500.00 Accumulated Depreciation 3,000.00 Intercompany Payables

Oracle Assets - ADJUST AND CHARGE DEPRECIATION

Unit Adjustment
A unit adjustment is similar to a transfer, since you must update assignment information when you change the number of units for an asset. For example, you place the same $4,000 asset in service with two units assigned to cost center 100. In Year 2, Quarter 3, you realize the asset actually has four units, two of which belong to cost center 200. Cost Center 100 Dr. Cr. Accumulated Depreciation 750.00 Asset Cost 2,000.00

Oracle Assets - ADJUST UNITS

Cost Center 200 Dr. Cr. Asset Cost 2,000.00

Accumulated Depreciation 750.00

Oracle Assets - ADJUST UNITS

Page 101 of 132

Note: If all units remain in the original cost center, Oracle Assets does not create any journal entries.

Reclassification
Example: You reclassify an asset from office equipment to computers in Year 1, Quarter 3. The asset cost is $4,000, the life is 4 years, and you are using straight-line depreciation. When you reclassify an asset in a period after the period you entered it, Oracle Assets creates journal entries to transfer the cost and accumulated depreciation to the asset and accumulated depreciation accounts of the new asset category. This occurs when you create journal entries for your general ledger. Oracle Assets also changes the depreciation expense account to the default depreciation expense account for the new category, but does not adjust for prior period expense.

Office Equipment
Period (Yr., Qtr.) Asset Cost Accumulated Depreciation 250.00 500.00 0.00 0.00 Yr-to-Date Depreciation 250.00 500.00 500.00 500.00 Depreciation Expense 250.00 250.00 0.00* 0.00

Yr1,Q1 4,000.00 Yr1,Q2 4,000.00 Yr1,Q3 Yr1,Q4 0.00 0.00

Page 102 of 132

Computers
Period (Yr.,Qtr.) Yr1,Q1 Yr1,Q2 Asset Accumulated Yr-to-Date Cost Depreciation Depreciation 0.00 0.00 0.00 0.00 750.00 1,000.00 0.00 0.00 250.00 500.00 Depreciation Expense 0.00 0.00 250.00* 250.00

Yr1,Q3 4,000.00 Yr1,Q4 4,000.00

Office Equipment Dr. Cr. Accumulated Depreciation 500.00 Asset Cost 4,000.00

Oracle Assets - TRANSFER COST AND ACCUMULATED DEPRECIATION

Computers Dr. Dr. Cr. Asset Cost Depreciation Expense 4,000.00 250.00 Accumulated Depreciation 750.00

Oracle Assets - TRANSFER COST AND ACCUMULATED DEPRECIATION

Page 103 of 132

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

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

you sell the asset for $2. Dr.000. The cost to remove the asset is $500.00 1.MULTIPLE GAIN/LOSS ACCOUNTS Page 106 of 132 .Current Period Retirements Example: You place an asset in service in Year 1.000. In Year 3.000. You retire revaluation reserve in this book. and you are using straightline depreciation. Dr. Dr. Cr.00 600.500.00 2. Receivables System Accounts Receivable 2. Quarter 1. Dr.000. The asset cost is $4. Cost of Removal Clearing 500.00 500. Cr.00 Accounts Payable 500.00 Dr.000.00 Proceeds of Sale Clearing 2. The asset uses a retirement convention and depreciation method which take depreciation in the period of retirement.00 2.00 Cost of Removal Clearing Revaluation Reserve Retired Gain Oracle Assets .000.000.00 600. Quarter 3.500. Cr. Cr.00 500. the life is 4 years. Accumulated Depreciation Proceeds of Sale Clearing Cost of Removal Gain Revaluation Reserve Net Book Value Retired Gain Asset Cost Proceeds of Sale Gain 2.00 Payables System Dr. Dr.00 4. Cr. Cr.

Accumulated Depreciation Proceeds of Sale Clearing Revaluation Reserve Asset Cost 2.500. the life is 4 years. Cr.000. Dr. Dr.00 Cost of Removal Clearing Gain/Loss Oracle Assets . The asset uses a retirement convention and depreciation Page 107 of 132 .00 2. and you are using straightline depreciation.00 600.00 600. In Year 3.SINGLE GAIN/LOSS ACCOUNT Prior Period Retirement Example: You place an asset in service in Year 1.000. The removal cost was $500. Cr. Quarter 1.000.00 4. 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.If you enter the same account for each gain and loss account. Oracle Assets creates a single journal entry for the net gain or loss.000. The asset cost is $4. for $2. you discover that the asset was sold in Year 3. Quarter 1. Quarter 3. Cr.00 500.

Cr.000. Oracle Assets reverses the journal entries for proceeds of sale. Cr.00 Proceeds of Sale Clearing 2. Dr. cost of removal. Cr.00 250.00 2.000. Oracle Assets also reverses the Page 108 of 132 . Cost of Removal Clearing 500. credit accumulated depreciation.000.00 Accounts Payable 500. Oracle Assets creates journal entries for the reinstatement to debit asset cost.000. Cr.00 2.00 Payables System Dr. Dr.500.method which allow you to take depreciation in the period of retirement. Cr.00 4. Dr.750. net book value retired.00 1.000. Dr.00 Proceeds of Sale Loss Cost of Removal Clearing Asset Cost Depreciation Expense Oracle Assets Current Period Reinstatement Example: You discover that you retired the wrong asset. Receivables System Accounts Receivable 2. Accumulated Depreciation Proceeds of Sale Clearing Cost of Removal Loss Net Book Value Retired Loss 2.00 500.00 500.00 Dr. Cr. and revaluation reserve retired. and reverse the gain or loss you recognized for the retirement.

00 Accumulated Depreciation 2. and you are using straightline depreciation. Cr. Cr.00 2.000. you retire the asset.00 500.000. Dr.00 250.00 Page 109 of 132 . Dr. Dr. Cr.000. 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. Oracle Assets Asset Cost Cost of Removal Clearing Gain / Loss Depreciation Expense 4.00 Proceeds of Sale Clearing 2.00 2. Quarter 1. Quarter 4.00 Net Book Value Retired Loss Cost of Removal Loss Proceeds of Sale Clearing Accumulated Depreciation 2.00 250. In Year 2. Cr. the life is 4 years.000. Oracle Assets Asset Cost Cost of Removal Clearing Proceeds of Sale Loss Depreciation Expense Depreciation Expense (adjustment) 4.000.00 500. Dr. In Year 2. Quarter 1.00 Prior Period Reinstatement Example: You place an asset in service in Year 1. Cr. Cr. Cr.00 Revaluation Reserve 600.00 500.00 500.000.750.00 600. Dr. The asset cost is $4. Dr. Oracle Assets also creates journal entries to recover the depreciation not charged to the asset and for the current period depreciation expense.000.750.00 2. Dr. Dr.

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

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

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

5. Save your work. 4. 3. and general ledger Expense Account for which you want to budget. Choose the budget Book. asset Category.To manually enter or update a budget: 1. 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. Review the capital budget for the year using the Budget Report. Open the Capital Budgets window. 2. Page 113 of 132 .

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

4. Use SQL*Loader to move your budget data into the budget interface. 6. Use the Upload Capital Budget window to move your budget into a budget book. Run depreciation projections and other reports on your budget book.2. Transfer your budget data from the system where you maintain your budget to the system where you have Oracle Assets. Use the Upload Capital Budget window to move your budget into the budget worksheet. 3. Page 115 of 132 . 5.

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

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

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

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

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

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

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

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

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. Enter the amount for which the asset is insured under that policy. For Swiss Assets with a calculation method of Value as New. the value displayed is the indexed base insurance value. This value will also be updated to account for transactions. and then follows the Value as New calculation method. Last Indexation Date. The information in this field is for reference only and is not used in the Oracle Assets calculations. the value displayed is the indexed net book value of the asset (original cost less depreciation). o o o Insured Amount.o For Value as New. If you enter a maintenance date for the asset in the Base Index Date field. that affect the asset value. the value displayed can be updated. Page 124 of 132 . Also note that the calculated Current Value for Swiss Assets can be manually updated. such as adjustments or retirements. that affect the asset value. For Manual Value. or Market Value. For Swiss Assets with a calculation method of Current Market Value. the calculated value will be the same as for all other assets. This value will also be updated to account for transactions. such as adjustments or retirements. indexation of the manual value begins with this date. This field displays the end date of the closed depreciation period for which the indexation process was last run.

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

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

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

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

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

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

4. You can easily customize the information that is displayed in the window.Accounting window will change to reflect amounts in the appropriate currency for the chosen set of books. When customizing the View Transaction Accounting window. choose the T-Accounts button. the system displays additional information at the bottom of the View Transaction Accounting window. View Accounting Windows The View Transaction Accounting window is a folder. Page 131 of 132 . (Optional) To view the accounting detail as t-accounts. 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.

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

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