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Oracle FA Student Guide PDF
Oracle FA Student Guide PDF
1 financial Assets
Financial
R12-1.1
Created By
Khalid youssry
Preface
Anyone who is interested to learn oracle financials can use this
document for his/her as a basic document. Although the document will
cover most of the features but this is not the whole oracle financials. So
please consider it as a basic or reference document for the beginners.
Contents
Overview of oracle assets.5
Assets journal cycle6
Assets integrations.7
Assets setup in APPS.........8
1-Assets flexfield.11
A-Key flexfield12
B-Locations flexfield.15
C-Category flexfield..18
2-System controls22
3-Assets calendars .24
A-Fiscal year25
B-Assets calendar.26
C-Prorate convention28
4-Book controls30
5-Assets category37
Assets transactions in APPS..44
1-Manual addition.44
2-Mass addition53
3-CIP assets..71
4-Adjustment and transactions77
5-Depreciation .95
6-Retirement.102
7-Physical inventory112
8-Assets inquiry117
9-Closed period.120
2-Assets:
Dr. F/A
Cr. Assets clearing
3-Depreciations
Dr. Depreciation expenses
Cr. Accumulated depreciation
4-Retirment:
Dr. Accumulated depreciation
Cr. Cash
5-CIP:
Dr.CIP building (CIP cost)
Cr. CIP clearing
Dr. F/A
Cr. CIP building
Assets integrations:
Oracle Assets integrates with Oracle Payables, Oracle Projects, and Oracle
General Ledger to provide asset management information. Oracle Assets
uses Supplier information from Oracle Purchasing, Units of Measure and
Items from Oracle Inventory, and Employees from Oracle Human Resources.
It also interfaces directly with the Application Desktop Integrator.
You can use Mass Additions to load into Oracle Assets invoice and asset
information from any feeder system, such as Oracle Payables or another
payables system. You can also import CIP assets from Oracle Projects.
1-Assets flexfield:
Warning: Plan your flexfield carefully. Once you have started entering assets
using the flexfield, you cannot change it.
A-key flexfield:
The asset key flexfield allows you to define asset keys that let you name and
group your assets so you do not need an asset number to find them. The
asset key is similar to the asset category in that it allows you to group assets.
However, the asset key has no financial impact.
The asset key flexfield identifies groups of assets by non financial information.
Note: Oracle Assets allows only one structure for each key flexfield defined
per application install. In other words, the segment structure you define for
each key flexfield will apply to all users and locations of that Oracle Assets
installation.
(N) Setup > financial > flexfield > key > segments
Enter the segment name and select column for this segment then click (B)
open
(N) Setup > financial > flexfield > key > values
B-locations flexfield:
The location flexfield allows you to specify and track the exact location of your
assets.
You can report on your assets by location and also transfer assets that share
location information as a group.
(N) Setup > financial > flexfield > key > segments
Enter the segment names and select columns for this segment then click (B)
open
(N) Setup > financial > flexfield > key > values
Select your applications-title-structure and segment to enter values
C-category flexfield:
The asset category flexfield allows you to define asset categories and
subcategories. For example, you can create an asset category for your
computer equipment. You can then create subcategories for personal
computers, terminals, printers, and software.
The asset category flexfield groups assets by financial information.
(N) Setup > financial > flexfield > key > segments
Enter the segment names and select columns for this segment then click (B)
open
Note that major category has a validation type independent and minor
category has a validations type dependent.
2-system controls:
Set up your system controls. You specify your enterprise name, asset
numbering scheme, and key flexfield structures in the System Controls
window. You also specify the oldest date placed in service of your assets.
Oldest date placed in service: Enter the Oldest Date Placed in Service,
which controls what dates are valid to place assets in service and on what
date to begin your calendars.
Note: you cannot place new assets in service before the new date you can
only update the Oldest Date Placed in Service before you assign any
calendars to depreciation books.
Category flexfield: Enter the Category Flexfield structures you want to use.
Location flexfield: Enter the Location Flexfield structures you want to use.
Assets key flexfield: Enter Asset Key Flexfield structures you want to use.
Starting asset number: Enter the Starting Number at which you want Oracle
Assets to begin automatically numbering your assets.
3-aseets calendars:
Assets
calendars
You must first define fiscal years then asset calendars based on those fiscal
years.
Use the Fiscal Years window to define the beginning and end of each fiscal
year since the start of your company. Your fiscal year groups your accounting
periods. Create fiscal years from the oldest date placed in service through
one fiscal year beyond the current fiscal year. You can set up multiple fiscal
years in this window. You can assign different fiscal years to your different
corporate books. The calendar for a tax book must use the same fiscal year
name as the calendar for the associated tax book.1
B-assets calendar:
Fiscal year name: Enter the Fiscal Year Name you want to use for this
calendar.
Period per year: Enter the number of periods in the fiscal year for this
calendar.
Enter the Name of this period and enter the start and end dates of this
period.
Note: The period name must match to the corresponding GL Calendar
period name (this is case sensitive) or accounting will not transfer to the
General Ledger.
C-prorate conventions:
Fiscal year name: Enter the Fiscal Year Name for which you want to set up
this convention.
4-book controls:
Define asset books to store financial information for a group of assets. You
can set up an unlimited number of independent depreciation books. Each
book has its own set of accounting rules and accounts so you can organize
and implement your fixed assets accounting policies. When you define a tax
or budget book, you must specify an associated corporate book.
Class: In the Class field, select Corporate. You can only create group assets
in a corporate book.
(T) Calendar:
Allow purge: You must check the Allow Purge checkbox in order to purge
information from this asset book. It is recommended that you leave the
checkbox unchecked until you are ready to purge data from the book. You
can then enable the Allow Purge option, purge your data, and then again
disable the checkbox. This helps to ensure against unwanted purges of data
from this book.
Ledger: Enter the ledger for which you want to create journal entries.
Allow GL posting: Enable if you want to create journal entries for this book.
You cannot allow general ledger posting for your budget books.
Current period: The Oracle Assets system will update the current period field
each time the current period is closed and the next period is opened. Keep in
mind there can be only one open period at a time for each asset book. You
must set up the depreciation calendar for at least one period before the
current period.
Divide depreciation: Choose the method for dividing the annual depreciation
amount over the periods in your fiscal year for this book.
Last run date: Initially defaults to the current date. Oracle Assets updates
this date when you run depreciation.
Capital gain threshold: The minimum time you must hold an asset for
Oracle Assets to report it as a capital gain when you retire it. If you want
Oracle Assets to report a capital gain for all assets when you retire them,
enter zero for the threshold.
Allow amortized changes: This option does not affect group or member
assets, or Individual assets that previously belonged to a group.
Allow cost sign changes: Check this check box if you want to allow the cost
amount to change from a positive to a negative amount or from a negative to
a positive amount.
Allow mass changes and allow amortized changes: If you want to allow
amortized changes and mass changes in the asset book, make sure these
check boxes are enabled. The default when defining a new asset book has
these checkboxes disabled and it is often overlooked to enabled them when
defining a new asset book.
Allow group depreciation: You must check the Allow Group Depreciation
check box before creating group assets in the book.
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Allow CIP members in group assets: If this check box is not checked, you
will not be able to add a CIP asset to a group asset.
Note: Once they Allow CIP Members in Group Assets check box is checked
and saved, you cannot uncheck it.
Allow CIP depreciation in group assets: You must check the Allow CIP
Depreciation in Group Assets check box to depreciate the CIP asset cost for
member assets.
Allow member assets tracking: enable member asset tracking for the
depreciation book. Once the check box is checked and saved, you cannot
uncheck it.
5-assets category:
Asset categories let you define information that is common to all assets in a
category, such as depreciation method and prorate convention. Oracle Assets
uses this information to provide default values to help speed asset entry.
All assets are required to have an asset category. Asset categories group
assets that share financial accounts and usually depreciate using the same
rules. Oracle Assets uses this information to provide default values at the time
an asset is entered into the system.
You specify general ledger accounts and default depreciation rules for assets
in a category and an asset book. You set up different default depreciation
rules depending on the date placed in service. If an asset book is not
attached to an asset category, you will not be able to add assets assigned to
that category to that asset book.
Property type and property class: Enter the Property Type and Class to
which the assets in this category usually belong.
Note: You set up your Quick Code values for Property Type in the Quick
Codes window. If you have assets in the United States, enter 1245 for
personal property and 1250 for real property.
Book: enter the Book for which you want to set up this asset category.
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Asset cost: Enter the Asset Cost account for this category and book.
Oracle Assets uses this account to reconcile asset costs to your general
ledger. Oracle Assets creates journal entries for this account to reflect
additions, retirements, cost changes, revaluations, transfers, reclassifications,
and capitalizations.
Asset clearing: Enter the Asset Clearing account for this category and book.
Oracle Assets uses this account to reconcile your payables system and
Oracle Assets. For mass additions, it uses the complete Account combination
that comes over with a mass addition line to reconcile the asset addition or
cost adjustment with your payables system.
Bonus expenses: If you have set up bonus rates, enter the Bonus Expense
account. If you do not enter a value in this field, it defaults to the Depreciation
Expense account.
Bonus reserve: If you have set up bonus rates, enter the Bonus Reserve
account. If you do not enter a value in this field, it defaults to the Accumulated
Depreciation account.
CIP cost: Enter the CIP Cost account for this category and book. This
account is used to reconcile CIP asset costs to your general ledger.
CIP clearing: Enter the CIP Clearing account for this category and book if
you entered a CIP Cost account.
Placed in service: In the Default Depreciation Rules window, enter the date
Placed in Service range for which these category defaults are effective. When
you add an asset, the depreciation rules default according to the date placed
in service of the asset, the category, and the book.
Method: Enter the depreciation Method that you normally use for assets in
this book and category:
Life-based: If you enter a life-based method, you must enter the asset Life in
Years and Months. The method you enter must have the same number of
periods as the prorate calendar for this book.
Flat-rate: If you enter a flat-rate method, you must enter default values for the
Basic Rate and Adjusted Rate that you normally use to depreciate assets in
this book.
Units of production: If you enter units of production method, you must enter
the unit of measure (UOM) and production Capacity that you normally use to
depreciate assets in this book and category.
Bonus rule: Enter the bonus rule that you normally use for assets in this
book and category. You can use bonus rules for corporate books and tax
books, using all depreciation methods except UOM.
Default salvage value: If you chose Use Default Percent from the Salvage
Value pop list. Controls window for this book, you can enter a Default Salvage
Value percentage for this category, book, and range of dates placed in
service.
For example: if you want the salvage value to default to 10% of the cost,
enter 10 in this field. When you perform transactions affecting asset cost,
Oracle Assets uses this default percentage to calculate the salvage value
according to the following formula:
Salvage Value = Cost? Default Percentage
Ceiling: If you are defining this category for a tax book, optionally enter either
a depreciation expense or cost ceiling.
Price index: Enter a Price Index if you want to run reports that use the
revalued asset cost to calculate gains and losses.
Straight Line For Retirements: Check Straight Line for Retirements if you
are setting up an asset category with a 1250 property class in a tax book.
Oracle Assets uses a straight-line depreciation method in determining the
gain or loss resulting from the retirement of 1250 (real) property.
If you check Straight Line for Retirements, enter the straight-line depreciation
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Method and Life you want to use for the Gain from Disposition of 1250
Property Report. This is the default method for your asset in the Retirements
window and in the tax book if you use mass copy.
Use Depreciation Limit: Check the Use Depreciation Limit check box if you
want to depreciate an asset beyond its useful life. You can enter the default
depreciation limit as a percentage or an amount.
USE ITC Ceilings: If you are defining this category for a tax book, indicate
whether assets in this category are eligible for Investment Tax Credit (ITC)
and whether assets in this category Use ITC Ceilings.
Mass Property Eligible: Check the Mass Property Eligible check box if you
want to make assets added to this category eligible for mass property
treatment.
Group Asset: In the Group Asset field, you can enter the group asset to
which all assets added to this category will be assigned. If you enter a group
asset number in this field, all capitalized and CIP assets using this category
will be automatically assigned to the group asset entered.
1-Manual addition:
You use Quick Additions or Detail Additions to add assets manually. All
assets added to the primary asset book are automatically converted to the
reporting currencies asset books when you save the transaction. Based on
the asset date placed in service, Oracle Assets retrieves an exchange rate to
convert the asset cost and depreciation reserve.
Quick addition
details Addition To enter
an asset
manual
Quick Details
addition addition
To enter an asset by quick addition click (B) quick addition and to enter
details click (B) additions
1-Quick additions:
Use the Quick Additions process to quickly add ordinary assets. When you
enter minimal information in the Quick Additions window, the remaining asset
information defaults from the asset category, asset corporate book, and the
date placed in service.
Click (B) ok then search about this asset and you will find it
2-Details additions:
Use the Detail Additions process to manually add complex assets, which the
Quick Additions process does not handle:
-Assets that have a salvage value
-Assets with more than one assignment
-Assets with more than one source line
-Assets to which the category default depreciation rules do not apply
-Subcomponent assets
-Leased assets and leasehold improvements
-Assets assigned to warranties
Click (B) ok search about this asset and you will find it
Note:
To clear the Asset Clearing account, a manual journal entry would have to be
entered in the General Ledger application as follows:
DR Asset Clearing 50,000
CR Telephone Expense 50,000
2-mass addition:
The mass additions process lets you add new assets or cost adjustments
from other systems to your system automatically without reentering the data.
For example: you can add new assets from invoice lines brought over to
Oracle Assets from Oracle Payables, or from CIP asset lines sent from Oracle
Projects.
Enter your invoice header then click (T) lines to enter your invoice lines
Condition 1 Condition 2
Condition 3
Click (B) ok
Condition 4
Click (B) ok
Click (B) ok
Click (B) ok
Click (B) submit and when your request completed normal all assets invoices
will be transferred to fixed assets module and you can search about it in the
mass addition window
Click queue and select post then chose your category then select you
category-expense account-date in service and depreciation.
Note: you can also change your asset cost in this window
You can add assets number-tag number-serial number .and so then save
your work and click (B) done
When your request will be completed normal you can search about your asset
in assets workbench window
3-CIP assets:
Note:
You capitalize CIP assets when you are ready to place them in service. You
can capitalize or reverse capitalize a single asset or a group of assets.
(N) Assets > assets workbench window and search about your asset
4-Assets adjustment:
A-Reclassifying an Asset:
You assign an asset to a new category in the Asset Details window to update
information, correct data entry errors, and consolidate categories.
-When you reclassify an asset in a period after the period you entered it,
Oracle Assets creates journal entries to transfer the cost and accumulated
depreciation to the asset cost and accumulated depreciation accounts of the
new asset category. This occurs when you create journal entries for your
general ledger.
-Reclassification does not redefault the depreciation rules to the default rules
from the new category. Manually change the depreciation rules in the Books
or Mass Change windows if necessary.
Reclassification
Single Mass
reclassificatio reclassificatio
Click (B) find to find your asset and create your single asset reclassification
Query the Mass Transaction number and choose Run to submit the Mass
Reclassification concurrent process.
Click (B) ok
Adjusting financial
information
Now you can adjust your asset financial information then click (B) done
D-Transferring an Asset:
You transfer an asset when there are changes in asset assignments
(Employee, Depreciation Expense Account, and Location) to help you
maintain accurate asset inventory. You use the Assignments window in the
Asset Workbench to transfer assets from one assignment to another within a
corporate book.
Assets transfer
In the Unit Change field of the Assignments window, enter a negative number
for the assignment line from which you want to transfer the asset.
Note:
You can transfer assets between employees, depreciation expense accounts,
and locations. When transferring assets, you should consider the
following:
-You can change the transfer date to a date in a prior period for a particular
transfer, but the transfer must occur within the current fiscal year.
You can change the transfer date of an asset to a prior period only once per
asset.
-You cannot transfer an asset to a future period.
Note:
Transfer an asset between companies ABC Marketing and XYZ Advertising in
Year 3, Quarter 4. Cost is $4,000, depreciation method is straight-line, and
life is four years.
Oracle Assets creates the following journal entries for the transfer and for the
current period depreciation expense:
Oracle Assets allows you to transfer multiple assets in one transaction. You
use the Transfer From and Transfer to fields to identify the assets to be
transferred.
You can transfer between expense accounts, locations, and employees and
employee numbers. By selecting any combination of these criteria, you can
further restrict the range of assets to be transferred.
(N) Mass Transactions > Transfers
Select the corporate depreciation Book for the assets you want to transfer.
5-depreciation:
-For straight-line depreciation, the annual rate is calculated by dividing the life
(in years) into one.
-For other life-based methods, Oracle Assets takes the annual depreciation
rate from a rate table.
B-Flat-Rate:
-Depreciates the asset cost or net book value over time using a fixed rate.
C-Units-of-Production:
Prorate
Nov convention Enter production
21 Dec amounts
1
Date placed
in service Prorate date
Rate =
Production/Capacity
Depreciation
expense per period X
Multiply by
depreciable
basis
-Depreciates the asset cost by actual use or production for each period.
Depreciation Calendar,
Divide Depreciation Annual
flag, and Depreciate Depreciation Multiply by Cost
When Placed in Service or Net Book Value
flag
Depreciation Rate:
U
-After calculating the annual depreciation amount, Oracle Assets uses your
depreciation calendar, the divide depreciation flag, and the depreciate when
placed in service flag to determine how much of the fiscal year depreciation to
allocate to the period for which you ran depreciation.
Select your book-period and click close period check box to open the new
period then click (B) run
Click (B) ok and navigate to view > request to view the out puts
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6-Retirement:
-You retire an asset fully or partially when it is lost, stolen, damaged, sold,
returned, or for any other reason that causes you to stop using it.
-You retire assets by units or cost.
-You perform a mass retirement by retiring a group of assets.
-You perform current and prior period retirements and reinstatements within
the same fiscal year.
-You create journal entries to separate accounts for each component of the
gain or loss.
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Retiring an
asset
Full Partial
retirement retirement
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A-Fully retiring:
You fully retire an asset by retiring an entire asset including all of its units and
cost.
When entering the date of the retirement, it must be in the current fiscal year,
and cannot be before any other transaction on the asset.
Oracle Assets lets you use a different prorate convention when you retire an
asset than when you added it. The retirement convention in the Retirements
window and the Mass Retirements window defaults from the retirement
convention you set up in the Asset Categories window.
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Select your book-retire date and cost retired (full or partial) then click (B) done
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If you back to find your asset you will find it with this status
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Click (B) book to view the financial information to our retired asset
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Note:
-When entering the date of the retirement, it must be in the current fiscal year,
and cannot be before any other transaction on the asset.
-Oracle Assets lets you use a different prorate convention when you retire an
asset than when you added it. The retirement convention in the Retirements
window and the Mass Retirements window defaults from the retirement
convention you set up in the Asset Categories window.
-If you perform a prior period retirement, Oracle Assets backs out the
depreciation expense through the date of retirement. If you reinstate the
asset, Oracle Assets catches up depreciation expense through the end of the
current period.
-You can enter proceeds of sale and cost of removal amounts when you
perform a retirement.
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B-Partial retiring:
You can retire part of an asset by cost or by units in your corporate book.
You cannot perform partial unit retirements in your tax books; you can only
perform cost retirements (partial and full) in your tax books.
The procedure to partially retire an asset is identical to the procedure for fully
retiring the asset. The only difference occurs when you specify the cost or
units to retire.
If you perform multiple partial retirements on an asset within a period, you
must run the Calculate Gains and Losses program between transactions.
By Cost:
Enter the cost to retire.
The cost change will not affect the unit amount. Oracle Assets distributes the
cost retired proportionally across all distribution lines.
By Units:
Enter whole numbers for the number of units you want to retire.
Oracle Assets calculates the cost retired as the fraction of total cost for the
units retired relative to the total number of units.
By Source Line:
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7-Physical inventory:
Physical inventory is the process of ensuring that the assets a company has
listed in its production system match the assets it actually has in inventory.
The Physical Inventory feature in Oracle Assets assists you in comparing and
reconciling your physical inventory data. To use the Physical Inventory
feature, you must first take physical inventory of your assets. You need to
include the following information about your assets:
-A unique identifier, which can be either the asset number, tag number, or
serial number.
-The location.
-The number of units.
You can include other information that may make it easier for you to keep
track of the assets you are comparing, such as a description of each asset,
but only the information listed above is required.
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Named your physical inventory and select start date and end date then click
(B) open.
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Select your inventory then click (B) run to run comparison between what did
you see in the inventory and assets in the APPS.
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Click (B) ok
When your request completed with a normal status click (B) view output
Note: you can view your comparison results from (N) Physical inventory >
comparison > view
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And so you can note that we have change or no from the status
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8-Assets inquiry:
Assets inquiry
Inquiry Inquiry
about about
Financial Transactions
information history
Select your book and asset number then click (B) find
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Select your book and asset number and click (B) find
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9-Closed period:
Oracle Assets creates journal entries for depreciation expense, asset cost,
and other accounts. Oracle Assets automatically creates transaction journal
entries for your general ledger when you run the Create Accounting program
if you check the Create Journal Entries check box. Otherwise, Oracle Asset
Will not create journal entries and you can run the Transfer Journal Entries to
GL Assets concurrent program at a later time.
Oracle Assets creates journal entries that summarize the activity for each
account for each transaction type.
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(N) Create accounting to create your accounting for this book and send them
to G.L.
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Click (B) submit to submit this request and navigate to view > request to view
the out puts
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