Administrative 02

AIM
BP.080 - FUTURE PROCESS MODEL

Aditya Brila Retail Limited
Future Process Fixed Assets
Version: Oracle Application 12.0.4
Author : Ram Ganesh

Creation Date : 26 Sep 2008
Last Updated : 29-Sep-2008
Document Ref : ABRL-BP080-FA
Version : 1.0
Approvals:
Name and Designation Signature
Swarup Ghosal Chaudhary, Project Manager

Wipro
Saurabh Chakravarthy
Bala S.K
Confidential for Internal use only

Oracle 11.5.10.2 Implementation Project FA_BP080_NLL
BP.080-Future Process Model- Fixed Assets 5 May 2008
Document Control
Change Record
Date Author Version Change Reference
Reviewers
Name Position
Shalini Pal Lead Consultant, Wipro Infotech
Distribution
Copy Name Location

No.
Note to Holders:
If you receive an electronic copy of this document and you print this out,
you should write your name on the front cover (for document control
purposes).
If you receive a hard copy of this document, please write your name on the
front cover (for document control purposes)
Page ii
505066271.doc Company Confidential - For internal use only
Oracle 11.5.10.2 Implementation Project FA_BP080_NLL
BP.080-Future Process Model- Fixed Assets 5 May 2008
Contents
Document Control.................................................................................................................ii
Introduction.............................................................................................................................4
About Company..............................................................................................................4
Document Scope and Assumptions........................................................................4
ABRL HO Finance...........................................................................................................4
Key Issues Highlighted /Observed..........................................................................5
Key Business Process Improvement......................................................................5
Legend.......................................................................................................................................6
Fixed Assets Process............................................................................................................8
Event Catalog for Fixed Assets........................................................................................9
Process Descriptions for Fixed Assets.........................................................................10
Fixed Assets Future Process Flow in Application....................................................12
ABRL Future Business Process Flow.....................................................................13
FA-P001: Prepare Mass Additions.........................................................................13
FA-P002: Post Mass Additions................................................................................15
FA-P003: Manual Additions......................................................................................18
FA-P004: Enter CIP Asset.........................................................................................20
FA-P005: Asset Maintenance..................................................................................22
FA-P006: Adjustments - Financial and Other Asset Information..............24
FA-P007: Asset Retirement.....................................................................................26
FA-P008: Asset Transfer...........................................................................................28
FA-P009: Manage Construction in Progress Assets........................................30
FA-P010: Depreciate Assets....................................................................................32
FA-P011: Period Close Process...............................................................................33
FA-P012: Create Journal Entries...........................................................................36
Open and Closed Issues...................................................................................................38
Open Issues...................................................................................................................38
Closed Issues.................................................................................................................38
Page iii
Oracle 12.0.5 Implementation Project FA_BP080_ABRL
BP.080-Future Process Model- Fixed Assets 08 Sep 2008
Introduction
About Company
ABRL Profile
Aditya Biral Retail Limited belongs to the USD 28 Billion Corporation that is in the league of fortune 500.
ABRL made its foray into retail market in 2006 by acquiring Trinethra, a retail chain of super markets in south
India and with over 170 Outlets. Spread across the four southern states of Tamilnadu, Karnataka, Andhra
Pradesh and Kerala respectively. In May 2007 ABRL launched its own Brand of retail stores “More”. More
Spread its wings in Super Markets and Hyper markets ranging from an area of 10000 Sq.Feet to 75000
Sq.feet, more. has till date around 100 Super Markets in locations across Pune, Vizag, Delhi, Bangalore &
Vijayawada.
Document Scope and Assumptions

This document is the result of discussions with key personnel from Aditya Birla Retail Limited (ABRL).
This document outlines the future process model proposed for the Fixed Assets function of ABRL. The scope of
the module includes Addition , Maintenance , Depreciation Calculation, Retirement of assets and Integration
with General Ledger.
This high level process model has been developed based the discussions with the key users of from the
Accounts Department of ABRL. The document describes each of the business functions identified within ABRL
during the discussion and the proposed business solution using the Fixed Assets module. It will also identify
the individual processes that it performs within business functions and explain the process and limitations (if
any) compared to current practice. Each business function contains the following sections:
 Descriptive overview
 Process descriptions
The proposed solution uses the standard Oracle Application Release 12.0.5 with India Localization which is an
integrated Module of Supply Chain, Oracle Financials. Oracle Assets module provides the basis for creation,
tracking and maintenance of fixed assets. Those business functions identified as not being sufficiently catered
for by the standard system will be addressed during detailed analysis in Phase - II of the implementation
cycle. We may propose to change the business practices or will propose workarounds that can be fulfilled using
standard Oracle applications. In the event of these options are not able to meet ABRL requirements, we may
look at the possibility of customizing the functionality and features of the standard modules. This will be a last
resort as our intention will be to keep the system as standard as possible.
If customization is unavoidable, we will try to make the processes external to Oracle Assets module. Our
objective is to avoid modifications to the core logic and procedures of the Oracle Assets system.
Upon acceptance of this document, we will carry out the business mapping for the Assets system and a gap
list will be produced addressing the business areas that are not supported by the standard Oracle Assets
module. We will also suggest the workarounds (if any) in the same document.
It is important that all key users and the IT key users go through this document and identify any areas that we
may not have addressed or are not to be implemented due to operational reasons. Such items need to be
addressed at this stage to ensure smooth deployment of the system.
ABRL HO Finance
The HO Accounts in ABRL is responsible for maintaining the Financial and Management accounts in the
company.
The Fixed assets processing activities of ABRL are currently performed using FAMS/Navision system. In ABRL
all Fixed Assets reports are performed manually using FAMS, an offline System
The Accounts Department matches Supplier Invoices with Receipts and then they manually record the items as
fixed assets in the System.
Page 4
The objective of this document is to recommend the High level Process model for the Fixed Assets functions in
ABRL. Future process model will be used as the basis for the Oracle Product mapping.
ABRL Proposes to maintain a single Corporate Book that will be associated with HO Ledger.
Key Issues Highlighted /Observed

1. Integration is the key issue as many processes are performed manually (i.e. no
integration with other modules).
1. Matching of PO/GRN against Invoice and Fixed Asset is performed manually.
2. In ABRL Fixed Assets schedule is prepared manually using MS-Excel
Spreadsheet.
3. In ABRL, journal entries relating to Fixed Assets are passed in the General
Ledger manually.
4. In ABRL, Depreciation under Income Tax are calculated separately in Excel
Sheet.
5. ABRL Follows a Straight line Method of Depreciating Assets based on the rates
for the relevant assets/category of assets.
6. In ABRL, Store opening date is the cutoff date for capitalizing the assets for
that Location
7. ABRL Capex procurement, Invoicing, payment and capitalization process is
centralized
8. Transfer of Asset related financial information namely Asset cost and
depreciation expense to the Concerned State ledger is not possible as a single
FA book can be attached to a single ledger only.
Key Business Process Improvement

Following are the key areas where the process improvements have been proposed:
1. Integration of the Fixed Assets process with the Purchase Order, Accounts
Payable, General Ledger processes.
2. Invoice details will be transferred electronically from the Accounts Payable
module to the Fixed Assets module.
3. Actual depreciation will be automatically calculated by the system monthly.
4. All journal entries related to the fixed assets will be automatically generated
and passed to Oracle General Ledger.
5. Depreciation expense can be assigned to relevant cost centers.
6. Capex Purchase orders, GRN, Invoicing and capitalization will be carried out in
ABRL HO Ledger and ABRL HO will be responsible for the maintenance of the
FA Book.
Page 5
Legend
Fixed Assets Other Modules

Fixed Assets
Flow Flow
Flow
Legend
User
U ser G e n e ra te d R e tu rn
U s e r P ro c e s s
D e c is io n R e p o rt M a n u a l P ro c e s s
S y s te m
S y s te m S y s te m G e n e ra te d C o n c u rre n t C onnect
P ro c e s s D e c is io n R e p o rt P ro c e s s
Future Business Model

The Fixed Assets Module takes care of the Asset Management and Reporting requirements of the entire
enterprise. The module allows users to create assets either manually or through Mass Additions, perform Asset
transfers, Adjustments, Retirements and Depreciation.
ABRL Proposes to follow a centrally Managed Asset Management System. Requisitions for asset Purchases are
proposed to be raised by the Project team and subsequent process of raising PO’s and Making Payments for
the procurement being handled from HO. The Proposed Process in ABRL is diagrammatically Presented in the
following Process Flow Diagram.
Fixed Assets Integration
Oracle
CIP Asset
Purchasing
Oracle
Invoice lines
Payables Generate Invoice,
Make Payment, Transfer
Journal Categories
Journal Sources
Oracle
Account Codes Assets
Oracle
General Accounting Entries
Ledger
Page 6
The Asset Register is referred to as an Asset Book i.e. Corporate Book in the Oracle Assets.
The journal of all the financial transactions of an Asset Book is done in the GL. Hence every asset book should
be associated with a GL.
Fixed Assets has three flex fields that assist in codification and classification of assets.
Asset Category Flex field
ABRL Plans to have its Assets categorized in to Major and Minor Categories. For this Purpose Asset Category
Flex fields would be configured to meet the requirements of ABRL for grouping their assets based on
Depreciation Method, Rate etc.
The Asset Location Flex field
This structure is to be used for recording asset locations and use this as the basis of recording physical asset
transfers. It can support up to seven segments. This is a mandatory flex field.
ABRL Proposes to track its assets based on the Asset Locations and for the purpose the Flexfield would be
configured accordingly to cater to their requirements.
The Asset Key Flex field

ABRL can group assets as per it own requirements apart from the grouping to be done using the Asset
Category Flex field. The Asset key Flex field can be used for this. This structure is to be used for recording user
required groupings. This flex field can support up to ten segments. This flex field is optional.
Depreciation Calendar
Depreciation calendar is the calendar, which the entire fixed assets use for the purpose of calculating
depreciation and subsequent accounting in the General Ledger module. It is a general practice to maintain the
same calendar for both the GL and the FA.
Depreciation Methods
Oracle Assets supports almost any depreciation method. The depreciation methods that can be used are Flat
rate, Table based, Calculated, Production based and Formula depreciation.
Different depreciation methods can be used for different categories based on ABRL requirements.
Prorate Convention/Retirement Convention.
ABRL requires a Prorate convention so as to enable it to have the assets depreciated as on the date asset
placed in service regardless of the date Depreciation is run for the asset.
Prorate Convention is used to capture prorate date. Prorate date is the date which overwrites the date placed
in service for depreciation calculation during the first year of the asset’s life.
In prorate convention, we specify what should be the prorate date from which the system should calculate
depreciation for the first year, for a given date placed in service. The system in turn identifies the period to
which the prorate date belongs to and calculates depreciation for that period.
Physical Verification of Assets
In the Assets module, Physical Inventory is the process of comparing the location and number of units of fixed
assets as per the information maintained by Oracle assets with the actual location and no. of units. Its helps
to identify the missing assets. To use Physical Inventory feature, it should be enabled for each Asset category
at the time of setup.
Transfer of Assets
Each asset can be assigned to a location and / or to an employee. Assets can be transferred
between locations or from one employee to another.
Running Depreciation
Depreciation can be run only at the book level and for a period at a time. Running depreciation for a period
automatically closes the current period and opens the next period for transactions. Fixed Assets can have only
one period open at any point in time.
Page 7
Fixed Assets Process
FA-E01 FA-E02 FA-E03 FA-E04 FA-E05

FA-E01
Create Fixed FA-E02
Maintain Fixed FA-E03 FA-E04 FA-E05
Depreciate Period Close Book
Create
AssetsFixed Maintain
Assets Fixed Depreciate Period Close Book
Control
Fixed Assets Process
Assets Assets Fixed Assets Process Control
FA-P005
FA-P001 FA-P010 FA-P013
Maintain FA-P011
Prepare Mass Depreciate FA-P011 Book
Assets Period Close
Additions Assets Period Close Control
Process
Process
FA-P006
Adjustment to
FA-P002 Financial FA-P012
Post Mass Information. Create Journal
Additions Entries
FA-P007
FA-P003
Asset
Manually Add
Retirement
Assets
FA-P008
FA-P004 Asset Transfer
Enter CIP
Assets
FA-P009
Manage CIP
Assets
Page 8
Event Catalog for Fixed Assets
Event Name Type Description Frequency

Id
FA-E01 Creation of Fixed Assets Internal Create fixed assets in the Assets module. As Required
FA-E02 Maintain Fixed Assets Internal Maintain fixed assets information in the Assets module. This includes adjusting asset value, As Required
retiring assets, transferring assets and maintaining CIP assets.
FA-E03 Depreciate Fixed Assets Internal Run depreciation process to calculate the depreciation amount of all assets. Monthly
FA-E04 Period Close Process Internal Period Close Process and Create journal entries relating to fixed assets e.g. depreciation Monthly
journals, disposals etc.
FA-E05 Define Book Control Internal Creation of Corporate Book Once at the time of
setup
FA-E06 Defining Flex Fields Internal Creation of Asset Flex fields Once at the time of
setup
Page 9
Process Descriptions for Fixed Assets
Event Process Title Description of Process
FA-P001 FA-E01 Prepare Mass Additions Invoices are matched against Purchase Orders, Goods Receipt Note. The invoice details are
then transferred from Oracle Payables to Oracle Assets.
FA-P002 FA-E01 Post Mass Additions The transferred invoice details (mass additions) are reviewed in Oracle Assets. Fixed Assets
will be created based on the invoice details transferred from Oracle Payables.
FA-P003 FA-E01 Manual Additions There may be a requirement for some assets to be created directly in the Oracle Assets
module (i.e. not via the transfer of invoices from the Oracle Payables module). For such
cases, the assets are manually created as Fixed Assets.
FA-P004 FA-E01 Enter CIP Asset Construction In Progress (CIP) assets have zero cost. They are not tracked as “Fixed Assets”
until construction is completed and they are placed in service. CIP assets can be created in
the system either from Mass Addition lines from Oracle Payables or Manual entry in Oracle
Assets.
FA-P005 FA-E02 Maintain Assets Existing Assets are maintained in the Asset system in this process. The maintenance
performed includes adjustments to asset information, adjustment to depreciation,
adjustment to financial information, asset retirement, transfer of assets to different locations
and capitalizing CIP assets.
FA-P006 FA-E02 Perform Asset Adjustments - This process describes adjustments to financial information of assets.
Financial Information
FA-P007 FA-E02 Asset Retirement An asset that is no longer in service will be retired. For example assets that are lost,
damaged beyond repair, sold or returned will be retired by this process.
FA-P008 FA-E02 Asset Transfer This process describes the transfer of existing assets between employees, depreciation
expense accounts and locations.
FA-P009 FA-E02 Manage CIP Asset After CIP assets are first captured in Oracle Assets, they are “built up” over a period of time.
This process describes the maintenance of CIP assets. This includes adding, deleting or
changing invoice lines to the existing CIP asset, transferring invoice lines between existing
CIP assets, capitalizing CIP assets.
FA-P010 FA-E03 Depreciate Assets Run the depreciation process to calculate depreciation amounts for all assets within a book
for a period. After the depreciation process is run, Oracle Assets automatically closes the
current period and opens the next period.
FA-P011 FA-E04 Period Close Process Period Close process in Oracle Fixed Assets
FA-P012 FA-E05 Create Accounting Oracle Assets creates journal entries for depreciation expense, asset cost and other
accounts. These journal entries are automatically created and transferred to the Oracle
General Ledger module.
Page 10
Fixed Assets Future Process Flow in Application
Fixed Asset Context Diagram

P a yable s
Ge ne rate Invoice P os t Invoice to Cre a te Ma s s

P a y Invoice
For As s e t Ite m Ge ne ra l Le dge r Additions
P re pa re a nd P os t
Ma nua lly Add P re pa re a nd P os t
F ixed A ssets
Ma nua lly Add Ma s s Additions

As s e ts Ma s s Additions
As s e ts
Cre a te J ourna l
Ma inta in As s e ts De pre cia te As s e ts Cre a te J ourna l
Ma inta in As s e ts De pre cia te As s e ts Entrie s
Entrie s
G eneral
Ledge r
P os t J ourna ls
Page 11
ABRL Future Business Process Flow

Requisitions are raised by the Project Team members to the HO. Upon the approval of the Requisition the Purchase order is raised by ABRL HO, in Mumbai.
Invoices are generated upon matching the same to Receipt at the HO. PO’s for other Locations are proposed to be processed from HO only. Fixed Assets Future
Business Process Flow explains the proposed Flow in ABRL.
FA-P001: Prepare Mass Additions

The mass additions process allows for the addition of new assets or cost adjustments from other systems to Oracle Assets automatically without re-entering the
data. For example, new assets can be created from invoice lines brought over to Oracle Assets from Oracle Payables.
ABRL suppliers’ invoices can be matched to the goods receipt electronically within the Oracle Payables module. There is no requirement to perform the matching
using physical copies of the Purchase Order or Goods Receipt Note, After the relevant invoices have been approved, the Mass Addition process will be run which
will transfer invoice information from Oracle Payables to Oracle Assets. Once the invoice information is transferred to Oracle Assets, further processing on the
asset is performed.
The process flow diagram describes this process.
ABRL Proposes to have assets added in bulk through Mass Addition and split the same in to individual Assets at the time of capitalising the assets.
Page 12
FA-P001 Prepare Mass Additions
Supplier
Supplier
Invoice
Purchasing
Purchase
Order
Inventory
GRN &
Installation
Report
Run Mass Addition Process to

Payables
Match Transfer AP invoice details to

Supplier Invoice, Create Invoice in Run Mass The FA Module.
GRN,PO & Payables Module Addition
Installation Report
Assets
Process Mass
Fixed
Process Mass FA-P002

Addition
Addition
Page 13
Oracle 12.0.5 Implementation Project
FA_BP080_ABRL
BP.080-Future Process Model- Fixed Assets
08 Sep 2008
FA-P002: Post Mass Additions

Once the mass additions lines (i.e. invoice details) have been transferred from Oracle
Payables to Oracle Assets, they can be reviewed from within the module before posting
them to Oracle Assets (i.e. before creating assets). The review is done to confirm how
each mass addition line (i.e. invoice line) will be processed. Several options are available:
 Each mass addition line will be created as an asset.
 Each mass addition line will be combined with other mass
addition lines to form one asset (i.e. several invoice lines
will be grouped together to form one asset).
 One mass addition line can be split to create several
assets. This may occur when several purchased items are
recorded under one invoice line (e.g. 5 x PCs) but each
item has to be recorded as an individual asset in the
system.
 Mass addition lines which were created in error (i.e. those
not meant to be created as assets can be deleted from the
system.
During this process, additional information such as mass addition source, descriptive, and
depreciation information can be inputted into the Assets module.
Once the user has verified that the mass addition is ready to become an asset, the user
changes the mass addition queue to POST. Post Mass Additions function is then run and
this mass addition line will become an asset.
The Mass Additions post program defaults depreciation rules from the asset category,
book, and date placed in service. The user if necessary can override this information
manually.
Asset Categories
Oracle Assets uses the category Flex Field to group your assets by financial information. By
standardizing category names, it is easier to track the assets. By defaulting financial and
depreciation information from the asset book and asset category, the creation of assets
can be speeded up as less information needs to be manually entered during asset creation.
Further Asset Category Flex fields determines the account to which depreciation expense
will get generated.
Oracle Assets allows having a maximum number of 7 Segments for Asset Category
Flexfield.
For ABRL the Category will be created as
Major Category
Minor Category – I
Minor Category - II
Asset Key
ABRL has a requirement to track assets by ---- (i.e. assets purchased in the particular
financial year). In ABRL the Asset Category will have only one Segment as “Asset Key”
This Flex field can be used to group assets without impacting the financial reports as
required by ABRL.
Asset Locations
ABRL will track the locations of all assets. ABRL Will have a Asset Location Flex field
structured on the pattern of Location Segments designed in the Accounting Flex field as
follows.
Location Segment Values.
Page 14
FA_BP080_ABRL
08 Sep 2008
Asset Number
ABRL will practice automatic numbering of assets.
Tagging
ABRL will tag its assets i.e. Tag labels containing the asset number and other necessary
information will be attached onto the assets.
These Tag Labels will facilitate users in identifying assets during stock taking exercises.
Tag Numbers has to be manually entered by the person who is creating the asset.
Page 15
FA-P002 Post Mass Additions
Review Combine
Mass Merge
Mass Addition Yes
Addition Mass Addition
Summary Lines? Merge several mass addition lines together,
and create a single asset with this function.
No
Start mass additions posting program

Split Mass with this form, Submits concurrent request set.
Addition
Lines? No
Yes Post Mass

Addition to
Oracle Assets
Split Mass
Addition Mass Additions
Posting Report
Mass Additions
Posting
Use this function:
- To enter additional information for a Unposted Mass
mass addition item and create an asset. Additions Report
- To merge multiple mass additions lines
into a single asset.
- To add mass addition to an existing asset
as a cost adjustment. A
A
- To split a multi-unit mass addition.
Page 16
FA_BP080_ABRL
08 Sep 2008
FA-P003: Manual Additions

There are occasions in ABRL where certain assets are to be created directly in the Oracle
Assets module (i.e. not via the transfer of invoices from the Oracle Payables module). For
such cases, the assets are manually created as Fixed Assets.
For example, Furniture and Fittings acquired to decorate the model homes and common
areas of properties held for sales are considered as marketing and promotion expenditure.
Such assets must be tagged and maintained under a separate register.
There are 2 ways assets can be added directly into the Oracle Assets module.
The quickest way is to use the Quick Additions function. This function allows for the
addition of an asset by accepting default information. Details entered into the system
include:
 Description of the asset

 Asset Category
 Current cost
 Date Placed in Service
 Employee the asset is assigned to
 Depreciation Expense Account
 Location
Using Quick Additions, only a limited number of fields are captured for each asset. Most of
the information is also defaulted from the parameters assigned to the Asset Book and the
Asset Category. For example, the depreciation methods are defaulted from the Asset
Category.
The Detail Addition function is used to enter complex assets that the Quick Addition
process does not handle. This function allows more information to be captured about the
asset. Default information can also be changed. The information includes:
 Asset Description
 Asset Category
 Number of units making up the asset
 Details of asset sub-components
 Manufacturer and Model
 Serial number
 Property type and class (i.e. Owned/Leased and New/Used)
 Purchasing information (e.g. Supplier name, PO number, Invoice
Number of Supplier)
 Current cost, Accumulated Depreciation etc
 Salvage value
 Date placed in service
 Indicate whether the asset will be depreciated (Oracle Assets can
track items that do not need to be depreciated e.g. expensed
items)
 Override and change the depreciation and prorate methods which
were defaulted from the category.
Page 17
FA-P003 Manually Add Asset
FA-P004
Enter
Complex No Quick CIP Asset Construction
Asset? Asset?
In-Process
Asset
Enter descreptive
Enter
Information, number
Asset Details
Of units, and category.
Yes Quick Asset
Assign invoice and

Enter Supplier references
Source lines During set up.
Enter Asset’s
descreptive, Use Quick Additions for
Financial and Quick ordinary assets to make use of
Distribution details Additions Category default depreciation
Enter financial rules, Add an asset using
Enter Information, Quick Additions to minimize
Book Info. Depreciation, Data entry.
Cost.
Enter distribution
Enter Information, location,
Assignments allocate units.
Yes Charge Asset

Asset Type
To Expense
= Expensed?
account
Use Asset Category flexfield to tie the asset to its No

Corresponding asset account, asset clearing account,
and Depreciation method & Life.
Return
Page 18
FA_BP080_ABRL
08 Sep 2008
FA-P004: Enter CIP Asset

ABRL will create an asset which is to be constructed over a period of time through CIP
Asset creation function. A construction-in-process (CIP) asset is an asset constructed over
a period of time. CIP assets will be maintained in the Oracle Assets module and can be
tracked for material and labor resources to build the asset. Initially, the CIP asset is not in
use, it does not depreciate. When the CIP asset is complete (i.e. when capitalised) ABRL
will place the asset in service and begin depreciating it.
CIP assets can be created in the Oracle Assets module in 2 ways i.e. using the mass
additions or manual additions function. The 2 methods of adding the CIP assets are similar
to the methods previously described for the addition of normal assets.
Oracle Assets identifies invoices with distributions to CIP Clearing Accounts in Oracle
Payables, and creates mass additions from them. You can create new CIP assets from your
mass additions (i.e. invoice lines), or add them to existing assets.
ABRL Proposes to capitalize all its CIP Assets as on the date on which a store is
opened in a location
Capitalize Assets in the Asset work bench facilitates the capitalization of assets
based on the client need on a asset to asset basis.
Page 19
FA-P004 Enter Construction In Process Assets
CIP Assets are only added to Corporate books,

Initially a CIP asset has a zero cost. It is a shell
CIP Asset for the cost that make up the asset.
Details Subsequently, add invoice distribution lines to the
New CIP asset to increase the cost.
Add Mass Additions

No
Manually? Summary
Additions
Yes
Quick
Additions
Return
Page 20
FA_BP080_ABRL
08 Sep 2008
FA-P005: Asset Maintenance

ABRL Head Office, Finance department will centrally handle the Fixed Asset Procurement.
ABRL proposes to continue the same process as far as Asset maintenance also. It may
include any of the following activities
 Revaluation of assets
 Adjustment to prior year depreciation
 Adjustment to the asset’s financial information (e.g. asset
cost, depreciation method, prorate convention etc)
 Asset retirement
 Asset Transfer (to different locations, cost center etc)
 Capitalize CIP assets that are completely constructed etc.
 Change the Asset Category of Assets – For More
information refer to Adjustments - Financial and Other
Asset Information
The process flows gives an overview of the various types of maintenance processes. Each
type of process will be elaborated in greater detail in subsequent flows.
Page 21
FA-P005 Maintain Assets
Adjust Asset No No No Manage CIP

Retire Assets? Transfer assets?
Value? Assets?
Yes Yes Yes Yes
FA-P 009
FA – P006 FA-P 007 FA-P 008
Manage CIP
Adjustments Asset Retirement Asset Transfer
Assets
Return
Page 22
FA_BP080_ABRL
08 Sep 2008
FA-P006: Adjustments - Financial and Other Asset

Information
This process describes changes to the financial and other asset information of ABRL
Corporate Book.
Financial and Depreciation Information
After an asset has been created in the Oracle Asset module, updates can be made to the
financial and depreciation information for a single asset or a group of assets.
Before running depreciation (in the period in which you added the asset), any fields can be
changed.
However, after depreciation has been run, only the following financial and depreciation
information can be changed:
 Asset cost
 Salvage value
 Prorate convention
 Depreciation method
 Life of the Asset if SLM
 Capacity and unit of measure
 Rate
If the asset is fully reserved, adjustments can be made to the same fields as for an asset
for which depreciation has been run. If the asset is fully retired, none of the fields can be
changed.
The user can choose whether to amortize or expense the adjustment made and Oracle
Assets passes the necessary journal entries for the same. Further these adjustments can
be identified after the current open period is closed.
Other Asset Information
Other asset information that can be changed includes:
 Asset Description
 Asset Category
 Tag Number
 Sub-components
 Parent asset
 Number of units
 Other Asset details pertaining to manufacturer, warranty,
model etc.
As and when ABRL will change the Category of Assets, the applicable depreciation rates for
the category will automatically apply.
Page 23
FA-P006 Adjustments – Revaluation/Prior Year Depreciation.
Adjust
Revalue
No Prior Year No FA-P008
Assets?
Deprn?
Yes Yes
Mass Mass
Revaluation Reserve
Adjustments Depreciation
Preview Report Adjustments
Revalue all the assets Select the book to adjust and

in a category, or enter the adjustment factor,
Mass Revaluation Individual assets, Enter Preview the effects of the
the revaluation rates adjustment before performing it.
and rules.
Mass
Revaluation
Review Report
Return
Page 24
FA_BP080_ABRL
08 Sep 2008
FA-P007: Asset Retirement

When an asset is no longer in service, ABRL HO Finance department will retire an Asset in
the Oracle Assets module.
Assets can be fully or partially retired. Assets can be retired by units or by cost. When
assets are retired by units Oracle Assets automatically calculates the fraction of the cost
retired. When assets are retired by cost, the units remain unchanged and the cost retired
is spread evenly among all assignment lines.
Assets can be selected individually for retirement. Alternatively, the Mass Retirements
function can be used to retire a group of assets at a time. The user can specify the
selection criteria for the assets to be mass retired. These election criteria include:
 Asset category
 Asset key
 Location
 Employee
 Asset number range
 Date placed in service range
For assets with sub-components, the user can also elect to automatically retire the sub-
components along with the parent asset.
When performing a mass retirement, Oracle Assets automatically runs the Mass
Retirements Report and the Mass Retirements Exception Report. The user can review these
reports, perform a mass reinstatement, or adjust an individual retirement transaction if
necessary.
For individual retirements, the details of Proceeds of Sale and Cost of Removal (of the
asset) can be entered into the system. When Mass Retirements is used, the total proceeds
of sale and/or the total cost of removal amounts will be entered into the system. Oracle
Assets then prorates the total amounts over the assets being retired according to each
asset's current cost.
ABRL has a requirement to capture the capital gain on Disposal of Assets.
Page 25
FA-P007 Retire an Asset
Retire part of an asset by cost or by units.

Fully
Partially Retirements
Retire?
Fully
Change other
Information
Calculate
Process
Gains & Loss
Retirements
Return 1.5
Page 26
FA_BP080_ABRL
08 Sep 2008
FA-P008: Asset Transfer

Several types of transfers can occur to existing assets in ABRL such as transfer to various
locations etc. Transfers can take place between locations, depreciation expense accounts
or employees.
A transfer form is used to start the transfer process. The requester completes the transfer
form and obtains the necessary approval. The signed approval form is submitted to the
Fixed Assets Manager that processes the request.
Transfers can be performed for individual assets or a group of assets. Where mass
transfers are executed, the Fixed Asset user can run the Mass Transfers Preview report to
preview the expected effects of the Mass Transfer before it is actually executed. If
necessary, the Fixed Asset user can update the parameters and run the preview report
again before actually affecting the transfer.
Page 27
FA-P008 Asset Transfer
Receive Transfer Mass transfers

Asset Transfer Single No Preview report
Relocation form Asset?
yes
Use the mass transfer function

Transfer units from a single
to transfer a group of assets between
asset between general ledger
Assignments Mass transfers general ledger depreciation
depreciation expense accounts,
expense accounts, locations, or
location, or employees within a
employees with a corporate book.
corporate book.
Return
Page 28
FA_BP080_ABRL
08 Sep 2008
FA-P009: Manage Construction in Progress Assets

ABRL HO will maintain CIP Assets. After CIP assets are entered in Oracle Assets, they are
“built up” over a period of time.
As payments are made for the CIP asset, supplier invoices will be received and processed
in Oracle Payables. These invoice details will be transferred to Oracle Assets electronically
via the Mass Addition process. In Oracle Assets, these mass addition lines (i.e. invoice
lines) can be “added” to the existing CIP assets to reflect the building up of the CIP asset’s
cost.
Similarly, invoice lines that have already been assigned to a CIP asset can be deleted or
modified. These invoice lines can also be transferred to another CIP asset if necessary.
Once the CIP asset is completely constructed, it will be capitalized and “placed in service”
as an asset. From this point on, the asset will start depreciating and continue to be tracked
as a normal asset.
ABRL will have the store opening date as the date for capitalizing its CIP Assets
Page 29
FA-P009 Manage Construction in Process
CIP Asset
Details
Add a mass addition line to an Existing

Add invoice line Mass Additions Asset as a cost adjustment.
to Existing Asset Summary
Change the cost of an invoice line or

delete the invoice line from a CIP Asset.
Change or delete CIP Asset
an Invoice line Adjustments
Transfer all or part of an invoice line between

Transfer assets. Transfer lines between CIP and
Invoice lines Assignments Capitalized assets.
Between Assets
Capitalize a CIP asset when it is ready to be

Finish building placed into service and depreciated.
Capitalize
CIP Asset and Capitalize one or more assets in a single
CIP Assets
ready to use. Transaction. Capitalize an asset in the period
you added it, or in a later period.
Return
Page 30
FA_BP080_ABRL
08 Sep 2008
FA-P010: Depreciate Assets

ABRL HO, Finance department Propose to maintain two Books, Corporate book to calculate
depreciation as per Companies Act 1956, and to calculate depreciation amounts for all
assets within a book for a period as per Income Tax Act. As Already noted in the earlier
part of the document, Depreciation Amounts will reflect the Depreciation policy of ABRL
namely Flat rates based depreciation.
At month end, the Fixed Asset user will ensure that all necessary asset maintenance
transactions for that month have been completed (i.e. asset adjustments, transfers,
retirements/ disposals, capitalization of CIP assets etc).
The user will also ensure that all new asset creations by mass additions or manual
additions have been completed.
If necessary, run the Depreciation Projection report to review projected depreciation
expense for assets in each book.
When the review is completed and all data is correct, run the Depreciation function to
process all assets in a book for a period.
It is important to note that Oracle Assets automatically closes the current period and
opens the next for the book after calculating depreciation. Once depreciation is run, and
the current period is closed, all further changes or adjustments to the assets will affect the
General Ledger in the next period. It is not possible to reopen an accounting period in the
Fixed Assets module.
The Prorate date basis would be “Daily” for all the asset categories. Retirement Convention
will be the same as prorate convention. Hence depreciation would be calculated from the
date the asset is put in to service.
Run Depreciation for the period. Depreciation can be run any number of times. However no
activities can be done in Fixed Assets for the period once depreciation is run and period is
closed. Navigation is
The Following Accounting entries are generated in FA for Depreciation
Accounting Event Account Head Debit Credit
Depreciation Depreciation A/C 10
To Accumulated Depreciation A/C 10
For Income Tax purpose, Depreciation on asset is calculated on the Written down Value for
the Block of Asset. 100% of depreciation is calculated if the asset is purchased between
1st April and 30th September and 50% of eligible depreciation if asset is purchased
between 1st October and 31st March.
For the above purposes date placed in Service is the date on which the assets are
capitalized and the Depreciation Calculations are done accordingly.
For calculating depreciation as per Income Tax Act, users need to manually run the
program “Income Tax Act Fixed Asset Schedule”
Please note that India-Income Tax Depreciation is only a report and no accounting entries
are passed in the system.
ABRL HO requires adjusting the “cenvat recovery on Capital Goods” at the applicable rates
for the assets.
Page 31
FA_BP080_ABRL
08 Sep 2008
FA-P010 Depreciate Asset
Perform Reserve
Run
Necessary asset Run Ledger
Depreciation Return
Maintenance Depreciation Reports
Reports
functions
Depreciation
Projection
Report
Calculate Journal entry

Gain & Depreciation Reserve
Losses Ledger Report
Close Period
FA-P011: Period Close Process

ABRL Plans to follow a Period close Process for its fixed assets on a monthly basis
Once all the activities of assets are confirmed for the Accounting period and depreciation
amount has been reviewed and found correct then that period can be closed and
accounting entries can be transferred into the general ledger. Accounting period can be
closed by clicking the Close Period Box in Depreciation form.
Please note that you cannot open the next period without closing the current period
Navigation: Oracle Fixed Assets> Depreciation> Run Depreciation
Run the “Create Accounting” program to generate the journal entries and for transferring
the same to General Ledger. Please refer to the Close Accounting Period Process Flow
Diagram
ABRL Proposes to Use April to March as their Fiscal Year.
Page 32
FA_BP080_ABRL
08 Sep 2008
Close Accounting Period
Close Accounting Period
Preliminary Depreciation
Run
Close Run Depreciation

Accounting
Period
Review Depreciation
Reports
Submit Requests
Take Required Corrective

Is it ok ? No
Action
Asset Work
bench
Yes
Final Depreciation Run
Run Depreciation
Review Depreciation
Reports
Submit Requests
Generate Month end

Generate Accounting
Reports
Create Submit Requests

Accounting Accounting Period
Closed
Page 33
FA_BP080_ABRL
08 Sep 2008
Key Reporting Requirements of ABRL
 Asset Listing by Period: To track assets for a specified period for internal
management purposes.
 Assets Register Report: To get a snapshot of any asset.
 Asset by Category Report: To find and review the entire asset in an asset
category.
 Expensed Property Report: To find all expensed assets
 Fully Reserved Assets Report: TO find the assets that became fully
depreciated in a range of accounting periods
 Asset Addition Report: To find the detail of asset added in that period
 Asset Schedule VI in accordance with Companies Act, 1956
 Asset Retirement Report: To Find the retired asset for that period
 Asset Transfer Report: To find the list of assets transferred from one
location, Employee to another.
Page 34
FA_BP080_ABRL
08 Sep 2008
FA-P012: Create Accounting

After the depreciation run is completed, ABRL Finance department need to create journal
entries to reflect the depreciation expense, asset cost, transfers and other accounts.
When the Create Accounting Concurrent Program is run, the Oracle Assets module will
automatically create transaction journal entries and then transfer them to the Oracle
General Ledger.
Oracle Assets Facilitates Online Creation of Accounting for FA Transactions without the
period being closed.
Page 35
Page 36
FA_BP080_ABRL
08 Sep 2008
Open and Closed Issues
Open Issues
ID Issue Resolution Responsibility Target Impact Date

Date
Closed Issues
ID Issue Resolution Responsibility Target Impact Date

Date
Page 37

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AIM

BP.080 - FUTURE PROCESS MODEL

Author : Ram Ganesh

Name and Designation Signature

Swarup Ghosal Chaudhary, Project Manager

Confidential for Internal use only

Date Author Version Change Reference

Shalini Pal Lead Consultant, Wipro Infotech

Copy Name Location

Document Scope and Assumptions

Key Issues Highlighted /Observed

Key Business Process Improvement

Fixed Assets Other Modules

Future Business Model

Fixed Assets Integration

Asset Category Flex field

The Asset Key Flex field

Prorate Convention/Retirement Convention.

Physical Verification of Assets

Fixed Assets Process

FA-E01 FA-E02 FA-E03 FA-E04 FA-E05

Event Catalog for Fixed Assets

Event Name Type Description Frequency

Process Descriptions for Fixed Assets

Event Process Title Description of Process

Fixed Assets Future Process Flow in Application

Fixed Asset Context Diagram

Ge ne rate Invoice P os t Invoice to Cre a te Ma s s

Ma nua lly Add Ma s s Additions

ABRL Future Business Process Flow

FA-P001: Prepare Mass Additions

FA-P001 Prepare Mass Additions

Run Mass Addition Process to

Match Transfer AP invoice details to

Process Mass FA-P002

FA-P002: Post Mass Additions

FA-P002 Post Mass Additions

Start mass additions posting program

Yes Post Mass

FA-P003: Manual Additions

 Description of the asset

FA-P003 Manually Add Asset

Assign invoice and

Yes Charge Asset

Use Asset Category flexfield to tie the asset to its No

FA-P004: Enter CIP Asset

FA-P004 Enter Construction In Process Assets

CIP Assets are only added to Corporate books,

Add Mass Additions

FA-P005: Asset Maintenance

FA-P005 Maintain Assets

Adjust Asset No No No Manage CIP

Yes Yes Yes Yes

FA-P006: Adjustments - Financial and Other Asset

FA-P006 Adjustments – Revaluation/Prior Year Depreciation.

Revalue all the assets Select the book to adjust and

FA-P007: Asset Retirement

FA-P007 Retire an Asset

Retire part of an asset by cost or by units.

FA-P008: Asset Transfer

FA-P008 Asset Transfer

Receive Transfer Mass transfers

Use the mass transfer function

FA-P009: Manage Construction in Progress Assets