Moving Assets From One

Ledger To Another
Session ID:
10681
Enter to win: Oracle E-
Business Suite: A Fixed Assets
Prepared by:
Perspective: Unlock the Brian Bouchard
Mystery of Oracle Assets Global Backoffice Operations Manager
Donaldson Company
@bbouchard34
Remember to complete your evaluation for this session within the app!
April 10,2019 @ 8:00AM-9:00AM
 Agenda
• Introduction
• Current Transfer Process
• Oracle Support Transfer Process Option
• Automated Transfer Process
• Tax Book Considerations
• Q&A
Introduction
Introduction

About the Presenter - Brian Bouchard

• Working with Oracle EBS / Cloud for 27 years
• Main focus was Oracle Financials (Assets)
• Roles: Fixed Asset Manager, Consultant, Trainer, Financial Systems Manager,
Global Backoffice Operations Manager, Entreprenuer
• Presented at Collaborate, Open World, GEOs, and AUSOUG
• Implemented over 35 full life cycle systems
• Authored a book on Fixed Assets
• Book Reviewer on 2 Oracle Books on R12 and HR
• Hold a patent & copyrights for a asset transfer & reporting solution
Current Transfer
Process
Current Transfer Process

Determine the
Determine Gather Asset Manually financial & life
Assets to be Information Perform treatment of
Transferred & Asset the asset
Document Retirement transfer

Manually
calculate the Determine the
new asset Manually identify the translation
values from the translation rate in Oracle rate to use
documented General Ledger for the asset
translation rate transfer

Manually Add
Asset to new Manually create
Depreciation Inter-company
Book journals
Current Transfer Process

Query asset(s) in Oracle. Search for assets by multiple fields.

Determine
Assets to be Navigator: Assets > Asset Workbench
Transferred
Current Transfer Process

Gather Asset In order to properly add the asset back to the receiving depreciation
Information book, document the asset details by screen shots.
&
Document

Asset Details – Open (Button) Source Lines Details – Source Lines (Button)
Current Transfer Process

Gather Asset
Information
&
Document

Financial Details – Books (Button) Distribution Details – Assignments (Button)

Current Transfer Process
Manually Sending Book is required to retire the asset:
Perform
Asset
Retirement

❑ Enter the depreciation book and retirement date (Transfer date)

❑ Determine how much to retire
❑ Full asset transfer
❑ Partial asset transfer based on units
❑ Partial asset transfer based on cost
❑ Enter the following retirement details
❑ Units or Cost to be retired
❑ Retirement Type (unique value to exclude during year-end reporting)
❑ Proceeds of Sale (if applicable)
❑ Cost of Removal (if applicable)
❑ Save Retirement (Done Button)
Current Transfer Process
Process the retirement:
Manually
Perform ❑ Navigate to the Calculate Gains and Loss program
Asset ❑ Enter parameters
Retirement
❑ Submit program
Current Transfer Process

Determine the
financial & life Determine how to financially transfer the asset to the new depreciation book:
treatment of
the asset ❑ Transfer Cost, YTD Depreciation, and Accumulated Depreciation
transfer
❑ Transfer Cost only
❑ Transfer NBV
❑ Transfer Amortized NBV

Determine how to transfer the asset life to the new depreciation book:
❑ Transfer the original life with the asset
❑ Transfer the remaining life with the asset
❑ Default the life to the life associated with the asset category for the new
depreciation book
Current Transfer Process
If the sending and receiving depreciation books have different
Determine the
translation currencies, then a translation rate is required.
rate to use
for the asset Capture translation rate to be used for the transaction:
transfer

1. Require access to the General Ledger 2. Navigate to the rate daily table
rate table
Current Transfer Process
3. Query the appropriate rate by entering the following:
Determine the
translation ❑ Transaction date
rate to use
for the asset ❑ From currency (currency associated to the sending depreciation book)
transfer
❑ To currency (currency associated to the receiving depreciation book)
4. Document the translation rate
Current Transfer Process
1. Calculate the new asset values
Manually
calculate the ❑ Asset Cost – sending depreciation book (asset cost * translation rate)
new asset
values from the [12,355 * .6073 = 7,503.19]
documented ❑ YTD Depreciation – sending depreciation book (YTD depreciation *
translation rate
translation rate)
❑ Accumulated Depreciation – sending depreciation book (accumulated
depreciation * translation rate)
2. This detail needs to be sent to the person responsible for data entry into the
receiving depreciation book
Current Transfer Process
Determine Addition Approach:
Manually Add
Asset to new ❑ Quick Additions – one form to enter asset details
Depreciation
Book ❑ Additions (Detail Form) – multiple forms to enter descriptive, financial,
source lines, and assignment details
❑ ADI Additions – spreadsheet tool to enter and upload asset details (may
need to modify standard template to accommodate transaction)

Determine New Asset Numbering Schema:

❑ Auto Asset Numbering – using this approach will not maintain an audit trail
back to the retired asset
❑ Manual Numbering – using this approach a smart asset number could be
manually entered to create a soft audit trail back to the retired asset.
A soft audit trail means that a user would be able to identify the origin of the
asset and would be able to query the originating asset for further details.
Current Transfer Process
Enter asset descriptive details:
Manually Add
Asset to new ❑ Asset Number (depending on the numbering schema to be used)
Depreciation
Book ❑ Tag Number (must be unique)
❑ Asset Description [Required]
❑ Asset Type [Required – Defaults to Capitalized]
❑ Asset Category [Required – select a category associated to
receiving book]
❑ Asset Key
❑ Units [Required – Defaults to 1]
❑ Serial Number
❑ Model Number
❑ Manufacturer
Current Transfer Process

Manually Add
Asset to new
Depreciation
Book

Quick Additions Form (Descriptive Details): Additions Form (Detail Additions):

Current Transfer Process

Enter source line details:

Manually Add
Asset to new ❑ Enter Purchase Order Number
Depreciation
Book ❑ Enter Invoice Number

Quick Additions Form (Source Line Details): Asset Additions Form (Source Lines Details):
Current Transfer Process
Enter financial details (based on the financial and life options):
Manually Add
Asset to new ❑ Enter Translated Asset Cost, YTD Depreciation (if applicable) and
Depreciation Accumulated Depreciation (if applicable)
Book
❑ Date Placed in Service (DPIS)
❑ DPIS should equal the original DPIS if transferring option is Cost
Only; Cost, YTD Depreciation, Accumulated Depreciation [Carry
Over]; or Amortize NBV
❑ DPIS should equal the transaction date if transferring option is Net
Book Value (NBV)
❑ Depreciation Method – determine to default to the method associated
to the asset category or carry over the method
❑ Depreciation Life
❑ Life should be equal to the original or default life if transferring
option option is Cost Only; Cost, YTD Depreciation, Accumulated
Depreciation [Carry Over]; or Amortize NBV
❑ Life should equal the remaining life if transferring option is Net
Book Value (NBV)
Current Transfer Process

Manually Add
Asset to new
Depreciation
Book

Quick Additions Form (Financial Details): Asset Additions Form (Financial Details):
Current Transfer Process
Enter assignment details:
Manually Add
Asset to new ❑ Assign asset to an employee (optional)
Depreciation
Book ❑ Assign the depreciation expense account combination
❑ Assign the asset location

Quick Additions Form (Distribution Details): Asset Additions Form (Distribution Details):
Current Transfer Process
Sending Depreciation Book:
Manually create ❑ Oracle will generate the following journal entry for the retirement:
Inter-company ❑ Debit: Accumulated Depreciation
journals
❑ Debit: Gain/Loss
❑ Credit: Asset Cost

❑ Manually off-set the Gain/Loss and book to the inter-company account:

❑ Debit: Inter-company Receivables
❑ Credit: Gain/Loss

Receiving Depreciation Book:

❑ Oracle will generate the following journal entry for the addition:
❑ Debit: Asset Cost
❑ Credit: Asset Clearing

❑ Manually off-set the Asset Clearing and book to the accumulated depreciation and inter-company accounts:
❑ Debit: Asset Clearing
❑ Credit: Accumulated Depreciation
❑ Credit: Inter-company Payables
Current Transfer Process

This process utilize Oracle standard features:

❑ Oracle process retirement naturally
❑ Oracle process additions naturally
❑ Oracle creates journals naturally
❑ Manually book inter-company journals
Oracle Support
Transfer Process
Option
Oracle Support Transfer Process Option
Oracle Metalink Transfer Process:
Oracle Support Transfer Process Option

Asset to be transferred: Change Cost to Zero:

Oracle Support Transfer Process Option

Retire Zero Valued Asset: Results on Depreciation:

Oracle Support Transfer Process Option

Depreciation History: Oracle Metalink Transfer Suggestion:

❑ Benefit:
❑ No Gain or Loss is book on this option

❑ Cons:
❑ When the asset cost is reduced to zero –
Oracle will reverse all of the depreciation
ever taken on the asset
❑ In current month negative depreciation will
be generated by Oracle
❑ Inter-company journals still required
manually
❑ In the suggestion the sending book will
receive a negative depreciation in current
month (how do you correct this)
❑ In the suggestion the receiving book would
enter the accumulated depreciation
Automated Asset
Transfer Process
Current Transfer Process

Determine Gather Asset Manually Determine the

Assets to be Information Perform financial & life
Transferred & Asset treatment of
Document Retirement the asset
transfer

Manually Manually identify the Determine the

calculate the translation rate in Oracle translation
new asset General Ledger rate to use
values from the for the asset
documented transfer
translation rate

Manually Add Manually create

Asset to new Inter-company
Depreciation journals
Book
Automated Transfer Process

Determine Query asset(s) Determine to Determine the

Assets to be in solution transfer full or financial & life
Transferred Transfer Form partially treatment

Manually create Approval Submit Transfer

Inter-company Process Request
journals
(Optional)
Automated Transfer Process
Functionality:
• Transfer single / multiple, Capitalized / CIP assets between corporate depreciation books, regardless of:
– Currencies
– Chart of account structures/values
– Asset Categories values
– Asset Type (Capitalize / CIP)
• Transfer assets at:
– Cost or
– Cost, YTD, and Accumulated Depreciation (CarryOver) or
– NBV or
– Amortized NBV
• Transfer asset life at:
– Original Life (CarryOver)
– Default (defaults to the life associated to the asset category for the receiving book)
– Remaining Life
• Translate transferred values to the receiving depreciation book’s currency
• Transfer full or partial (cost or units) assets or CIP assets
• Transfer CIP asset to Capitalize Assets
• Maintains audit trail between the asset being transferred and the new asset created
• Built-in approval process
Automated Transfer Process
Navigation:
Automated Transfer Process

Navigation:
Automated Transfer Process

Navigation:
Automated Transfer Process
Navigation:
Automated Transfer Process

View Transfer Summary:

• Choose to:
– View existing transfer(s)
– Complete a started and saved transfer
– Create a new transfer
Automated Transfer Process

Selection of Asset(s) to Transfer:

• Query a Single asset or Group of assets , choose to enter command data for all assets in the
Selection Criteria section

Selection Criteria:
-Asset Number
-Book
-Category
-Asset Key
-Expense Account
-Location
-Employee Name
-Employee Number
Automated Transfer Process
Selection of Asset(s) to Transfer:
• Select the Apply Criteria button to apply the command data elements to select all
assets

• Remove asset(s) selected if not desired.

Highlight desired asset and select Red X
icon,
• Select Next to move forward in the process
Automated Transfer Process

Transfer to Settings Criteria:

• Enter the Transfer To details (enter the common details for all assets in the transaction).
• Select the Apply/Validate button to apply the details to each asset.
Automated Transfer Process

Selection Distributions [Status Tab]:

• Throughout the process the Status tab will identify where the transaction is in the process and note
errors.
Automated Transfer Process

Selection Distributions [General Tab]:

• View the new asset number(s), description will default to the description of the transferring
assets, choose to override the description.
• Enter Transfer To Setting common data for all selected assets, select the Apply Settings button to
apply the new data values to the asset(s) to be transferred.
Automated Transfer Process

Selection Distributions [Category Tab]:

• View the Asset Category assigned to the assets, choose the enter new Asset Categories for the
receiving depreciation book. Select from a list of Asset Category values only assigned to the
receiving depreciation book.
Automated Transfer Process

Selection Distributions [Type Tab]:

• View the Asset Type assigned to the assets, choose to update the Asset Type (i.e. CIP to
Capitalized) for the receiving depreciation book.
Automated Transfer Process

Selection Distributions [Units Tab]:

• Identify whether the transfer is a full or partial (cost or units) transfer.
– If full no data will be available for updating.
– If Partial (Cost) only the Src Currency Cost (Source Currency Cost) will be available for
updating.
– If Partial (Units) only the units will be available for updating – cost will be calculated.
• View the translated cost immediately.
Automated Transfer Process

Selection Distributions [Unit Tab]:

• Cost option – only
allows the Transfer To
Cost to be manually
entered

• Unit option – only

allows the Transfer To
Unitto be manually
entered
Automated Transfer Process

Selection Distributions [Employee Tab]:

• If applicable, update the Employee information. The program will default the Transfer To
Employee information to equal the Currently Assigned.
Automated Transfer Process

Selection Distributions [Location Tab]:

• If applicable, update the Location information. The program will default the Transfer To Location
information to equal the Currently Assigned.
Automated Transfer Process

Selection Distributions [Accounting Tab]:

• Enter the Depreciation Expense account string for the Transfer To Depreciation Books. It does not
matter if the Transfer To uses a different Chart Of Accounts structure.
Automated Transfer Process
Selection Distributions [Costs Tab]:
• If applicable enter the Cost to Remove or Proceeds values to be accounted for in the retirement
process.
• Select from a list of values the Financial treatment for the transfer (i.e. Transfer at Cost, NBV,
Amortized NBV, or Cost, YTD, and Accumulated Depreciation)
• Select from a list of values the Life treatment for the transfer (i.e. Carry Over Life, Default Life, or
Remaining Life)
• Submit the transfer, select the button “Submit Transfer” this is kick off a concurrent process.
Automated Transfer Process
Submit Transfer Process:
• If the approval process is turned on, the transfer will be routed to the person who is responsible
for the receiving book for their authorization of the transfer. If approved, the transfer processes
will be submitted to the concurrent manager for processing.
• If the approval process is not turned on, the transfer process will be submitted immediately to the
concurrent manager for processing.
• If the approval process is turned on, the following message will appear after the Submit Transfer
button is selected.
Automated Transfer Process
Approval Process (Optional):
• During the approval process the status of the transfer will be in “Working” and the phase will indicate
“Approval” on the Corporate Book Transfer Summary form.
Automated Transfer Process
Approval Process (Optional):
• The receiving book approver will receive a workflow notification, this can be incorporated into the
email system like any other workflow process.
• The receiver will review the transfer and choose to (Approve, Reject, or Request Information) on
the transfer.
Automated Transfer Process
Approval Process (Optional):
• If approved – the initiator will receive notification and the AssetCross® process will be submitted to
the Concurrent Manager for processing.
• If rejected – the initiator will receive notification and the transfers can be modified and re-submitted
for approval.
• If request information – the initiator will receive notification with the request of information from the
approver, the initiator then can take the appropriate action on the transfer.

Approver Notification:
• The notification will include the Original and New details of the transfer:
– Asset Number – Employee
– Book – Expense Account
– Description – Location
– Category – Financial Option
– Units
– Cost
Automated Transfer Process
Transfer Results:
• The selected asset will be retired
• New asset created with the selected asset number followed by ‘_T1’

Transfer From Book

Transfer To Book
Automated Transfer Process
Transfer Results:
• Capitalized Assets - review retirement created by Automated Transfer Process
Automated Transfer Process
Transfer Results:
• CIP Asset - review cost adjustments created by Automated Transfer Process
Automated Transfer Process
Transfer Results:
• Review new asset financial results created by Automated Transfer Process
Automated Transfer Process
Amortize NBV > Carry Over Life Transfer Results:
Automated Transfer Process
Amortize NBV > Carry Over Life Transfer Results:
Automated Transfer Process
Amortize NBV > Default Life Transfer Results:
Automated Transfer Process
Amortize NBV > Default Life Transfer Results:
Automated Transfer Process
CarryOver > Carry Over Life Transfer Results:
Automated Transfer Process
CarryOver > Carry Over Life Transfer Results:
Automated Transfer Process
CarryOver > Default Life Transfer Results:
Automated Transfer Process
CarryOver > Default Life Transfer Results:
Automated Transfer Process
Cost > Carry Over Life Transfer Results:
Automated Transfer Process
Cost > Carry Over Life Transfer Results:
Automated Transfer Process
Cost > Default Life Transfer Results:
Automated Transfer Process
Cost > Default Life Transfer Results:
Automated Transfer Process
NBV > Remaining Life Transfer Results:
Automated Transfer Process
NBV > Remaining Life Transfer Results:
Automated Transfer Process
CIP: Cost > Default Life Transfer Results:
Automated Transfer Process
CIP: Cost > Default Life Transfer Results:
Automated Transfer Process
CIP: Cost > Default Life Transfer Results:
Automated Transfer Process
CIP: Cost > Default Life Transfer Results:
Automated Transfer Process

The information entered will be used to create the following:

• Asset Retirement
• Asset Additions – at the selected Financial & Life Treatment Option
• Intercompany Journal Entries (Future)
• Accumulated Depreciation Journal Entries – only if assets are transferred at Cost, YTD,
and Accumulated Depreciation values (Future)
Tax Book
Considerations
Tax Books Considerations
Like the financial books, determine the tax value and life of the asset:
❑ Tax Treatment
❑ Consider the type of transfer
❑ Legally how can the companies involve interact with each other (sale / pass
through, etc.)

❑ Tax Value
❑ Based on the new financial cost
❑ Based on original tax value
❑ Based on original financial cost

❑ Tax Life
❑ Based on default life
❑ Based on original life
Great Sources for
Information
Great Sources For Information
OAUG EBS Special Interest Groups (SIGs) [48]
• Account Payables (AP)
• Application Desktop Integrator (ADI)
• Applications Express (APEX) for EBS
• AR, Credit and Collections
• Archive and Purge
• Assets
• BI Publisher
• Channel Revenue
• Configurator
• Cost Management
• Customer Experience Community (CXC)
• Customization & Alternatives
• Database
• Discrete Manufacturing
• E-Business Suite Advanced Architecture
and High Availability
• E-Business Applications Technology Stack
• E-Business Suite Functional Analyzers
• E-Business Suite Security • Oracle Order Management & Advanced
• E-Business Suite Workflow Pricing
• Electronic Data Interchange (EDI) • Oracle Process Manufacturing
• Emerging Technologies • Oracle Revenue Management & Billing
• Application & Analytics
Enterprise Asset Management (eAM)
• • Oracle Tax Management
Enterprise Manager for Applications
• • Oracle Transportation Management
EPM / Hyperion
(OTM)
• Fusion Middleware
• Procurement
• General Ledger (GL)
• Projects
• Governance, Risk and Compliance
• Public Sector
• Government Contractor
• Sales Performance Management
• Logistics
• Siebel CRM
• Master Data Management
• SysAdmin
• Migration & Integration
• Upgrade
• Mobile Apps for Enterprises
• User Management / Role Based Access
• Multi-National Control
• Oracle Analytics, BI and Big Data • Value Chain Planning
Great Sources For Information
OAUG Cloud SaaS Special Interest Groups (SIGs) [29]
• Account Payables (AP)
• AR, Credit and Collections
• Assets
• Channel Revenue
• Cloud ERP
• Customer Experience Community
• Discrete Manufacturing
• Emerging Technologies
• Enterprise Asset Management (eAM)
• EPM / Hyperion
• General Ledger (GL)
• Governance, Risk and Compliance
• Government Contractor
• Logistics
• Master Data Management
• Multi-National
• Oracle CPQ Cloud (Configure, Price, Quote)
• Oracle Order Management & Advanced Pricing
• Oracle Process Manufacturing
• Oracle Revenue Management & Billing Application & Analytics
• Oracle Tax Management
• Oracle Transportation Management (OTM)
• Procurement
• Projects
• Public Sector
• Sales Performance Management
• Siebel CRM
• User Management / Role Based Access Control
• Value Chain Planning
Great Sources For Information
OAUG Cloud IaaS Special Interest Groups (SIGs) [14] OAUG Cloud PaaS Special Interest Groups (SIGs) [6]
• Applications Express (APEX) for EBS • BI Publisher
• Archive and Purge • Electronic Data Interchange (EDI)
• Customizations and Alternatives • Fusion Middleware
• Database • Mobile Apps for Enterprises
• E-Business Suite Advanced Architecture and High Availability • Oracle Analytics, BI and Big Data
• E-Business Suite Applications Technology Stack • User Management / Role Based Access Control
• E-Business Suite Functional Analyzers
• E-Business Suite Security
• E-Business Suite Workflow
• Enterprise Manager for Applications (EM4APPS)
• Master Data Management
• Migrations & Integrations
• SysAdmin
• Upgrade
Great Sources For Information
OAUG Geographic User Groups (GEOs) [31]
Africa United States (Continue)
• West Africa OAUG • Michigan OAUG
Canada • Mid-Atlantic OAUG
• Alberta Canada OAUG • Nevada OAUG
• British Columbia Canada OAUG
• New England OAUG
• Southern Ontario OAUG
• New Jersey OAUG
India
• North Central OAUG
• India OAUG
South America • Northern California OAUG
• Latin OAUG • Northern Ohio OAUG
United States • Northwest OAUG
• Arizona / New Mexico OAUG • OAUGNYC Metro
• Atlanta OAUG • Ohio Valley OAUG
• Colorado OAUG • Oklahoma-Arkansas OAUG
• DC OAUG • Pittsburgh OAUG
• Eastern States OAUG • San Diego OAUG
• Gateway OAUG
• Southwest Regional OAUG
• Gulf Region OAUG
• Texas-Louisiana OAUG
• Heartland OUG
• Twin Cities Manufacturing OAUG
 Brian_Bouchard@chistartech.com

Session ID:
10681

Remember to complete your evaluation for this session within the app!