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CIP Asset Additions

Release 12 Oracle Asset Management Fundamentals

Copyright 2007, Oracle. All


All rights
rights reserved.
reserved.

Objectives

After completing this module, you should be able to do


the following:
Explain how Oracle Oracle Assets allows for adding
and capitalizing Construction in Process (CIP)
assets
Discuss the 3 ways to add CIP assets: manually, via
mass additions, and through Capital Projects
Explain the CIP capitalization process
Discuss Oracle Assets integration with the Oracle
Projects application

Copyright 2007, Oracle. All rights reserved.

Agenda

CIP Asset Additions


Adding CIP Assets
CIP Assets and Oracle Projects

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Adding and Capitalizing


a CIP Asset

Add a CIP asset

Build a CIP asset

Depreciate the asset

Capitalize a CIP asset

Copyright 2007, Oracle. All rights reserved.

Acquire and Build CIP Assets


Asset
Lines

Oracle
Projects
Manual
Additions

FA_MASS_ADDITIONS
Mass
Additions
Oracle
Payables

CIP
ASSET

Copyright 2007, Oracle. All rights reserved.

Automatically Adding CIP Assets


to Tax Books
You have the option of adding and maintaining CIP
assets in your tax book and corporate book
simultaneously.
To enable this function, select the Allow CIP Assets
check box in the Book Controls window for the tax
book.
Mass Additions

CIP Assets
Corporate Book
Copyright 2007, Oracle. All rights reserved.

Tax Book

Modifying the Cost of CIP Assets

Transfer invoice lines


Add a CIP asset

Add invoice lines


CIP Asset

Capitalize a CIP asset


Add noninvoiced
costs
Labor cost

Balance Sheet
Change invoice
line cost

Asset
Building

Copyright 2007, Oracle. All rights reserved.

Cost
$ XX

Recording a CIP Asset Addition

Add $5,000
invoice line
Add a CIP asset

Cost: $0
Journal entries created

Oracle Assets

Oracle Payables

Dr CIP Cost $5,000


Cr CIP Clearing $5,000

Dr CIP Clearing $5,000


Cr Acct Payable $5,000

Copyright 2007, Oracle. All rights reserved.

Capitalizing a CIP Asset

Capitalize

Balance
Sheet
Assets . . . . .
Building

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Reversing a Capitalized Asset

Reverse Capitalization

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Updating Asset Fields When


Capitalizing CIP Assets
Field

Capitalize

Reverse Capitalize

Asset Type

Capitalized

CIP

Date Place In Service Date placed in


service

Unchanged

Cost

Sum of the invoice


distribution lines

Unchanged

Depreciation Rules

Revert to category
and book defaults

Unchanged

Copyright 2007, Oracle. All rights reserved.

Updating Transaction Types When Capitalizing


CIP Assets
Transaction Type

Capitalize

Reverse Capitalize

In the period added

Change CIP Addition Change Addition


to CIP Addition/Void to CIP Reverse
and then create
Addition

After period added

Create Addition
distribution lines

Not allowed

Copyright 2007, Oracle. All rights reserved.

Recording a Capitalization - Adding and


Capitalizing in the Same Period
Apr
2002
CIP asset

Add CIP asset

Oracle
Payables

Add invoice line


CPU Cost: $10,000

Complete system

Oracle Asset
Mgmt
GL

Journal entries

Depreciate
asset

Capitalize

Copyright 2007, Oracle. All rights reserved.

Apr
2002

Recording a Capitalization - Adding and


Capitalizing in Different Periods
Apr
2002
CIP asset

Add CIP asset

Oracle
Payables

Add invoice line


CPU Cost: $10,000

Complete system

Oracle Asset
Mgmt
GL

Journal entries

Depreciate
asset

Capitalize

Copyright 2007, Oracle. All rights reserved.

Jun
2002

CIP Assets and Oracle Projects

Manual
Additions

Oracle
Payables

CIP
ASSET
Copyright 2007, Oracle. All rights reserved.

Tracking Capital Projects


in Oracle Projects
Create project

Define assets

Specify
in-service date

Collect Costs

Generate
asset lines

Review costs,
and make
adjustments

Review asset
cost lines
and make
adjustments

Functions Performed in Oracle Assets


Post mass
additions

Review data in
Mass Additions
Summary window

Copyright 2007, Oracle. All rights reserved.

Run Interface
Assets
Program

Capital Projects Flow Integration


Send
purchasing
details
Oracle
Purchasing

Post
invoice
CIP costs

Send nonCIP assets

Oracle
Payables

Oracle Assets

Send
Send
project capitalized
costs
asset
costs
Oracle Projects
Post noninvoiced CIP
costs

Post asset
costs and
clear CIP
Accounts

Oracle General Ledger

Copyright 2007, Oracle. All rights reserved.

Creating Mass Additions from


Oracle Projects
Asset Lines

Oracle
Projects

Capital
Assets

Create assets from


invoice lines

Run the Interface


Assets Process
Lines sent to Assets
Interface Table
FA_MASS_ADDITIONS

Review & Post lines

Copyright 2007, Oracle. All rights reserved.

Integrating Oracle Projects


with Oracle Assets

Oracle
Projects

Group asset costs

Interface table

Review asset lines


Run Interface
Assets program
in Oracle Projects

FA_MASS_ADDITIONS
Asset lines sent

Copyright 2007, Oracle. All rights reserved.

Summary

In this module, you should have learned how to:


Explain how Oracle Assets allows for adding and
capitalizing Construction in Process (CIP) assets
Discuss the 3 ways to add CIP assets: manually, via
mass additions, and through Capital Projects
Explain the CIP capitalization process
Discuss Oracle Assets integration with the Oracle
Projects application

Copyright 2007, Oracle. All rights reserved.