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Class Agenda - Day 1 and 2

DAY 1

DAY 2

8.30 Introduction & Overview of


Oracle Projects
9.30 Navigation
10.30 Morning Break
10.45 Navigation (cont)
11.30 Project Creation and
Maintenance
12.30 Lunch
1.30 Budget Creation and
Maintenance
3.30 Afternoon Break
3.45 Collecting Project Costs
5.45 Q & A
6.00 End

8.30 Pre-Approved Expenditure


10.30 Morning Break
10.45 Adjusting Project Costs
12.00 Lunch
1.00 Adjusting Project Costs (cont)
1.45 Capital Project
3.00 Afternoon Break
3.15 Capital Projects
4.45 Analyzing Project Costs Expenditure Inquiry
5.45 Q & A
6.00 End

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Unit 8- Capital Projects

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Learning Objectives
After completing this unit, the user will be able to undertstand
Capital Projects Overview
Capital Projects Flow

Define a capital asset


Assign a capital asset
Place a capital asset in service
Generate asset lines
Review asset lines
Assign asset lines
Interface assets from Oracle Projects to Oracle Assets
Advance :
Assign UNASSIGNED asset lines
Split asset lines

Post Capitalization Adjustments


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Purpose of Capital Projects

Capital projects are used to collect construction-inprocess (CIP) costs for an asset

CIP costs are depreciated over the life of the asset


after the asset is placed in service

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Integration with Oracle Assets


Oracle Assets

Keeps the sub-ledger information for fixed assets

Can accept completed CIP asset costs from Oracle


Projects

Uses a process called Mass Additions to import


assets from Oracle Projects

Handles depreciation expense generation,


adjustments, and retirements after the asset is
imported
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Capital Project Cost Flow


Oracle Payables

Project
costs

Oracle Projects

Non-project asset costs


CIP asset
costs when Oracle
asset is placed in
service

Assets

Post Internal Requisition and Accruals

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Post invoice
CIP/FA

Oracle GL

Capital Projects Flow


Create
Project

Define
Assets

Assign
Assets

Collect
Costs

Specify
In Service
Date
Generate
Asset
Lines

Review Costs and


Make Adjustments

Review Asset Cost Lines


and Make Adjustments

Interface Assets
to Oracle Assets

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Capitalisation Controls
Capital

Capitalisable

Capitalisable

Non-Capitalisable

Non-Capitalisable

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Task Level

Transaction Level
(Expenditure Item)

Capitalisation Controls - Task

Check mark indicates that this


task is capitalizable

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Capitalisation Controls - Expenditure

You could still change the Capitalizable flag after item is costed

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Grouping of Expenditures
into Asset Lines

Oracle Projects summarises expenditure items into


CIP asset lines based on
Grouping Levels
Grouping Methods

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CIP Grouping Levels

The grouping level specifies how Oracle Projects should summarise


expenditure items into asset lines
Grouping levels are established by opening the Asset Assignments
window from either the project window or the task window
Grouping level types can be either
Specific Assets
One or more assets can be assigned to this grouping level
Common Costs
Cannot directly assign assets to this grouping level
Captures costs to be allocated to multiple assets
The Generate Asset Lines process will then create unassigned
asset lines that can be manually split and allocated to assets

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Grouping Levels
Project Level Grouping
Project

Servers = 20,000

Top Task 1

Task 1.1

Top Task 2

Task 1.2

Task 2.1

Task 2.2

Servers = 10,000

Task 2.2.1

Grouping Level

Servers = 10,000

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Task 2.2.2

Grouping Levels
Top Task Level Grouping
Project

Servers = 10,000

Top Task 1

Task 1.1

Top Task 2

Task 1.2

Task 2.1

Servers = 10,000

Task 2.2

Servers = 10,000

Task 2.2.1

Grouping Level

Servers = 10,000

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Task 2.2.2

Grouping Levels
Lowest Task Level Grouping
Project

Top Task 1

Task 1.1

Top Task 2

Task 1.2

Task 2.1

Task 2.2

Servers = 10,000

Task 2.2.1

Grouping Level

Servers = 10,000

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Task 2.2.2

Grouping Levels
Multiple Levels Grouping
Project

Servers = 10,000

Top Task 2

Top Task 1

Task 1.1

Task 1.2

Task 2.1

Task 2.2

Servers = 10,000

Task 2.2.1

Grouping Level

Servers = 10,000

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Task 2.2.2

CIP Grouping Methods

The CIP grouping method also determines the amount of


summarisation that will occur when generating asset lines

Capital project types can use only one CIP grouping method
per project type

There is only one project type defined for this implementation

Capital - Type
Summarises expenditure items by *expenditure type

Note : *Refer to Student Materials of a list of Expenditure types


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Grouping Methods
Expenditure Category
Items in the same Expenditure Category capitalise to the same Asset Category
Item

Expenditure
Type

Expenditure
Category

Asset Category
Major.Minor

12 Doors

Doors and
Windows

Construction

Facilities.Buildings

5 Windows

Doors and
Windows

Construction

Facilities.Buildings

Slab

Concrete

Construction

Facilities.Buildings

Electrical
Wiring

Electrical

Mechanical &
Electrical

Facilities.Building
Improvements

Air Unit

HVAC

Mechanical &
Electrical

Facilities.Building
Improvements

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Grouping Methods

Expenditure Types

Items with the same Expenditure Category capitalise to a different Asset


Category. So capitalisation is based on Expenditure Type.
Item

Expenditure
Type

Expenditure
Category

Asset Category
Major.Minor

Optiplex 366

Desktop

PC Equipment

Computer Equipment.
Desktops

Latitude 266

Notebook

PC Equipment

Computer Equipment.
Notebooks

Routers

Network
Routers

Machinery &
Equipment

Machinery & Equipment.


Network Equipment

PBX

Telecom
PBX

Machinery &
Equipment

Machinery & Equipment.


PBX & Other

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Learning Objectives
After completing this unit, the user will be able to understand
Capital Projects Overivew
Capital Projects Flow

Define a capital asset


Assign a capital asset
Place a capital asset in service
Generate asset lines
Review asset lines
Assign asset lines
Interface assets from Oracle Projects to Oracle Assets
Advance :
Assign UNASSIGNED asset lines
Split asset lines

Post Capitalization Adjustments


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Capital Projects Flow


Create
Project

Define
Assets

Assign
Assets

Collect
Costs

Specify
In Service
Date
Generate
Asset
Lines

Review Costs and


Make Adjustments

Review Asset Cost Lines


and Make Adjustments

Interface Assets
to Oracle Assets

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Defining Assets

CIP Assets must be defined within Oracle Projects


before they are interfaced to Oracle Assets

Definition is performed when asset is ready to be


placed in service
Hint: When setting up the project, pre-plan the
relationship between the expenditure type,
expenditure category, and asset category

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Defining Assets

Before an asset is sent to Oracle Assets, the user must enter


Asset Name
Description
Book (unless you only have one Oracle Assets corporate
book for the Oracle Projects set of books)
Asset Category
Location
Depreciation Expense Account
Units (quantity of assets, default is one)
Depreciate (default is yes)
*Amortise Adjustments (default is no)

Note : *Dell APAC does not Amortise Adjustments


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Defining Assets

1. Highlight
Assets option
2. Click on details
button

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Select
Asset
Category
from
LOV

Defining Assets
Enter Asset Name
Text Description

Select Location

Leave blank
It will be assigned by user
when loaded into FA

Enter
estimated
In Service
date

Enter depreciation account using LOV


Defaulted
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Capital Projects Flow


Create
Project

Define
Assets

Assign
Assets

Collect
Costs

Specify
In Service
Date
Generate
Asset
Lines

Review Costs and


Make Adjustments

Review Asset Cost Lines


and Make Adjustments

Interface Assets
to Oracle Assets

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Asset Assignments

An asset must be assigned for a project at either


Project level
Task level

Asset Assignment
Controls expenditure items that will be summarised when
asset lines are generated

Project-Level Asset
Capitalisable expenditure items summarised for project by
grouping method (expenditure category or expenditure type)

Task-Level Asset
Capitalisable expenditure items summarised just for that task
by grouping method ( expenditure category or expenditure
type)
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Task-Level Assignments

1. Select Task option

2. Click Detail

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Task-Level Assignments
1. Select Task

3. Select Asset Assignments

2. Click Options

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Asset Assignments
Specify the
grouping
level

Assign
Assets
here

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Demo & Exercise


Unit 8.1 - Capital Projects

Define a capital asset

Assign a capital asset

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Learning Objectives
After completing this unit, the user will be able to understand
Capital Projects Overivew
Capital Projects Flow

Define a capital asset


Assign a capital asset
Place a capital asset in service
Generate asset lines
Review asset lines
Assign asset lines
Interface assets from Oracle Projects to Oracle Assets
Advance :
Assign UNASSIGNED asset lines
Split asset lines

Post Capitalization Adjustments


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FIND Capital Projects Window

Work Bench for capital projects

All functions related to capital projects processing accessible via


this window

Only capital projects would be displayed

Can narrow projects you see using fields in the find window
for a particular project manager or project accountant
for a particular organisation
for a particular classification category and code

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Search for
a single
project by
number or
name...

Find Capital Projects ...or by key member

or by organisation

or based on the Estimated


Date Placed In Service
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Capital Projects Window


Displays the summarised expensed, CIP, and
capitalised costs for each project after

Updating Project Summary Amounts


Process updates expensed and CIP amounts

Interfacing Assets process


Updates the capitalised amount
Allows access to other capital projects-related
screens and functions
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Capital Projects Window


Non-capitalised
expenses

CIP costs not yet


interfaced to Assets

Amounts capitalised &


interfaced to Assets

Click here to review asset


lines after they are
generated

Click here to view


asset information

Click here to Generate


asset lines
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Capital Projects Flow


Create
Project

Define
Assets

Assign
Assets

Collect
Costs

Specify
In Service
Date
Generate
Asset
Lines

Review Costs and


Make Adjustments

Review Asset Cost Lines


and Make Adjustments

Interface Assets
to Oracle Assets

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Placing a CIP Asset in Service

After the expenditures have been made for an asset


and the asset is ready to be placed in service, the
user must
Record the actual date the asset is to be placed in service
Complete asset definition
Generate asset lines
Review/adjust/assign asset lines (as needed)
Interface assets to Oracle Assets

Once project assets have been interfaced, Oracle Asset will add
additional information and then the assets are imported into
Oracle Assets using the Mass Additions process
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Actual Date in Service

An asset is placed in service by entering its Actual


Date In Service

The Actual Date In Service can be a past, current or


future date

Assets cannot be sent to Oracle Assets if the Actual


date placed in service is later than the current Oracle
Assets period date

To save the Actual Date in Service, Oracle Projects


will prompt the user to enter any missing required
asset definition fields
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Actual Date in Service

Click here to view


asset information
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Actual Date in Service

Cost is still ZERO prior to


generate asset lines

Record actual date in service here


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Capital Projects Flow


Create
Project

Define
Assets

Assign
Assets

Collect
Costs

Specify
In Service
Date
Generate
Asset
Lines

Review Costs and


Make Adjustments

Review Asset Cost Lines


and Make Adjustments

Interface Assets
to Oracle Assets

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Generating Asset Lines

After assets are placed in service, the user can create, prepare
and send asset lines to Oracle Assets to become fixed assets

The Generate Asset Lines process creates summary asset lines


from capitalisable expenditure items

Asset lines can be reviewed and adjusted before they are


interfaced to Oracle Assets

Oracle Projects summarises expenditures into lines based on


CIP grouping method defined at the project type

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Generating Asset Lines

Asset lines can be generated using one of the


following
Capital Projects window
Select a project, choose the Generate button
and enter a value for In Service Date Through
Running the process PRC: Generate Asset Lines
for a Single Project
Running the process PRC: Generate Asset Lines
This process generates asset lines for a range
of project numbers
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Generating Asset Lines - Option 1

Select
the
project
you want
to
generate

Click here to generate asset lines


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Generating Asset Lines - Option 1


Enter the In Service
date for which you
want to generate
asset lines

Enter the PA
Through Date

Click OK

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Generating Asset Lines - Option 2


Submit Request

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Generating Asset Lines - Output

Defined Asset
Asset Cost

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Capital Projects Flow


Create
Project

Define
Assets

Assign
Assets

Collect
Costs

Specify
In Service
Date
Generate
Asset
Lines

Review Costs and


Make Adjustments

Review Asset Cost Lines


and Make Adjustments

Interface Assets
to Oracle Assets

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Reviewing Asset Lines

Asset lines are defined by the following fields in the


Asset Lines window
Asset Name: Name of the project asset assigned
by the asset line generator or after manual
assignment.
Asset Category:
Description: The expenditure type for the asset line
Task: Lists the appropriate task based on the
grouping level

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Reviewing Asset Lines

Additional information in the Asset Lines window


Additional information for the highlighted specific asset line is at the
bottom of the screen
Original Amount: Original amount of a generated asset line before
any splitting
Split Percentage: Percentage of the original amount for the specific
asset line
CIP Account: The GL account that will be relieved when the asset is
added to Oracle Assets
Status: Interface status of the asset line
Rejection Reason: Only displays if the asset line was rejected when
it was interfaced to Oracle Assets
To drilldown to the expenditure items that were summarised into the asset
line, press the Details button at the bottom of the Asset Lines window

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Reviewing Asset Lines

Click here to Asset information


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Reviewing Asset Lines

Total Asset Cost is populated

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Reviewing Asset Lines

Click here to review Asset Lines


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Reviewing Asset Lines

Asset line assigned to an Asset

Additional Information
Click Asset Line Details
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Reviewing Asset Lines

Asset Line Details

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Capital Projects Flow


Create
Project

Define
Assets

Assign
Assets

Collect
Costs

Specify
In Service
Date
Generate
Asset
Lines

Review Costs and


Make Adjustments

Review Asset Cost Lines


and Make Adjustments

Interface Assets
to Oracle Assets

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Interfacing Asset Lines

The Interface Assets process sends asset lines to


Oracle Assets to become fixed assets

The process to run is PRC: Interface Assets

The mass addition lines may be reviewed in the


Oracle Assets Prepare Mass Additions window

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Interfacing Asset Lines

Interface Asset
process

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Interfacing Asset Lines - Output

Interfaced Asset

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Oracle Assets - Mass Additions

Asset comes from Oracle Projects

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Oracle Assets - Mass Additions

Asset Cost and Date in Service

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Oracle Assets - Mass Additions

Asset details to be completed by FA personnel for


Asset interfaced from Oracle Projects

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Learning Objectives
After completing this unit, the user will be able to understand
Capital Projects Overivew
Capital Projects Flow

Define a capital asset


Assign a capital asset
Place a capital asset in service
Generate asset lines
Review asset lines
Assign asset lines
Interface assets from Oracle Projects to Oracle Assets
Advance :
Assign UNASSIGNED asset lines
Split asset lines

Post Capitalization Adjustments


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Generating Asset Lines

Oracle Projects creates asset lines and assigns the


asset lines to the appropriate asset or labels the
asset lines as UNASSIGNED

If only one asset has been assigned to the grouping


level (project or task), then all asset lines created are
automatically assigned to that asset

If multiple assets are assigned to the grouping level


(project or task), all lines are created as unassigned

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Reviewing and Assigning Asset


Lines

After asset lines are created, the following adjustments are made in the
Asset Lines window
Mandatory
Assign an asset to all unassigned asset lines
Unassigned asset lines will only occur if there are multiple
assets assigned to a grouping level
Change the UNASSIGNED asset name to a valid asset
name
Optional
Split an asset line into multiple lines and assign the line to
different assets
Change the asset assigned to a line
Change the line description

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Generate Asset Lines - Grouping

Oracle Projects groups project costs into asset lines


based on
Asset Assignment
CIP Grouping Method

CIP Grouping Method for a project is determined by the


Project Template used to create the project

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Generate Asset Lines - Examples


One Asset Assigned at the Project Level
Project ABC

Task 1
Charges:
Desktop $1000
Notebook $2000

Asset 1

Task 2
Charges:
Desktop

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$1000

Generate Asset Lines - Examples

What Asset Lines would be created if the CIP Grouping Method is


by Expenditure Category?
Line

Asset

Description
(Expenditure Category)

Amount

PC Equipment

$4000

What Asset Lines would be created if the CIP Grouping Method is


by Expenditure Type?
Line

Asset

Description
(Expenditure Type)

Amount

Desktop

$2000

Notebook

$2000

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Generate Asset Lines - Examples


Two Assets Assigned at the Task Level
Project ABC
Asset 1

Asset 2
Task 1

Charges:
Desktop $1000
Notebook $2000

Task 2
Charges:
Desktop

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$1000

Generate Asset Lines - Examples

What Asset Lines would be created if the CIP Grouping Method is


by Expenditure Category?
Line

Asset

Description
(Expenditure Category)

Amount

PC Equipment

$3000

PC Equipment

$1000

What Asset Lines would be created if the CIP Grouping Method is


by Expenditure Type?
Line

Asset

Description
(Expenditure Type)

Amount

Desktop

$1000

Notebook

$2000

Desktop

$1000

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Generate Asset Lines - Examples


Two Assets Assigned at the Task Level
Project ABC
Asset 1
Asset 2

Task 1

Task 2

Charges:
Desktop $1000
Notebook $2000

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Charges:
Desktop

$1000

Generate Asset Lines - Examples

What Asset Lines would be created if the CIP Grouping Method is


by Expenditure Category?
Line

Asset

Description
(Expenditure Category)

Amount

Unassigned

PC Equipment

$3000

What Asset Lines would be created if the CIP Grouping Method is


by Expenditure Type?
Line

Asset

Description
(Expenditure Type)

Amount

Unassigned

Desktop

$1000

Unassigned

Notebook

$2000

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UNASSIGNED Asset - Example

Two Assets defined at Task 1

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UNASSIGNED Asset - Example

New cost incurred. Upon generating of


asset lines, due to 2 assets defined, the
system generated as UNASSIGNED.

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UNASSIGNED Asset - Example

LOV at the Asset Name field


and select the respective asset

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UNASSIGNED Asset - Example

Asset assigned

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Splitting Assets Lines

Split an asset line if it must be assigned to multiple


assets

Split lines that are assigned to an asset or are


UNASSIGNED

Asset lines may be split based upon amounts or


percentages

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Split Asset - Example

2. To split, simply LOV at the


Asset Name

1. Click Split Line


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Split Asset - Example

Asset line split into two lines

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Demo & Exercise


Unit 8.2 - Capital Projects

Place a capital asset in service


Generate asset lines
Review asset lines
Assign asset lines
Interface assets from Oracle Projects to Oracle
Assets
View Asset in Oracle Assets - Instructor DEMO

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Learning Objectives
After completing this unit, the user will be able to understand
Capital Projects Overivew
Capital Projects Flow

Define a capital asset


Assign a capital asset
Place a capital asset in service
Generate asset lines
Review asset lines
Assign asset lines
Interface assets from Oracle Projects to Oracle Assets
Advance :
Assign UNASSIGNED asset lines
Split asset lines

Post Capitalization Adjustments


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Post Capitalization Adjustments

Post capitalisation adjustments


Reverse capitalise an asset
Re-capitalise a reverse capitalised asset

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Post-capitalisation Adjustments

After expenditure items are sent to Oracle Assets as asset lines


Expenditures items can still be adjusted and new items for
capitalisation can be collected
Adjustments and additions can be either positive or negative
Adjusted expenditure items and new charges will be grouped
into new asset lines when the Generate Asset Lines process is
run for the project
The new asset lines will be added to the original asset in Oracle
Assets as a cost adjustment
Cost adjustments cannot be interfaced to Oracle Assets until the
original mass addition line is posted in Oracle Assets

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Adjustments in Oracle Assets

Dell APAC does not Amortise Adjustments. Hence, check


box is not being checked in the Project Asset definition
window, Oracle Assets will post all catch up depreciation
when the adjustment is added to Oracle Assets

Note that this is unchecked


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Reversing Capitalisation

If an asset was placed in service in error and the asset was interfaced
to Oracle Assets
Capitalisation can be reversed in Oracle Projects
Reversing lines will be sent to Oracle Assets
To reverse capitalisation
Ensure the Amortise Adjustment check box is unchecked for the
asset
From the Capital Projects - Assets window:
Click on the Reverse button and save
A check will appear in the reverse check box
To un-reverse, click on the Reverse button again
The check will be removed from the reverse check box
Reversing lines cannot be sent to Oracle Assets until the original
mass addition line is posted in Oracle Assets
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Reversing Capitalisation
1. Click here to reverse

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2. Note that the


Reverse box is
unchecked

Reversing Capitalisation

To generate reversing asset lines


Run the PRC: Generate Asset Lines
To remove the actual date in service from the
asset and generate reversing asset lines
The reversing lines can then be interfaced to
Oracle Assets

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Reversing Capitalisation
Reverse line

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Reversing Capitalisation
Reversed back to CIP

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Reversing Capitalisation
Note that the Actual
Date In Service has
been removed

Cost = ZERO

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Reversing Capitalisation
in Oracle Assets

Adjustment line in FA

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Re-capitalising a Reverse
Capitalised Asset

Reversing asset lines removes the Actual Date in


Service

Enter the new Actual Date in Service in the Assets


Workbench

Re-generate asset lines

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Post Capitalization Adjustments

Post capitalisation adjustments


Reverse capitalise an asset
Re-capitalise a reverse capitalised asset

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Demo & Exercise


Unit 8.2 - Capital Projects

Reverse an Asset

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Summary

Question & Answer


Quiz

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