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If you plan to use Multiple Reporting Currencies (MRC) with Oracle Assets, additional setup
steps are required.
If you are implementing more than one Oracle Applications product, you may want to use the
Oracle Applications Implementation Wizard to coordinate your setup activities. The
Implementation Wizard guides you through the setup steps for the applications you have
installed, suggesting a logical sequence that satisfies cross-product implementation
dependencies and reduces redundant setup steps. The Wizard also identifies steps that can be
completed independently--by several teams working in parallel--to help you manage your
implementation process most efficiently.
You can use the Implementation Wizard as a resource center to see a graphical overview of
setup steps, read online help for a setup activity, and open the appropriate setup window. You
can also document your implementation, for further reference and review, by using the
Wizard to record comments for each step.
The setup steps in this chapter tell you how to implement the parts of Oracle Applications
specific to Oracle Assets.
The Implementation Wizard guides you through the entire Oracle Applications setup,
including system administration. However, if you do not use the Wizard, you need to
complete several other setup steps, including:
Also, if your product uses Oracle Workflow to, for example, manage the approval of business
documents or to derive Accounting Flexfield values via the Account Generator, you need to
set up Oracle Workflow.
Setup Flowchart
While you can set up Oracle Assets in many different ways, and defer optional set up steps
until you are ready to use the corresponding functionality, the order suggested in the
following flowchart is recommended:
Setup Steps
Step 1 - Define Your Set of Books
You need to define at least one set of books before you can implement and use Oracle Assets.
A set of books includes an accounting calendar, a functional currency, and an Account
structure.
The Account defines the structure of your general ledger accounts. If you have not defined
your Account while setting up a Set of Books, you need to set the Account to match your
accounting structure and provide valid values for expense, cash, and accounts payable
liability accounts.
If you previously defined your set of books while setting up a different Oracle Financials
product, proceed to the next step.
If you have not defined your set of books, you must complete the following steps:
o Define your accounting period types and accounting calendar. See: Defining
Period Types and Defining Calendars.
o Define the functional currency for your set of books. See: Defining
Currencies.
o Define a set of books and assign it a calendar, functional currency and account
structure. See: Defining Sets of Books.
The asset category flexfield allows you to define asset categories and subcategories. For
example, you can create an asset category for your computer equipment. You can then create
subcategories for personal computers, terminals, printers, and software. You must assign the
major category segment qualifier to one segment of your category flexfield. The major
category segment facilitates capital budgeting. All other segments are optional. You use the
same setup windows to create your asset category flexfield as you do for your other key
flexfields. See: Category Flexfield
The location flexfield allows you to specify and track the exact location of your assets. You
must assign the state segment qualifier to one segment of your location flexfield. The state
segment facilitates property tax reporting. All other segments are optional. You use the same
setup windows to create your location flexfield as you do for your other key flexfields. See:
Location Flexfield
Step 4 - Define Your Asset Key Flexfield
The asset key flexfield allows you to define asset keys that let you name and group your
assets so you do not need an asset number to find them. The asset key is similar to the asset
category in that it allows you to group assets. However, the asset key has no financial impact.
This flexfield lets you assign the same name to many assets so you can find similar assets.
You can provide additional descriptive data to group assets by project or other functional
group. You can use this flexfield to track your CIP assets. You use the same setup windows
to create your asset key flexfield as you do for your other key flexfields. See: Asset Key
Flexfield.
Set up your system controls. You specify your enterprise name, asset numbering scheme, and
key flexfield structures in the System Controls window. You also specify the oldest date
placed in service of your assets. See: Specifying System Controls.
Define valid locations. Your location flexfield combinations tell Oracle Assets what locations
are valid for your company. Oracle Assets uses location for tracking assets and for property
tax reporting.
If your location flexfield has dynamic insertion turned off, this is the only place you can
define valid combinations. If dynamic insertion is turned on, Oracle Assets automatically
updates the Locations window with the values you enter in the Assignments window. See:
Defining Locations.
Define valid asset keys. You can use the list of values to choose these combinations for your
assets when you enter them.
If dynamic insertion is disabled for your asset key flexfield, Asset Keys is the only window
where you can define valid combinations. If dynamic insertion is enabled, Oracle Assets
automatically updates the Define Asset Keys window with the values you enter when you add
assets. See: Defining Asset Keys.
QuickCode values are values that you can choose from a list of values when you enter and
maintain assets. You can define the QuickCode values that you want for the following items:
o Journal Entries
o Mass Additions Queue Names
o Property Type
o Retirement
o Asset Category
o Asset Subcategory
Use the Fiscal Years window to define the beginning and end of each fiscal year since the
start of your company.
Your fiscal year groups your accounting periods. You must define the start and end date of
each fiscal year since the oldest date placed in service. If you are using a 4-4-5 calendar, your
start and end dates change every year. When you run the depreciation program for the last
period in your fiscal year, Oracle Assets automatically generates the dates for your next fiscal
year. See: Creating Fiscal Years.
Use the Calendars window to set up as many depreciation and prorate calendars as you need.
Calendars break down your fiscal year into accounting periods. Define your calendars with as
many periods as you need.
Define a prorate calendar and a depreciation calendar for each depreciation book.
Depreciation books can share a calendar, and you can use the same calendar for your
depreciation calendar and prorate calendar if appropriate.
Depreciation Determines, with the divide depreciation flag, what fraction of the
Calendar annual depreciation amount to take each period.
Prorate Calendar Determines, with the date placed in service, which depreciation rate to
select from the rate table.
You can set up different calendars for each depreciation book. For example, you might set up
a monthly calendar for financial reporting and a quarterly calendar for tax reporting. See:
Specifying Dates for Calendar Periods.
If you do not install Oracle General Ledger, use the Journal Entry Sources window in Oracle
Assets to define additional journal entry sources. Journal entry sources are used to identify
the origin of your journal entry transactions. See: Defining Journal Sources.
If you previously defined your journal entry sources while setting up Oracle General Ledger,
proceed to the next step.
If you do not install Oracle General Ledger, use the Journal Entry Categories window in
Oracle Assets to define additional journal entry categories. Journal entry categories describe
the purpose or type of your journal entries. See: Defining Journal Categories.
If you previously defined your journal entry categories while setting up Oracle General
Ledger, proceed to the next step.
Use the Book Controls window to set up your depreciation books. You can set up an
unlimited number of independent depreciation books. Each book has its own set of
accounting rules and accounts so you can organize and implement your fixed assets
accounting policies.
When you define a tax book, you must specify an associated corporate book. You can mass
copy assets and transactions from the source book into your tax book. You specify the current
open period, and Initial Mass Copy copies each asset into the tax book from the corporate
book as of the end of that fiscal year in the corporate book. See: Defining Depreciation
Books.
Oracle Assets uses the Account Generator to generate accounting flexfield combinations for
journal entries. You must review the default process that Oracle Assets uses to see if it meets
your accounting requirements. You can optionally customize the Account Generator for each
set of books that you have defined. See: Using the Account Generator in Oracle Assets. Note
that you must set up Oracle Workflow in order to use the Account Generator.
Depreciation methods specify how to spread the asset cost. Oracle Assets includes many
standard depreciation methods, and you can define additional methods in the Methods
window, if necessary.
Life-Based Oracle Assets includes standard life-based depreciation methods and
Depreciation rates. However, you can define additional life-based methods.
Method
Flat-Rate You can define additional flat-rate methods, such as Diminishing
Depreciation Value. You can define your methods to calculate depreciation using
Method either the net book value or the cost of the asset.
Bonus Depreciation Use the Bonus Depreciation Rules window to enter bonus rates for your
Rules flat-rate depreciation methods. Bonus rules allow you to take additional
depreciation in the early years of an asset's life.
Units Of You can define a units of production method so you can calculate
Production depreciation for an asset based on actual production or use for the
period.
See: Defining Additional Depreciation Methods and Defining Bonus Depreciation Rules.
Depreciation ceilings limit the depreciation expense you can take for an asset. Set up
depreciation expense ceilings to limit the annual amount of depreciation expense you can
take on an asset. Or set up depreciation cost ceilings to limit the recoverable cost of an asset.
Depreciation Use the Ceilings window to define your depreciation expense ceilings. If
Expense Ceilings you are subject to United States tax law, you must set up depreciation
ceilings for luxury automobiles.
Depreciation If you do business in a country which requires cost ceilings, such as
Cost Ceilings Australia, you can limit the cost Oracle Assets uses to calculate
depreciation. When you use a cost ceiling, Oracle Assets bases
depreciation expense on the lesser of the cost ceiling and the asset cost.
Set up your Investment Tax Credit (ITC) rates, recapture rates, and ceilings. Investment tax
credits (ITC) allow you to reduce the recoverable cost of an asset.
ITC Rates Oracle Assets allows you to set up ITC rates for assets that are eligible for
Investment Tax Credit. ITC rates determine the amount of ITC for an asset.
ITC Oracle Assets allows you to set up ITC recapture rates for assets with
Recapture Investment Tax Credits. ITC recapture rates determine the portion of the
Rates investment tax credit that must be recaptured if you retire the asset
prematurely.
ITC Oracle Assets allows you to define Investment Tax Credit (ITC) ceilings. ITC
Ceilings ceilings limit the amount of ITC for an asset. If you are subject to United States
tax law, you must set up ITC ceilings for luxury automobiles.
Use the Prorate Conventions window to set up your prorate and retirement conventions.
Prorate and retirement conventions determine how much depreciation expense to take in the
first and last year of life, based on when you place the asset in service. Oracle Assets lets you
set up as many prorate and retirement conventions as you need.
Prorate Determines how much depreciation expense to take in the first year of life.
Conventions
Retirement If you do business in a country that requires you to use a different prorate
Conventions convention for retirements than for additions, set up retirement conventions
to determine how much depreciation to take in the last year of life, based on
the retirement date.
You must set up your prorate conventions for the entire year. When you run the depreciation
program for the last period in your fiscal year, Oracle Assets automatically generates the
dates for your next fiscal year. See: Specifying Dates for Prorate Conventions.
A price index lets you calculate gains and losses for retirements using current value rather
than historical cost. If you do business in a country that requires you to base gains and losses
on current value rather than historical cost, Oracle Assets lets you set up price indexes to
calculate the gains and losses for your asset upon retirement. When you retire an asset
assigned to a category and book for which you have defined a price index, you can run the
Revalued Asset Retirements Report which uses the revalued asset cost in calculating gains
and losses.
You can use a different index for each asset category or the same index for all categories.
You associate an index with an asset category by entering the name of the price index in the
Price Index field on the Asset Categories window. See: Defining Price Indexes.
If you do not install Oracle Inventory or Oracle Purchasing, use the Unit of Measure Classes
window in Oracle Assets to define your unit of measure classes. You can define classes for
the units you use to measure production for your units of production assets. See: Defining
Units of Measure Classes.
If you previously defined your unit of measure classes while setting up a different Oracle
Applications product, proceed to the next step.
Attention: You must set up an Organization before you can define units of measure classes.
See: Creating an Organization.
Attention: You must define the profile option HR:User Type before you can set up an
Organization. See: Setting User Profile Options
If you do not install Oracle Inventory or Oracle Purchasing, use the Units of Measure window
in Oracle Assets to define your units of measure. You can define the units you use to measure
production for your units of production assets.
Attention: You must set up an Organization before you can define units of measure. See:
Creating an Organization
Attention: You must define the profile option HR:User Type before you can set up an
Organization. See: Setting User Profile Options.
If you previously defined your units of measure while setting up a different Oracle
Applications product, proceed to the next step.
Distribution sets let you automatically assign distributions to a new asset or mass addition
quickly and accurately by using a predefined distribution set. Default distribution sets appear
in the Distribution Set poplist in the Assignments window. See: Defining Distribution Sets.
Define leases in the Lease Details window. You can assign leases to one or more assets in the
Asset Details window. You can also test your leases in accordance with generally accepted
accounting principles in the Lease Details window, and you can analyze alternate leasing
strategies using the Lease Payments window. See: Entering Leases and Lease Analysis.
Define and track descriptive information on manufacturer and vendor warranties. You define
the warranty information in the Asset Warranties window. You can then assign assets to these
previously defined warranties in the Asset Details window. You can assign any number of
assets to the same warranty. See: Defining Asset Warranties.
If you do not install Oracle Purchasing or Oracle Payables, use the Financials Options
window in Oracle Assets to define your supplier and employee numbering schemes. You
need to specify how to number your suppliers and employees before you can enter suppliers
or employees. See: Defining Financials Options.
If you previously defined your supplier and employee numbering schemes while setting up a
different Oracle Applications product, proceed to the next step.
If you do not install Oracle Purchasing or Oracle Payables, use the Suppliers window in
Oracle Assets to define your suppliers. You must enter a supplier before you can enter assets
or bring over mass additions purchased from that supplier. Oracle Assets only uses the
supplier name, number, and inactive date. See: Entering Suppliers.
If you previously defined your suppliers while setting up a different Oracle Applications
product, proceed to the next step.
If you do not install Oracle Personnel, Oracle Payroll, Oracle Purchasing, or Oracle Payables,
use the Enter Person window in Oracle Assets to define employees. You must enter an
employee before you can assign an asset to the employee. Oracle Assets only uses the
employee name, number, and termination date. See: Entering a New Employee.
If you previously defined your employees while setting up a different Oracle Applications
product, proceed to the next step.
You can set up descriptive flexfields to track additional information. For example, you can
set up a descriptive flexfield for each asset category to collect information relevant to your
business. For example, you might want to track the license number for cars, but the square
footage for buildings. Then, when you assign a new asset to a category, you can enter the
additional information.
There are many other descriptive flexfields in Oracle Assets. For example, you can set up a
descriptive flexfield to store additional information about your transactions. See: Defining
Descriptive Flexfields.
Note: To set up the Leases GUI descriptive flexfield or the Retirements GUI descriptive
flexfield, see: Defining Descriptive Flexfield Structures.
Profile options specify how Oracle Assets controls access to and processes data. In general,
profile options can be set at one or more of the following levels: site, application,
responsibility, and user.
Oracle Assets users use the Personal Profile Values window to set profile options only at the
user level. System administrators use the Update System Profile Options window to set
profile options at the site, application, responsibility, and user levels.
You can set or view the following profile options in Oracle Assets. The table also includes
profile options from other applications that are used by Oracle Assets. See Overview of User
Profiles and Setting User Profile Options.
Key
You can update the profile option.
- You can view the profile option value but you cannot change it.
QFA2. Explain on Mass Addition Process
1. Create - Enter invoices in Oracle Payables, or source information in any other feeder
system. Run Create Mass Additions for Oracle Assets in Oracle Payables, the
Interface Assets process in Oracle Projects, or use the interface to convert data from
other systems.
2. Review - Review mass additions to become assets. Add mass addition lines to
existing assets. Split, merge, or adjust mass additions.
3. Post - Post your mass additions to Oracle Assets.
4. Clean up - Delete unnecessary and posted mass additions. Purge deleted mass
addition lines from Oracle Assets.
Each mass addition belongs to a queue that describes its status, and the queue name changes
according to the transactions you perform on the mass addition. You can define your own
mass additions hold queues in the QuickCodes window. The following table describes each
Oracle Assets mass addition queue name:
Related Topics
Create Mass Additions for Oracle Assets Program (from Oracle Payables), Oracle Payables
User Guide
Entering QuickCodes
Once you have verified that the mass addition is ready to become an asset, change the queue
to POST. The next time you Post Mass Additions to Oracle Assets this mass addition
becomes an asset. The Mass Additions post program defaults depreciation rules from the
asset category, book, and date placed in service. You can override the depreciation rules in
the Books window if necessary.
You can add a mass addition line to an existing asset as a cost adjustment. These mass
additions lines can include future assets that have not yet been capitalized. Choose whether to
change the category and description of the existing asset to those of the mass addition. Oracle
Assets reclassifies the destination asset to the category and updates its description to that of
the mass addition when you Post Mass Additions to Oracle Assets. Also choose whether to
amortize or expense the cost adjustment.
When you change the queue name to POST for a mass addition line you are adding to an
existing asset, Oracle Assets automatically changes the queue name to COST
ADJUSTMENT. This makes it easy to differentiate between adding a new asset or adjusting
an existing asset.
You can merge separate mass addition lines into a single mass addition line with a single
cost. The mass addition line becomes a single asset when you Post Mass Additions to Oracle
Assets.
For example, merge tax lines into the main invoice line distribution to maintain proper asset
descriptions; merge a discount line with its appropriate mass addition line; or combine
individual mass additions from different invoices into a single line and amount.
You can only merge mass additions in the NEW, ON HOLD, or user-defined hold queues.
Choose whether to sum the number of units.
As an audit trail after the merge, the original cost of the invoice line distribution remains on
the line. The cost of the parent line will not be altered as a result of the merge and will remain
the same. You can view the merged lines and the total merged cost in the Merge submenu.
When you post the merged line, the asset cost is the total merged cost.
If you undo a merge, the mass addition lines appear as they did before the merge.
Important: You cannot merge split mass addition lines. For example, if you split a mass
addition line with 5 units into five separate mass additions, you cannot merge two of the new
lines together. You can, however, post one of the lines to create a new asset, and then add the
second mass addition line to the existing asset as a cost adjustment.
Example
For example, you are asked to merge the mass additions line for invoice #220 into the line for
invoice #100. Prior to the merge, both have a queue name of NEW. Details for the two lines
are as follows:
After the merge, the line for invoice #100 has a queue name of ON HOLD and can become
an asset. The line for invoice #220 has a queue name of MERGED and cannot become an
asset. Details for the two lines are as follows:
You can split a mass addition line with multiple units into several single unit lines. You can
split a previously merged mass addition line.
If you split a mass addition, the original line is put in the SPLIT queue as an audit trail of the
split. The resulting split mass additions appear with one unit each, and with the same existing
information from the source system. Each split child is now in the ON HOLD queue. You can
review each line to become a separate asset.
If you undo a split, Oracle Assets places the original multiple unit mass addition line in the
ON HOLD queue and deletes the single unit lines.
Example
For example, you are asked to split a single mass addition line into three new lines. Prior to
the split, the mass addition line has a queue name of NEW. Details for the line are as follows:
After the split, you have four mass additions lines. The original line now has a queue name of
SPLIT and cannot be made into an asset. The three new lines have a queue name of ON
HOLD and can become an asset. Details for the mass addition lines are now as follows:
Related Topics
If you post many mass additions, you can set up Oracle Assets to run more than one process
in parallel. For information on the FA: Number Mass Addition Parallel Requests profile
option, see: Profile Options and Profile Options Categories Overview. The following table
describes the effect of posting on each Oracle Assets mass addition queue name.
Queue Name
Queue Name Before Post Effect of Post Mass Additions
After Post
POST Creates new asset from mass addition POSTED
line
COST ADJUSTMENT Adds mass addition line to existing POSTED
asset
MERGED Mass Addition line already merged POSTED
SPLIT Mass Addition line already split; post SPLIT
does not affect
NEW New mass addition line; post does not NEW
affect
ON HOLD or user-defined Mass addition line on hold; post does ON HOLD
queue name not affect
DELETE Mass Addition line awaiting deletion; DELETE
post does not affect
Related Topics
The Delete Mass Additions program removes mass addition lines in the following queues:
Mass additions in the SPLIT queue for which you have already posted the child mass
addition lines created by the split
Mass additions in the POSTED queue that have already become assets
Mass additions in the DELETE queue. Note that Oracle Assets does not create a
journal entry to clear the clearing account, since the line does not become an asset
Oracle Assets maintains an audit trail by moving lines in the DELETE queue to the interim
table FA_DELETED_MASS_ADDITIONS. After you run Delete Mass Additions, these
lines no longer appear in the Mass Additions window.
Related Topics
You must register the clearing accounts you want to use as Asset accounts in the Segment
Values window. The create mass additions process selects Payables invoice line distributions
charged to clearing accounts with the type of Asset.
For each asset category in Oracle Assets for which you want to import invoice line
distributions from Payables, define valid asset clearing and construction-in-process clearing
accounts. These accounts must be of type Asset. The create mass additions process only
imports lines charged to accounts that are already set up in your asset categories.
Payables must be tied to the same ledger as the corporate book for which you want to create
mass additions in Oracle Assets. If you use the multiple organization feature and have
multiple corporate books in Oracle Assets, ensure that you create mass additions for the
correct Oracle Assets corporate book. You cannot create mass additions for tax books.
If you want mass addition lines for an item to appear in Oracle Assets with an asset category,
you must:
Define a default asset category for an item in the Item window in Purchasing or
Inventory
Create a purchase order for that item
Receive the item in either Purchasing or Inventory
Enter an invoice in Payables and match it to the outstanding purchase order
Approve the invoice
Post the invoice to General Ledger
After you run create mass additions, the mass addition line appears with the asset category
you specified for the item.
When you enter a new invoice in Payables, if you want the invoice line to be imported to
Oracle Assets, you must charge the distribution to a clearing account that is already assigned
to an asset category. The line amount can be either positive or negative.
Any additional information you enter in the Description field in the Invoices Summary
window in Payables appears in the Description field in the Mass Additions window in Oracle
Assets.
Discount line distributions brought over to Oracle Assets automatically have a description of
DISCOUNT.
Units
If you enter a purchase order in Purchasing with multiple units and match it completely to an
invoice in Payables, the Create Mass Additions process uses the number of units specified by
the original purchase order for the mass addition line. Mass addition lines created from
invoices entered directly into Payables without matching to a purchase order default to one
unit. You can update the number of units in the Mass Additions window.
After you approve and post the invoice in Payables, run the Create Mass Additions for Oracle
Assets process to send valid invoice line distributions to Oracle Assets.
Handle Returns
You can easily process and track returns using mass additions. For example, you receive an
invoice, post it, and create an asset using mass additions. You then discover that the asset is
defective and you must return it.
First you reverse the invoice in Payables, charging the credit invoice line distribution to the
same asset clearing account. Then you run mass additions to bring over the credit line. Add
this line to the existing asset to bring the asset cost to zero. Now you can retire the asset. The
asset does not affect your balance sheet, but its audit trail remains intact.
For the mass additions create process to import an invoice line distribution to Oracle Assets,
these specific conditions must be met:
You can create expensed items from expensed invoice line distributions in Oracle Payables.
Oracle Assets does not depreciate or create journal entries for expensed items. You cannot
change an expensed item to a capitalized or CIP asset.
The create mass additions process imports an expensed line only if:
Running the Create Mass Additions For Oracle Assets Program in Payables
You can run Create Mass Additions for Oracle Assets as many times as you like during a
period. Each time it sends potential asset invoice line distributions and any associated
discount lines to Oracle Assets. Payables ensures that it does not bring over the same line
twice.
Use the Post Accounting programs in Oracle Subledger Accounting to determine the line
types that should be interfaced to Oracle Assets by the Mass Additions Create program.
Please refer to the SLA user guide for more information on the Post Accounting programs.
Important: Verify that you are creating mass additions for the correct corporate book in
Oracle Assets, because you cannot undo the process and resend them to a different book.
Payables sends line amounts entered in foreign currencies to Oracle Assets in the converted
ledger currency. Since Oracle Assets creates journal entries for the ledger currency amount,
you must clear any foreign currency invoices manually in your general ledger. Review the
Mass Additions Create Report to see both foreign and ledger currency amounts.
Example
For example, you purchase an asset in euros, and place the asset into service. Oracle Payables
creates a journal entry for the purchase in euros, and sends it to Oracle General Ledger. The
conversion rate and journal entry created are included below:
Oracle Payables
In Oracle Payables, the amounts are converted to dollars, the ledger currency, and sent to
Oracle Assets via the Create Mass Additions process. Oracle Assets creates a journal entry
for the asset addition in dollars. The conversion rate and journal entry created are included
below:
Oracle Assets
In Oracle General Ledger, the Asset Clearing account becomes unbalanced after posting the
debit amount in euros and the credit amount in dollars for the asset purchase. The asset
purchase journal entry amounts in the Asset Clearing account are included below:
Journal Entry 1:
Journal Entry 2:
Related Topics
Create Mass Additions for Oracle Assets Program (from Oracle Payables), Oracle Payables
User Guide
Create Mass Additions for Oracle Assets Program (from Oracle Payables), Oracle Payables
User Guide
You define and build capital assets in Oracle Projects using information specified in the
project work breakdown structure (WBS). You define and assign the grouping method and
levels for CIP costs to summarize them for capitalization. You can review and adjust the
summarized CIP costs if necessary. You also can adjust capital project costs before and after
capitalization.
When your CIP asset is built and ready to be placed in service, you can capitalize and send
the associated costs as asset lines to Oracle Assets. Oracle Assets places these imported mass
addition lines in a holding area, where you can post the capitalized costs to become assets.
Now you can begin using and depreciating your assets. You can review detail project
transactions associated with the asset lines in both Oracle Projects and Oracle Assets.
For Oracle Projects to send asset lines to Oracle Assets, the asset line must meet these
specific conditions:
The actual date in service must fall in the current or a prior Oracle Assets accounting
period
The CIP costs for summarized asset lines must be interfaced to Oracle General Ledger
The CIP costs for supplier invoice adjustments must be interfaced to Oracle Payables
A CIP asset must be associated with the asset line
You run the Interface Assets process in Oracle Projects to send asset lines to Oracle Assets.
This process creates a mass addition line for each asset line in Oracle Projects. It then merges
all mass additions for one asset into a single parent mass addition line. All of the mass
additions appear in the Prepare Mass Additions window. The merged children have a status
of MERGED.
Oracle Assets places the parent mass addition in the POST queue if you completely defined
the asset in Oracle Projects, and it is ready for posting. Oracle Assets places the parent mass
addition in the NEW queue if the asset definition is not complete; you must enter additional
information for the mass addition in the Prepare Mass Additions window, and then update the
queue status to POST. You do not need to change the queue status for lines with a status of
MERGED.
You can query mass additions by source, project number, and task number in the Mass
Additions Summary window. Choose the Project Details button from the Mass Additions
window to view detail project information for the mass addition. You can view detail
information only for mass additions or assets that have a project number assigned to them.
You also can query by source and view project information for the assets created from these
mass additions in the Assets, View Assets, Source Lines, View Source Lines, and Tax
Workbench windows. You can query by source in the Add to Asset window as well.
Related Topics
Creating and Preparing Asset Lines for Oracle Assets, Oracle Project Costing User Guide
Creating a Capital Asset in Oracle Projects, Oracle Project Costing User Guide
Accounting for CIP and Asset Costs in Oracle Projects and Oracle Assets, Oracle Project
Costing User Guide
The preparation of mass addition lines can be performed automatically to avoid manual
intervention in the mass additions process. The Prepare Mass Additions concurrent program
uses the information provided for specific mass addition lines to populate other fields. Oracle
Assets uses a standard set of rules for the Auto Prepare Mass Addition Lines process, but also
allows you to customize your specific accounting needs. The rules you set up in public API
will be used by the Prepare Mass Additions program to derive the data for all required fields.
The Auto Prepare Mass Addition Lines process consists of setting up rules, interfacing mass
addition lines, running the Prepare Mass Additions concurrent program, and posting mass
additions.
The Prepare Mass Additions concurrent program processes lines in fa_mass_additions that
have a queue status of NEW or ON HOLD.
If you set the Rule to Default, the category is derived through matching the cost clearing
account of the line with the cost clearing account defined for the Asset Categories for that
Asset Book. There must be a one-to-one mapping for cost clearing account and the asset
category.
The Prepare Mass Additions program derives the expense account by taking the clearing
account combination and overlaying the natural account segment with the value of the natural
account segment of the depreciation expense defined in the category. If the program cannot
derive the required information, the Queue status is set to ON HOLD and you can review and
make the necessary changes to the asset line.
If you set the rule to Custom: the Prepare Mass Additions program uses the custom logic
coded in the Public API.
You can interface mass addition lines from Oracle Payables or an external system. For
information of interfacing mass addition lines, see Overview of the Mass Additions Process.
Once you have created your mass addition lines, run the Prepare Mass Additions concurrent
program from the Concurrent Manager. After the Prepare Mass Additions concurrent
program is run, you can verify the mass additions data, if needed, and then post the mass
additions.
You can also load data into Oracle Assets using the Create Assets Feature in the Applications
Desktop Integrator (ADI), which allows you to import data from an Excel spreadsheet.
Create Mass Additions for Oracle Assets Program (from Oracle Payables), Oracle Payables
User Guide
Sending Asset Lines to Oracle Assets (from Oracle Projects), Oracle Project Costing User
Guide
Note: If you want to find mass additions by Invoice Number, PO Number, or Supplier
Number in the Find Mass Additions window, your search criteria must match exactly,
including capitalization.
Prerequisites
Create mass additions from external sources. See: About the Mass Additions
Interface, Sending Asset Lines to Oracle Assets (from Oracle Projects), Oracle
Project Costing User Guide, and Mass Additions Create Program (from Oracle
Payables), Oracle Payables User Guide
To review a mass addition line:
1. Choose Mass Additions > Prepare Mass Additions from the Navigator window.
2. Find mass additions with the queue name NEW, ON HOLD, or user-defined hold
queue in the Find Mass Additions window.
Note: If you want to find mass additions by Invoice Number, PO Number, or Supplier
Number, your search criteria must match exactly, including capitalization.
3. Choose the mass addition line you want to review, and choose Open.
4. Optionally enter additional mass addition source, descriptive, and depreciation
information.
5. If this mass addition was created from Oracle Projects, you can choose the Project
Details button to review associated project information.
6. If you want to assign this mass addition to multiple distributions, or you want to
review or change existing distributions, choose the Assignments button.
Note: You can only view the distribution for a merged parent or a merged child one at
a time in the Assignments window; however, if you check Show Merged
Distributions, Oracle Assets displays all the distributions of both the parent and
children.
In the Assignments window, manually enter or change the distribution(s) for the mass
addition line. To automatically assign a predefined distribution set to your mass
addition line, use the Distribution Set poplist. See: Assignments.
Choose Done to save your work and return to the Mass Additions window.
If you are ready to turn a mass addition line into an asset, change the queue name to
POST. While you are processing, you can put a mass addition line in the ON HOLD
or a user-defined queue. If you want to delete an unwanted line, assign it to the
DELETE queue.
Caution: Oracle Assets places EACH mass addition that meets your search criteria
into the queue you specify.
Post All: Oracle Assets checks each mass addition, ensures that it is prepared for
posting, and places it in the POST queue. If it encounters a problem with a mass
addition, Oracle Assets alerts you with an error message and terminates the Post All
process. Note that this mass addition and all other subsequent mass additions are not
yet in the POST queue.
For example, if you choose to Post All, and Oracle Assets alerts you that a mass
addition is incomplete, you can supply the missing information for it in the Mass
Additions window, save your work, return to the Mass Additions Summary window,
and choose Special, Post All from the menu to resume the process.
If you receive an error message and you want to omit a mass addition from the Post
All process, you can use Edit, Clear Record from the menu to clear the mass addition
from the Mass Additions Summary window. Choose Special, Post All from the menu
to resume the process.
Delete All: You may want to review the mass additions you query in the Mass
Additions Summary window before you choose Delete All, since this process
automatically places each mass addition that meets your search criteria in the
DELETE queue.
1. Choose Mass Additions > Prepare Mass Additions from the Navigator window.
2. Find the mass addition(s) for this transaction in the Find Mass Additions window.
3. Choose the mass addition line you want to add to an existing asset as a cost
adjustment.
4. Choose Add to Asset.
5. Query and choose the asset to which to add the line. You can find assets by Asset
Detail, Assignment, Source, and Lease.
6. Choose whether to amortize or expense the adjustment to the existing asset.
7. Check New Category and Description to change the category and description of the
existing asset to those of the mass addition you are adding as a cost adjustment.
8. Save your work.
9. Choose Open and change the queue name to POST.
10. Save your work.
1. Choose Mass Additions > Prepare Mass Additions from the Navigator window.
2. Find the mass addition(s) for this transaction in the Find Mass Additions window.
3. Choose the cost adjustment you want to undo in the Mass Additions window.
4. Choose Remove from Asset.
5. Save your work.
Note: You can only merge mass additions in the NEW or ON HOLD queues.
1. Choose Mass Additions > Prepare Mass Additions from the Navigator window.
2. Find the mass addition(s) for this transaction in the Find Mass Additions window.
3. Choose the mass addition line into which you want to merge other lines (the merged
parent).
4. Choose Merge.
5. Choose whether to sum the number of units or keep the original number of units for
the line. The Units field shows the total units for the new merged mass addition,
depending on the value of the Sum Units check box. The Merged Units field displays
the sum of children's units only.
If you are merging a multi-distributed mass addition, and you do not check the Sum
Units check box, Oracle Assets uses the distribution of the merged parent for the new
merged mass addition line. If you check the Sum Units check box, Oracle Assets uses
BOTH the merged parent and child distributions for the new merged mass addition
line.
If you are adjusting the cost of a parent mass addition, and Sum Units is checked, you
are cost adjusting the SUM. Otherwise, the adjustment difference is applied to the
parent line only.
6. In the Merged Lines block, choose the line(s) you want to merge into the merged
parent. If you want to merge all the lines, choose Special, Merge All from the menu.
Note: If you use the default query or blind query, only the other lines in the same
invoice are shown. Use Query - Run with a % in any field to bring up all potential
invoice lines for the same book.
To undo a merge:
1. Choose Mass Additions > Prepare Mass Additions from the Navigator window.
2. Find the mass addition(s) for this transaction in the Find Mass Additions window.
3. Choose the merged parent(s) you want to undo.
4. Choose Merge.
5. Uncheck the line(s) for which you want to undo the merge. If you want to unmerge all
the lines, choose Special, Unmerge All from the menu.
6. Save your work. Oracle Assets changes the queue name for the unmerged lines to the
original queue name before the merge.
1. Choose Mass Additions > Prepare Mass Additions from the Navigator window.
2. Find the mass addition(s) for this transaction in the Find Mass Additions window.
3. Choose the mass addition line that you want to split.
4. Choose Split. Oracle Assets splits the line into multiple single-unit mass addition
lines. Review the new lines in the Mass Additions window.
Note: This also splits any merged children on the line, and keeps them merged into
the split child.
Choose the split mass addition line you want to undo in the Mass Additions window.
Choose Undo Split. You can undo a split only before posting the split children.
Related Topics
Assignments
Sending Asset Lines to Oracle Assets (from Oracle Projects), Oracle Project Costing User
Guide
Create Mass Additions for Oracle Assets Program (from Oracle Payables), Oracle Payables
User Guide
Prerequisites
Create mass additions from external sources. See: About the Mass Additions
Interface, Sending Asset Lines to Oracle Assets (from Oracle Projects), Oracle
Project Costing User Guide, and Mass Additions Create Program (from Oracle
Payables), Oracle Payables User Guide
Review mass additions. See: Reviewing Mass Addition Lines.
1. Choose Mass Additions > Post Mass Additions from the Navigator.
2. In the Parameters window, specify the corporate book for which you want to post
your mass additions.
If you corporate book is not listed in the list of values, on of the errors shown in the
following table may have occurred:
Error Solution
No mass additions lines in the Navigate to the Mass Additions window and
post queue. change the queue to POST for the mass additions
that are ready to be posted.
The corporate book is not Check the effective date range of the corporate
effective for these mass book in the Book Controls window.
additions lines
Depreciation has been run with Fix the errors and resubmit Depreciation. When
errors. Depreciation has been run successfully, re-submit
Post Mass Additions.
Depreciation is currently Wait until Depreciation completes successfully,
running for the corporate book then re-submit Post Mass Additions.
you specified.
3. Choose Submit to submit a concurrent process to post your mass additions to Oracle
Assets.
When the program completes successfully, Oracle Assets automatically runs the Mass
Additions Posting Report, which gives you an audit trail of the processed mass
additions.
4. Review the log file and report after the request completes.
Related Topics
Note: Lines assigned to the DELETE queue do not get journal entries; you must clear them
manually.
Prerequisites
Change queue name to DELETE for unwanted or erroneous mass addition lines in the
Mass Additions window. See: Reviewing Mass Addition Lines.
Run the Delete Mass Additions Preview Report.
1. Choose Mass Additions > Delete Mass Additions from the Navigator.
2. In the Parameters window, specify the corporate book for which you want to clean up
mass additions.
3. Choose Submit to submit a concurrent process to remove the lines.
When the program completes successfully, Oracle Assets automatically runs the Mass
Additions Delete Report, which gives you an audit trail of the processed mass
addition lines.
4. Review the log file and report after the request completes.
When the program completes successfully, Oracle Assets automatically runs the Mass
Additions Purge Report, which lists the mass addition lines you purged.
5. Review the log file and report after the request completes.
Related Topics
Reviewing Mass Addition Lines
Important: Plan your conversion carefully and thoroughly, since you cannot undo it.
The Create Mass Additions program creates mass additions from invoice information in
Oracle Payables. The concurrent process places the new mass additions in a holding area (the
table FA_MASS_ADDITIONS) that is separate from the main Oracle Assets tables, so that
you can review and approve the mass additions before they become asset additions.
To integrate Oracle Assets with another system, develop your own program to add mass
additions to the FA_MASS_ADDITIONS table. Also, you may want to add another window
to the Oracle Assets menu to run your concurrent process. A description of the columns in the
FA_MASS_ADDITIONS table is included later in this essay.
Oracle Assets lets you convert from your previous asset system using mass additions. Instead
of loading your asset information into multiple Oracle Assets tables, load your information
into the FA_MASS_ADDITIONS table and use the mass additions process to simplify your
work.
The Mass Additions feature of Oracle Assets is normally used to import asset information
from Oracle Payables. Mass Additions automatically populates the many Oracle Assets tables
from the relatively simple FA_MASS_ADDITIONS table. By placing your data in this table,
you can use the power of the Post Mass Additions to Oracle Assets program to perform the
bulk of your import.
Mass Additions has three main components:
Create: finds potential new assets in Oracle Payables and brings them into the
FA_MASS_ADDITIONS table
Prepare: allows you to review potential new assets and enter additional information
Post: creates assets by importing asset information from the
FA_MASS_ADDITIONS table into several Oracle Assets tables
To convert assets from another assets system, use only the Post component to move the asset
information you store in the FA_MASS_ADDITIONS table into Oracle Assets.
Complete these steps to import your asset data into Oracle Assets.
Related Topics
1. Decide when to begin your import project. Schedule it when you are able to devote
enough time to complete the entire import process.
2. Determine who, if not you, can make the decisions required to complete the definition
phase found in the next section. Ensure that you have the correct person available to
make these decisions.
3. Schedule and confirm the computer resources you need, well in advance. Specifically,
ensure that you have:
o Disk space sufficient to handle multiple copies of your asset data
o Access to a terminal
o Access to a media drive (if required)
oSufficient CPU and memory to handle the database operations you perform as
part of the import
o Access to operating system documentation
4. Know the status of your Oracle Assets installation.
Oracle Assets must be installed and confirmed before your import. If you plan an
install, consult your Oracle Applications Installation Manual for complete installation
instructions. Determine if you are using Oracle General Ledger and if it is installed
and set up.
5. Know in what form the other system stores its data, and what tools are available to
convert that data, so you can plan the conversion of the existing asset data into a form
that SQL*Loader can read.
6. Know the number of assets, categories, locations, and exceptions in your data. You
need these numbers to estimate the amount of time required for the import.
7. Define an import schedule and procedure.
Estimate how long it will take you to complete your import. Base your schedule on
the information you gained in the preceding steps. Try to include a buffer in your
schedule in case you have difficulty during the import.
Related Topics
During this phase, make important business decisions about how to define Oracle Assets and
then actually perform the setup process.
Most companies prefer to set up categories which match their chart of accounts. Each
chart account defines a major category. Usually the first segment, or major category,
corresponds to the asset accounts in the company's chart of accounts. Define at least
one subcategory segment to allow for distinctions within a major category. You can
define up to seven segments if necessary.
You probably want to set up no more than 3 category segments due to maintenance
issues, and limited reporting space on Oracle Assets reports.
A company may have a system for grouping similar assets. Many companies find it
useful to group assets associated with a specific project, department, or location. For
example, you can use the asset key flexfield to track your construction-in-process
assets. Define an asset key flexfield that describes asset groups in your organization.
If you do not choose to track assets using the asset key, define a one segment asset
key flexfield without validation. Then, when you navigate to the asset key flexfield on
a window, the flexfield window does not open and you can return through the field.
You can define up to ten segments for the asset key flexfield if required.
5. Define default locations, cost centers, asset key flexfield combinations and
suppliers.
If you track this information electronically, set up each location, expense code
combination, asset key flexfield combination, and supplier before import. If you do
not already track this information, define default values. The defaults you define are
used in place of actual values until the actual value is known.
o Default Location
Many companies do not currently track asset location. If you do not, then set
up a default location to be used in the import. Once the assets are imported,
you can locate the assets by performing an asset inventory and then transfer
the assets from the default location to the actual location. If you already track
location, then set up each location before import.
Some companies do not track assets on a cost center level. If you do not, then
set up a default cost center for your incoming assets. To define the default cost
center, create a code combination in each depreciation expense account for the
default cost center. When you start tracking assets by cost center, you can
transfer each asset from the default cost center the actual one. If you already
track assets by cost center, create each expense account code combination.
Some companies do not use the asset key flexfield. If you do not, then define a
default combination to be used for incoming assets. Give the default
combination an 'inactive date' so you do not use the combination accidentally
at a future time. If you start using the asset key flexfield, you can change the
combination from the default combination to the actual one. If you already use
the asset key flexfield, create each asset key flexfield combination.
o Default Suppliers
Many companies do not track suppliers on an asset level. If you do not, then
define a default supplier to be used for incoming assets. Give the default
supplier an 'inactive date' so you do not use the supplier name accidentally at a
future time. When you start tracking asset suppliers, you can change the
supplier from the default supplier to the actual one. If you already track asset
suppliers, then enter all suppliers for all incoming assets. If you use Oracle
Payables or Oracle Purchasing, your suppliers are already defined there and
Oracle Assets shares the information.
Typically, the best time for the initial depreciation run after a conversion is the end of
the fiscal year just before the current one. This year provides accumulated
depreciation numbers that you can reconcile with your company's financial
statements. It also ensures that the year-to-date numbers on your reports are correct
during the current fiscal year.
Decide whether to enter assets with accumulated depreciation, or enter them without
accumulated depreciation and let Oracle Assets calculate it for you. If you do not
enter accumulated depreciation, Oracle Assets calculates the accumulated
depreciation and revaluation reserve if necessary the first time you run depreciation. If
you enter your assets with accumulated depreciation, Oracle Assets does not
recalculate it, unless you make an adjustment to that asset. You must enter the correct
accumulated depreciation.
Year-to-date numbers are important because the Depreciation program expenses all
the catchup depreciation to the period in which it is run. If you enter your assets
without accumulated depreciation, the first time you run depreciation, the depreciation
expense is equal to the accumulated depreciation. The first period absorbs that one-
time expense and, since the result from that period is not be posted to the general
ledger, the general ledger is not affected and your year-to-date numbers in the next
year are correct in Oracle Assets.
When you want to use the values for accumulated depreciation from the old assets
system, you should start with the first period of the current fiscal year. Otherwise,
your year-to-date values will not include the year-to-date depreciation you specify in
the FA_MASS_ADDITIONS table.
You determine the initial depreciation period when you set up your books using the
Book Controls window. Enter the period of your initial depreciation period in the
Current Period Name field.
Determine if you want to use your own asset numbering system, or if you want to use
Oracle Assets automatic numbering system. In either case you must choose a starting
value for automatic numbering in the System Controls window. Even if you do not
use automatic numbering for the conversion, Oracle Assets uses the value internally
as the ASSET_ID, so you must still choose the starting value carefully. You must use
a value that is large enough to leave sufficient asset numbers unclaimed by automatic
numbering. However, you cannot use asset numbers larger than 2,000,000,000.
If you do use automatic numbering, enter a value on the System Controls window that
is the starting value you want to use plus the number of assets you are converting. By
entering a value larger than you use for any conversion asset, you ensure that Oracle
Assets does not try to assign an existing asset ASSET_ID to a newly added asset after
the conversion. Using specific ranges of numbers for groups of assets makes it easier
to keep track of related items.
Determine the depreciation methods for all assets in all books. Oracle Assets seeds
most depreciation methods, but you must enter any customized method. Decide what
depreciation method, prorate convention, and other depreciation rules will be used for
each asset in each book. You must set up the depreciation methods and rates,
depreciation ceilings, investment tax credit rates, prorate conventions, and price
indexes you will need before you can define your categories.
Use category names that match the corresponding chart asset account. Define
subcategories so that all the assets in a subcategory have the same depreciation
method, prorate convention, and other depreciation rules. For assets in your tax books
that you acquired under different, past tax laws, you can set up the asset category with
different depreciation rule defaults for different date placed in service ranges. The
asset category and date placed in service determine the depreciation rule defaults for
an asset.
You need to set up categories because the Mass Additions Posting program gets
depreciation method information for each asset from the defaults defined in the Asset
Categories window.
If you have only a few assets that use a particular depreciation method, you do not
necessarily need to define a separate category for them. Instead, you can place them in
another category and then manually change the depreciation information using the
Books window before you run depreciation for the first time. Note that you should
place these assets in a compatible category because the asset and reserve accounts are
determined by your category choice, and the capitalize flag and the category type
cannot be changed on the Books window.
For each book, create a plan to give all assets the correct depreciation information.
Most assets should receive the correct information from the category books values.
You can change the depreciation information for individual exceptions. Create your
categories to minimize the number of individual transactions.
Try to keep the major category names short, ideally less than 20 characters, since
Oracle Assets reports print only a limited number of characters for the category.
Complete the standard setup procedure with the information you obtained in the
previous steps.
Define values for your Asset Key flexfield that describe the different groups of assets
within the company. Many companies find it useful to group assets associated with a
specific project, department, or location. You can use the asset key flexfield to track
your construction-in-process assets.
Related Topics
Note: If you are using Multiple Reporting Currencies (MRC), when loading the
FA_MASS_ADDITIONS table with data from a legacy system (a feeder system other than
Oracle Payables or Oracle Projects), you must also load the FA_MC_MASS_RATES table.
For each mass addition line in FA_MASS_ADDITIONS, you need to provide exchange rate
information in the FA_MC_MASS_RATES table for each reporting ledger associated with
the corporate book into which the assets will be added. It is recommended that you use the
calculated exchange rate, not the official exchange rate, for each ledger. This will minimize
rounding issues. See: Multiple Reporting Currencies in Oracle Applications, Multiple
Reporting Currencies in Oracle Applications.
Use a single interim table if possible. You can use multiple tables if the data exists in
multiple tables or files in the old asset system. In either case, you must eventually
place the data in a single table, the FA_MASS_ADDITIONS table.
If you wish, you may load data directly into FA_MASS_ADDITIONS, but it is more
difficult due to the complexity of the table.
If the data already resides within an Oracle database, there is no need to use
SQL*Loader. Simply consolidate the asset information in your interim table using
SQL*Plus or import, and go directly to .
Most database or file systems can output data in text form. Usually you can
generate a variable or fixed format data file containing comma or space
delimiters from the existing system. If you can't find a way to produce clean
text data, try generating a report to disk, using a text editor to format your
data. Another option is to have SQL*Loader eliminate unnecessary
information during its run. If there is a large volume of information, or if the
information is difficult to get in a loadable format, you can write your own
import program. Construct your program to generate a SQL*Loader readable
text file.
o Create the SQL*Loader control file
In addition to the actual data text file, you must write a SQL*Loader control
file. The control file tells SQL*Loader how to import the data into your
interim table. Be sure to specify a discard file if you are planning to use
SQL*Loader to filter your data.
Once you have created your asset data file and SQL*Loader control file, run
SQL*Loader to import your data. SQL*Loader produces a log file with
statistics about the import, a bad file containing records that could not be
imported due to errors, and a discard file containing all the records which were
filtered out of the import by commands placed in the control file.
Check the number of rows in the interim table against the number of records in your
original asset data file or table to ensure that all asset records are imported.
The log file shows if records were rejected during the load, and the bad file shows
which records were rejected. Fix and re-import the records in the bad file.
Check several records throughout the interim table and compare them to the
corresponding records in the original asset data file or table. Look for missing or
invalid data. This step ensures that your data was imported into the correct columns
and that all columns were imported.
Related Topics
You can either load the column directly from your other system, or you can fill in some
values in the Mass Additions window before you post. Columns marked OPTIONAL are for
optional asset information that you can track if you want. VARCHAR2 columns are case
sensitive.
Nul
Column Name Type Comments
l
ACCOUNTING_DATE Nul DATE Required. Use this column for
l the accounting date of the
invoice. The Unposted Mass
Additions Report reports on this
date.
ADD_TO_ASSET_ID NUMBER(15) Do not use this column.
ADJUSTED_RATE NUMBER Actual rate used to calculate the
depreciation for flat rate method.
ALLOWED_DEPRN_LIMIT NUMBER Depreciation limit percentage
for the asset.
ALLOWED_DEPRN_LIMIT_AM NUMBER Depreciation limit amount for
OUNT the asset.
AMORTIZATION_START_ DATE Optional. This column indicates
DATE the date to start amortizing the
net book value for the asset, if
the AMORTIZE_NBV_FLAG
column is set to Yes.
AMORTIZE_FLAG VARCHAR2( Optional. Use this column to
3) determine whether an asset
should be amortized. This
column should be set to yes if
either the
AMORTIZATION_START_DA
TE or the
AMORTIZE_NBV_FLAG
columns contain values.
AMORTIZE_NBV_FLAG VARCHAR2( Optional. Use this column to
1) determine whether to enable the
asset to amortize the net book
value over the remaining useful
life
AP_DISTRIBUTION_ NUMBER(15) Optional. Use this column for
LINE_NUMBER the distribution line number. The
value must be a valid in the
AP_DISTRIBUTION_LINE_N
UMBER column on the table
AP_INVOICE_DISTRIBUTIO
NS, and tied to the
INVOICE_ID given above.
ASSET_CATEGORY_ID NUMBER(15) Required. Use this column for
the category id that corresponds
with the asset category of the
asset. See: Importing Your Asset
Information .
ASSET_ID Nul NUMBER(15) Do not use this column.
l
ASSET_KEY_CCID NUMBER(15) Use this column for the code
combination id that corresponds
to the asset key. Use an enabled
value from the
CODE_COMBINATION_ID
column of the
FA_ASSET_KEYWORDS
table.
ASSET_NUMBER VARCHAR2( Optional. This column is a
15) unique external identifier for
assets. If you enter a value in
this column it is used for asset
numbering. The numbers you
supply must be unique. It
identifies the asset in Oracle
Assets windows and reports. If
you leave this column blank
Oracle Assets assigns an asset
number using automatic
numbering, in which case the
asset number is the same as the
asset id.
ASSET_TYPE VARCHAR2( Use this column for the asset
11) type of the asset. Enter one of
the following values:
Capitalized: For your capitalized
assets.
CIP: For your construction-in-
process (CIP) assets.
Expensed: For your expensed
assets.
Group: For your group assets.
ASSIGNED_TO NUMBER(15) Optional. Use this column for
the employee id of the employee
responsible for this asset. Use a
value from the EMPLOYEE_ID
column in FA_EMPLOYEES.
Note that EMPLOYEE_ID is the
unique internal identifier, and
not the same as the external
identifier
EMPLOYEE_NUMBER.
ATTRIBUTE_ Nul VARCHAR2( Do not use this column.
CATEGORY_CODE l 30)
ATTRIBUTE1 through VARCHAR2( Optional Use these columns to
ATTRIBUTE30 150) copy the Asset Workbench
descriptive flexfield segments
setup on the Asset Workbench.
To access these values in the
Asset Workbench, you need to
define the descriptive flexfield
on the Asset Workbench. The
values stored in ATTRIBUTE1
through ATTRIBUTE30 are
copied to the columns in
FA_ADDITIONS.
BASIC_RATE NUMBER Base rate used to calculate the
depreciation amount for flat rate.
BEGINNING_NBV Nul NUMBER Do not use this column.
l
BONUS_DEPRN_RESERVE NUMBER Optional. This column contains
the bonus depreciation reserve
for the asset. This amount should
also be included in the
DEPRN_RESERVE column.
BONUS_RULE VARCHAR2( Name of the bonus rule for the
30) asset.
BONUS_YTD_DEPRN NUMBER Optional. This column contains
the year-to-date bonus
depreciation expense for the
asset. This amount should also
be included in the YTD_DEPRN
column.
BOOK_TYPE_CODE VARCHAR2( Required. Use this column for
15) the book to which you want to
assign the asset. You must
choose a book that you have set
up in the Book Controls
window, and the book class must
be CORPORATE. Values in this
column must be in upper case.
CONTEXT VARCHAR2( Optional. Use this column for
210) the date you load this asset into
the FA_MASS_ADDITIONS
table.
CONVERSION_DATE DATE Optional. This column indicates
the date the short fiscal year
asset was added to the acquiring
company.
CREATE_BATCH_DATE DATE Optional. Use this column for
the date you load this asset into
the FA_MASS_ADDITIONS
table.
CREATE_BATCH_ID NUMBER(15) Optional. Use the value 1 for
this column to distinguish it
from subsequent Mass Additions
for a conversion, or use the same
number for all mass additions
from your payables system that
you load at once.
CREATED_BY NUMBER(15) Required. Use the value 1 in this
column, or the specific user id of
the person working on the
import.
CREATION_DATE DATE Required. Use this column for
the date you load this asset into
the FA_MASS_ADDITIONS
table.
CUA_PARENT_ NUMBER CRL users should use this
HIERARCHY_ID column to assign the asset to a
hierarchy parent node.
DATE_ PLACED_IN_SERVICE DATE Required. Use this column for
the date you placed the asset in
service.
DEPRECIATE_FLAG VARCHAR2( Required. Use this column to
3) indicate if you want Oracle
Assets to depreciate this asset. If
you want to calculate
depreciation on this asset, enter
YES in this column. If you do
not want to calculate
depreciation, enter NO.
DEPRN_LIMIT_TYPE VARCHAR2( Depreciation limit type of the
30) asset, such as the amount or
percent.
DEPRN_METHOD_CODE VARCHAR2( Name of the depreciation
12) method for the asset.
DEPRN_RESERVE NUMBER Optional. Use this column for
the accumulated depreciation of
the asset as it currently appears
in your general ledger. You can
enter a value, or have Oracle
Assets calculate it. For CIP,
expensed and group assets, you
must enter zero or leave it blank.
DESCRIPTION VARCHAR2( Required. Use this column for a
80) description of the asset.
DIST_NAME VARCHAR2( Optional. Use this column to
25) indicate the name of the
distribution set.
EXPENSE_CODE_ NUMBER(15) Required. Use this column for
COMBINATION_ID the code combination id of the
general ledger account to which
depreciation expense should be
charged. See: Importing Your
Asset Information .
FEEDER_ SYSTEM_NAME VARCHAR2( Optional. Use this column to
40) note that this asset came from a
import process. Use a word like
CONVERSION or PAYABLES
to denote the nature of the
import.
FIXED_ASSETS_COST NUMBER Required. Use this column for
the cost of the asset as it
currently appears in your general
ledger. For group assets, you
must enter zero or leave it blank.
The cost of a group asset is
derived from the sum of all
member assets when the member
assets are assigned to the group.
For group assets, you must enter
zero or null. The cost of a group
asset is the sum of the assigned
member asset costs.
FIXED_ASSETS_UNITS NUMBER(15) Required. Use this column for
the number of units that make up
the asset. You must use a
positive integer value.
FULLY_RSVD_ NUMBER Optional. Use this column for
REVALS_COUNTER the number of times you have
revalued this asset as fully
reserved. If you do not revalue
your assets, do not use this
column.
GLOBAL_ATTRIBUTE_ Nul VARCHAR2( Do not use this column.
CATEGORY l 30)
GLOBAL_ ATTRIBUTE1-20 VARCHAR2( Optional. Use these columns to
150) copy the Asset Workbench
global descriptive flexfield
segments setup on the Asset
Workbench. To access these
values in the Asset Workbench,
you need to define the global
descriptive flexfield on the Asset
Workbench. The values stored in
GLOBAL_ATTRIBUTE1
through
GLOBAL_ATTRIBUTE20 are
copied to the columns in
FA_ADDITIONS.
GROUP_ASSET_ID NUMBER(15) Optional. Use this column for
member assets only.
Group_Asset_ID is the Asset_ID
of the group asset to which the
member asset is assigned. Note
that if you leave this field null,
any applicable default from the
category default will be applied.
If a group association exists in
the category, and you wish to
enforce no group association,
you should populate this field
with FND_API.G_MISS_NUM.
IN_USE_FLAG VARCHAR2( Optional. Use this column to
3) indicate whether the asset is in
use.
INVENTORIAL VARCHAR2( Optional. Use this column to
3) indicate whether an asset should
be included in physical
inventory. The value is defaulted
from the category but can be
overridden. The valid values for
this column are YES or NO.
INVOICE_CREATED_BY Nul NUMBER(15) Do not use this column.
l
INVOICE_DATE Nul DATE Do not use this column.
l
INVOICE_ID NUMBER(15) Optional. Use this column for
the invoice id, if available. Use
the appropriate value from the
INVOICE_ID column of the
AP_INVOICES table. Note that
INVOICE_ID is the unique
internal identifier, and not the
same as the external identifier
INVOICE_NUMBER.
INVOICE_NUMBER VARCHAR2( Optional. Use this column for
15) the invoice number for this asset,
if available.
INVOICE_UPDATED_BY Nul NUMBER(15) Do not use this column.
l
LAST_UPDATE_DATE DATE Required. Use this column for
the date you load this asset into
the FA_MASS_ADDITIONS
table.
LAST_UPDATE_LOGIN NUMBER(15) Required. Use the value 1 in this
column, or the specific user id of
the person working on the
import.
LAST_UPDATED_BY NUMBER Required. Use the value 1 in this
column, or the specific user id of
the person working on the
import.
LEASE_ID NUMBER(15) Optional. This column identifies
the lease number.
LESSOR_ID NUMBER(15) Optional. This column identifies
the lessor number.
LIFE_IN_MONTHS NUMBER(4) Life of the Asset in total months.
LOCATION_ID NUMBER(15) Required. Use this column for
the location id that corresponds
with the location of the asset.
See: Importing Your Asset
Information .
MASS_ADDITION_ID NUMBER(15) Required. Oracle Assets uses
this column as a unique
identifier for mass additions.
The values in
MASS_ADDITION_ID are
generally sequential. You can
use a sequence generator to
populate this column. Note that
the value of this column must be
less than 2,000,000,000.
MANUFACTURER_NAME VARCHAR2( Optional. Use this column for
30) the name of the manufacturer of
the asset.
MERGE_ INVOICE_NUMBER VARCHAR2( Optional. Optionally set this
50) column to INVOICE_NUMBER
for unmerged lines.
MERGE_PARENT Nul NUMBER(15) Do not use this column.
MASS_ADDITIONS_ID l
MERGE_ VENDOR_NUMBER VARCHAR2( Optional. Optionally set this
30) column to VENDOR_NUMBER
for unmerged lines
MERGED_CODE Nul VARCHAR2( Do not use this column.
l 3)
MODEL_NUMBER VARCHAR2( Optional. Use this column for
40) the model number of the asset.
NEW_MASTER_FLAG Nul VARCHAR2( Do not use this column.
l 3)
NEW_USED VARCHAR2( Optional. Use this column to
4) indicate whether the asset is new
or used.
ORIGINAL_DEPRN_START_DA DATE Optional. This column indicates
TE the date the short fiscal year
asset began depreciating in the
acquired company's books.
OWNED_LEASED VARCHAR2( Optional. Use this column to
15) indicate whether the asset is
owned or leased.
PARENT_ASSET_ID NUMBER(15) Optional. If you are importing
asset information from another
payables system, use this
column for the asset id of the
parent asset if this asset is a
subcomponent of another asset.
The parent asset must be an
existing asset. Note that
ASSET_ID is the unique internal
identifier, and not the same as
the external identifier
ASSET_NUMBER.
For a conversion, do not use this
column. If an asset is a
subcomponent, you can enter
this relationship in the
Subcomponents window after
you post.
PARENT_ MASS_ADDITION_ID Nul NUMBER(15) Do not use this column.
l
PAYABLES_ BATCH_NAME Nul VARCHAR2( Do not use this column.
l 50)
PAYABLES_CODE_ NUMBER(15) Required. Use this column for
COMBINATION_ID the code combination id of the
asset clearing account you
assigned to the asset category.
See: Importing Your Asset
Information Step 2: page 1 - 92.
PAYABLES_COST NUMBER Required. Use this column for
the original cost of the asset. If
you do not have the original cost
of the asset, use the asset cost as
it appears in the general ledger.
PAYABLES_UNITS NUMBER Required. Use this column for
the number of units that make up
the asset. You must use a
positive integer value. Use the
same value in this column that
you use in the
FIXED_ASSETS_UNITS
column.
PERCENT_SALVAGE_VALUE NUMBER Salvage percentage of the asset.
PO_NUMBER VARCHAR2( Optional. Use this column for
15) the purchase order number for
this asset, if available.
PO_VENDOR_ID NUMBER(15) Optional. Use this column for
the supplier id. See: Importing
Your Asset Information Step 5:
page 1 - 94.
POST_BATCH_ID Nul NUMBER(15) Do not use this column.
l
POSTING_STATUS VARCHAR2( Required. To import asset
15) information from another
payables system, use the value
NEW or ON HOLD for this
column if you want to review
this asset in the Mass Additions
window.
Use the value POST for this
column if you are entering all
required information and want to
post the asset immediately, such
as for a conversion.
PRODUCTION_CAPACITY NUMBER Optional. Use this column for
the capacity of a units of
production asset. If you do not
enter a capacity, Oracle Assets
uses the capacity from the asset
category. If this asset is not a
units of production asset, do not
use this column.
PROJECT_ASSET_LINE_ID Nul NUMBER(15) Do not use this column.
l
PROJECT_ID Nul NUMBER(15) Do not use this column.
l
PROPERTY_1245_1250_CODE VARCHAR2( Optional. Use this column to
4) indicate that the property type
class is 1245 (personal) or 1250
(real).
PROPERTY_TYPE_CODE VARCHAR2( Optional. Use this column to
10) indicate the property type.
PRORATE_CONVENTION_COD VARCHAR2( Depreciation prorate convention
E 10) used for the asset.
QUEUE_NAME VARCHAR2( Required. Use the same value
15) you entered into the
POSTING_STATUS column
(e.g. NEW, ON HOLD, POST).
REVAL_ NUMBER Optional. Use this column for
AMORTIZATION_BASIS the basis for amortization of
revaluation reserve for a
revalued asset, usually the
current revaluation reserve. If
you do not revalue your assets,
do not use this column.
REVAL_RESERVE NUMBER Optional. Use this column for
the revaluation reserve of a
revalued asset. If you do not
revalue your assets, do not use
this column.
REVIEWER_ COMMENTS VARCHAR2( Optional. Use this column to
60) note that this asset came from a
import process and any other
details about this asset.
SALVAGE_TYPE VARCHAR2( Salvage type of the asset, such
30) as the amount or percent.
SALVAGE_VALUE NUMBER Optional. Use this column for
the salvage value of the asset, if
available.
SERIAL_NUMBER VARCHAR2( Optional. Use this column for
35) the serial number of the asset.
SHORT_FISCAL_YEAR_FLAG VARCHAR2( Optional. Use this column to
3) indicate if the asset was added in
a short fiscal year.
SPLIT_CODE Nul VARCHAR2( Do not use this column.
l 3)
SPLIT_MERGED_CODE Nul VARCHAR2( Do not use this column.
l 3)
SPLIT_PARENT_MASS_ADDITI Nul NUMBER(15) Do not use this column.
ONS_ID l
SUM_UNITS Nul VARCHAR2( Do not use this column.
l 3)
TAG_NUMBER VARCHAR2( Use this column for the asset tag
15) number if required. You can use
this column for barcode values if
you track assets by barcodes.
Oracle Assets allows no
duplicate values except null.
TASK_ID NUMBER(15) Optional. This column identifies
the task from which costs were
collected, summarized, and
transferred from Oracle Projects.
This column is only populated if
the costs were summarized by
task.
TRANSACTION_DATE DATE Optional. This column indicates
the date on which the transaction
is processed.
TRANSACTION_TYPE_CODE VARCHAR2( Optional. Use this column to
20) identify the type of future
transaction. Possible values are:
FUTURE ADD, FUTURE ADJ,
and FUTURE CAP.
UNIT_OF_MEASURE VARCHAR2( Optional. Use this column for
25) the unit of measure for a units of
production asset. If you do not
enter a unit of measure, Oracle
Assets uses the unit of measure
from the asset category. If this
asset is not a units of production
asset, do not use this column.
UNITS_TO_ADJUST NUMBER(15) Do not use this column.
UNREVALUED_COST NUMBER Optional. Use this column for
the cost without regard to any
revaluations of a revalued asset.
If you do not revalue your
assets, do not use this column.
VENDOR_NUMBER Nul VARCHAR2( Do not use this column.
l 15)
WARRANTY_ID NUMBER(15) Optional. Use this column to
identify the warranty number.
YTD_DEPRN NUMBER Optional. Use this column for
the year-to-date depreciation of
the asset as it currently appears
in your general ledger. You can
enter a value, or have Oracle
Assets calculate it for an asset
with a date placed in service in a
prior period. For CIP, expensed
and group assets, you must enter
zero or leave it blank.
Note: If you enter the
YTD_DEPRN manually, make
sure you are aware of how this
affects depreciation calculation
in subsequent periods. For more
information, see: Journal Entries
for Additions and
Capitalizations. If you are using
the FA: Annual Rounding
profile option, see: Profile
Options and Profile Options
Categories Overview.
YTD_REVAL_DEPRN_EXPENS NUMBER Optional. Use this column for
E the year-to-date depreciation
expense due to revaluation of a
revalued asset. If you do not
revalue your assets, do not use
this column.
Some columns do not apply to
group, CIP, or expensed assets.
These columns include the
following:
YTD_REVAL_DEPRN_EXPE
NSE, UNREVALUED_COST,
SHORT_FISCAL_YEAR_FLA
G, REVAL_RESERVE,
REVAL_AMORTIZATION_B
ASIS,
ORIGINAL_DEPRN_START_
DATE,
FULLY_RSVD_REVALS_CO
UNTER, YTD_DEPRN
Related Topics
Once you have set up Oracle Assets, you are ready to import your asset information.
If you are importing asset information from another payables system, load the
FA_MASS_ADDITIONS table directly. Then use Prepare Mass Additions and Mass
Additions Post to add your assets to Oracle Assets.
If you are converting asset information from another assets system, use SQL*Plus to move
the asset information from the interim table into the FA_MASS_ADDITIONS table. After
you load and confirm the FA_MASS_ADDITIONS table, run Mass Additions Post to post
your assets to Oracle Assets.
You use SQL*Plus to load your asset information into the FA_MASS_ADDITIONS
table from the interim table. Be sure to check the table after each SQL*Plus script to
ensure that the script updated the table correctly. Also load the
LAST_UPDATE_DATE column and all the other columns that are the same for all
your assets.
Tip: Load your data into the FA_MASS_ADDITIONS table in stages, posting and
cleaning the table, to avoid exceeding tablespace allocations.
Use SQL*Plus to match expense account information in your interim table with the
correct segments of the GL_CODE_COMBINATIONS table. To do this, you must
first determine the mapping between segment numbers and segment names. Find the
name of your chart of accounts using the Ledgers window to query on the ledger that
you entered for the depreciation book in the Book Controls window. When you know
the chart of accounts, perform the following SQL*Plus script:
Example:
Match the information you have in the interim table with the appropriate segments to
determine the correct code combination id for each asset. You might have only an
account in your interim table, or you might have a company, division, and cost center
that you need to match with segments in the GL_CODE_COMBINATIONS table.
Make certain that your SQL*Plus script selects only one code combination id for each
asset.
You can create the combinations you need using the Account Flexfield Combinations
window.
The asset category determines many of the accounts to which each asset belongs. The
category and date placed in service also determine the depreciation method, prorate
convention, and other depreciation rules for the asset based on default values you
defined for each category. Unless the interim table contains explicit information about
the category to which each asset belongs, you must use all the information you have
about each asset to determine its category. Asset account and reserve account are
often useful in determining an asset's major category.
You need to determine the name of the category flexfield structure using the System
Controls window. When you know the name of the category flexfield, perform the
following SQL*Plus script:
Example:
Match the information you have with the corresponding columns in the
FA_CATEGORIES table, the FA_CATEGORY_BOOKS table, and the
FA_CATEGORY_BOOK_DEFAULTS table. These tables join using the
CATEGORY_ID column in each. The FA_CATEGORY_BOOKS table contains
information about a category that is specific to a book, e.g. accounts. The
FA_CATEGORY_BOOK_DEFAULTS table contains information about a category
that is specific to a book and date placed in service range, e.g. depreciation method.
The FA_CATEGORIES table contains information about a category that is common
for all books, including the category flexfield segment values. You can match on
segments the same way you do for the Expense Code Combination ID if you have
enough information in the interim table.
Use SQL*Plus to match location information in your interim table with the location
segments in the FA_LOCATIONS table. To do this, you need to determine the
mapping between segment names and segment numbers. Determine the name of the
location flexfield structure you defined on the System Controls window and then
perform the following SQL*Plus script:
Example:
Match the location information in your interim table with the location segments in the
FA_LOCATIONS table. Load the LOCATION_ID of the matching location record
into the FA_MASS_ADDITIONS table. Be certain you select only one location id for
each asset.
If you have supplier information for your assets, use SQL*Plus to match the supplier
name in the interim table with the PO_VENDOR_NAME column in the
PO_VENDORS table. Load the PO_VENDOR_ID of the matching record into the
FA_MASS_ADDITIONS table.
You need to set up suppliers in the Suppliers window if you are not using Oracle
Payables or Oracle Purchasing. Note that PO_VENDOR_ID is the unique internal
identifier, and not the same as the external identifier supplier number.
When you are ready to post the FA_MASS_ADDITIONS table, use the Send Mass
Additions to Oracle Asset program to run Mass Additions Post. This program moves
your assets into Oracle Assets.
Run the Mass Additions Status Report to see the results. Compare this report with the
expected results, and investigate missing or incomplete items. Check the
PERIOD_FULLY_RESERVED column in FA_BOOKS for fully reserved assets.
For assets that you placed in service after the conversion period, you can run Mass
Additions Post after you have opened the appropriate period. For example, if your
fiscal year ends December 31, December is your conversion period. If you have some
assets that you placed in service in January, set the posting status to ON HOLD for
the January assets while you post the first time. After you run depreciation for
December, then you set the posting status of the January assets to POST and run Mass
Additions Post again.
7. Fix exceptions.
During this step you fix all the exceptions which were not properly imported using
Mass Additions. You only need to perform these steps if they apply to your import:
o Assets With Multiple Distributions:
If you want some of your assets to have multiple distribution lines, then you
need to use the Assignments window to correct the distribution information
for each of these assets.
After you have posted your assets with Mass Additions, use the Assign
Investment Tax Credit window to add ITC information.
After you have posted your assets with Mass Additions Post, use the Asset
Details window to add leasing information for your leased assets and your
leasehold improvements. Verify that the life of your leasehold improvements
is correct when you run depreciation.
After you have posted your assets using Mass Additions Post, use the Asset
Details to add parent asset information to each child asset.
You cannot load units of production assets with accumulated depreciation. For
more information about this restriction, see Assets Depreciating Under Units
of Production.
If you want to load a large number of units of production assets, please use the
production interface instead of the mass additions interface. See: Using the
Production Interface
Related Topics
If some of the assets in the FA_MASS_ADDITIONS table have dates placed in service after
the import, you need to bring these assets into Oracle Assets in the correct period.
Before you run depreciation you should run the Asset Additions Report. Use this
report to verify that each asset has the correct depreciation method, life, and date
placed in service. Also verify that each asset has the correct cost and accumulated
depreciation and that the totals for each asset account are correct. If you find any
errors, make adjustments using the Books window and reclassifications using the
Asset Details window.
For additional verification, project depreciation to the asset and cost center level to
see that the expense projections agree with your estimates, and that the assets appear
properly.
2. Run Depreciation.
When you are satisfied that your assets are correct, run depreciation for the
conversion period. After depreciation completes, Oracle Assets automatically runs the
Journal Entry Reserve Ledger report.
Use the Journal Entry Reserve Ledger Report from Step 2 to verify that the
depreciation amounts are correct. If Oracle Assets calculated depreciation for you,
verify that the calculated amount is correct. If you find any errors, make adjustments
using the Books window and reclassifications using the Asset Details window.
If necessary, run Mass Additions to add assets into the periods following your import
period. Add any other new assets and perform any transactions that you made during
the period. Verify all these transactions and run depreciation again. Repeat this
procedure until you have caught up to the current period.
When you are satisfied that your corporate book is correct, use Mass Copy to copy
your assets into your tax books. You should set up your tax books so that the first
period starts at the same time as the associated corporate book. If your import period
is the last period of the previous fiscal year, use Initial Mass Copy. If your import is
the first period of the current fiscal year, use Periodic Mass Copy since there is no
historical data in Oracle Assets.
Reconcile your tax books the same way you did your corporate book, but use the Tax
Reserve Ledger Report in place of the Journal Entry Reserve Ledger Report.
Run Periodic Mass Copy each period to bring over any new assets, cost adjustments,
retirements, and reinstatements from the corporate book.
After you have successfully imported a group of assets, you should remove them from
the mass additions holding area. First, run the Unposted Mass Additions Report and
verify the status of any unposted mass additions. Afterward, use the Delete Mass
Additions window, and the Purge Mass Additions window if necessary.
Related Topics
To use Web ADI to create assets additions, refer to Creating a Document in Oracle Web ADI
Implementation and Administration Guide.
In the Integrator page, you need to select a corporate asset book. In the Layout page, you
need to select a layout.
You can create custom layouts or select one of the following seeded layouts:
After creating your spreadsheet, you can upload the data into Oracle Assets. See: Uploading
and Downloading Data from Spreadsheets in Oracle Web ADI Implementation and
Administration Guide.
During the Create Assets Upload, check the Create Assets Now check box if you want to run
the Mass Additions Post program automatically when you upload.
QFA3. Explain on Future Transactions
Future Transactions
Oracle Assets supports one open asset accounting period. However, Oracle Assets allows you
to enter transactions for future accounting periods. When you enter a future transaction, it is
temporarily stored in the FA_MASS_ADDITIONS interface table. This pending transaction
does not become effective until the transaction date for the transaction is within the current
open period in Oracle Assets. For example, if the current open period is May 2000, and you
enter an adjustment transaction with a transaction date of 01-Sep-2000, the transaction does
not become effective until Sep-2000 is the current open period.
When you open a new accounting period, the Process Pending Transactions concurrent
program runs and automatically processes all pending transactions with a transaction date that
falls within the open period. You do not need to enter any further transaction detail to
complete the transaction in the effective open period.
The Process Pending Transactions program looks up the transaction date of each pending
transaction. If the transaction date falls within the current open period of the corporate book,
the program processes that transaction. Any exceptions are written to the log file.
It is not necessary to enter future transactions in chronological order. The Process Pending
Transactions program automatically processes pending transactions in chronological order.
You can also add assets from invoice lines from Oracle Payables, and provide a future date
placed in service. These invoices must first be posted to future General Ledger periods from
Oracle Payables and satisfy all other mass addition criteria to be successfully interfaced from
Oracle Payables to Oracle Assets.
Related Topics
Invoice Additions
You can update distribution information (location, employee, depreciation, and expense
account information) in the Assignment window for a future asset with a future date placed in
service. However, this will be considered an update, and not a transfer, such that when the
future period becomes the effective open period, the asset will be assigned to the updated
distribution without any history of previous distributions.
Oracle Assets defaults depreciation parameters when you enter the addition transaction via
the Prepare Mass Additions window. When an asset is placed in service using a future date
placed in service, it does not re-inherit category defaults.
For example, you enter a future asset in the VEHICLE-OWNED LUXURY category during
the current open period, Dec-1999, and enter the date placed in service as Feb-2000. The
VEHICLE-OWNED LUXURY category defaults the salvage value to be 15 percent of the
cost for assets having a date placed in service from Jun-1999 to Dec-1999. In Jan-2000, you
changed the default salvage value to 10 percent, applicable to assets with a date placed in
service of Jan-2000 onward. When the system places the vehicle in service in Feb-2000, the
asset inherits a salvage value of 15 percent instead of 10 percent.
1. Choose Mass Additions > Prepare Mass Additions from the Navigator window.
2. Choose the New button on the Find Assets window to bring up the Mass Additions
Detail window
3. Enter the corporate depreciation book to which the asset will be added.
4. Enter the transaction date for this addition. The date must be a future date. In other
words, the date must be later than the last day of the current open period.
5. Refer to Overview of the Mass Additions Process on page: for information on
entering remaining fields.
Note: Before running the Process Pending Transaction process, you must set the
queue name to POST. Otherwise, the addition will not be processed in the appropriate
period.
Invoice Additions
Oracle Payables allows you to enter invoices with a future date placed in service. However,
you cannot post these invoices to General Ledger until the period is open. Invoices that are
not yet posted to Oracle General Ledger cannot be transferred to Oracle Assets.
Normally, the Mass Additions Create program in Oracle Payables forces the date placed in
service to be in the current open period, even if the General Ledger date and invoice date are
in the future. To use Oracle Assets to process future invoice additions, you must set the FA:
Default DPIS to Invoice Date profile option to Yes. This allows you to default the date placed
in service to the invoice date, even though the invoice date is in a future accounting period.
To review future mass additions lines:
1. Choose Mass Additions > Prepare Mass Additions from the Navigator window.
2. Enter the selection criteria for the mass additions lines and choose Find.
3. Highlight the desired invoice line and choose Open.
4. Review the future mass addition.
5. When you are ready to run the Process Pending Transactions process, change the
queue name to POST for any future transactions that need to be processed. The date
placed in service, or transaction date, defaults to the invoice date. However, you can
overwrite the transaction date.
Note: You can merge and split mass additions as much as you like until you set the status to
POST. Once you set the status to POST, Oracle Assets creates an asset ID, and you can no
longer split or merge the mass addition line.
Note: You can split and merge mass additions as much as you like until you set the status to
POST. Once you set the status to POST, Oracle Assets creates an asset ID, and you can no
longer split or merge the mass addition line.
You can make non-invoiced or manual cost adjustments in advance to a current capitalized or
CIP asset, or a capitalized or CIP asset that is pending to be placed in service in future
periods. To perform such cost adjustments, you must first create a cost adjustment record and
attach it to an asset using the Add to Asset feature.
1. In the Find Mass Additions window, enter the selection criteria for the invoice lines
you are about to add to an asset.
2. Choose Find.
3. In the Mass Additions Summary window, highlight the desired invoice line and
choose Open.
4. Optionally change the Date Place in Service and Transaction Date, and choose Save.
5. Choose Add to Asset.
6. Highlight an asset.
7. Check Amortize Adjustment if you want to amortize the adjustment or leave it blank
to expense the adjustment.
8. Check New Category and Description to change the category and description of the
existing asset to those of the mass addition you are adding as a cost adjustment.
9. Choose Done.
Note: Oracle Assets does not support reverse capitalization for future transactions.
1. Choose Mass Additions > Prepare Mass Additions from the Navigator window.
2. Choose Capitalize.
3. In the Add to Asset window, query the CIP assets to be capitalized.
4. Check the check boxes for the assets you want to capitalize.
5. Enter the transaction date. This date must be a in future period.
6. Choose Done.
You are encouraged to view all pending transactions of an asset before performing
adjustments and other future transactions.
1. Choose Mass Additions > Prepare Mass Additions from the Navigator window.
2. Enter selection criteria and click Find.
3. Click Open to drill down to further details of the transaction.
You can update pending ADJUSTMENT and ADDITION transactions. However, this will be
considered an update, and not a transfer, such that when the future period becomes the
effective open period, the asset will be assigned to the updated distribution without any
history of previous distributions.
Related Topics
Create Mass Additions for Oracle Assets Program (from Oracle Payables), Oracle Payables
User Guide
QFA4. Explain on Asset Impairments
Asset Impairments
This section covers the following topics:
Overview
Application Setup
Asset Impairment Business Process
Accounting Methods
Asset Impairment Considerations
Post-Impairment Transactions
Asset Impairment Reports
Loading Impairment Data
Overview
Capital assets may incur unexpected or sudden decline in value. This decline in value could
be due to physical damage to the asset, obsolescence due to technological innovation, or
changes to legal codes. When the recoverable cost of an asset is less than its carrying cost, the
amount by which the carrying amount of the asset exceeds its recoverable cost is treated as an
impairment loss and is recognized as an expense on the income statement.
Setting Up Impairments
To process asset impairments with Oracle Assets, complete the following setup tasks:
Define the Cash Generating Units based on the cash inflow criteria for each unit.
Manual Assignment
WebADI Assignment
Manual Assignment
Perform the following steps to manually assign an existing asset to a Cash Generating Unit:
WebADI Assignment
Perform the following steps to use the Cash Generating Units WebADI spreadsheet to assign
assets to a cash generating unit:
Perform the following steps to create and upload asset impairment transactions:
2. Enter the query criteria: Book, Cash-Generating Unit, Impairment Name, Asset
Number, Impairment Date and/or Status. Click the Go button.
3. Click Update Impairment button for the row of the impairment to update. The File
Download window is displayed.
4. Choose to Open the file when prompted. The system will download and display the
Impairments spreadsheet. The Confirmation window will appear, Click Close to
return to the spreadsheet.
5. Make the necessary updates to the impairment record.
6. Upload the records to the system for processing. From the main menu go to Oracle >
Upload; The Upload Parameter window is displayed. Accept the defaults and click
Upload to start the process.
7. The Process Impairments request is executed. When the process is successfully
completed, the Upload Parameters window displays the Request ID for the
Impairment Preview process.
Search or Enter in the Request ID for the Impairment Preview Process displayed in
the Upload Parameters Confirmation window.
Select the Request ID row for the Asset Impairment report.
Click View Output.
2. Enter the query criteria: Book, Cash-Generating Unit, Impairment Name, Asset
Number, Impairment Date and/or Status. Click the Go button.
3. Check Select box for the row of the impairments to be posted. Press Post button to
launch the process.
4. Click Yes to confirm and post the impairments.
5. The Process Impairments concurrent program is executed and the concurrent request
id is displayed.
6. Upon successful completion of the posting process, the Asset Impairment report is
generated once again and the impairment’s status is updated to Posted.
2. Query the asset by Asset Detail or Book. The View Financial Information window
will appear displaying financial data for the selected asset.
3. Click the Impairments tab to display the Impairment details for the asset.
2. Enter the query criteria such as Book, Cash-Generating Unit, Impairment Name,
Asset Number, Impairment Date and Status. Click the Go button.
3. Check Select box for the impairments to be rolled back. Click the Rollback button to
launch the process.
4. Click Yes to confirm and rollback the impairments.
5. The Process Impairments concurrent program is executed and the concurrent request
id is displayed.
6. Upon successful completion of the process the impairment’s status is updated to
Deleted.
2. Enter the query criteria such as Book, Cash-Generating Unit, Impairment Name,
Asset Number, Impairment Date and Status. Click the Go button.
3. Check Select box for the row of the unposted impairments to be deleted. Click Delete
button to launch the process.
4. Click Yes to confirm and delete the impairments.
5. The Confirmation is displayed with the Impairment ID of the deleted impairment and
the impairment’s status is updated to Deleted.
Accounting Methods
There are several methods for deriving the impairments loss amount on an asset. The method
used is based on customer’s business practices and regulatory guidance. The methods
supported by Oracle Assets are as follows:
Calculate Impairment Loss using either Fair Value (Net Selling Price) or Value in Use
for the asset.
Calculate Impairment Loss using both Fair Value (Net Selling Price) and Value in
Use for the asset.
Using Known Impairment Loss Amount.
Reversing Impairment Losses in a future period.
Below highlights the logic and accounting entries generated for the various methods
mentioned above.
The account entries detailed may not reflect all the accounting entries created by
Oracle Assets for an asset.
For Japan Depreciation methods specific calculations and examples, see the FY2007
Japan Tax Reforms - Impairment section .
A. Asset Addition
Asset Setup Item Asset Setup Information
Book Type Code Asset Book
Asset Numbers 109662,109663,109664,109682
Method STL 3Y
Cost 5,000
Addition Period Feb-2009
DPIS 01-JAN-2009
Prorate Date 01-JAN-2009
Depreciate Y
Divide Depreciation Evenly
Depreciation has been run until MAY- 2009. As of May 01, 2009 the assets’ details are as
follows:
Calculate Impairment Loss Using Either Fair Value (Net Selling Price) or
Value in Use for the Asset
Users can enter in either the Fair Value (Net Selling Price) or the Value in Use to determine
the impairment loss amount. The system calculates the impairment loss amount based on
which value has been entered.
Example 1: Using Fair Value (Net Selling Price)
Impairment Transaction
Impairment Item Impairment Value
Book Asset Book
Impairment Name IAS 36 Impairment
Impairment Date 01-May-2009
Status Preview
Asset Number 109662
Fair Value (Net Selling Price) 3,000
The impairment transaction is uploaded to the interface and posted to the asset.
Note: When determining the NBV, the depreciation for the current period is added to the
Accumulated Depreciation. That is, May-09, 694.45 = (555.56 + 138.89).
Since the Carrying Amount > Net Selling Price, the Impairment Loss amount (Expense) is
calculated as:
The Adjusted Cost is equal to the Net Selling Price (3000) and will depreciate over the
remaining life of the asset. The monthly depreciation is recalculated as follows:
3,000 / 31 = 96.77
Impairment Transaction
Impairment Item Impairment Value
Book Asset Book
Impairment Name IAS 36 Impairment
Impairment Date 01-May-2009
Status Preview
Asset Number 109663
Value in Use 3,000
The impairment transaction is uploaded to the interface and posted to the asset.
Note: When determining the NBV, the depreciation for the current period is added to the
Accumulated Depreciation. That is, May-09, 694.45 = (555.56 + 138.89).
Since the Carrying Amount > Value in Use, the Impairment Loss Amount (Expense) is
calculated as:
The Adjusted Cost will be equal to the Value in Use (3,000) and will depreciate over the
remaining life of the asset. The monthly depreciation is recalculated as follows:
3,000 / 31 = 96.77
Calculate Impairment Loss Using Fair Value (Net Selling Price) and Value in
Use for the Asset
Users can enter in both the Fair Value and Value in Use for the asset or cash-generating unit
to determine the impairment loss amount. The system calculates the impermanent loss
amount based on both values entered.
The impairment transaction is uploaded to the interface and posted to the asset.
Note: When determining the NBV the depreciation for the current period is added to the
Accumulated Depreciation. That is, May-09, 694.45 = (555.56 + 138.89).
Since the Carrying Amount > Max (Value in Use, Net Selling Price), the Impairment Loss
Amount (Expense) is calculated as:
The Adjusted Cost is equal to the Maximum (Value in Use, Net Selling Price) = 3,500 and
will depreciate over the remaining life of the asset. The monthly depreciation is recalculated
as follows:
3,500 / 31 = 112.90
When the Impairment Loss amount is known, users can enter in the Impairment Loss amount
directly into the system and the system will use the entered amount for the impairment
calculations.
The Impairment transaction is uploaded to the interface and posted to the asset.
Note: When determining the Adjusted Cost (NBV), the depreciation for the current period is
added to the Accumulated Depreciation. That is, May-09, 694.45 = (555.56 + 138.89).
106.63 = 3,305.55 / 31
There are two ways to reverse impairment transactions once the impairment loss has been
posted to Oracle Asset:
Correct a previous impairment transaction that was mistakenly added to the asset.
Reverse the previous impairment by actualizing the asset information in the future
current period as the result of change in Value in Use and/or Net Selling Price.
Users will use this method when it is necessary to remove the effects of a previous
impairment transaction and the depreciation to be expensed going forward is as if the
impairment transaction had never taken place. As a result, at the end of the asset life, the
depreciation reserve on the asset will be the same value as the cost of the asset.
In order to reverse the impairment transaction it is necessary to calculate the asset’s NBV on
the Impairment Date as if the impairment had not taken place.
For example, on 01-May-2009 the asset’s Value in Use and Net Selling Price would have
been 4,305.55 (5000 - (5*138.89)). In order to reverse the effects of the impairment, a
backdated amortized adjustment is performed using the impairment date and the Value in Use
/ Net Selling Price of 4,305.55 or the Impairment Loss (Expense) amount of <1,305.55>.
Example 5: Reversing Impairments using Value in Use and Net Selling Price:
Impairment Transaction
Impairment Item Impairment Value
Book Asset Book
Impairment Name IAS 36 Impairment
Impairment Date 01-May-2009
Status Preview
Asset Number 109662
Fair Value (Net Selling Price) 4,305.55
The impairment transactions is uploaded to the interface and posted to the asset.
Since the Carrying Amount < Max (Value in Use, Net Selling Price). The Impairment Loss
Amount (Expense) is calculated as:
Depreciation Catch-up
The Adjusted Cost is now equal to 3,888.89 and will be depreciated over the remaining life of
the asset.
138.89 = 3,888.89 / 28
Due to the economic changes, the Value in Use and Fair Value of the asset are considered as
if the assets have not had a prior impairment. Meaning the values for period AUG-2009 will
be 3,888.89 (5,000 - (8 * 138.89)). The same result would also occur if used the Impairment
Loss amount of <1,305.55 > with an Impairment Date in the AUG-2009 period.
Example 6: Reversing Impairment by Actualizing the Asset Data Starting from Current
Period
In this example, Value in Use and Net Selling Price will be used.
Impairment Transaction
Impairment Item Impairment Value
Book Asset Book
Impairment Name IAS 36 Impairment Reversal
Impairment Date 01-Aug-2009
Status Preview
Asset Number 109663
Value in Use / Net Selling Price 3,888.89
The impairment transaction is uploaded to the interface and posted to the asset.
Since the Carrying Amount < Max (Value in Use, Net Selling Price), the Impairment Loss
Amount (Expense) is calculated as:
Depreciation is calculated from now on the Adjusted Cost (Value in Use) over the remaining
life.
3,888.89 / 28 = 138.89
Impairment Journals
The following examples provide the accounting entries that are generated for:
This example is related to an asset impairment where the asset has had no prior revaluation.
On February 1, 2009, an asset was purchased and recorded into Oracle Assets with the
following details:
A. Asset Addition
Asset Setup Item Asset Setup Information
Book Type Code Asset Book
Method STL 3Y
Cost 5,000
Addition Period Feb-2009
DPIS 01-JAN-2009
Prorate Date 01-JAN-2009
Depreciate Y
Divide Depreciation Evenly
Salvage Value 0.00
Depreciation has been run until MAY- 2009. As of May 01, 2009 the assets' details are as
follows:
On May 1, 2009, it was determined the asset was damaged. The following impairment
transaction is recorded:
Impairment Transaction
Impairment Item Impairment Value
Book Asset Book
Impairment Name IAS 36 Impairment
Impairment Date 01-May-2009
Status Preview
Impairment Loss Amount (Expense) 1,000
Note: When determining the Adjusted Cost (NNBV) the depreciation for the current period is
added to the Accumulated Depreciation. That is, May-09, 694.45 = (555.56 + 138.89).
106.63 = 3,305.55 / 31
Asset
CNB
Accumula Revaluati Accumula
Depreciat V Asset Revaluat
Cos ted on ted
Date ion (End NNB ion
t Depreciat Amortizat Impairme
Expense of V *2 Reserve
ion ion nt
Perio
d) *1
Feb-09 5,00 277.78 277.78 4,722.
0 22
Mar-09 138.89 416.67 4,583.
33
Apr-09 138.89 555.56 4,444.
44
Impairm 4,305. 3,305. 1,000.00
ent 55 55
May-09 5,00 138.89 694.45 3,305. 1,000.00
0 55
Jun-09 106.63 801.08 3,198. 1,000.00
92
The following accounting entries are generated to record the impairment loss without an
existing revaluation balance:
At the end of the month, the following accounting entry is booked to record the depreciation
expense for the May-09 period:
* Since the current month depreciation is considered in the NBV calculation, depreciation is
not recalculated until the following month.
This example is related to an asset impairment where the asset has had a revaluation and there
is an existing revaluation reserve balance.
On February 1, 2009, a used asset was purchased and recorded into Oracle Assets with the
following details:
A. Asset Addition
Asset Setup Item Asset Setup Information
Book Type Code Asset Book
Method STL 3Y
Cost 5,000
Addition Period Feb-2009
DPIS 01-JAN-2009
Prorate Date 01-JAN-2009
Depreciate Y
Divide Depreciation Evenly
Salvage Value 0.00
Depreciation has been run until MAY- 2009. As of May 01, 2009 the asset’s details are as
follows:
On May 1, 2009, it was determined the asset was undervalued. The following revaluation
transaction is recorded:
Revaluation Transaction
Revaluation Item Revaluation Value
Book Asset Book
Revaluation Date 01-May-2009
Status Preview
Revaluation (Adjusted Cost: 6,000) 20%
Current Net Book Value (CNBV) = Cost + Cost Adjustments + Revaluations - Salvage Value
- Accumulated Depreciation - Accumulated Impairments - Retirements
CNBV = 4,444.44
Asset
CNB
Accumula Revaluati Accumula
Depreciat V Asset Revaluat
Cos ted on ted
Date ion (End NNB ion
t Depreciat Amortizat Impairme
Expense of V *2 Reserve
ion ion nt
Perio
d) *1
Feb-09 5,00 277.78 277.78 4,722.
0 22
Mar-09 138.89 416.67 4,583.
33
Apr-09 138.89 555.56 4,444.
44
Revaluat 555.56 4,444. 6,000. 1,555.56 48.61
ion 44 00
May-09 6,00 187.50 187.50 5,812. 1,506.95 48.61
0 50
Jun-09 187.5 375.00 5,625. 1,458.34 48.61
00
*1 Current Net Book Value
When booking a revaluation on the asset, an entry to the Accumulated Depreciation account
is made to reverse the accumulated depreciation to date on the asset and set the account
balance to zero. This will cause the fixed asset cost to be equal to the new net book value.
At the end of the month, the following accounting entry is booked to record the new
depreciation expense for the period (May-09):
On September 1, 2009 the asset suffered damage due to flooding in the area. The following
impairment transaction is recorded:
Impairment Transaction
Impairment Item Impairment Value
Book Asset Book
Impairment Name IAS 36 Impairment
Impairment Date 01-Sep-2009
Status Preview
Impairment Loss Amount (Expense) 4,000
When determining the current net book value (CNBV), the current period’s depreciation is
included in the CNBV calculation.
Current Net Book Value (CNBV) = Cost + Cost Adjustments + Revaluations - Salvage Value
- (Accumulated Depreciation + Current Period Depreciation) - Accumulated Impairments -
Retirements
CNBV = 5,062.50
39.35 = 1,062.50 / 27
Asset
CNB
Accumula Revaluati Accumula
Depreciat V Asset Revaluat
Cos ted on ted
Date ion (End NNB ion
t Depreciat Amortizat Impairme
Expense of V *2 Reserve
ion ion nt
Perio
d) *1
Feb-09 5,00 277.78 277.78 4,722.
0 22
Mar-09 138.89 416.67 4,583.
33
Apr-09 138.89 555.56 4,444.
44
Revaluat 555.56 4,444. 6,000. 1,555.56 48.61
ion 44 00
May-09 6,00 187.50 187.50 5,812. 1,506.95 48.61
0 50
Jun-09 187.50 375.00 5,625. 1,458.34 48.61
00
Jul-09 187.50 562.50 5,437. 1,409.72 48.61
50
Aug-09 187.50 750.00 5,250. 1,361.11 48.61
00
Impairm 5,062. 1,062. 1,312.50 48.61 4,000
ent 50 50
Sep-09 187.50 937.50 1,062. 48.61 4,000
50
Oct-09 6,00 39.35 976.85 1,023. 4,000
0 15
Nov-09 39.35 1,016.20 983.80 4,000
Dec-09 39.35 1,055.56 944.44 4,000
The following accounting entries are generated to record the impairment with a prior
revaluation reserve balance:
Debit Credit
Revaluation Reserve (Up to the amount of the
impairment loss)
Impairment Loss (Impairment loss not covered by
the Revaluation Reserve
Accumulated Impairment
(Impairment loss amount)
Note: When determining the amount of the revaluation reserve available, the current month
revaluation reserve amortization is taken in to account. For example, the Revaluation Reserve
balance is reduced by the current month’s amortization. The remaining balance is then
applied to the impairment loss amount to determine the amount to be booked to the
Impairment Loss expense account.
At the end of the month, the following accounting entries are booked:
* Since the current month depreciation is considered in the CNBV calculation, depreciation is
not recalculated until the following month.
* The available revaluation reserve is reduced by the current month revaluation amortization
to the current period revaluation reserve amortization is recorded to set the accounts to zero.
Mass copy does not copy the impairment transactions to the Tax book.
Impairment transaction can be performed separately in the Tax book.
Transfer, reclassification, or Source Line Transfer will move the Accumulated
Impairment balance from source to destination asset or distribution.
If the goodwill asset number is provided in the impairment WebADI spreadsheet and
a goodwill amount is not given, the entire net book value of the goodwill asset is
considered as goodwill applicable for the Cash Generating Unit.
Only one impairment transaction in a period is allowed. If additional impairments are
required for the asset, rollback the impairment to undo the transactions and create a
new impairment transaction for the revised amount.
The Accumulated Impairment amount is reversed at the time of retirement. Backdated
impairment transactions are not allowed.
Impairment of Group asset and allocation of corporate asset are not supported.
Accounting entries are created for goodwill only if goodwill is being tracked as a
fixed asset and the goodwill asset number is entered against the Cash Generating Unit
at the time of impairment creation.
Post-Impairment Transactions
After Impairment transactions are complete, Oracle Assets enables the following post-
impairment transactions
Depreciation
Revaluation
Retirement
Depreciation
After the recognition of an impairment loss, the depreciation charge for the asset is adjusted
in future periods to allocate the asset revised carrying amount, less its residual value, on a
systematic basis over the asset remaining useful life. The formula for this calculation is:
Revaluation
Asset Amount
Cost 10,000
Accumulated Depreciation 2,000
Accumulated Impairment 1,000
Net Book Value after Impairment 7,000
The asset is revalued by 20%, then the accounting entries for reversing Accumulated
Impairment are
Retirement
An asset may be retired after the recognition of the impairment loss. Since the impairment
loss is already recognized in the financial statements, the impairment is considered in the
calculation of asset’s NBV Retired amount. The formula for calculating NBV Retired is:
Asset Amount
Cost 10,000
Depreciation Reserve 3,000
Impairment Reserve 500
Net Book Value Retired 6,500
The asset is retired and the following accounting entries are recorded:
Use the Asset Impairment report to view and validate impairment transactions uploaded to
the Oracle Assets interface table prior to posting the transactions into Oracle Assets. The
Asset Impairment report is automatically executed when impairment transactions are
uploaded to the Oracle Asset interface from WebADI and when impairment transactions are
posted. It can also be executed manually via the concurrent manager.
Only impairment transactions with a status of Preview, Previewed or Posted are displayed in
the Asset Impairment report.
Report Parameters:
Required:
o Book: Asset Book
o Ledger Currency: Currency the Ledger associated with the Asset book
o Period: Fixed asset period transactions are recorded.
Optional:
o Impairment: Name of the Impairment
o Cash Generating Unit: Name or value of the Cash Generating unit
Report Headings:
Heading Description
Current Net Book The asset’s current carrying value calculated as of the date of the
Value impairment transaction. It contains the depreciation amount for the
period in which the impairment transaction occurred.
Net Selling Price The amount entered in as the Net Selling Price for the asset to be used
to derive the impairment loss on the asset.
Value in Use The amount entered in for the Value in Use for the asset to be used to
derive the impairment loss on the asset.
Impairment Loss The amount of the impairment loss on the asset. Either calculated based
on Net Selling Price and/or Value in Use or entered in manually.
Revaluation The amount of the revaluation reserve available on the asset before
Reserve applying the impairment.
Adjustment
New Net Book The asset’s new carrying value after applying the impact of the
Value impairment.
List Assets By Cash Generating Unit Report
Use the List Assets by Cash Generating Unit report to review and validate impairment
transactions on an individual asset or all the assets within a Cash Generating unit.
Report Parameters:
The List Assets By Cash Generating Unit report includes the following parameters:
Required:
o Book: Asset Book
o Ledger Currency: Currency the Ledger associated with the Asset book
Optional:
o Cash Generating Unit: Name or value of the Cash Generating unit
o Asset Number: The asset number of the individual asset to be reported
Report Headings:
The headings for the List Assets By Cash Generating Unit report are:
Heading Description
Cost The current asset or CGU cost.
Net Book Value The asset’s current carrying value as of the current fixed asset period.
Accumulated The total accumulated impairment loss amount currently on the asset.
Impairment
YTD Impairment The total amount of the accumulated impairment loss to date on the
asset in the current accounting year.
Loading Impairment Data
Organizations who wish to load in impairment data from an external system into Oracle
Assets, can load their impairment transactions into the Oracle Assets FA_IMPAIRMENTS
interface table. The following table details the columns and descriptions for
FA_IMPAIRMENTS interface table.
Optional or
Column Name Description Type
Required
IMPAIRMENT_ID The system-generated NUMBER(15) System-
impairment identification generated
number.
IMPAIRMENT_NAME The name of the VARCHAR2(30) Required
Impairment transaction.
DESCRIPTION The description of the VARCHAR2(240) Optional
Impairment transaction.
REQUEST_ID System-generated request id NUMBER(15) System-
when impairment line is generated
uploaded, posted, adjusted,
rolled back or deleted.
STATUS Current Impairment status. VARCHAR2(30) Required
You can upload
impairments only with New
or Preview status.
BOOK_TYPE_CODE Use the column for the VARCHAR2(15) Required
book that will receive the
Impairment transaction.
CASH_GENERATING_ The identification number NUMBER(15) Conditionally
UNIT_ID for Cash Generating Unit. If required
you enter the value for this
column then you cannot
enter the Asset_Id
information.
ASSET_ID The identification number NUMBER Conditionally
for the Asset. If using this required
column then
Cash_Generating_Unit_Id
shouldn’t be used.
NET_BOOK_VALUE System-generated amount NUMBER System-
for Net Book Value used as generated
reference in Impairment
transaction.
NET_SELLING_PRICE The value entered for Net NUMBER Conditionally
Selling Price of Asset/CGU. required
You can use this column
and/or Value_In_Use or
Impairment_Amount.
VALUE_IN_USE The value entered for Value NUMBER(15) System-
in Use of Asset/CGU. You generated
can use this column and/or
Net_Selling Price or
Impairment_Amount.
GOODWILL_AMOUNT The entered Goodwill NUMBER Optional
amount for the Asset/CGU.
USER_DATE The extra date that users DATE Optional
can use as reference for the
Impairment transaction.
PERIOD_COUNTER_IM The system- generated NUMBER(15) System-
PAIRED period counter of the generated
impairment transaction.
IMPAIRMENT_AMOUN The Impairment expense NUMBER Conditionally
T amount for Asset/CGU. If required
used then Net_Selling_Price
and Value_In_Use
shouldn’t be used.
DATE_INEFFECTIVE The system- generated date DATE System-
in the moment when the generated
impairment is deleted.
CREATION_DATE Standard who columns. The DATE System-
date when Impairment was generated
created.
CREATED_BY Standard who columns. NUMBER(15) System-
Typically the user id of the generated
person that created the
Impairment.
LAST_UPDATE_DATE Standard who columns. DATE System-
This date corresponds to the generated
date a user updated the
Impairment transaction.
LAST_UPDATED_BY Standard who columns. The NUMBER(15) System-
user id of the person that generated
updated the transaction.
LAST_UPDATE_LOGIN Standard who columns. The NUMBER(15) System-
user id of the last person generated
that updated the transaction.
Overview
Application Setup
Managing Impairments
Managing Revaluations
Accounting Entry Examples
Overview
The UK Local Authority Accounting for Revaluations and Impairments feature enhances the
existing functionality in Oracle Assets in order to address the above fixed asset revaluation
requirements that apply to UK local authorities. The enhanced Revaluation and Impairment
functionality for fixed assets in Oracle Assets addresses the following requirements:
The accounting for revaluations and impairments is based on the difference between new net
book value (professional valuation) and current net book value of the assets at the time of
revaluation or impairment. The revaluation reserve, capital adjustment and statement of
movement on general fund balances are stored at the asset level. As required by SORP,
impairment and revaluation of fixed assets are now accounted for using the Revaluation
Reserve and Capital Adjustment accounts instead of the Fixed Asset Restatement account.
For impairments, when calculating the current net book value, the current net book value
includes the depreciation amount of the period where the Impairment date is entered when
determining the impairment loss on the asset.
Under SORP, any debit entry to an Income or Expenditure account that impacts a Profit and
Loss account is to be neutralized. This includes depreciation. The effect of the depreciation
charge on revenue is neutralized by booking an accounting entry to the Capital Adjustment
and Statement of Movement on the General Fund Balance (General Fund) accounts. The
neutralizing entry is generated and posted in conjunction with the depreciation accounting
entry for the asset. The Depreciation program of Oracle Assets creates the neutralizing
accounting entry. The accounting entries are generated based on the asset’s assigned
depreciation schedule and the amount used is the same as the corresponding standard
depreciation accounting entry.
The accounts assigned for the Capital Adjustment and Statement of Movement on General
Fund Balance for the asset’s category are used.
Debit Credit
Capital Adjustment
Statement of Movement on the General Fund Balance
Assets, which are acquired as donations or at a discount, are required to be revalued and
accounted for through the Revaluation Reserve account. Inherited assets are to be treated in
the same manner as discounted or donated assets. Whenever a donated asset is acquired, the
asset must be revalued to its current market value. The revaluation is to be accounted through
the revaluation reserve account as any other revalued asset.
The existing Oracle Assets Release 11i functionality previously supported revaluation based
on a percentage increase of the historical cost. To accommodate the above requirement, users
now can enter the asset’s revalued amount in the Revaluation window using the following
approaches:
Note: Revaluation only affects assets added in a prior period. Revaluations can only be
performed in a subsequent period to the asset addition.
Impairment Classification Types
In order to determine the appropriate accounting treatment for impaired assets, impairments
are required to be classified as either Consumption of Economic Benefit, Change in Property
Prices, or Other.
The Impairment WebADI feature contains additional columns to capture the impairment data
elements for the impairment classification type, reason, impairment amount, and impairment
expense account number fields. Users can select the impairment classification type; enter in
the reason for the impairment and the portion of the impairment amount to attribute to the
type of impairment event in addition to the impairment expense account to be used to record
the impairment loss.
Per SORP, the reason or purpose for the impairment is to be recorded and maintained at the
Asset and Event levels. Both the Revaluation and Impairment windows now contain the
Reason field in which you can enter the reason for the asset’s impairment or revaluation.
When an impairment loss occurs it is a requirement that the effect of the impairment expense
loss accounting entry to the profit and loss account be neutralized through the use of the
Capital Adjustment and Statement of Movement on the General Fund Balance accounts.
The accounting entry consists of a debit to the Capital Adjustment account and a credit to the
Statement of Movement on General Fund Balance account in the amount equivalent to the
impairment expense loss accounting entry.
Oracle Assets creates the required neutralizing accounting entry for the impairment expense
loss. Whenever an impairment accounting entry is debited to the Impairment Loss of income
and expenditure account, regardless of its impairment classification, the neutralizing
accounting entries are created. The Capital Adjustment and Statement of Movement on
General Fund Balance accounts assigned to the asset’s category are used for generating the
neutralizing accounting entries.
Debit Credit
Capital Adjustment
Statement of Movement on the General Fund Balance
In rare circumstances, a revaluation may reverse the impact of a prior impairment on an asset.
When a revaluation can be linked to a prior impairment, it is a required that the effect of the
impairment be taken in account when booking the revaluation.
To accommodate this requirement, the Revaluation window contains the Link Impairments
feature that allows users to select an asset's impairment or impairment classification type to
link to the Revaluation.
When the Link option is selected for an individual asset or asset category, the system displays
the Link Impairments window. The Link Impairments window includes the following tabs:
Asset Level tab: This tab displays all the historic impairment transactions for the
asset. Users select a single historic impairment record to link to the revaluation. Only
impairments with an impairment classification type of Change in Property Prices or
Other are enabled for selection.
Category tab: This tab displays the impairment classifications types to be linked to the
assets within the category. Only the most recent impairment for the impairment
classification type selected is reversed for the assets within the category.
Oracle Assets contains the necessary logic to generate the accounting entries for reversing the
impact of the prior impairment on linked revaluations.
Debit Credit
Disposal Gain or Loss (Income Statement account)
Fixed Asset Cost
The accounting entry is based on the assumption that the Fixed Asset Cost, Accumulated
Depreciation, Accumulated Impairment, and Revalued Cost are posted to the Fixed Asset
Cost account. However, SORP requires the reversal of the carrying amount for the asset be
from the balance sheet account that it was originally posted. As a result, the following
reversal accounting entries (based on Asset Category setup and Asset Book level setup) are
required:
Debit Credit
Disposal Gain or Loss (Income Statement account)
Accumulated Depreciation
Accumulated Impairment
Fixed Asset Cost
Additionally, the neutralizing accounting entries to the Capital Adjustment and Statement of
Movement on the General Fund balance are posted. Any remaining balance in the
Revaluation Reserve for the asset is also removed and transferred to the Capital Adjustment
account.
The accounting entries to transfer the remaining revaluation reserve balances are:
Debit Credit
Revaluation Reserve
Capital Adjustment
Accounting entries for government grants and contributions (apart from the asset acquisition
and depreciation on asset, which is fulfilled by standard Oracle Asset functionality) will be
managed by UK local authorities through the creation of manual journal entries in Oracle
General Ledger.
Funding and write-off charges to revenue can be performed by the UK local authorities on an
annual basis using Manual Journals and Recurring Journals features in Oracle General
Ledger.
Revalued Amount
Revalued Accumulated Depreciation
Impairment
Net Book Value
Revaluation Reserve
Capital Adjustment
Statement of Movement on the General Fund Balance
The UK Local Authority Accounting for Revaluations and Impairments feature provides
additional fields to support the generation of accounting entries for revaluation gains and
losses, storing purpose description, impairment classification code, impairment and
revaluation identifiers to link back to an impairment.
Application Setup
To use the UK Local Authority Accounting for Revaluations and Impairments feature,
complete the following setup tasks:
In order to use the UK Local Authority Accounting for Revaluations and Impairments feature
for an accounting or tax book, the UK Local Authority Accounting option must be enabled at
the book level.
Perform the following steps to enable the UK Local Authority Accounting option for an
accounting or tax book:
The system automatically enables the Allow Revaluations region and the necessary
revaluations rules to perform revaluations for the UK Local Authority Accounting:
Note: If you select the UK Local Authority Accounting check box, changes to the
revaluation rules within the Allow Revaluations region will be prohibited.
5. If defining a new book, complete the remaining necessary Book Control setup.
6. Save your work.
Perform the following steps for assigning and adding additional account information to the
asset categories:
Note: If you have not previously performed asset impairments for fixed assets, ensure that
you also enter Accumulated Impairment and Impairment Expense accounts for each asset
category to be used.
Managing Impairments
The UK Local Authority Accounting for Revaluations and Impairments feature enables users
to manage fixed asset impairments based on the regulatory requirements for UK local
authorities.
Prerequisites:
Enable the UK Local Authority Accounting for Revaluations and Impairments feature. For
more information, see Setting Up UK Local Authority Accounting for Revaluations and
Impairment section.
The following conditions are to be considered when performing impairments using the UK
Local Authority Accounting for Revaluations and impairments feature in Oracle Assets:
Performing Impairments
Oracle Assets uses the WebADI for creating, loading and maintaining impairment
transactions.
o In the Book field, enter or select the asset book of the asset to be impaired
from the list of values.
o In the Impairment Name field, enter a name for the impairment event.
o In the Impairment Date field, enter the date for the impairment. The system
populates the User Entered Date field when the worksheet is uploaded.
o In the Status field, select the Preview option from the list of values. By
selecting the Preview option when the spreadsheet is uploaded, Oracle Assets
submits the Impairment Preview process to the concurrent request manager to
generate the Asset Impairment report for the records with the Preview status.
Use the report to preview the impairment results before posting.
5. Enter the necessary information in the following fields:
o Cash Generating Unit: If Applicable, enter the name of Cash Generating Unit.
o Asset Number: Enter the asset number or select it from the list of values.
o Net Selling Price: If applicable, enter the Net Selling Price amount.
o Value in Use: If applicable, enter the Value in Use amount.
o Impairment Loss: Enter the Impairment Loss amount or leave it blank if the
Net Selling Price or Value in Use fields are populated. When the Net Selling
Price or Value in Use field is populated, the system calculates impairment
loss.
o Goodwill Amount and Asset: If applicable, enter the Goodwill Amount and
Asset.
o Comments: Enter a description about the impairment in this field.
6. The following fields are specific to the asset books that use the UK Local Authority
Accounting for Revaluations and Impairments feature and are not used when defining
impairments for assets of non-UK Local Authority Accounting asset books.
o Classification Type: Indicates the type of impairment being defined. Select
one of the following impairment classification types from the list of values:
Select Consumption of Economic Benefit if the impairment is fully
attributed to an event such as demolition or vandalism.
Select Change in Property Prices if the impairment is fully attributed to
a decrease in the value of the property due to events such as rezoning
or market conditions.
Select 'Other' if the cause of the impairment is unclear.
o Reason Description: Enter the reason or cause for impairment.
o Impairment Account: Enter the natural account number for the impairment
loss expense account if you want to select a specific impairment loss expense
account for the impairment classification type or leave blank to use the
impairment expense account assigned for the asset category.
o Split Indicator: If the impairment is the result of a combination of events, such
as both consumption of economic benefit and change in property prices, set
the Split Indicator option to Yes. The accounting for the impairment
components is similar as if the impairment is fully attributed to a specific
event. Each component is accounted for separately based on its classification
type.
o If the Split Indicator is set to Yes, enter in the required information for each
split in the following fields:
Split: Classification Type
Split: Reason Description
Split: Loss Percent
Split: Impairment Account
Note: Impairments can be split into two or three components. Each component
is assigned a percentage allocation of the impairment loss. The sum of the
percentage allocation of the impairment loss for all components must equal
100%.
7. Upload the records to the system for processing. From the main menu go to Oracle >
Upload. The Upload Parameters window is displayed. Accept the default settings and
click Upload to start the process. If errors are encountered during the upload process,
an error message is displayed in the Messages Column of the spreadsheet.
8. The Process Impairments request is executed. When the process successfully
completes, the Upload Parameters window displays the Request ID for the
Impairment Preview process and you can review the impairment results using the
Asset Impairment report.
Note: Ensure that the Validate Before Upload check box is selected.
After successfully uploading the impairments to Oracle Assets, review the Asset Impairment
report generated during the upload process. Confirm that the impairment details uploaded and
results are correct. If the results are correct, commit the results to the system by posting the
impairments.
1. To review the Asset Impairment report, navigate to the View Request window and
enter in the Request ID.
2. Select View Output to display the report. In addition to the impairment details
entered, the report includes the following information:
o New Net Book Value of the asset after the effects of the impairment.
o Split Impairment Loss amounts as calculated using percentages entered.
o Summary Totals for all the impairment records defined in the spreadsheet for
the following columns: Current Net Book Value, Net Selling Price, Value in
Use, Impairment Loss and New Net Book Value.
4. Enter the query criteria for the impairment: Asset Book or Asset Number. For more
information about running a Query, see Oracle Assets User Guide. The system
displays the impairment records for the search criteria entered. Only impairments that
are in the Previewed status can be posted.
5. Select the check box for the row of the impairment to be posted. Click the Post button
to launch the process.
6. Click Yes to confirm and post the impairments. The Process Impairments concurrent
program is executed and the concurrent request id is displayed.
7. Upon successful completion of the Posting process, the Asset Impairment report is
generated once again and the status of impairment is updated to Posted.
Impairment transactions can only be rolled back in the fixed asset’s period the transaction is
posted and the period is still open. Once the fixed assets period is closed, the transactions
cannot be rolled back.
2. Enter the query criteria for the impairment: Asset Book or Asset Number. For more
information about running a Query, see Oracle Assets Users Guide. The system
displays the impairment records for the search criteria entered.
3. Select the check box for the row of the impairments to be rolled back. Press Rollback
button to launch the process.
4. Click Yes to confirm and rollback impairments. The Process Impairments concurrent
program is executed and the concurrent request id is displayed.
5. Upon successful completion of the process the impairment’s status is updated to
Deleted.
Note: After an impairment transaction is rolled back, the transaction cannot be posted again.
Deleting Impairments
Use the Delete functionality to delete unposted asset impairments from the system.
2. Enter the query criteria for the impairment to be deleted. Click the Go button. The
system displays the impairment records for the search criteria entered.
3. Select the check box for the row of the unposted impairment to be deleted.
4. Click the Delete button to launch the process
5. Click Yes to confirm and delete the impairments.
6. The Confirmation is displayed with the Impairment ID of the deleted impairment and
the impairment’s status is updated to Deleted.
Managing Revaluations
The UK Local Authority Accounting for Revaluations and Impairments feature enables users
to manage fixed assets revaluations based on the regulatory requirements for UK local
authorities.
Prerequisites: Enable the UK Local Authority Accounting for Revaluations and Impairments
feature. For more information, see Setting Up UK Local Authority Accounting for
Revaluations and Impairment section.
Revaluation Considerations:
The following conditions are to be considered when performing revaluations using the UK
Local Authority Accounting for Revaluations and impairments feature in Oracle Assets:
Fully reserved assets can only be revalued at the asset level since their Net book value
is equal to zero. If the category level is selected and the fully reserve assets flag
enabled, then the asset will be processed, however, the revalued amount will be zero.
The system does not allow negative revaluations through the Mass Revaluation
window for the asset books where the UK Local Authority Accounting for
Revaluations and Impairments feature is enabled. To perform negative revaluations
on the UK Local Authority Accounting enabled book assets, use the Impairment
feature.
The revaluation is based on the asset's net book value at the time of the revaluation.
The net book value for historic and revalued assets is stored at the asset level.
To ensure proper accounting treatment, the Generate Accounts process, invoked
during the depreciation process, must be executed and is not to be disabled or
cancelled.
Performing Revaluations
2. In the Book field, select the asset book that you want to process from the list of
values.
3. In the Comments field, enter the reason or other information about the revaluation.
This is a required field.
4. The Mass Transaction Number, Revaluation Date, and Status fields are populated by
the system.
5. In the Rules region, the following fields are defaulted based on the values that were
assigned to the asset book during setup:
o Revalue Fully Reserved Assets
o Life Extension Factor
o Maximum Revaluations
o Life Extension Ceiling
Note: You cannot revalue CIP assets. Only once the CIP asset is capitalized, can you
revalue the asset.
6. In the Category or Asset Number field, select the asset category or individual asset
from the list of values.
7. In the Reason field, provide a description for the revaluation. This is a required field.
Note: Revaluations are only performed on assets that are added in prior periods.
Revaluations are not processed on assets that are:
If the revaluation can be directly linked to a prior impairment event and will negate the
impairment, then under the new SORP guidelines, the effects of the impairment must be
taken into consideration when accounting for the revaluation. To link an impairment or
impairment classification type to a revaluation, in the Mass Revaluation window, highlight
the row of the revaluation to be linked and click the Link button. The system launches the
Link Impairments window and displays the appropriate tab for the type of revaluation that is
being linked.
Category Level: If you selected an asset category revaluation for linking, the system
displays the Category Level tab of the Linked Impairment window. The tab displays
the Impairment Classification Type codes available for linking to a category. The tab
contains the following check boxes:
o Change in Property Prices
o Other
Note: For each asset in the category that links to prior impairments, only one
impairment per asset will be reversed (the most recent impairment record) for the
Impairment Classifications selected.
Asset Level: If an asset level revaluation is selected for linking, the system displays
the Asset Level tab of the Linked Impairment window. The Asset Level tab displays
all existing impairments for the asset. Only impairments with the classification type of
Change in Property Prices (CPP) or Other (OTH) can be selected for linking and
reversal. Only one asset impairment can be linked and reversed per revaluation. The
Asset Level tab displays the following impairment details:
o Reference Number: Assigned to record at the time it was originally processed.
o FA Period: The fixed asset period that the impairment was posted.
o Impairment Date: The original date of the impairment.
o Impairment Classification Type: The Impairment Classification type that was
assigned to the record.
o Reason: The detail reason or cause for the impairment.
o Impairment Loss Amount: Amount of the Impairment transaction.
o Unused Impairment Loss Amount: The remaining impairment loss amount
available for future reversal. Impairment Loss Amount is the unused portion of
the impairment loss amount from a previous linked event.
After making your selections, click:
Note: Use the existing RXi Revaluation Reserve Balance report to review the Revaluation
Reserve balance before or after a revaluation has been performed. In the RXi Revaluation
Reserve Balance report, upward revaluations are reflected through all columns in the report.
However, impairments that impact the revaluation reserve balance are reported within the
Adjustments column.
The Depreciation program of Oracle Assets creates the neutralizing accounting entry. The
accounting entries are generated based on the asset’s assigned depreciation schedule and the
amount used is the same as the corresponding standard depreciation accounting entry.
The accounting entry uses the Capital Adjustment and Statement of Movement on General
Fund Balance accounts assigned to the asset category of the asset.
Debit Credit
Capital Adjustment (Depreciation
Expense Amount)
Statement of Movement on the General Fund Balance
(Depreciation Expense Amount)
Revaluations
The SORP guidelines for UK Local Authority, requires the use of Revaluation Reserve
account for revaluations of assets, including discounted and donated assets and the
revaluation is to be based on the asset’s current net book value.
A revaluation occurs when a professional valuation on an asset is greater than the asset’s
current net book value. Where:
Note: For revaluations, the CNBV does not include depreciation for the period of the
Revaluation Date.
The accounting entries generated for revaluation are dependent on whether the asset has been
previously impaired or the revaluation can be linked to a prior impairment.
Revaluations - Example 1
Building #1 has had its first professional revaluation. The building has not been previously
impaired and there is no balance in the Accumulated Impairment account for this asset.
Building #1 was purchased on April 1, 2007 and recorded into Oracle Assets with the
following details:
Asset Addition
Asset Setup Item Asset Setup Information
Cost 5,000,000
Life 10 Years
Addition Period April - 2007
Method STL – 10 yr
Prorate Convention Monthly
Monthly Depreciation 41,667
Salvage Value 0.00
On April 1, 2008, a professional valuation was performed on Building #1 and was revalued to
5,500,000.
Current Net Book Value (CNBV) = Cost + Cost Adjustments + Revaluations - Salvage Value
- Accumulated Depreciation - Accumulated Impairments - Retirements
CNBV = 4,500,000
New Net Book Value (NNBV) = Asset value as deemed by professional valuation
NNBV = 5,500,000
When booking a revaluation on the asset, an entry to the Accumulated Depreciation account
is made to reverse the accumulated depreciation to date on the asset and set the account
balance to zero. This will cause the fixed asset cost to be equal to the new net book value.
Asset
CNBV Revaluati
Deprecia Revaluat
AccumulatedDepr (End Asset on
Period Cost tion ion
eciation of NNBV Amortiza
Expense Reserve
Period tion
)
Apr-07 5,000,0 41,667 41,667 4,958,3
00 33
May-07 41,667 83,333 4.916,6
67
Jun-07 41,667 125,000 4,875,0
00
Jul-07 41,667 166,667 4,833,3
33
Aug-07 41,667 208,333 4,791,6
67
Sep-07 41,667 250,000 4,750,0
00
Oct-07 41,667 291,667 4,708,3
33
Nov-07 41,667 333,333 4,666,6
67
Dec-0 41,667 375,000 4,625,0
00
Jan-08 41,667 416,667 4,583,3
33
Feb-08 41,667 458,333 4,541,6
67
Mar-08 41,667 500,000 4,500,0
00
Revaluat 500,000 4,500,0 5,500,0 1,000,00 9,259
ion 00 00 0
Apr-08 5,500,0 50,926 50,926 5,449,0 990,741 9,259
00 74
May-08 50,926 101,852 5,398,1 981,481 9,259
48
At the end of the month, the following accounting entry is booked to record the amortization
of the Revaluation Reserve for the period:
At the end of the month, the following accounting entry is booked to record the depreciation
expense and its corresponding neutralizing entries for the period:
Revaluations - Example 2
Building #2 has undergone a professional revaluation. The building had been previously
impaired and has an existing balance in the Accumulated Impairment account.
Building #2 was purchased on April 1, 2007 and recorded into Oracle Assets with the
following details:
Asset Addition
Asset Setup Item Asset Setup Information
Cost 5,000,000
Life 10 Years
Addition Period April-2007
Method STL – 10 yr
Prorate Convention Monthly
Monthly Depreciation 41,667
Salvage Value 0.00
On March 1, 2008, a professional valuation was performed on Building #2 and the building’s
value had decreased by 500,000. The monthly depreciation after the impairment is 37,037.
When determining the impairment loss amount, the current period's (March 2008)
depreciation is included in the CNBV calculation. Where:
Note: CNBV includes depreciation for the period of the Impairment Date.
Current Net Book Value (CNBV) = Cost + Cost Adjustments + Revaluations - Current
Period Depreciation - Salvage Value - Accumulated Depreciation - Accumulated
Impairments - Retirements
The following accounting entries are generated to record the impairment loss without an
existing revaluation reserve balance for all impairment classification types:
At the end of the month, the following accounting entry is booked to record the depreciation
expense and its corresponding neutralizing entries for the period (March 2008):
* Since the current month depreciation is considered in the CNBV calculation, depreciation is
not recalculated until the following month.
On April 1, 2009, another professional valuation was performed and the building’s value had
increased to 5,500,000. The revaluation is not linked to the prior impairment.
New Net Book Value (NNBV) = Asset value as deemed by professional valuation
NNBV = 5,500,000
Asset
CNB
Accum Revalu Accum
V Asset
Depreciation ulated ation RevaluationA ulated
Period Cost (End NNB
Expense Depreci Reserv mortization Impair
of V
ation e ment
Perio
d)
Apr-07 5,000, 41,667 41,667 4,958,
000 333
May-07 41,667 83,333 4.916,
667
Jun-07 41,667 125,000 4,875,
000
Jul-07 41,667 166,667 4,833,
333
Aug-07 41,667 208,333 4,791,
667
Sep-07 41,667 250,000 4,750,
000
Oct-07 41,667 291,667 4,708,
333
Nov-07 41,667 333,333 4,666,
667
Dec-0 41,667 375,000 4,625,
000
Jan-08 41,667 416,667 4,583,
333
Feb-08 41,667 458,333 4,541,
667
Impair 500,000 4,041, 4,000, 500,000
ment 667 000
Mar-08 5,500, 41667 500,000 4,000, 500,000
000 000
Apr-08 37,037 537,037 3,962, 500,000
963
May-08 37,037 574,074 3,925, 500,000
926
Jun-08 37,037 611,111 3,888, 500,000
889
Jul-08 37,037 648,148 3,851, 500,000
852
Aug-08 37,037 685,185 3,814, 500,000
815
Sep-08 37,037 722,222 3,777, 500,000
778
Oct-08 37,037 759,259 3,740, 500,000
741
Nov-08 37,037 796,296 3,703, 500,000
704
Dec-08 37,037 833,333 3,666, 500,000
667
Jan-09 37,037 870,370 3,629, 500,000
630
Feb-09 37,037 907,407 3,592, 500,000
593
Mar-09 37,037 944,444 3,555, 500,000
556
Revalu 5,500, 1,944,4 20,255 0
ation 000 44
Apr-09 5,500, 57,292 57,292 5,442, 1,924,1 20,255 0
000 708 90
When booking a revaluation on the asset with a prior impairment, an entry to the
Accumulated Depreciation and Accumulated Impairment accounts will be made to set the
accounts balance to zero.
The following accounting entry is booked to record the amortization of the Revaluation
Reserve for the month:
20,255 = 1,944,444 / 96
At the end of the month, the following accounting entry is booked to record the depreciation
expense and its corresponding neutralizing entries for the period:
* Monthly Depreciation is recalculated and is based on the revalued net book value.
57,292 = 5,500,000 / 96
Impairment occurs when a professional valuation on an asset is less than the asset’s current
net book value. Under the new SORP guidelines, the classification type assigned to the
impairment determines the accounting treatment for the impairment. The primary difference
in the accounting treatment is in regard to the impact of the revaluation reserve account
balance. When booking impairment with the classification type of Change in Property Prices
(CPP) or Other (OTH), the impairment loss amount booked to the Impairment Loss account
is reduced by the amount available in the Revaluation Reserve account for the asset, up to the
impairment loss amount.
Whereas for Impairments with the classification type of Consumption of Economic Benefit
(CEB), the entire amount of the impairment loss is booked to the Impairment Loss account
and then if a balance does exist in the Revaluation Reserve account, the balance is transferred
to the Capital Adjustment account. When booking the impairment on an asset, the
impairment loss accounting entries will be reflected in the Accumulated Impairment account.
Impairments have no effect on the Accumulation Depreciation Reserve account.
The following examples provide the accounting entries that are generated for an asset
impairment with no revaluation reserve balance and impairment classification type that is
equal to Change in Property Prices, Other, or Consumption of Economic Benefit.
Impairments - Example 1:
On April 1, 2007, Building #2 was purchased and recorded into Oracle Assets with the
following details:
Asset Addition
Asset Setup Item Asset Setup Information
Cost 5,000,000
Life 10 Years
Addition Period April-2007
Method STL – 10 yr
Prorate Convention Monthly
Salvage Value 0.00
On March 1, 2008, a professional valuation was performed on Building #2 and the building’s
value had decreased due to a decline in property values in the area. The building was
impaired by 500,000.
When determining the impairment loss amount, the current period's (March 2008)
depreciation is included in the CNBV calculation. Where:
Note: CNBV includes depreciation for the period of the Impairment Date.
Current Net Book Value (CNBV) = Cost + Cost Adjustments + Revaluations - Current
Period Depreciation - Salvage Value - Accumulated Depreciation - Accumulated
Impairments - Retirements
The following accounting entries are generated to record the impairment loss without an
existing revaluation reserve balance for all impairment classification types:
At the end of the month, the following accounting entry is booked to record the depreciation
expense and its corresponding neutralizing entries for the period (March 2008):
* Since the current month depreciation is considered in the CNBV calculation, depreciation is
not recalculated until the following month.
Impairments - Example 2
Building #3 is being impaired as a result of a change in property values. The building has had
a previous revaluation and there is an existing revaluation reserve balance for this asset.
Building #3 was purchase on April 1, 2007, and recorded into Oracle Assets with the
following details:
Asset Addition
Asset Setup Item Asset Setup Information
Cost 5,000,000
Life 10 Years
Addition Period April-2007
Method STL – 10 yr
Prorate Convention Monthly
Monthly Depreciation 41,667
Salvage Value 0.00
On April 1, 2008, a professional valuation was performed on Building #3 and the building’s
value had increased due improvements made. The building was revalued to a net book
balance of 5,500,000. With a new monthly depreciation of 50,926, revaluation reserve
balance of 1,000,000, and a monthly revaluation reserve amortization amount of 9,259, and a
remaining life of 108 months.
On March 1, 2009, a professional valuation was performed on Building #3 and the building’s
value had decreased due to a decline in property values in the area. The buildings value is
now 3,500,000 resulting in an impairment of 1,388,889.
When determining the impairment loss amount, the current period’s (March 2008)
depreciation is included in the CNBV calculation.
Current Net Book Value (CNBV) = Cost + Cost Adjustments + Revaluations - Current
Period Depreciation - Salvage Value - Accumulated Depreciation - Accumulated
Impairments - Retirements
Asset
CNB
Accum Revalu Revalu Accum
V Asset Impair
Depreciatio ulated ation ation ulated
Period Cost (End NNB ment
nExpense Depreci Reserv Amorti Impair
of V Loss
ation e zation ment
Perio
d)
Apr-06 5,000 41,667 41,667 4,958
,000 ,333
May- 41,667 83,333 4.916
06 ,667
Jun-06 41,667 125,000 4,875
,000
Jul-06 41,667 166,667 4,833
,333
Aug-06 41,667 208,333 4,791
,667
Sep-06 41,667 250,000 4,750
,000
Oct-06 41,667 291,667 4,708
,333
Nov-06 41,667 333,333 4,666
,667
Dec-06 41,667 375,000 4,625
,000
Jan-07 41,667 416,667 4,583
,333
Feb-07 41,667 458,333 4,541
,667
Mar-07 41,667 500,000 4,500
,000
Revalu 500,000 4,500 5,500 1,000,0 9,259
ation ,000 ,000 00
Apr-07 5,500 50,926 50,926 5,449 990,74 9,259
,000 ,074 1
May- 50,926 101,852 5,398 981,48 9,259
07 ,148 1
Jun-07 50,926 152,778 5,347 972,22 9,259
,222 2
Jul-07 50,926 203,704 5,296 962,96 9,259
,296 3
Aug-07 50,926 254,630 5,245 953,70 9,259
,370 4
Sep-07 50,926 305,556 5,194 944,44 9,259
,444 4
Oct-07 50,926 356,481 5,143 935,18 9,259
,519 5
Nov-07 50,926 407,407 5,092 925,92 9,259
,593 6
Dec-07 50,926 458,333 5,041 916,66 9,259
,667 7
Jan-08 50,926 509,259 4,990 907,40 9,259
,741 7
Feb-08 50,926 560,185 4,939 898,14 9,259
,815 8
Impair 4,888 3,500 888,88 9,259 500,00 500,000
ment ,889 ,000 9 0
Mar-08 50,926 611,111 3,500 500,00 500,000
,000 0
Apr-08 5,500 36,458 647,569 3,463 500,00 500,000
,000 ,542 0
May- 36,458 684,028 3,427 500,00 500,000
08 ,083 0
Jun-08 36,458 720,486 3,390 500,00 500,000
,625 0
Jul-08 36,458 756,944 3,354 500,00 500,000
,167 0
Aug-08 36,458 793,403 3,317 500,00 500,000
,708 0
Sep-08 36,458 829,861 3,281 500,00 500,000
,250 0
Oct-08 36,458 866,319 3,244 500,00 500,000
,792 0
Nov-08 36,458 902,778 3,208 500,00 500,000
,333 0
Dec-08 36,458 939,236 3,171 500,00 500,000
,875 0
Jan-09 36,458 975,694 3,135 500,00 500,000
,417 0
The following accounting entries are generated to record the impairment with a prior
revaluation reserve balance:
Debit Credit
Revaluation Reserve (Up to the amount of the
impairment loss)
Impairment Loss (Impairment loss not covered by the
Revaluation Reserve balance)
Accumulated Impairment
(Impairment loss amount)
Note:
For example, the Revaluation Reserve balance is reduced by the current month’s
amortization. The remaining balance is then applied to the impairment loss amount to
determine the amount to be booked to the impairment loss account.
Current Net Book Value: When determining the impairment loss amount, the Current
Net Book Value calculation will take in account the current month’s depreciation as
previously mentioned.
Under the new SORP guidelines, any debit to the Impairment Loss account must have a
corresponding neutralizing entry to the Capital Adjustment and Statement of Movement on
General Fund Balance (General Fund) accounts. As a result, the following neutralizing entry
is also created:
At the end of the month, the following entry is booked to record the depreciation expense and
its corresponding neutralizing entries for the period:
* Since the current month depreciation is considered in the CNBV calculation, depreciation is
not recalculated until the following month.
50,926 = 4,939,815 / 97
When an asset is disposed of or decommissioned, the carrying amount (NVB) of the asset is
removed from the balance sheet. The following accounting entries are generated to remove
the remaining NBV from the balance sheet accounts (based on Asset Category and Asset
Book level setup):
Debit Credit
Disposal Gains or Loss (Income Statement account)
Accumulated Depreciation
Accumulated Impairment
Fixed Asset Cost
Debit Credit
Capital Adjustment (NBV)
General Fund (NBV)
Revaluation Reserve
Debit Credit
Revaluation Reserve (Remaining balance on
the account)
Capital Adjustment (Remaining balance on
the account)
QFA5. Explain about FA Physical Inventory
Physical Inventory
Physical inventory is the process of ensuring that the assets a company has listed in its
production system match the assets it actually has in inventory. A company takes physical
inventory by manually looking at all assets to ensure they exist as recorded, are in the
appropriate locations, and consist of the recorded number of units.
A person taking physical inventory can collect physical inventory data in a number of ways,
such as by writing down information about the asset manually, or by using a barcode scanner
to automatically scan asset information into a file such as an Excel spreadsheet. After this
information is collected, any discrepancies need to be reconciled. For example, if a computer
is located in Room 549 according to your production data, but is actually in Room 346, you
need to either change the record to reflect the true location of the computer, or move it to
Room 549.
A unique identifier, which can be either the asset number, tag number, or serial
number
The location
The number of units
You can include other information that may make it easier for you to keep track of the assets
you are comparing, such as a description of each asset, but only the information listed above
is required.
You load your physical inventory data into Oracle Assets using the Physical Inventory
Entries window, or you can use the Record Physical Inventory process in the Applications
Desktop Integrator (ADI), which allows you to import data from an Excel spreadsheet. You
can also use SQL*Loader to import physical inventory data from a non-Oracle file system.
When you finish entering physical inventory data into Oracle Assets, you run the Physical
Inventory comparison program, which highlights the differences between the asset
information in Oracle Assets and the actual assets in physical inventory. This program
compares your physical inventory data with your Oracle Assets data for all assets that have
the In Physical Inventory check box checked.
You can view the results of the comparison online in the Physical Inventory Comparison
window, or by running the Physical Inventory Comparison Report. The comparison results
highlight differences between the assets in your production system and those in physical
inventory You can reconcile the differences between physical inventory and the information
in your database by updating each asset manually, or you can use the mass additions process
to add assets that are missing from the production system.
When you have completed your physical inventory, you can run the Missing Assets Report,
which lists all assets that have not been accounted for in the physical inventory process.
Prerequisites
Ensure that the In Physical Inventory check box is checked for all assets in Oracle
Assets that you want included in the physical inventory comparison program. See:
Setting Up Oracle Assets Data to be Included in Physical Inventory.
1. Take physical inventory of your assets by using a barcode scanner (if your assets are
set up with barcodes) or by manually noting the location, number of units, and a
unique identifier.
2. Navigate to the Physical Inventory window.
3. Enter the inventory name (for example, Q2 Physical Inventory USA) and the start
date. Entering an end date indicates that the physical inventory is complete, so you
should not enter an end date until you have completed all physical inventory tasks.
4. Save your changes.
5. Load the physical inventory data into Oracle Assets using the Physical Inventory
window, the Record Physical Inventory process in ADI, or SQL*Loader. See:
Loading Physical Inventory Data.
6. Run the Physical Inventory Comparison program. See: Physical Inventory
Comparison Program.
7. Run the Physical Inventory Comparison Report or review the results online using the
Find Physical Inventory Comparison window. See: Viewing Comparison Results.
8. Analyze the report results.
9. Change Oracle Assets data to reconcile with the physical inventory data and ensure
you have accounted for all assets. See: Reconciliation.
10. Run the Missing Assets Report. See: Missing Assets
11. Purge the physical inventory data. See: Purging Physical Inventory Data.
Related Topics
Record Physical Inventory Feature (Oracle Applications Desktop Integrator User Guide)
The In Physical Inventory check box allows you to determine which assets are included in the
physical inventory process. For example, you may have several buildings that you track as
assets in Oracle Assets, but you do not want the buildings included in the physical inventory
process.
Mass Additions
You can designate a group of assets to be included in the physical inventory process by
checking the In Physical Inventory check box in the Mass Additions window.
Asset Categories
When you set up asset categories in the Asset Categories window, the In Physical Inventory
check box is checked by default. If you do not want assets in a particular category to be
included in physical inventory, you can uncheck the In Physical Inventory check box when
you set up the category. For example, you may set up a category called BUILDING, which
includes all of the buildings owned by your company. You may not want your buildings
included in the physical inventory process, so you can uncheck the In Physical Inventory
check box so that all assets with a category of BUILDING will not be included in physical
inventory.
After setting up categories, you can override the value of the In Physical Inventory check box
for individual assets using the Asset Details window.
Asset Details
You can use the Asset Details window to override the value of the In Physical Inventory
check box. For example, you may have assets with a category of COMPUTER designated to
be included in the physical inventory process. You may also have a particular asset with a
category of COMPUTER that you do not want included in the physical inventory process.
You can open the Asset Details window for that particular asset and uncheck the In Physical
Inventory check box.
The following table lists the column name, type, description, and usage for each column in
the FA_INV_INTERFACE table.
Column Name Type Description Usage
INVENTORY VARCHAR2 The user-defined inventory Required
(80) identification number to
which this entry belongs.
ASSET_ID NUMBER The system-generated asset System-
(15) identification number. generated
ASSET_NUMBER VARCHAR2 The unique asset number Conditionally
(15) assigned by either the user required. When
or Oracle Assets during you enter
asset setup. Although this physical
field is not required, it is inventory data in
recommended, because it is the Physical
the first field compared by Inventory
the Physical Inventory window, either
Comparison program when the asset number,
it attempts to match an tag number, or
asset in physical inventory serial number is
with one in the production required.
system.
ASSET_KEY_CCID NUMBER The asset key flexfield Optional
(15) combination.
TAG_NUMBER VARCHAR2 The tag number of the Conditionally
(15) asset. The Physical required. When
Inventory Comparison you enter
program uses the tag physical
number to uniquely inventory data in
identify an asset if it was the Physical
unable to do so using the Inventory
asset number, because it window, either
was not provided. the asset number,
tag number, or
serial number is
required.
DESCRIPTION VARCHAR2 The description of the Optional
(80) asset.
MODEL_NUMBER VARCHAR2 The model number of the Optional
(40) asset.
SERIAL_NUMBER VARCHAR2 The serial number of the Conditionally
(35) asset. The Physical required. When
Inventory Comparison you enter
program uses the serial physical
number to uniquely inventory data in
identify an asset if it was the Physical
unable to do so using the Inventory
asset number or tag window, either
number, because neither the asset number,
was provided. tag number, or
serial number is
required.
MANUFACTURER_NAME VARCHAR2 The name of the Optional
(30) manufacturer that made the
asset.
ASSET_CATEGORY_ID NUMBER The category to which the Optional
(15) asset belongs.
UNITS NUMBER The number of units in Required
physical inventory for the
asset.
LOCATION_ID NUMBER The location ID that Required
(15) corresponds to the location
of the asset.
STATUS VARCHAR2 The status of the asset will Initially system-
(15) be one of the following: generated, but
NEW can be manually
TO RECONCILE changed by the
RECONCILED user.
DIFFERENCE
NO ASSET NUMBER
NON-INVENTORIAL
NOT UNIQUE
UNIT_ADJ VARCHAR2 Indicates whether this entry System-
(1) needs a location generated
adjustment. A NULL value
indicates that this physical
inventory entry has not
been compared.
UNIT_RECONCILE_MTH VARCHAR2 The unit adjustment System-
(20) reconciliation method must generated
be one of the following:
NONE
ADDITION
UP - UNIT
ADJUSTMENT
DOWN - UNIT
ADJUSTMENT
REINSTATEMENT
FULL RETIREMENT
PARTIAL RETIREMENT
LOCATION_ADJ VARCHAR2 Indicates whether this entry System-
(1) needs a location generated
adjustment. If there is no
value in this field, it
indicates that this physical
inventory entry has not
been compared.
LOC_RECONCILE_MTH VARCHAR2 The location adjustment System-
(20) reconciliation method: generated
NONE
TRANSFER
CREATED_BY NUMBER Standard who columns. System-
(15) Typically, the username or generated
user ID of the person
running Physical Inventory.
CREATION_DATE DATE Standard who columns. System-
The date when the physical generated
inventory was opened.
LAST_UPDATE_DATE DATE Standard who columns. System-
This date corresponds to generated
the last date a user entered
physical inventory
information.
LAST_UPDATED_BY NUMBER Standard who columns. System-
(15) The user ID of the last user generated
to update physical
inventory information.
LAST_UPDATE_LOGIN NUMBER Standard who columns. System-
(15) The user ID of the last user generated
to update physical
inventory information.
Status Codes
After you have loaded your physical inventory data and run the Physical Inventory
comparison program, Oracle Assets generates a status code based on the information it has
stored about an asset and the information you provided during the physical inventory process.
The following table contains descriptions of these codes.
When you run the Physical Inventory Comparison program, Oracle Assets updates the
UNIT_RECONCILE_MTH field in the FA_INV_INTERFACE table with the appropriate
unit reconciliation code. The code indicates whether the asset needs an adjustment in the
number of units stored in Oracle Assets, and if so, the type of unit adjustment needed. The
following table lists the unit reconciliation codes and a description of each code:
Code Description
ADDITION An asset was found in physical inventory that is not in Oracle
Assets. The asset needs to be added to Oracle Assets.
DOWN - UNIT For a particular asset, more units are listed in Oracle Assets than
ADJUSTMENT are found in physical inventory. The number of units needs to be
adjusted down in Oracle Assets.
FULL RETIREMENT An asset needs to be fully retired, because it is listed in Oracle
Assets but not found in physical inventory.
NONE No unit adjustment is necessary.
PARTIAL An asset needs to be partially retired. Usually, you would do this
RETIREMENT when for a particular asset, you found less units in physical
inventory than are listed in Oracle Assets.
REINSTATEMENT An asset needs to be reinstated. Although it was retired, during
the physical inventory process, it was found that the asset was
still being used.
UP - UNIT For a particular asset, less units are listed in Oracle Assets than
ADJUSTMENT are found in physical inventory. The number of units needs to be
adjusted up in Oracle Assets.
Methods for Loading Physical Inventory Data
You can load physical inventory data into Oracle Assets using several different methods. You
can:
You can use ADI to load your physical inventory data into an Excel spreadsheet and import
the data into Oracle Assets.
See: Uploading Physical Inventory Data into Oracle Assets (Oracle Applications Desktop
Integrator User Guide)
You can enter data for each asset directly into Oracle Assets using the Physical Inventory
Entries window. Keep in mind that you can only enter data for one asset at a time when using
this method.
You can use SQL*Loader to import physical inventory data by completing the following
steps:
Use a single interim table if possible. You can use multiple tables if the data exists in
multiple tables or files in the system from which you are loading data. In either case,
you must eventually place the data in a single table, the FA_INV_INTERFACE table.
If you prefer, you can load data directly into the FA_INV_INTERFACE table, but it
is more difficult due to the complexity of the table.
If the data already resides within an Oracle database, there is no need to use
SQL*Loader. Simply consolidate the physical inventory information in your interim
table using SQL*Plus or import, and go directly to .
In addition to the actual data text file, you must write a SQL*Loader control
file. The control file tells SQL*Loader how to import the data into your
interim table. Be sure to specify a discard file if you are planning to use
SQL*Loader to filter your data.
Once you have created your physical inventory data file and SQL*Loader
control file, run SQL*Loader to import your data. SQL*Loader produces a log
file with statistics about the import, a bad file containing records that could not
be imported due to errors, and a discard file containing all the records that
were filtered out of the import by commands placed in the control file.
Check the number of rows in the interim table against the number of records in your
original physical inventory data file or table to ensure that all physical inventory
records were imported.
The log file shows if records were rejected during the load, and the bad file shows
which records were rejected. Fix and re-import the records in the bad file.
Check several records throughout the interim table and compare them to the
corresponding records in the original physical data file or table. Look for missing or
invalid data. This step ensures that your data was imported into the correct columns
and that all columns were imported.
During the comparison, the comparison program attempts to match each asset in the physical
inventory data to an asset in the production system. It begins the comparison by searching for
matching unique identifiers. The matching unique identifier can be either the asset number,
tag number, or serial number.
The program first determines whether the physical inventory data includes an asset number.
If an asset number has been provided, the comparison program searches the Oracle Assets
production system for a matching asset number. If it finds a matching asset number, the
program continues the comparison by determining whether the location and number of units
match. If they do not match, the program updates the status of that asset to DIFFERENCE.
For a list of status codes, see: Loading Physical Inventory Data.
If the program cannot find a matching asset number in the Oracle Asset production system, it
terminates the comparison for that asset and continues on to the next asset.
If an asset number has not been recorded as part of the physical inventory, the program next
determines whether the physical inventory data includes a tag number. If there is a tag
number, the program searches the Oracle Assets production system for a matching tag
number. Similarly, if the physical inventory data includes neither an asset number nor a tag
number, the program determines whether a serial number has been recorded for the asset. If
so, it searches the Oracle Assets production system for a matching serial number. In both
cases, if the program finds a match, it will continue the comparison to determine whether the
location and number of units match. If they do not match, the program updates the status of
that asset to DIFFERENCE. For a list of status codes, see: Loading Physical Inventory Data.
In both cases, if the program cannot find a matching identifier in the Oracle Assets
production system, it terminates the comparison for that asset and continues on to the next
asset.
If none of the three unique identifiers are present for that asset, the program attempts to
match the asset using other criteria, such as description and asset key CCID.
Note: When the program attempts to match assets using criteria other than the three unique
identifiers, the matching criteria may not be unique and the program may not be able to
uniquely identify an asset. Therefore, we strongly recommend that when bringing physical
inventory data into Oracle Assets using any method other than the Physical Inventory
window (which does not allow you to save your changes unless you have entered an asset
number, tag number, or serial number), that you include at least one of the three unique
identifiers for each asset in physical inventory.
You can view the results of the comparison online on the Physical Inventory Comparison
window. The Physical Inventory Comparison window displays the asset number, location,
and number of units for each asset in your Oracle Assets production system, and the
corresponding asset number in physical inventory, along with its location and number of
units. If the location or number of units differs, the comparison highlights the differences in
the comparison results. It also indicates when it cannot find a corresponding asset number in
the production system, and when it finds duplicate assets.
Note: Assets with a status of New or Not Unique are not included on the Physical Inventory
Comparison window.
Similar to the Physical Inventory Comparison window, the Physical Inventory Comparison
Report displays information on each asset in your production system, along with the
corresponding asset number in physical inventory. This report displays all assets, including
those with a status of New and Not Unique.
This report is a standard variable format report. You can run this report from Oracle Assets or
from the Applications Desktop Integrator (ADI) Request Center. The Request Center allows
you to manipulate data in the desktop application of your choice.
Related Topics
Reconciliation
After you finish running physical inventory and generating reports, you need to reconcile
your physical inventory data with your Oracle Assets data.
Related Topics
Missing Assets
When you are finished with reconciling your physical inventory, you can run the Physical
Inventory Missing Assets Report to determine if there are any assets in your production
system that could not be found during the physical inventory process.
This report is a standard variable format report. You can run this report from Oracle Assets or
from the ADI Request Center. The Request Center allows you to manipulate data in the
desktop application of your choice.
Related Topics
To use Web ADI to create physical inventory, refer to Creating a Document in the Oracle
Web ADI Implementation and Administration Guide.
In the Integrator page, you need to select an inventory. In the Layout page, you need to select
one of the following layouts:
After creating your spreadsheet, you can upload the data into Oracle Assets. See: Uploading
and Downloading Data from Spreadsheets in the Oracle Web ADI Implementation and
Administration Guide.
Before running the Physical Inventory Upload, check the Run Comparison check box if you
want to automatically run the Comparison report and the View Comparison Results check
box if you want to view the comparison results.
QFA6. Explain on Scheduling Asset Maintenance
You can schedule maintenance events during a particular range of dates. For example, if you
want to schedule maintenance yearly, you might enter a Start Date of January 1 and an End
Date of December 31.
Start Date. Enter the date the maintenance event will begin.
End Date. Enter the date the maintenance event will end.
Book. Enter the depreciation book containing the asset for which you are scheduling
maintenance. This field is required.
Currency. The currency of the depreciation book displays automatically when you enter the
name of the depreciation book.
Asset Number. You can enter the asset number or a range of asset numbers for which you
want to schedule maintenance events. This field is optional.
Date Placed in Service. Enter the date the asset was placed in service. This field is optional.
Category. Enter the category of the assets for which you want to schedule maintenance
events. This field is optional.
Location. Enter the location of the assets for which you want to schedule maintenance
events. This field is optional.
Asset Key. Enter the asset key of the asset for which you want to schedule maintenance
events. This field is optional.
Events Region
Event. Use the list of values to select the name of the maintenance event, for example, tire
rotation, or oil change. This field is required.
Frequency in Days. Enter the frequency (in days) at which the event should occur. For
example, for a monthly service, you would enter 30. This field is required if no date is
specified.
Date. Enter the date the service event will occur. This field is required if no frequency is
specified.
Supplier Number. Enter the number of the supplier who will perform the maintenance. This
field is optional.
Supplier Name. Enter the name of the supplier who will perform the maintenance. This field
is optional.
Contact Number. Enter the contact number of the person responsible for the maintenance
task.
Contact Name. Enter the name of the person responsible for the maintenance task.
Descriptive flexfield. Enter any detail information pertaining to each event to be scheduled.
Buttons
Use the Selection Criteria region to select the assets for which you want to view maintenance
details.
Book. Enter the depreciation book containing the asset for which you want to view
maintenance details.
Asset Number. You can enter the asset number as selection criteria for assets for which you
want to view maintenance events. This field is optional.
Description. You can enter an asset description as selection criteria for assets for which you
want to view maintenance events. This field is optional.
Tag Number. You can enter an asset tag number as selection criteria for assets for which you
want to view maintenance events. This field is optional.
Category. You can enter the category of the assets for which you want to view maintenance
events. This field is optional.
Serial Number. You can enter the serial number of the assets for which you want to view
maintenance events. This field is optional.
Asset Key. You can enter the asset key of the assets for which you want to view maintenance
events. This field is optional.
Events Region
This region displays details of the maintenance schedule you queried. You cannot create
maintenance events here, but you can modify certain values in an existing event.
Event. The name of the maintenance event, for example, tire rotation, or oil change.
Status. The status of the event, either NEW, COMPLETED, or ERROR. You can update the
status in this window.
Cost. The cost per event. You can update the cost in this window.
Supplier Number. The number of the supplier who will perform the maintenance. You can
update the supplier number in this window.
Supplier Name. The name of the supplier who will perform the maintenance. You can
update the supplier name in this window.
Contact Number. The contact number of the person responsible for the maintenance task.
You can update the contact number in this window.
Contact Name. The name of the person responsible for the maintenance task. You can
update the contact name in this window.
Book Name. Enter the name of the depreciation book. This field is optional.
Asset Number. Enter a range of assets for which maintenance schedules need to be purged.
This field is optional.
Maintenance Date. Enter the range of maintenance dates for which maintenance schedules
need to be purged. This field is optional.
Category. Enter the category of the assets for which you want to purge maintenance events.
This field is optional.
Status. Enter the status of the assets for which you want to purge maintenance events. This
field is optional.
QFA7. Explain on Asset Retirements
Asset Retirements
This chapter covers the following topics:
About Retirements
Retiring Assets
Correcting Retirement Errors (Reinstatements)
Mass External Retirements
Calculating Gains and Losses for Retirements
Retirement Requests
About Retirements
Retire an asset when it is no longer in service. For example, retire an asset that was stolen,
lost, or damaged, or that you sold or returned.
You can retire an entire asset or you can partially retire an asset.
When you retire an asset by units, Oracle Assets automatically calculates the fraction
of the cost retired
When you retire an asset by cost, the units remain unchanged and the cost retired is
spread evenly among all assignment lines
Restrictions
You cannot retire assets by units in your tax books; you can only perform partial and full cost
retirements in a tax book. Also, you can only perform full retirements on CIP assets; you
cannot retire them by units, or retire them partially by cost.
If you perform multiple partial retirements on an asset within a period, you must run the
calculate gains and losses program between transactions.
Gain/Loss = Proceeds of Sale - Cost of Removal - Net Book Value Retired + Revaluation
Reserve Retired
If you partially retire a units of production asset, you must manually adjust the capacity to
reflect the portion retired.
Use the Mass Retirements window to retire a group of assets at one time. You specify
selection criteria, including asset category, asset key, location, depreciation expense account
segments, employee, asset number range, and date placed in service range, to select the assets
you want to retire. You can also elect to automatically retire subcomponents along with the
parent asset.
When you define a mass retirement, you can choose to immediately submit the concurrent
request to retire the selected assets, or you can save the mass retirement definition for future
submission. You can change the details of any mass retirement before you submit the
concurrent request.
When you submit a mass retirement, Oracle Assets automatically runs the Mass Retirements
Report and the Mass Retirements Exception Report. You can review these reports, perform a
mass reinstatement, or adjust an individual retirement transaction if necessary.
If you wish to simultaneously run this program in more than one process to reduce processing
time, Oracle Assets can be set up to run this program in parallel. For more information on
setting up parallel processing and the FA: Number of Parallel Requests profile option, see:
Profile Options and Profile Options Categories Overview.
Exceptions
Oracle Assets does not retire the following types of assets, even if they are selected as part of
a mass retirements transaction:
Assets with transactions dated after the retirement date you enter
Assets that are multiply distributed and one or more values do not meet the mass
retirement selection criteria
For reinstatements, assets retired during a prior fiscal year
You can retire an asset or a group of assets from any depreciation book without affecting
other books. To retire an asset from all books, retire it from each book separately, or set up
Mass Copy to copy retirements to the other books in the Book Controls window.
Each retirement transaction has a status. A new retirement receives the status PENDING.
After you run depreciation or calculate gains and losses, the status changes to PROCESSED.
When you reinstate a PENDING retirement, Oracle Assets deletes the retirement transaction
and the asset is immediately reinstated. If you reinstate a PROCESSED retirement, Oracle
Assets changes the status to REINSTATE, and you must rerun the Calculate Gains and
Losses program or run depreciation to process the reinstatement.
When you perform a mass retirement, Oracle Assets creates PENDING retirement
transactions. If you submit a mass reinstatement before running the Calculate Gains and
Losses program, Oracle Assets immediately reinstates these assets. If you submit a mass
reinstatement to reinstate PROCESSED retirements, you must rerun the Calculate Gains and
Losses program or run depreciation to process the reinstatements.
ITC Recapture
If you retire an asset for which you took an investment tax credit (ITC) and the ITC recapture
applies, Oracle Assets automatically calculates it.
Correct Retirement Errors
You can undo asset retirement transactions, and Oracle Assets creates all the necessary
journal entries for your general ledger to catch up any missed depreciation expense. You can
reinstate an individual or mass retirement transaction. For multiple partial retirements, You
can reinstate only most recent or processed retirement. You cannot reinstate an asset retired
in a previous fiscal year. You can only reinstate assets retired in the current fiscal year.
Retirement Conventions
Oracle Assets lets you use a different prorate convention when you retire an asset than when
you added it. The retirement convention in the Retirements window and the Mass
Retirements window defaults from the retirement convention you set up in the Asset
Categories window. You can change the retirement convention for an individual asset in the
Retirements window before running the Calculate Gains and Losses program.
If you set up a book to divide depreciation by days and to use both a daily prorate convention
and a daily prorate calendar, and if you retire an asset in that book in the current period,
Oracle Assets takes depreciation expense for the number of days up to, but not including, the
date of retirement. If you perform a prior period retirement, Oracle Assets backs out the
depreciation expense through the date of retirement. If you reinstate the asset, Oracle Assets
catches up depreciation expense through the end of the current period.
Retirement Transactions
You can retire retroactively only in the current fiscal year, and only after the most recent
transaction date.
You can enter proceeds of sale and cost of removal amounts when you perform a retirement
or mass retirement. For a mass retirement, you enter the total proceeds of sale and/or the total
cost of removal amounts, and Oracle Assets prorates the total amounts over the assets being
retired according to each asset's current cost.
Oracle Assets uses the following formula to prorate the proceeds of sale amount across the
assets you select:
Proceeds of Sale (per asset) = Current cost of asset/Total current cost of all selected
assets X Proceeds of Sale
Oracle Assets uses the following formula to prorate the cost of removal amount across the
assets you select:
Cost of removal (per asset) = Current cost of asset/Total current cost of all selected
assets X Cost of Removal
Related Topics
Retiring Assets
Retiring Assets
You can retire an individual asset in the Retirements window. You can retire a group of
assets in the Mass Retirements window.
Tip: For best performance, find by asset number or tag number since they are unique
values.
3. Choose Retirements.
4. Select the depreciation Book from which you want to retire the asset.
5. Enter the date of the retirement. It must be in the current fiscal year, and cannot be
before any other transaction on the asset.
6. To fully retire the asset, enter all the units or the entire cost.
7. If you are retiring an asset before it is fully reserved, enter the Retirement Convention.
8. Enter the Retirement Type.
9. If you are retiring an asset with a 1250 property class in a tax book:
Select the Straight Line Method and life you want Oracle Assets to use for the Form
4797 - Gain from Disposition of 1250 Property Report.
10. If there is a trade-in asset that will be used to replace the asset you are retiring, enter
the asset number of the trade-in asset.
Note: The trade-in asset must have been added to the Oracle Assets system before
you retire the current asset, if you want to track the trade-in asset in the retirement
transaction.
11. If you are retiring a parent asset, choose Subcomponents to view the subcomponents
asset(s) affected by the retirement transaction. You can separately retire these
subcomponents if necessary.
12. Save your work.
Oracle Assets assigns each retirement transaction a unique Reference Number that
you can use to track the retirement.
13. Optionally calculate gains and losses to change the status of the retirement transaction
from PENDING to PROCESSED. See: Calculating Gains and Losses for
Retirements.
Tip: For best performance, find by unique values, such as asset number or tag
number.
Note: You cannot modify units retired or cost retired. You must cancel out of the
retire window before changing the units or cost information. You can change this
information in the Source Lines window. Source Line window changes are
propagated to the Retire window when you navigate to it.
Enter the number of units or cost you want to retire. The salvage value is reduced
proportionately by the ratio (Retired Cost)/ Cost.
Note: If you partially retire by units, you must choose Continue to specify which units
to retire in the Assignments window.
You can retire a group of assets at one time. You enter selection criteria in the Mass
Retirements window to choose the group of assets you want to retire.
When you define a mass retirement, you can choose to immediately submit the concurrent
request to retire the selected assets, or you can save the mass retirement definition for future
submission. You can change the details of any mass retirement before you submit the
concurrent request.
You can also reinstate a mass retirement transaction. See: Correcting Retirement Errors
(Reinstatements).
Note: When you perform a mass retirement, Oracle Assets creates PENDING transactions
that are not PROCESSED until you run the Calculate Gains and Losses program. An
exception to this is when you perform mass retirements by units, the status is automatically
set to PROCESSED.
10. Choose Create, Oracle Assets saves all the retirement information input, but does not
execute the retirement transaction. The status field changes from New to Created. If
you are satisfied with the retirement created, you may proceed to the next step.
Optionally, you may choose to discard or further modify the criteria of the retirement
transaction created.
o Discard your mass retirement transaction: Choose Discard if you wish to
discard the created retirement. The status will change to Discard and all the
information you entered will be purged.
o Refine your retirement criteria: To further refine or modify the criteria of the
created retirement, navigate to the Prepare Mass Retirement window. Mass
Transaction > Retirements > Prepare In the Prepare Mass Retirement window,
you can modify or further refine your retirement criteria. For example, you
may change the backdate range, convert selected retirements to partial
retirements, or reallocate the proceeds amounts as desired.
11. Choose Retire if you want Oracle Assets to automatically complete and post the
retirement you created. Selecting Retire also runs the Mass Retirements Report and
the Mass Retirements Exception Report. The status of transaction will change from
Created to Pending momentarily, and finally to Completed when the mass retirement
process completes.
o You can also complete the retirement transaction by running the Post Mass
Retirements concurrent program. To run this program, navigate to Mass
Transactions > Retirements > Post. The Post Mass Retirement concurrent
program will prompt for the Book and batch number parameters of the
retirement transaction you wish to post. After the parameters are entered,
select Submit to complete the mass retirement transaction.
12. Choose Review to submit the Mass Retirement Report. This step can be done at any
time after the Post process has completed.
13. When you are ready to process gains and losses for the completed mass retirement
transaction, run the Calculate Gains and Losses program. See: Calculating Gains and
Losses
Note: Gains and losses are calculated automatically when performing mass
retirements by units.
Related Topics
Viewing Assets
Tip: For best performance, find by asset number or tag number since they are unique
values.
3. Choose Retirements.
4. Query the retirement transaction you want to undo.
5. If the retirement has a status of PROCESSED, choose Reinstate. If it is PENDING,
choose Undo Retirement.
6. If the retirement has a status of PROCESSED, calculate gains and losses to reinstate
the asset. If it is PENDING, Oracle Assets deletes the retirement transaction.
Query the reinstatement transaction in the Retirements window and choose the Undo
Reinstatement button.
Note: If you reinstate a mass retirement after you have run the Calculate Gains and
Losses program, you must rerun the Calculate Gains and Losses program to process
the mass reinstatement.
Related Topics
Retiring Assets
Calculating Gains and Losses for Retirements
About Retirements
Retired Assets Without Property Classes Report and Retired Assets Without Retirement
Types Report
Retirements Report
Oracle Assets allows both partial cost and partial unit retirements. However, retirements can
only be grouped using a Batch Number, which restricts you from fully utilizing the benefit of
the Oracle Assets Mass Retirements feature.
Related Topics
BOOK_TYPE_CODE VARCHAR2(15) Optional. Use this column for the book that contains
the asset you want to retire. You must choose a book
that you have set up in the Book Controls window,
and the asset must be defined for this book. Values in
this column must be in uppercase.
ASSET_ID NUMBER Optional. Use this column for the identifier of the
asset that you want to retire. Note that the ASSET_ID
is the unique internal identifier, and not the same as
the external identifier ASSET_NUMBER.
TRANSACTION_NAME VARCHAR2(30) Optional. Use this column to note any details about
the retirement of this asset or any other details.
DATE_RETIRED DATE Optional. Use this column to indicate the date you
want to retire this asset, or you can leave it blank and
the system determines it. The date must be in the
current fiscal year, and cannot be before any other
transaction on the asset.
COST_RETIRED NUMBER Optional. Use this column for the asset cost you want
to retire.
RETIREMENT_PRORATE_ VARCHAR2(10) Optional. Enter the valid prorate convention for the
CONVENTION retirement. You can leave it blank for the system to
determine it for the asset
UNITS NUMBER Optional. Use this column for the number of units. If a
partial number of units is supplied, the distribution_id
column must be populated accordingly.
COST_OF_REMOVAL NUMBER Optional. Use this column to enter the cost of removal
of the asset, if any.
PROCEEDS_OF_SALE NUMBER Optional. Use this column to enter the proceeds from
the sale of the asset, if any.
REFERENCE_NUM VARCHAR2(15) Optional. Use this column for the reference number, if
any.
SOLD_TO VARCHAR2(30) Optional. Use this column to enter the name of the
party to whom this asset was sold.
TRADE_IN_ASSET_ID NUMBER Optional. Use this column for the asset identifier of
the new asset for which this asset was traded in. Note
that the ASSET_ID is the unique internal identifier, and
not the same as the external identifier
ASSET_NUMBER.
CALC_GAIN_ LOSS_FLAG VARCHAR2(3) Required. To run the Calculate Gains and Losses
process immediately after the retirements process,
enter YES. Otherwise enter NO.
STL_METHOD_CODE VARCHAR2(12) Optional. Use this column for the straight line method
for retirement reporting of 1250 property in a tax
book.
STL_LIFE_IN_MONTHS NUMBER Optional. Use this column for the straight line life for
retirement.
CODE_ COMBINATION_ID NUMBER(15) Optional. Use this column, together with the
LOCATION_ID and ASSIGNED_TO columns, if partial
units have been entered in the units column. The
combination of these columns determines which
assignment should be partially unit retired.
CREATION_DATE DATE Required. Use the column for the date you load this
retirement line into the FA_MASS_EXT_RETIREMENTS
table.
LAST_UPDATE_DATE DATE Required. Use the column for the date you load this
retirement line into the FA_MASS_EXT_RETIREMENTS
table.
The following table describes the columns and their dependencies found in the
FA_EXT_INV_RETIREMENTS table.
Tip: Although the depreciation program automatically processes retirements, you can
run the Calculate Gains and Losses program several times during the period to reduce
period end processing time.
Note: If you are using Multiple Reporting Currencies (MRC), you can only run the Calculate
Gains and Losses program using the standard Fixed Assets or MRC primary responsibility.
You cannot run this program using an MRC reporting responsibility.
When you run the Calculate Gains and Losses program using the standard Fixed Assets or
MRC primary responsibility, this program will also run automatically for the associated
reporting responsibilities. See: Multiple Reporting Currencies in Oracle Applications,
Multiple Reporting Currencies in Oracle Applications.
1. Choose Depreciation > Calculate Gains and Losses from the Navigator window.
2. In the Parameters window, enter the Book for which you want to calculate gains and
losses.
3. Choose Submit to submit a concurrent process to calculate gains and losses.
If you wish to simultaneously run this program in more than one process to reduce
processing time, Oracle Assets can be set up to run this program in parallel. For more
information on setting up parallel processing and the FA: Number of Parallel
Requests profile option, see: Profile Options and Profile Options Categories
Overview.
Related Topics
Retiring Assets
Running Depreciation
About Retirements
Depreciation Calculation
Retirement Requests
Field employees can use the Retirement Requests feature to identify and submit requests for
asset retirements. These requests are received and reviewed by those responsible for asset
retirements in Oracle Assets, who then edit the requests and complete the retirement process.
The retirement request captures all of the information about the asset that is available in the
field, such as asset category, location, date placed in service, quantity retired, serial number,
manufacturer, model number, tag number, and more. Information captured about the
retirement transaction also includes project, task, and any removal cost or sales proceeds. The
person responsible for asset retirements in Oracle Assets, the fixed asset accountant, reviews
the request, makes any necessary additions or corrections, and completes processing of the
retirement request.
An inbound API enables retirement information from external asset tracking systems to be
interfaced directly into Oracle Assets as retirement requests. Since the imported retirement
requests may result in high volumes of required processing each period, you have the option
of batch processing all imported retirement requests. Using batch processing can eliminate
the need for manual intervention and review of individual requests. See: Retiring a Group of
Assets.
Note: The Status field defaults to New and cannot be changed by field employees.
3. Using the Retirement Criteria and Additional Criteria tabs, enter the available asset
identification information.
4. From the menu, select Save to save your work.
Note: The mass transaction number is automatically created when the request is
saved. Field and accounting staff can use this number to query and track the
retirement request.
5. You can delete the retirement request by selecting Delete from the menu. You can
only delete the retirement requests that you created, and only those that have a status
of New.
The create mass retirements process finds and selects assets to be retired based on the criteria
entered in the retirement request. This process also applies retirement cost to each retirement,
based on the cost retired.
You can review the mass retirement batch and the individual assets it contains, and
subsequently edit, add, or delete information. The mass retirement transactions are then
posted into Oracle Assets.
Note: All new retirement requests have a status of New. You can change the status to
Pending or On Hold.
3. Select the Create button to create a mass retirement batch containing assets meeting
the retirement request criteria. The selection process also applies retirement cost to
each selected retirement, based on the cost retired. The status of the request changes
from New or Pending to Created.
4. To discard the mass retirement and end further processing, select the Discard button.
5. Optionally, navigate to Find Mass Retirements window to review, edit, or delete any
of the individual retirements.
You can enter or modify the cost of removal and proceeds of sale for non-project
related assets. For project related assets, the cost of removal and proceeds of sale
cannot be changed, since the retirement costs are handled separately using the
retirement cost processing feature.
6. In the Mass Retirements window, select the Retire button to submit the Post Mass
Retirements process and posts the mass retirement. The Mass Retirements Report and
the Mass Retirements Exception Report run automatically when the process
completes. The status of the mass retirement will change from Created to Pending
momentarily, and finally to Completed when the process completes.
Retirement requests originating in external systems are imported into Oracle Assets via the
Retirement Requests API. The status field of the imported request is automatically set to
Pending. Optionally, you can review the request for validity and information content.
Submitting the batch asset selection program finds all retirement requests with a status of
Pending, from these, it selects assets for retirement that meet the criteria of the requests.
The batch program generates an error log indicating if an insufficient asset quantity is found
to meet the criteria of a retirement request, or one or more of the required fields were not
populated on a retirement request. The batch process also applies retirement cost to each
selected retirement, based on the cost retired.
You can review the batch of selected assets, and use the batch posting process to post the
mass retirement batches into Oracle Assets.
1. Use the Retirement Requests API to import a retirement request from an external
system into Oracle Assets.
2. Navigate to the Mass Retirements window. Use the mass transaction number to query
the individual request you wish to review. Review the new retirement request for
valid and complete information. Add, edit, or delete information as needed.
3. Select the Create button to create a mass retirement containing assets meeting the
retirement request criteria. The selection process also applies retirement cost to each
selected retirement, based on the cost retired. The status of the request changes from
New or Pending to Created.
4. To discard the mass retirement and end further processing, select the Discard button.
5. Optionally, navigate to the Find Mass Retirements window to find, review, edit, or
delete any of the individual retirements.
Cost of Removal and Proceeds of Sale can be entered or modified for non-project
related assets. For project related assets, cost of removal and proceeds of sale cannot
be changed, since retirement costs are handled separately using the Retirement Cost
Processing feature.
6. In the Mass Retirements window, select the Retire button to submit the Post Mass
Retirements process and posts the mass retirement. The Mass Retirements Report and
the Mass Retirements Exception Report run automatically when the process
completes. The status of the mass retirement will change from Created to Pending
momentarily, and finally to Completed when the post mass retirement process
completes.
1. Use the Retirement Requests API to import retirement requests from an external
system into Oracle Assets.
2. Optionally, review the new retirement requests for valid and complete information.
Navigate to the Mass Retirements window and query all or selected imported
retirement requests. You can find all newly imported retirement requests by querying
for Pending in the Status field. Review the requests and enter any needed corrections
or additions.
3. Navigate to the Submit Request window and select the Process Pending Retirements
Criteria program.
4. The parameters include Book and Extended Search, Yes or No. Selecting Yes or No
for the Extended Search parameter will result in the following behavior:
Yes: If Yes is selected for the Extended Search Criteria parameter, and the number of
asset units found using the retirement request criteria is less than the number of units
specified in the retirement request, the system will also include assets outside of the
specified date place in service range. Assets outside the specified date place in service
range are selected on a FIFO basis.
No: If No is selected for the Extended Search Criteria parameter, and the number of
asset units found using the retirement request criteria is less than the number of units
specified in the retirement request, the system will put the request on hold.
5. Submit the Process Pending Retirements Criteria program to automatically select and
process all retirement requests with a status of Pending.
If the retirement request specifies the cost retired, it will be prorated by the original
cost.
6. Review the error log for error conditions. Possible error conditions include the
following:
o The program found an insufficient number of assets that meet the retirement
request criteria.
o The retirement request has one or more required fields that were not
populated.
7. Optionally, navigate to the Mass Retirements window to query, review, or edit the
mass retirements created. To discard a mass retirement and end further processing,
select the Discard button.
8. Optionally, navigate to Find Mass Retirements to find, review, edit, or delete any of
the individual retirements.
9. Navigate to the Submit Request window and select the Post Mass Retirements
program. The parameters include Book and Batch Name. You must select a book for
the Book parameter. The Batch Name parameter is optional. If you select a batch,
posting is limited to the batch. If you do not select a batch, the program will post all
mass retirement batches that have a status of Created, and are associated with the
selected book parameter.
The Mass Retirements Report and the Mass Retirements Exception Report run
automatically when the process completes. The status of selected mass retirements
will change from Created to Pending momentarily, and finally to Completed when the
post mass retirement process completes.
Related Topics
Viewing Assets
About Retirements
Retiring Assets
Depreciation
This chapter covers the following topics:
Running Depreciation
Rolling Back Depreciation
Depreciation Override
About the Depreciation Override Interface
Loading Depreciation Override Data
Basic Depreciation Calculation
Depreciation Calculation for Flat-Rate Methods
Depreciation Calculation for Table and Calculated Methods
Depreciation Calculations for Double Declining Table Base Methods
Depreciation Calculation for the Units of Production Method
Assets Depreciating Under Units of Production
Using the Production Interface
Entering Production Amounts
Projecting Depreciation Expense
Forecasting Depreciation
Data Archive and Purge
Archiving and Purging Transaction and Depreciation Data
Unplanned Depreciation
Bonus Depreciation
Defaulting Asset Salvage Value as a Percentage of Cost
Depreciating Assets Beyond the Useful Life
Running Depreciation
Run depreciation to process all assets in a book for a period. If you have assets that have not
depreciated successfully, these assets are listed in the log file created by Oracle Assets when
you run depreciation.
When you run depreciation, Oracle Assets gives you the option of closing the current period
if you check the Close Period check box on the Run Depreciation window. If all of your
assets depreciate successfully, Oracle Assets automatically closes the period and opens the
next period for the book. If you do not check the Close Period check box when you run
depreciation, Oracle Assets does not close the period.
Once depreciation has been processed for an asset in the current open period, you cannot
perform any transactions on those assets unless depreciation is rolled back or the current
period is closed. See: Rolling Back Depreciation.
Note: Ensure that you have entered all transactions for the period before you run
depreciation. Once the program closes the period, you cannot reopen it.
Multiple Reporting Currencies
If you are using Multiple Reporting Currencies (MRC), you can only run the Calculate Gains
and Losses and depreciation programs using the standard Fixed Assets or MRC primary
responsibility. You cannot run these programs using an MRC reporting responsibility.
When you run the Calculate Gains and Losses and depreciation programs using the standard
Fixed Assets or MRC primary responsibility, these program will also run automatically for
the associated reporting responsibilities. See: Multiple Reporting Currencies in Oracle
Applications, Multiple Reporting Currencies in Oracle Applications.
Prerequisites
Run the Assets Not Assigned to Any Cost Centers Listing and the Assets Not
Assigned to Any Books Listing to ensure that all assets are assigned to expense
accounts and books. See: Assets Not Assigned to Any Books Listing/Assets Not
Assigned to any Cost Centers Listing.
Optionally process retirements regularly throughout the period. See: Calculating
Gains and Losses for Retirements.
To run depreciation:
Note: You cannot enter transactions for the book while depreciation is running.
Oracle Assets automatically runs the Journal Entry Reserve Ledger report when you
run the depreciation program for a corporate book, and the Tax Reserve Ledger report
for a tax book, so you can review the depreciation calculated. These reports are run
automatically for the primary currency only. You can use the Standard Report
Submission (SRS) process to manually run these reports for the reporting currencies.
5. Review the log files and report after the request completes.
6. If the log file lists assets that did not depreciate successfully, correct the errors and re-
run depreciation.
Related Topics
Depreciation Calculation
Depreciation Reports
Financial adjustments and other transactions can be made to one or more assets through the
asset workbench or mass transactions. Oracle Assets will automatically rollback depreciation
on the selected assets and allow the transactions to be processed normally. The assets for
which depreciation was rolled back are automatically included in the next depreciation run.
Depreciation is rolled back automatically by Oracle Assets provided the following conditions
are met:
Related Topics
Running Depreciation
Depreciation Calculation
Depreciation Reports
Depreciation Override
Depreciation Override allows you to optionally override the depreciation amounts calculated
by Oracle Assets. Using this feature, you can manually override the calculated default
depreciation amounts for standalone and group assets.
Before running depreciation or performing adjustments, you must provide the necessary
information in the Depreciation Override window or the FA_DEPRN_OVERRIDE table, and
indicate whether the override data is for depreciation or adjustments. When running
depreciation, the system will upload and use the depreciation amounts provided in the
interface table.
If you do not use the Depreciation Override window to input the override amounts, you must
first populate the FA_DEPRN_OVERRIDE table with the necessary depreciation data. Next,
the feature uploads and overrides the system calculated depreciation amounts with the
amounts you provided in the override interface table.
Prerequisite
Note: You can assign multiple override data for each asset as long as
PERIOD_NAME and USED_BY do not overlap for records with a non-posted status.
Depreciation Example
The following table contains asset setup information used in this example.
Rate 10%
Cost 1,000,000
Salvage Value 0
Load the following override data in the FA_DEPRN_OVERRIDE table before running
depreciation:
Expected depreciation results for Asset ID 100869 are included in the following table:
Note: Currently, Oracle Assets does not support bonus depreciation amounts in the
last period of an asset's life (Qtr3-99 in this example). As a default, the depreciation
amount for Qtr3-99 is calculated as follows:
Using the override feature, you can define the bonus amount even at the last period of life for
the asset, provided ((Depreciation Reserve + Current Period Depreciation Total) = Adjusted
Recoverable Cost). If the total of depreciation reserve and current period depreciation is
greater than the adjusted recoverable cost, the system will return an error. Next, you need to
correct the amount and run depreciation again.
Adjustment Example
The following table contains asset setup information used in this example.
Rate 10%
Bonus Rule 0%
Cost 10,000
Salvage Value 0
Load the following override data in the FA_DEPRN_OVERRIDE table before performing
the adjustment:
Non-Override Example
Expected depreciation results for Asset ID 100870 are included in the following table:
Bonus Rate 0% 0% 0%
Override Example
Scenario:
The expected depreciation results for asset ID 100870 are included in the following table:
Bonus Rate 0% 0% 0%
As above, override effect will appear in the adjusted period, in this case, Qtr-1-96.
The expected depreciation results for asset ID 100870 are included in the following table:
Q1 0 438 394
Bonus Rate 0% 0% 0%
Currently, Oracle Assets does not support bonus depreciation for back-dated amortized
adjustments. If you provide override bonus depreciation amounts, and back-dated amortized
adjustments are used, the override will fail with an error.
About the Depreciation Override Interface
You can use the Depreciation Override feature to manually override the default depreciation
amounts calculated by Oracle Assets. The depreciation override information is loaded in the
FA_DEPRN_OVERRIDE table. The necessary information must be loaded prior to
depreciating or adjusting the assets that will have their depreciation overridden.
The database definition of the FA_DEPRN_OVERRIDE table does not require values for any
columns. However, to properly override the system-calculated depreciation amounts, you
should consider the points below:
Since no user interface is currently available for this feature, you must ensure the
interface table is properly populated before running depreciation or making
adjustments.
The status of the records is updated from NEW to POSTED when the record
information actually overrides the depreciation calculated by Oracle Assets.
You cannot update records after they are inserted and stored in the table. For records
with a status of New, you can delete the record and then re-enter the record with the
correct information.
BOOK_TYPE_CODE VARCHAR2(15) Use this column for the book that will Required
receive the depreciation override. You
must choose a book that you have set
up in the Book Controls window, and
the book class must be CORPORATE or
TAX.
PERIOD_NAME VARCHAR2(15) Use this column for the period on which Required
you want to perform overriding the
system-calculated depreciation
amounts.
BONUS_DEPRN_ AMOUNT NUMBER Use this column to store the override Optional
bonus depreciation amounts. For assets
with bonus depreciation, you need to
set up the bonus rule for the asset as a
prerequisite. Otherwise, depreciation
and adjustments will fail with an error.
You need to enter the overriding
amount in either the DEPRN_AMOUNT
or BONUS_DEPRN_AMOUNT column.
CREATION_DATE NUMBER(15) Use this column for the date you load Optional
this asset into FA_DEPRN_OVERRIDE
table.
You can use SQL*Loader to import depreciation override data by completing the following
steps:
Use a single interim table if possible. You can use multiple tables if the data exists in
multiple tables or files in the system from which you are loading data. In either case,
you must eventually place the data in a single table, the FA_DEPRN_OVERRIDE
table.
If you prefer, you can load data directly into the FA_DEPRN_OVERRIDE table, but
it is more difficult due to the complexity of the table.
If the data already resides within an Oracle database, there is no need to use
SQL*Loader. Simply consolidate the depreciation override information in your
interim table using SQL*Plus or import, and go directly to the next step.
In addition to the actual data text file, you must write a SQL*Loader control
file. The control file tells SQL*Loader how to import the data into your
interim table. Be sure to specify a discard file if you are planning to use
SQL*Loader to filter your data.
Once you have created your depreciation override data file and SQL*Loader
control file, run SQL*Loader to import your data. SQL*Loader produces a log
file with statistics about the import, a bad file containing records that could not
be imported due to errors, and a discard file containing all the records that
were filtered out of the import by commands placed in the control file.
Check the number of rows in the interim table against the number of records in your
original depreciation override data file or table to ensure that all depreciation override
records were imported.
The log file shows if records were rejected during the load, and the bad file shows
which records were rejected. Fix and re-import the records in the bad file.
Check several records throughout the interim table and compare them to the
corresponding records in the original data file or table. Look for missing or invalid
data. This step ensures that your data was imported into the correct columns and that
all columns were imported.
Oracle Assets prorates the depreciation taken for an asset in its first fiscal year of life
according to the prorate date. Oracle Assets calculates the prorate date when you initially
enter an asset. The prorate date is based on the date placed in service and the asset prorate
convention. For example, if you use the half-year prorate convention, the prorate date of all
assets using that convention is simply the mid-point of your fiscal year. So assets acquired in
the same fiscal year take the same amount (half a year's worth) of depreciation in the first
year. If however, you use the following month prorate convention, the prorate date is the
beginning of the month following the month placed in service, so the amount of depreciation
taken for assets acquired in the same fiscal year varies according to the month they were
placed in service.
Depreciation Rate
Calculation Basis
Oracle Assets calculates depreciation using either the recoverable cost or the recoverable net
book value as a basis. If the depreciation method uses the asset cost, Oracle Assets calculates
the fiscal year depreciation by multiplying the recoverable cost by the rate.
If the depreciation method uses the asset net book value, Oracle Assets calculates the fiscal
year depreciation by multiplying the recoverable net book value as of the beginning of the
fiscal year, or after the latest amortized adjustment or revaluation, by the rate.
Oracle Assets uses the prorate date to choose a prorate period from the prorate calendar.
For life-based methods, the prorate period and asset age then determine which rate Oracle
Assets selects from the rate table. The depreciation program calculates asset age from the
date placed in service as the number of fiscal years that you have held the asset. If two assets
are placed in service at different times, but have the same depreciation method and life,
Oracle Assets uses the same rate table, but may choose a different rate from a different
column and row in the table.
Flat-rate methods use a fixed rate and do not use a rate table.
For life-based depreciation methods, Oracle Assets uses the depreciation method and life to
determine which rate table to use. Then, it uses the prorate period and year of life to
determine which of the rates in the table to use. Note that the life of an asset has more fiscal
years than its asset calendar life if it is placed in service during a fiscal year.
Flat-rate depreciation methods determine the depreciation rate using fixed rates, including the
basic rate, adjusting rate, and bonus rate.
Flat-rate methods calculate annual depreciation as the depreciation rate multiplied by the
recoverable cost or net book value, multiplied by the fraction of year the asset was held.
Allocate Annual Depreciation Across Periods
After calculating the annual depreciation amount, Oracle Assets uses your depreciation
calendar, the divide depreciation flag, and the depreciate when placed in service flag to
determine how much of the fiscal year depreciation to allocate to the period for which you
ran depreciation.
If you choose to allocate depreciation evenly to each of your accounting periods, Oracle
Assets divides the annual depreciation by the number of depreciation periods in your fiscal
year to get the depreciation per period. If, however, you choose to allocate it according to the
number of days in each period, Oracle Assets divides the annual depreciation by the number
of days the asset depreciates in the fiscal year and multiplies the result by the number of days
in the appropriate accounting period.
Finally, Oracle Assets allocates the periodic depreciation to the assignments to which you
have assigned the asset. Oracle Assets does this according to the fraction of the asset units
that is assigned to each depreciation expense account in the Assignments window.
Related Topics
Running Depreciation
Asset Accounting
Assignments
Depreciation Calculation
Run the depreciation program independently for each of your depreciation books. The
depreciation program calculates depreciation expense and adjustments, and updates the
accumulated depreciation and year-to-date depreciation.
When you run depreciation, the depreciation program submits three separate requests to:
Calculate gains and losses for retired assets and catch up depreciation for retired and
reinstated assets
Calculate depreciation expense and adjustments for the period, and close the current
period
Run the reserve ledger report
Depreciation expense is calculated as follows:
Depreciation Calendar
The depreciation calendar determines the number of accounting periods in your fiscal year.
Prorate Calendar
The prorate calendar determines what rate Oracle Assets uses to calculate annual depreciation
by mapping each date to a prorate period, which corresponds to a set of rates in the rate table.
Period Close
Oracle Assets automatically closes the book's current period and opens the next when you run
the depreciation program. You cannot have more than one open period for a given
depreciation book.
Year-End Processing
You can close the year independently in each depreciation book. The depreciation program
automatically resets year-to-date amounts on a book the first time the depreciation program is
run on that book in a fiscal year. Oracle Assets automatically creates the depreciation and
prorate periods for your new year when you run depreciation for the last period of the
previous fiscal year.
Note: Verify the depreciation and prorate periods that Oracle Assets creates before you enter
transactions in the new year.
Suspend Depreciation
You can suspend depreciation by unchecking Depreciate in the Books window. If you
suspend depreciation of an asset when you add the asset, Oracle Assets expenses the missed
depreciation in the period you start depreciating the asset.
For table and calculated methods, Oracle Assets calculates depreciation expense for the asset
based on an asset life that includes the periods you did not depreciate it. If you suspend
depreciation after an asset has started depreciating, Oracle Assets catches up the missed
depreciation expense in the last period of life.
For flat-rate methods, Oracle Assets continues calculating depreciation expense for the asset
based on the flat-rate. For flat-rate methods that use net book value, Oracle Assets uses the
asset net book value at the beginning of the fiscal year in which you resume depreciation. The
asset continues depreciating until it becomes fully reserved.
Recoverable Cost
For depreciation methods with a calculation basis of cost, Oracle Assets calculates
depreciation using the recoverable cost. The recoverable cost is calculated as the lesser of
either the cost less the salvage value less the investment tax credit basis reduction amount, or
the cost ceiling. Oracle Assets depreciates the asset until the accumulated depreciation equals
the recoverable cost.
Adjustments
The following are some examples of financial adjustments you can expense or amortize:
For more information about amortized and expensed adjustments and how they affect
depreciation calculation, see Amortized and Expensed Adjustments.
If you enter an asset with a date placed in service before the current accounting period,
Oracle Assets automatically calculates the missed depreciation and adjusts the accumulated
depreciation on the next depreciation run.
If you provide accumulated depreciation when you add the asset, Oracle Assets does not
recalculate the accumulated depreciation. It accepts the amount you entered.
For table and calculated methods, even if the entered accumulated depreciation differs from
what Oracle Assets would have calculated, Oracle Assets does not depreciate the asset
beyond the recoverable cost. If the accumulated depreciation is too low, Oracle Assets takes
additional depreciation in the last period of the asset's life so that the asset becomes fully
reserved. If the asset's accumulated depreciation is too high, Oracle Assets stops depreciating
the asset when it becomes fully reserved, effectively shortening the asset life.
If you back date an asset transfer, Oracle Assets automatically reallocates depreciation
expense by reversing some of the depreciation charged to the "from" account, and
redistributing it proportionally to the "to" accounts. Retroactive transfers do not impact the
total depreciation. You cannot backdate a transfer to a prior fiscal year.
If you back date a retirement, Oracle Assets automatically adjusts the depreciation for the
year by the appropriate amount, resulting in a one-time adjustment in depreciation expense
for the period. Oracle Assets then computes the gain or loss using the resulting net book
value. You cannot backdate a retirement to a previous fiscal year, nor can you reinstate a
retirement performed in a previous fiscal year.
Credit Assets
You can enter a credit asset as an asset with a negative cost, and Oracle Assets credits
depreciation expense and debits accumulated depreciation each period for the life of the asset.
Depreciation Projections
Oracle Assets estimates depreciation expense for the periods for which you project
depreciation based on the financial information for your existing assets at the start of that
period. The projection includes additions, transfers, and reclassification transactions you
perform in the current period. It ignores other asset transactions you make in the current
period, such as the depreciation adjustment for retroactive additions and retroactive transfers
you enter in the current period. The program also ignores fully reserved and fully retired
assets.
If you do not start your projection beyond the current period, the projection does not include
your most recent transactions. For example, if the current period in your corporate book is
JUL-92, and you request an annual projection starting with JAN-92, Oracle Assets projects
depreciation expense based on the financial information for your existing assets as of the start
of January 1992. The projection does not include some of the transactions you entered
between January and June 1992. If instead you request an annual projection starting with
JAN-93, Oracle Assets projects depreciation expense based on the financial information for
your existing assets as of the start of July 1992.
Related Topics
Running Depreciation
Asset Accounting
Depreciation Reports
Oracle Assets uses a flat-rate and either the recoverable cost or the recoverable net book
value as of the beginning of the fiscal year to calculate depreciation using a flat-rate
depreciation method. The asset continues to depreciate until its recoverable cost and
accumulated depreciation are the same.
An asset's prorate convention and depreciation method control when Oracle Assets starts to
depreciate new assets. For assets using flat-rate methods, depreciation starts in the accounting
period that either the date placed in service or the prorate date falls into, depending on the
depreciate when placed in service flag. Oracle Assets allocates the first year's depreciation to
the accounting periods remaining in the fiscal year.
Example
Suppose your fiscal year ends in May, you have a monthly (12 period) depreciation calendar,
and you want to allocate depreciation evenly to each period in the year. You place a $10,000
asset in service in the third period of your fiscal year (AUG-92) using a half-year prorate
convention. The rate for the diminishing value (calculation basis of NBV) depreciation
method is 20%.
Since the asset is using a half-year prorate convention, the prorate date is in December--the
mid-point of your fiscal year. For assets that have a prorate date at the mid-point of the fiscal
year, depreciation expense for the first fiscal year of life is 50% of the amount for a full fiscal
year. For the asset in our example, a full fiscal year depreciation amount is $2,000 (20% of
$10,000), so the depreciation for the first year (fiscal 1993) is $1,000.
You can specify whether to start taking depreciation in the period of the date placed in
service or the prorate date using the depreciate when placed in service flag for the prorate
convention. If you elect to start depreciation in the accounting period corresponding to the
date placed in service, Oracle Assets starts to depreciate the asset in AUG-92, and the
depreciation for each period is $100 ($1000 divided by 10--the number of periods from
August to May).
If you elect to start depreciation on the prorate date, Oracle Assets does not start to depreciate
the asset until December. The depreciation for each period from DEC-92 to MAY-93 is
$166.67 ($1,000 divided by 6--the number of periods from December to May).
For methods using the net book value, you use the flat-rate and the recoverable net book
value at the beginning of each fiscal year to calculate the annual depreciation. In the second
year of the asset life (fiscal 1994), the net book value as of the beginning of the fiscal year is
$9,000. Applying the 20% rate yields an annual depreciation amount of $1,800. Oracle
Assets divides this amount evenly across all twelve accounting periods in the year, so
depreciation expense for each period is $150.
Similarly, the net book value at the beginning of the 1995 fiscal year is $7,200. Oracle Assets
calculates annual depreciation of $1,440 and divides this amount evenly to get the
depreciation amount for each period. Oracle Assets repeats this process until the asset is fully
depreciated or retired.
Calculation Basis
Flat-rate methods use a calculation basis of either the recoverable cost or recoverable net
book value to calculate annual depreciation. Assets depreciating under flat-rate methods with
a calculation basis of recoverable net book value do not become fully reserved. Rather, the
annual depreciation expense becomes smaller and smaller over time.
When you adjust an asset, Oracle Assets resets the calculation basis. If you do not check the
Strict Calculation Basis check box on the Depreciation Methods window, Oracle Assets uses
the calculation basis shown in the following table:
If you check the Strict Calculation Basis check box on the Depreciation Methods window,
Oracle Assets uses the calculation basis shown in the following table:
Amortized adjustment with amortization start date Recoverable NBV as of the beginning of
in the current period. cost the fiscal year
Amortized adjustment with amortization start date Recoverable NBV as of the beginning of
in a prior period cost the fiscal year
At the beginning of each fiscal year, Oracle Assets automatically resets each asset's year-to-
date depreciation expense to zero and recalculates the recoverable net book value as of the
beginning of the fiscal year. Oracle Assets also recalculates the recoverable net book value by
which to multiply the flat-rate when you perform an amortized adjustment or revalue an
asset.
Adjusting Rates
In some countries, the flat-rate consists of a basic rate and an adjusting rate, or loading factor.
These rates vary according to your reporting authority's depreciation regulations.
When you add an asset, you can select a basic rate and an adjusting rate. Oracle Assets
increases the basic rate by the adjusting rate to give you the adjusted rate. This is your flat-
rate for the fiscal year.
Bonus Depreciation
For reporting authorities that allow additional depreciation in the early fiscal years of an asset
life, you can assign an additional bonus rate on top of the flat-rate. Oracle Assets adds the
bonus rate to the adjusted rate to give you the flat-rate for the fiscal year. The following table
provides examples of how the rate is calculated
Fiscal Year Adjusted Rate Bonus Rate Flat-Rate for Fiscal Year
2 20% 7% 27%
3 20% 5% 25%
In this example, starting with year four, there is no bonus rate so the adjusted rate is the
normal 20%. From fiscal year four until the asset is fully reserved, the flat-rate for each fiscal
year is 20%.
Related Topics
Running Depreciation
Asset Accounting
Depreciation Reports
Table: Oracle Assets gets the annual depreciation rate from a rate table.
Calculated: For straight-line depreciation, the depreciation program calculates the annual
depreciation rate by dividing the life (in years) into one. Calculated methods spread the asset
value evenly over the life.
You can accommodate new depreciation methods using rate tables instead of formulas. Add
the appropriate rates to create a new method at any time.
Oracle Assets uses asset recoverable cost or net book value, salvage value, date placed in
service, prorate convention, depreciation method, and life to calculate depreciation for life-
based methods. Oracle Assets, using rates from a table or calculated rates, depreciates assets
with life-based depreciation methods to be fully reserved at the end of a fixed lifetime.
Determining the Depreciation Rate
The rate tables contain annual rates for each fiscal year of asset life. The annual rate varies
according to your reporting authority's depreciation regulations.
For example, some reporting authorities require that you prorate depreciation according to the
number of months you hold an asset in its first fiscal year of life. In this case, your prorate
calendar has 12 prorate periods and your rate table has 12 rates (one for each month of the
year) per year of life. Other governments require that you prorate depreciation according to
the number of days that you hold an asset in its first fiscal year of life. This means that there
is a different depreciation rate for each day of the year. Thus, the number of rates in your rate
table is a factor of 365. For example, the rate table would have 1825 rates for an asset with a
4 year life (365 x 5). This means that your prorate calendar must contain 365 prorate periods
and correspondingly, your rate table must have 365 rates (one for each day of the year) for
each year of life.
To determine the rates, calculate an annual depreciation rate for each fiscal year of an asset's
life, for each period in your prorate calendar. This rate is the annual rate for the year for an
asset where the prorate date falls into this prorate period. You do not need to calculate the
depreciation rate for each depreciation period in each year of the asset life. You only enter
annual depreciation rates in the Annual Rate field of the Rates window. The depreciation
program uses this annual depreciation rate to determine the fraction of an asset cost or net
book value to allocate to this fiscal year. It then uses the depreciation calendar and divide
depreciation flag to spread the annual depreciation over the depreciation periods of the fiscal
year.
Oracle Assets standard rate tables contain 12 rates per year of life. If your government
requires daily rates, set up the appropriate rates using the Depreciation Methods window.
An asset prorate convention and depreciation method control when Oracle Assets starts to
depreciate new assets. For assets using the straight-line method, depreciation starts in the first
accounting period that the prorate date falls into. For assets using other life-based
depreciation methods, depreciation starts in the first accounting period that either the date
placed in service or the prorate date falls into, depending on whether Depreciate When Placed
In Service is checked for the prorate convention. In both cases, Oracle Assets allocates the
first year's depreciation to the depreciation periods remaining in the fiscal year.
Example
Suppose your fiscal year ends in May, you have monthly (12 period) depreciation and prorate
calendars, and you want to allocate depreciation evenly to each period in the year. You place
a $10,000 asset in service in the third period of your fiscal year (AUG-95) using the half-year
prorate convention. Its life is 5 years and the depreciation method is 200% declining balance
with a straight-line switch and a calculation basis rule of cost. Since the asset is using the
half-year prorate convention, the prorate date is in December (the mid-point of your fiscal
year) which corresponds to prorate period 7 in your prorate calendar shown in the following
table:
Prorate Calendar
Period Number Period Name From Date To Date
For assets that have a prorate period of 7, the rates listed in the following table show a 20%
annual depreciation rate for the first year of life. If, however, you had used a prorate
convention that resulted in a prorate period at the beginning of your fiscal year, Oracle Assets
would have used the full rate for the year (40%).
Prorate Periods
Yea
1 2 3 4 5 6 7 8 9 10 11 12
r
1 .4000 .3666 .3333 .3000 .2666 .2333 .2000 .1666 .1333 .1000 .0666 .0333
0 7 3 0 7 3 0 7 3 0 7 3
2 .2400 .2533 .2666 .2800 .2933 .3066 .3200 .3333 .3466 .3600 .3733 .3266
0 3 7 0 3 7 0 3 7 0 3 7
3 .1440 .1520 .1600 .1620 .1760 .1840 .1920 .2000 .2080 .2160 .2240 .2320
0 0 0 0 0 0 0 0 0 0 0 0
4 .1020 .1094 .1107 .1120 .1131 .1142 .1152 .1200 .1248 .1296 .1344 .1392
0 4 7 0 4 1 0 0 0 0 0 0
5 .1020 .1094 .1107 .1120 .1131 .1142 .1152 .1136 .1123 .1110 .1099 .1089
0 4 7 0 5 0 0 2 2 9 6 4
6 .0000 .0091 .0184 .0280 .0377 .0475 .0576 .0663 .0748 .0833 .0916 .0998
0 2 6 0 1 9 0 2 8 1 4 6
Tot 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000
al 00 00 00 00 00 00 00 00 00 00 00 00
For the asset in this example, Oracle Assets uses a rate of 20%, so the depreciation for fiscal
1996 is $2,000 (20% of $10,000).
You can specify whether to start taking depreciation in the period of the date placed in
service or the prorate date using the Depreciate When Placed In Service flag for the prorate
convention. If you elect to start depreciation in the period corresponding to the date placed in
service, Oracle Assets starts to depreciate the asset in AUG-95, and the depreciation for each
period is $200 ($2,000 divided by 10--the number of periods from August to May).
If you elect to start depreciation in the period corresponding to the prorate date, Oracle Assets
does not start to depreciate the asset until DEC-95, and the depreciation for each period from
DEC-95 to MAY-96 is $333.33 ($2,000 divided by 6--the number of periods from December
to May).
For the rest of the asset life, you use annual depreciation rates that correspond to the asset's
prorate period in the rate table. Thus, in the second fiscal year of the asset's life (fiscal 1996),
Oracle Assets uses a 32% annual depreciation rate (prorate period 7, year 2.). This yields a
depreciation amount of $3,200. Oracle Assets divides this amount evenly across all the
accounting periods in the year, so depreciation expense for each period is $266.67.
Similarly, the rates for 1995, 1996, and 1997 are 19.20%, 11.52%, and 11.52% respectively.
Oracle Assets calculates annual depreciation for these years as $1,920, $1,152, and $1,152
and divides these amounts evenly across all the accounting periods in the appropriate fiscal
years.
In the asset's final year of life (fiscal 1998), the rate is 5.76%, so the final year's depreciation
is $576. This amount is divided evenly across the number of periods remaining in the asset's
life (in this case 6), to yield a depreciation amount of $96 per period.
Related Topics
Asset Accounting
Depreciation Reports
In this case depreciable basis will be either cost or net book value based on the
method definition.
For example, if the fiscal year is from January to December and an asset is added in
March, the rate of depreciation to be used is the rate for period 3 in each year. So, for
first year, the rate would be for Year 1, Period 3. For second year, the rate used would
be for Year 2, Period 3 and so on.
For monthly depreciation, divide the yearly depreciation by the number of periods in
the fiscal year for which the asset is held. So, continuing with the example above, in
the first year, the asset is held for 10 months (March to December) and the monthly
depreciation is calculated as: Monthly depreciation = Annual depreciation *1/10
Once the asset undergoes revaluation, the Rate Adjustment Factor (RAF) is
recalculated. The formula for the RAF recalculation is:
[New Cost - (Depreciation on New cost from DPIS till Period of Revaluation)] / New
Cost
Where:
Units of production methods depreciate the asset cost based on actual use or production each
period.
Units of production depreciation differs from other methods because it bases depreciation
only on how much you use the asset. While methods such as straight-line divide depreciation
over the asset life regardless of use, units of production disregards the passage of time.
Units of production depreciation is used for assets for which it is better to measure the lifein
terms of the quantity of the resource you expect to extract from them, such as mines or wells.
For example, the production capacity of an oil well is the number of barrels of oil you expect
to extract from it. For machinery or equipment, you measure the production capacity in terms
of the expected total hours of use.
You can enter the production capacity as the expected total production or expected total use.
First, you enter the units of production depreciation method, production capacity, and unit of
measure. You then enter the production each period to depreciate the asset according to
actual use that period.
For a units of production depreciation method, Oracle Assets uses asset cost, cost ceiling,
salvage value, capacity, and production entered for the period to calculate depreciation. It
depreciates assets according to the actual production you enter. Oracle Assets calculates the
period depreciation rate by dividing the production for the period by the capacity. The
depreciation for the period is the depreciation rate multiplied by the recoverable cost.
Oracle Assets then allocates the period depreciation to the depreciation expense accounts to
which you have assigned the asset. Notice that for units of production depreciation there is no
annual depreciation amount.
The units of production method does not use depreciation expense ceilings. Also, since
depreciation for these assets is calculated on actual production, if you resume depreciation for
an asset, reinstate the asset, or perform a prior period transaction, there is no missed
depreciation.
Related Topics
Depreciation Reports
Production Interface
You can load production automatically each period using the production interface. You also
can enter or update production manually in the Periodic Production window.
Production Amount
The start date and end date you enter to which production amounts apply must fall within a
single depreciation period in Oracle Assets.
You cannot enter production for dates before the asset's prorate date in the corporate book or
for a period for which you have already run depreciation.
You cannot enter production for periods prior to the current open period in your corporate
book.
You also cannot enter production for date ranges which overlap. For example, if you enter
production for 01-JUN-1995 through 15-JUN-1995, you cannot enter production for 15-JUN-
1995 through 30-JUN-1995. You can enter production for 16-JUN-1995 through 30-JUN-
1995.
You can enter production for dates in the future to calculate depreciation projections for
future periods. You can update the projected amounts when you know the actual production
for the period and want to actually depreciate the asset.
Retirements
If you have entered production information for future periods to project depreciation expense,
you may have to remove this projected production information before you retire a units of
production asset. Oracle Assets uses all of the production amounts you entered for dates
before the retirement prorate date to calculate depreciation expense. If your retirement prorate
date is after the retirement date, you may have to remove projected production to avoid using
it to calculate actual depreciation expense.
When you partially retire a units of production asset, you must manually adjust the capacity
in the Books window. Adjust the capacity to reflect the decrease only for production not
already taken, since you already entered the actual production amounts.
If you accidentally enter too much production causing the asset to become fully reserved, you
can enter negative production amounts to correct the error.
If you continue to use an asset after it is fully reserved, Oracle Assets ignores the production
information you enter.
If you enter a retroactive addition or reinstatement, you must enter the missed production
information so Oracle Assets can calculate depreciation. If you enter a retroactive retirement,
Oracle Assets reverses the depreciation taken since the date of the retirement.
Category Defaults
You can specify a production capacity and unit of measure that you usually use for assets in a
category. When you enter an asset in this category, Oracle Assets defaults the capacity and
unit of measure. You can override the default values for an individual asset if necessary.
Restrictions
You cannot enter production for a construction-in-process (CIP) asset before you capitalize it.
Similarly, you cannot enter production for a an asset before its prorate date. If you use a
prorate convention such as actual months, you can enter production for the period you added
the asset.
You cannot enter or upload units of production assets with accumulated depreciation. Instead,
add the asset with zero accumulated depreciation, and then provide the life-to-date production
amount for the current period in the periodic production table using the Periodic Production
window. Oracle Assets uses the production amount you enter to calculate the catchup
depreciation.
You can change the method from calculated, table, or flat-rate to production only in the
period you add the asset.
Since Oracle Assets only stores production amounts for an asset in the corporate book, there
are some restrictions on changing depreciation information in corporate or tax books.
An asset can have a production method in the tax book only if it has a production method in
the corporate book. You can change the depreciation method from production to calculated,
table, or flat-rate type in the corporate book only if the asset does not use a production
method in any associated tax book. An asset can have any kind of method in the tax book and
a production method in the corporate book.
The capacity must be the same in all books in which the asset uses a production method. You
can change the capacity for the asset in the corporate book only. Use Mass Copy to copy the
capacity adjustment to each tax book.
Mass Copy
Use Mass Copy to copy adjustments to your tax books. If you use a units of production
method in a tax book, you must Mass Copy from the associated corporate book each period
to ensure that the capacity is up-to-date.
Mass Copy always copies capacity adjustments for your units of production assets, regardless
of the Mass Copy rules you specified for the book. If you do not allow amortized adjustments
in your tax book, Mass Copy copies an amortized capacity adjustment as an expensed
adjustment.
Related Topics
1. Use an import program or utility to export data from your feeder system and populate
the FA_PRODUCTION_INTERFACE table.
2. Run the Upload Production program to move your production information into Oracle
Assets.
3. Run the Production History report to review the status of all imported items.
4. Use the Periodic Production window to review or change your production
information.
Related Topics
PRODUCTION: Numeric column. The production amount for the asset between Start_Date
and End_Date.
START_DATE: Date column. The first date to which this production amount applies.
END_DATE: Date column. The last date to which this production applies
Related Topics
(ASSET_NUMBER,
PRODUCTION,
START_DATE DATE "DD-MON-YYYY",
END_DATE DATE "DD-MON-YYYY")
Production Information
For each asset and date range for which you want to enter a production amount, you must
specify the following information in the SQL*Loader script:
Asset Number
Production Amount
Start Date
End Date
Important: You must enter the start and end dates in your data file in the same
format which you specify in the SQL*Loader script.
Remember that you must enter the asset number exactly as it appears in Oracle Assets. For
example, do not to enter the asset number 'uopasset1' in the script file when your asset
number is actually 'UOPASSET1'.
Running SQL*Loader
To execute the SQL*Loader script and load your production data into the production
interface, type the following at the system prompt:
$ sqlload <account_name/password>
control = production_information.ctl
Related Topics
If you have not yet run depreciation for a period, you can update or reload production
amounts for the same date ranges. Oracle Assets overwrites the production amounts
with the new production if you reload.
Related Topics
Optionally enter production for multiple non-overlapping date ranges within a single
period.
If you have not yet run depreciation for a period, you can update production amounts
if necessary.
Related Topics
Depreciation Reports
You can run depreciation projection only for the current depreciation parameters set up in
your system. If you need to project depreciation for scenarios other than your current setup,
you can run what-if depreciation using parameters that are not yet set up in your system. See:
Forecasting Depreciation.
Note: You cannot run depreciation projections for group or member assets, or any asset using
the unit of production depreciation method in budget books.
Prerequisites
Define fiscal years, depreciation and prorate calendars, and prorate conventions for
the periods for which you want to run the projection. See: Creating Fiscal Years,
Specifying Dates for Calendar Periods, and Specifying Dates for Prorate Conventions.
If you want to project depreciation for assets depreciating under the units of
production method, enter production amounts for the periods for which you want to
run the projection. See: Entering Production Amounts.
You can summarize the results by year, quarter, month, or any other interval. For
example, you can choose a monthly or quarterly calendar.
3. Enter the Number of Periods for which you want to project depreciation. You can
project depreciation expense for the current open period or any number of future
periods, on up to four depreciation books at once.
Related Topics
Forecasting Depreciation
You can use what-if depreciation analysis to forecast depreciation for groups of assets in
different scenarios without making changes to your Oracle Assets data. You can run what-if
depreciation analysis on assets defined in your Oracle Assets or on hypothetical assets that
are not defined in Oracle Assets.
Important: You may use What-if Analysis to project depreciation for a group asset.
However, you may not create a hypothetical group asset. Note that Prorate Convention has no
relevance to group or member assets.
To perform what-if depreciation analysis in Oracle Assets, you enter different combinations
of parameters for a set of assets in the What-If Depreciation Analysis window. When you run
what-if analysis based on the parameters you entered, Oracle Assets automatically launches a
report, from which you can review the results of the analysis. You can run what-if analysis
for as many scenarios as you like. Each time you run what-if analysis, Oracle Assets launches
a separate report.
If you are satisfied with the results of your analysis, you can enter the new parameters in the
Mass Changes window to update your assets according to the parameters you specified in the
what-if analysis.
You may want to run what-if depreciation analysis for several different scenarios for
comparison purposes. You can run what-if depreciation analysis for any number of scenarios.
The results of an analysis will not overwrite the results of previous analyses.
Note: What-if Depreciation cannot be run for assets with the Units of Production method.
Note: You cannot run What-if Analysis for hypothetical assets in the reporting
currency.
5. Enter the book containing the assets for which you want to run what-if analysis.
6. In the Assets to Analyze tabbed region, enter the parameters you want to use to
identify the set of assets for which you want to run what-if depreciation analysis.
OR
In the Hypothetical Assets tabbed region, enter the parameters to identify the
hypothetical asset for which you want to run what-if depreciation analysis.
See: Parameters.
OR
8. Submit the What-If Depreciation Analysis report from the Request Center.
9. Review the results of the What-If Depreciation Analysis Report.
10. Update your assets according to the specified parameters in the Mass Changes
window
OR
Parameters
You run what-if depreciation analysis based on parameters you specify in the What-If
Depreciation Analysis window in Oracle Assets. You enter these parameters for purposes of
analysis only. The parameters you enter in these windows do not affect depreciation of your
Oracle Assets data.
Use the Assets to Analyze tabbed region when you want to perform what-if depreciation
analysis on assets that exist in your Oracle Assets system. You use this group of parameters
to tell Oracle Assets on which assets to perform what-if analysis. If you leave the optional
fields blank, Oracle Assets defaults to performing analysis on all possible assets. The
following table provides explanations of the parameters:
Asset Number Optional You can enter a beginning range, and ending range, or both. If both
fields are blank, Oracle Assets performs analysis on all assets in the
specified book. If only the beginning asset number is specified, Oracle
Assets performs analysis on all assets including and following the
beginning asset number. Similarly, if only the ending asset number is
specified, Oracle Assets performs analysis on all assets up to and
including the ending asset number.
Dates in Optional You can enter a beginning range, and ending range, or both. Similar to
Service the Asset Number field, if you leave both fields blank, Oracle Assets will
perform analysis on all assets in the specified book, or on all assets
preceding or following the beginning or ending date.
Description Optional If you only want assets of a particular description included in your
analysis, enter the description.
Category Optional If you only want assets of a particular category included in your analysis,
enter the category.
Analyze Fully Optional Check the Analyze Fully Reserved Assets check box to include fully
Reserved reserved assets in your analysis.
Assets
Use the Hypothetical Assets tabbed region when you want to perform what-if depreciation
analysis on assets that have not been defined in your Oracle Assets system. The following
table provides explanations of the parameters:
Use this group of parameters to indicate the depreciation rules you want applied in the
analysis. If you leave any of the fields blank, Oracle Assets applies the rules already set up in
Oracle Assets. You can enter any combination of parameters. No specific parameters are
required, but you must enter at least one parameter. The following table provides
explanations of the parameters:
Parameter Explanation
Method Enter the depreciation method, for example, flat-rate. This field is not required,
however, if you do enter a depreciation method in this field, it affects other fields
you can enter, depending on the value you entered in the Method field. If you
enter a life-based method, the Life field appears where you can enter the life of
the asset. If you enter a rate-based method, the Rate field appears where you can
enter the rate.
Life Enter the life of the asset in years and months. If you entered a value in the
Method field, it must be a life-based method for the Life field to be valid.
Rate Enter the depreciation rate. If you entered a value in the Method field, it must be a
rate-based method for the Rate field to be valid.
Prorate Enter the prorate convention you want applied to the assets in the what-if
Convention analysis.
Salvage Value Enter the percentage of the cost of your assets that should be equivalent to the
% salvage value, based on the following formula:
Salvage Value=Cost x Default Percentage
Amortize Check the Amortize Adjustments check box if you want your adjustments to be
Adjustments amortized in your analysis. If you do not check the check box, adjustments will be
expensed on the analysis.
Bonus Rule If you will be using bonus rules, add the bonus rule used to depreciate the asset.
Process
After you have entered the parameters you want used in your analysis, select the Run button
to launch the What-if Depreciation Report or the Hypothetical What-If Report.
For every asset you specified, Oracle Assets will compute depreciation data for the number of
periods you specified.
Related Topics
The purge program removes the depreciation expense and adjustment transaction records for
the book and year you specify. However, it does not remove the asset identification,
financial, and assignment information for your assets, including assets you retired or that
became fully reserved during that fiscal year.
Oracle Assets maintains an audit trail of which fiscal years you have archived, purged, and
restored, and how many records were processed. If your system fails during a purge, you can
safely resubmit it. Oracle Assets only processes those records which it has not yet processed.
You must purge fiscal years in chronological order. Before you purge a fiscal year, you must
archive and purge all earlier fiscal years. You cannot purge periods in the current fiscal year.
If your current period is the first period of a new fiscal year, you cannot purge the previous
period. You can only restore the most recently purged fiscal year, so you must restore fiscal
years in reverse chronological order. You cannot archive and purge the period prior to the
current period.
Purge Security
You must allow purge for the depreciation book you want to purge in the Book Controls
window. To prevent accidental purge, leave Allow Purge unchecked for your books, and
check it only just before you perform a purge.
You submit archive, purge, and restore in the Archive and Purge window. Oracle Assets
provides this window only under the standard Fixed Assets Administrator responsibility. You
should limit access to this responsibility to only users who require it.
Related Topics
Contact your Database Administrator to find out if you need to update this factor. You can
tell your Database Administrator that the Sizing Factor specifies how many kilobytes of
storage to reserve for the initial extent. The default value is 100.
You can determine approximately how many rows Oracle Assets will archive for a fiscal year
using the following SQL script. You can expect to have about six FA_ADJUSTMENTS rows
per transaction performed that year, and one FA_DEPRN_DETAIL row and one
FA_DEPRN_SUMMARY row for each asset for each period in each book.
To find out about how many FA_ADJUSTMENTS rows Oracle Assets will archive:
select count(ADJ.ASSET_ID)
from FA_ADJUSTMENTS ADJ,
FA_DEPRN_PERIODS DP,
FA_FISCAL_YEAR FY
where
FY.FISCAL_YEAR = Fiscal Year To Archive and
DP.CALENDAR_PERIOD_OPEN_DATE >= FY.START_DATE and
DP.CALENDAR_PERIOD_CLOSE_DATE <= FY.END_DATE and
ADJ.PERIOD_COUNTER_CREATED = DP.PERIOD_COUNTER;
To find out about how many FA_DEPRN_DETAIL rows Oracle Assets will archive:
select count(DD.ASSET_ID)
from FA_DEPRN_DETAIL DD,
FA_DEPRN_PERIODS DP,
FA_FISCAL_YEAR FY
where
FY.FISCAL_YEAR = Fiscal Year To Archive and
DP.CALENDAR_PERIOD_OPEN_DATE >= FY.START_DATE and
DP.CALENDAR_PERIOD_CLOSE_DATE <= FY.END_DATE and
DD.PERIOD_COUNTER = DP.PERIOD_COUNTER;
To find out about how many FA_DEPRN_SUMMARY rows Oracle Assets will archive:
select count(DD.ASSET_ID)
from FA_DEPRN_DETAIL DD,
FA_DEPRN_PERIODS DP,
FA_FISCAL_YEAR FY
where
FY.FISCAL_YEAR = Fiscal Year To Archive and
DP.CALENDAR_PERIOD_OPEN_DATE >= FY.START_DATE and
DP.CALENDAR_PERIOD_CLOSE_DATE <= FY.END_DATE and
DD.PERIOD_COUNTER = DP.PERIOD_COUNTER;
You can determine the average rowsize for each table using something like the following
SQL script. You can expect each row to be about 50 bytes.
select avg(nvl(vsize(column_1),0)) +
avg(nvl(vsize(column_2),0)) +
. . .
avg(nvl(vsize(column_N),0))
from table_name;
Related Topics
If you later need the data online, you can restore it. To restore a fiscal year you need
to:
Archiving Data
When you perform the archive, Oracle Assets assigns a reference number to it and copies the
depreciation expense and adjustment transaction records to three temporary tables:
FA_ARCHIVE_SUMMARY_<Archive_Number>
FA_ARCHIVE_DETAIL_<Archive_Number>
FA_ARCHIVE_ADJUSTMENT_<Archive_Number>
You can export the temporary archive tables onto tape or any storage device. If you need
these records again, you can restore them. You must archive records before you can purge
them, and Oracle Assets prevents you from running purge if these tables do not exist. You
should not drop the tables until after you have exported the tables and run purge.
Purging Data
Oracle Assets prevents you from running purge if the temporary archive tables from the
archive transaction do not exist. Since the archive number is part of the temporary table
name, Oracle Assets purges only the records that were archived during the archive you
specify.
After you purge your database, contact your Database Administrator to export, drop, and
recreate the tables from which you purged data. By recreating these objects, you can reduce
the memory each object occupies in your tablespace and perhaps increase the performance of
your system.
You can tell your Database Administrator that you purged from the
FA_DEPRN_SUMMARY, FA_DEPRN_DETAIL, and FA_ADJUSTMENTS tables. After
recreating the tables and importing the data, check that all the appropriate indexes were
recreated. The Oracle Assets Technical Reference Manual provides information on which
indexes each database table requires.
Restoring Data
To restore records that you have purged from Oracle Assets, you must first import the tables
from your archive, then perform the restore. You do not need to archive the records before
you purge them again.
Since the archive number is part of the temporary table name, Oracle Assets restores only the
records that were archived during that archive you specify.
Related Topics
Archiving and Purging Transaction and Depreciation Data
Prerequisites
If necessary, update the FA:Archive Table Sizing Factor profile option. See: Profile
Options and Profile Options Categories Overview
Allow Purge for the book in the Book Controls window before you perform the purge.
See: Defining Depreciation Books.
Oracle Assets automatically assigns an Archive Number when you save your work.
Related Topics
Unplanned Depreciation
Unplanned depreciation is a feature used primarily to comply with special depreciation
accounting rules in Germany and the Netherlands. However, you also can use this feature to
handle unusual accounting situations in which you need to adjust the net book value and
accumulated depreciation amounts for an asset without affecting its cost.
For more specific information about using the unplanned depreciation feature to satisfy
statutory requirements in Germany, see: Unplanned Depreciation Report.
You can enter unplanned depreciation amounts by asset and book for any current period
during the useful life of an asset. You can enter unplanned depreciation for an asset in both
the corporate and/or tax books. When you enter unplanned depreciation, Oracle Assets
immediately updates the year-to-date and life-to-date depreciation, and the net book value of
the asset. You can change the depreciation method after entering unplanned depreciation.
The unplanned depreciation expense you enter must not exceed the current net book value
(cost - salvage value - accumulated depreciation) of the asset. If necessary, you can enter
multiple unplanned depreciation amounts, both positive and negative, in a single period,
provided that the net amount does not exceed the current net book value of the asset. Thus, it
is possible to enter unplanned amounts that back out depreciation taken in prior periods,
including previously entered unplanned depreciation amounts.
When you enter unplanned depreciation expense, you can choose in which period to begin
amortization of the asset's remaining net book value. You can begin amortization in the
current or a subsequent period, or you can choose not to amortize the remaining net book
value. Note that if you do not amortize the unplanned depreciation or make an amortized
adjustment in a subsequent period, the asset will be fully reserved before the end of the useful
life. If you choose to amortize in a subsequent period, simply enter an unplanned depreciation
amount of zero, and check the Amortize from Current Period check box. Oracle Assets will
begin to amortize the remaining net book value as of that period.
Oracle Assets uses the unplanned depreciation amount, in addition to regular depreciation, to
calculate depreciation for the period in which you entered the unplanned depreciation. When
you create journal entries for the general ledger, Oracle Assets posts the expense due to
unplanned depreciation to the account you selected when you entered the unplanned
depreciation for the asset.
You can enable or disable unplanned depreciation entry by responsibility if you want to allow
or restrict user access to this function. See: Function Security in Oracle Assets.
View Unplanned Depreciation Amounts
You can use the Financial Information inquiry windows to view the effects of the unplanned
depreciation amounts you enter. Oracle Assets includes unplanned depreciation amounts in
the current and prior period accumulated depreciation, year-to-date depreciation, and net
book value amounts of the asset. The View Depreciation History window includes unplanned
depreciation amounts in the depreciation expense per period for each asset and book. Note
that unplanned depreciation amounts appear as ADJUSTMENT transactions.
Note: Unplanned depreciation in the period the asset is added is not tracked as an adjustment
transaction in the system. The effect is reflected in the net book value and accumulated
depreciation amounts for the asset.
If you want to view unplanned depreciation amounts separately, use the Transaction Detail
window. In this window, you can view the unplanned depreciation type and the unplanned
depreciation expense account for each unplanned amount.
Restrictions
You cannot enter unplanned depreciation for assets shared between balancing segments. In
other words, you cannot allocate unplanned depreciation amounts to specific distributions of
an asset. Oracle Assets posts the unplanned depreciation expense only to the depreciation
expense account you enter in the Unplanned Depreciation window.
You cannot enter unplanned depreciation for assets depreciating under table-based methods.
If you need to enter unplanned depreciation for an asset depreciating under a table-based
method, you must first change the depreciation method to a method that is not table-based.
You cannot enter unplanned depreciation to a unit of production asset that was placed in
service in the current period. You can only add unplanned depreciation to a unit of production
asset that has historical reserves.
You cannot make expensed adjustments to assets for which you have previously entered
unplanned depreciation and have since amortized the amount. You may, however, perform
expensed adjustments to the asset until you choose to amortize the unplanned depreciation
amount. In addition, you cannot perform a mass change for assets that have unplanned
depreciation.
Examples
You place an asset in service with a life of five years, and a cost of 120,000 DEM. The
depreciation method is straight-line. There is no salvage value. The calendar has four periods
per year. The following table shows quarterly depreciation amounts for the first seven
quarters:
Year of Net Book Value (Start Depreciation Unplanned Accumulated
Life of period) Expense Depreciation Depreciation
In Year 2, Quarter 4 you enter an unplanned depreciation amount of 10,000 DEM. You
choose NOT to amortize the unplanned amount this period. Oracle Assets continues
depreciating the asset taking the regular depreciation expense in subsequent periods until you
choose to amortize the unplanned depreciation or make an amortized adjustment.
You place an asset in service with a life of five years, and a cost of 120,000 DEM. The
depreciation method is straight-line. There is no salvage value. The calendar has four periods
per year.
You enter an unplanned depreciation of 10,000 DEM in Year 2, Quarter 4, but you choose to
amortize the unplanned depreciation expense over the remaining life of the asset, starting in
the period following the unplanned depreciation. The following table shows quarterly
depreciation amounts:
* Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life
Using the asset from the previous example, you enter another unplanned depreciation of -
5,000 DEM in Year 4, Quarter 4, which partially reverses the previous unplanned
depreciation. Oracle Assets amortizes the unplanned depreciation amount from the current
period since you chose to amortize the unplanned depreciation from Year 2, Quarter 4 (See
Example 2) for the same asset. The following table shows quarterly depreciation amounts:
* Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life
You place an asset in service with a life of five years, and a cost of 120,000 DEM. The
depreciation method is straight-line. There is no salvage value. The calendar has four periods
per year.
You enter an unplanned depreciation in Year 1, Quarter 3, which you amortize from the
following period, and then perform an amortized cost adjustment of 30,000 DEM in Year 2,
Quarter 1. The new cost is 150,000 DEM and there is no catchup depreciation since this is an
amortized adjustment. The following table shows quarterly depreciation amounts:
** Depreciation Expense Per Period = Net Book Value / Remaining Periods in Life
For Year 1, Quarter 4, the depreciation expense per period is 92,000 / 17 = 5,412 DEM
Oracle Assets includes the unplanned depreciation amount when it calculates the
accumulated depreciation.
Note: If you choose to amortize unplanned depreciation in the current period, and then
perform a cost adjustment on the same asset in the same book, Oracle Assets automatically
amortizes the cost adjustment as well as the unplanned depreciation amount. You cannot
expense the cost adjustment.
If you choose to expense an unplanned depreciation amount, and then perform an expensed
cost adjustment, Oracle Assets will override the unplanned depreciation amount to expense
the cost adjustment. You can re-enter the unplanned depreciation for the asset later if
necessary.
Related Topics
Note: You cannot mass copy unplanned depreciation amounts from the corporate to
the tax book. If you want to enter the same unplanned depreciation in the tax book,
you must enter it manually.
4. Optionally enter a reason for the unplanned depreciation in the Comments field. You
can use this field to find the transaction later if necessary.
5. Choose the Unplanned Depr button to open the Unplanned Depreciation window.
6. Choose the unplanned depreciation Type. See: Entering QuickCodes.
7. Enter the amount of unplanned depreciation expense as a positive or negative
currency amount. Unless you are entering unplanned depreciation for a credit asset,
the unplanned depreciation amount cannot exceed the net book value of the asset.
8. Enter the complete unplanned depreciation expense account.
9. Check the Amortize From Current Period check box to amortize the unplanned
depreciation starting in the current period.
Alternatively, leave the check box unchecked if you want to amortize the remaining
net book value in a subsequent period. Then, in the period you want amortization to
start, enter an unplanned depreciation amount of zero for the same asset and expense
account, and check the Amortize From Current Period check box. Oracle Assets
amortizes the net book value starting in the period you perform this change.
Note: The value of this check box overrides the value of the Amortize Adjustment
check box in the Books window.
If you make any amortized adjustment, for example a cost or life adjustment, to the
asset after entering an expensed or amortized unplanned depreciation, Oracle Assets
begins amortizing the remaining net book value, which includes the unplanned
depreciation amount, from the period you make the amortized adjustment.
Related Topics
Bonus Depreciation
The bonus rate is applied based on either the cost or on the nbv following the depreciation
method calculation basis. That is, the bonus rate is based on the asset cost for straight-line,
but on the nbv for flat rate methods using nbv as the calculation basis:
You can also set up Oracle Assets to charge bonus reserve to an account that is different from
the normal accumulated depreciation expense.
You can also set up Oracle Assets to charge bonus depreciation reserve to a different account
from that of the normal accumulated depreciation account.
Rate Tables
Bonus Rule 1: VEHICLES
1 1 20%
2 2 10%
3 3 5%
1 3 40%
- - -
- - -
1 1 20%
2 2 15%
3 3 15%
4 8 -10%
Depreciation Methods
The examples presented in the following tables illustrate how bonus depreciation works in
various situations. and use the rate tables and depreciation methods provided:
T_COST Method
Attributes for the following table are Type = TABLE, Basis = COST, Life = 8 year and 1
prorate period per year.
2 1 0.09
3 1 0.06
4 1 0.15
5 1 0.15
6 1 0.15
7 1 0.15
8 1 0.15
9 1 0.00
T_NBV Method
Attributes for the following table are Type = TABLE, Basis = NBV, Life = 3 year and 1
prorate period per year.
1 1 0.40
2 1 0.50
3 1 1.00
- - -
- - -
- - -
- - -
- - -
- - -
Method: STL
Life: 4 years
Bonus Bonus
Depreciation Accumulated Total Accum
Quarter Deprn Deprn NBV
Expense Depreciation Depreciation
Expense Reserve
The following tables illustrate calculations using a table-based depreciation method where the
depreciable basis is the net book value of the asset:
Asset Number: 102
Method: T_NBV
Life: 3 years
Bonus Bonus
Depreciation Accumulated Total Accum
Quarter Deprn Deprn NBV
Expense Depreciation Depreciation
Expense Reserve
The following tables illustrate calculations using a table-based depreciation method with
negative bonus rates:
Asset Number: 103
Method: T_COST
Life: 8 years
Bonus Bonus
Depreciation Accumulated Total Accum
Quarter Deprn Deprn NBV
Expense Depreciation Depreciation
Expense Reserve
Related Topics
Bonus Depreciation
Additions
Adjustments
Mass Copy
You define a default salvage value percentage for a particular category, book, and range of
dates placed in service in the Asset Categories window. See: Entering Default Depreciation
Rules for a Category.
When you perform transactions that affect asset cost, Oracle Assets uses this default
percentage to calculate the salvage value according to the following formula:
Additions
When you add an asset using Mass Additions or QuickAdditions, Oracle Assets calculates the
default salvage value using the cost you enter and the default salvage value percentage. If you
do not specify a default percentage, Oracle Assets uses a default salvage value of zero. To
change the salvage value, make a salvage value adjustment in the Books window of the Asset
Workbench. See: Changing Financial and Depreciation Information.
You can override the default salvage value when you add the asset during Detail Additions.
Oracle Assets displays the calculated salvage value, and you can change it to a different
amount if necessary.
Book: US CORP
Dates Placed in Service: 01-JAN-1990 until 31-DEC-1999
Default Salvage Value Percentage = 5%
Category: AUTO.LUXURY
Date Placed in Service: 16-DEC-1995
Cost: 50,000 USD
Adjustments
If you adjust the cost of an asset or perform another transaction which affects asset cost, such
as adding an invoice line, Oracle Assets recalculates the salvage value using the new cost.
For example, in 1997 you buy a new radio for the luxury automobile you added to the US
CORP book. To record this cost, you add an invoice of 500 USD. The adjusted cost is 50,500
USD, and the new salvage value is 50,500 * 5% = 2525 USD.
Mass Copy
When you Mass Copy additions, cost adjustments, or salvage value adjustments to a tax
book, there are three strategies by which you can affect asset salvage value in your tax book.
You must choose one of these strategies when you enable Mass Copy for a book in the Book
Controls window. You can choose one of the following options from the Salvage Value
poplist: Copy, Do Not Copy, and Use Default Percent. See: Entering Accounting Rules for a
Book.
In Example 1, 2, and 3, the following rules apply for the US TAX book:
Category: AUTO.LUXURY
Dates Placed in Service: 01-JAN-1990 until 31-DEC-1999
Default Salvage Value Percentage = 10%
In Q1-95, you add a luxury automobile to the US CORP book. The cost is 100,000 USD, and
the salvage value is 15,000 USD. You mass copy this transaction to the US TAX book in the
same quarter. The following table provides examples of how mass copy works in various
situations:
If You Use This Mass Copy Strategy... The New Salvage Value in US TAX Is...
You place an asset in service in the US CORP and US TAX books as illustrated in the
following table:
You adjust the asset cost in the US CORP book to 20,000 USD, leaving the salvage value at
2500 USD. You then Mass Copy the cost adjustment to the US TAX book. The following
table shows how mass copy works in these situations:
If You Use This Mass Copy Strategy... The New Salvage Value in US TAX Is...
Note: Oracle Assets only mass copies the cost adjustment if the cost is the same in both
books before the adjustment.
You place an asset in service in the US CORP and US TAX books as illustrated in the
following table:
You adjust the salvage value in the US CORP book to 1000 USD (cost remains 25,000 USD).
You Mass Copy the salvage value adjustment to the US TAX book. The following table
shows how mass copy works in these situations:
If You Use This Mass Copy Strategy... The New Salvage Value in US TAX Is...
Note: Oracle Assets only mass copies the adjustment if the salvage value is the same in both
books before the adjustment.
Related Topics
You can set up a default limit for each asset category, book, and range of dates in service in
the Asset Categories window. See: Entering Default Depreciation Rules for a Category.
For assets using a straight-line depreciation method, you can use the Set Extended Life
window to control the amount of depreciation expense taken for each period. If you do not
specify an extended life in years, Oracle Assets continues to depreciate the asset at the same
rate it depreciated during the last fiscal year of the asset's normal useful life.
Additions
When you add an asset to a book, category, and date placed in service range for which you
set up a default depreciation limit as an amount, Oracle Assets calculates the recoverable
cost using the following formula:
For example, an asset cost of 100,000 yen with a depreciation limit of 1 yen has a recoverable
cost of 100,000 - 1 = 99,999 yen.
When you add an asset for which you set up a default depreciation limit percentage, Oracle
Assets calculates the recoverable cost using the following formula:
For example, an asset cost of 100,000 yen with a depreciation limit of 95% has a recoverable
cost of 100,000 * 95% = 95,000 yen.
If you add the asset using Detail Additions, Oracle Assets shows the recoverable cost in the
Books window. You can override this value if necessary. If you add the asset using
QuickAdditions or Mass Additions, Oracle Assets automatically calculates the recoverable
cost for the asset. You can adjust the recoverable cost at any time during the normal useful
life of the asset. This does not affect the depreciation expense during the normal useful life,
unless the recoverable cost is less than the cost less the salvage value.
Note: You cannot adjust the recoverable cost for assets that do not depreciate using the
special depreciation limits. For these assets, the recoverable cost must equal (cost - salvage
value).
Depreciation
Depreciation Methods
If you define a depreciation limit, you must use a straight-line or flat-rate depreciation
method for the asset.
During the normal useful life of the asset, the amount of depreciation taken per fiscal year
depends solely on the cost less the salvage value. For example, you place in service an asset
with a cost of 100,000 yen and a salvage value of 1000 yen. The asset depreciates using a
straight-line method and a nine year life. Regardless of the depreciation limit, the
depreciation expense for this asset is (100,000 - 1000) / 9 = 11,000 yen per year for the first
nine years.
In the years following the useful life, Oracle Assets continues to depreciate the asset until
accumulated depreciation equals recoverable cost. Note that recoverable cost is calculated by
(cost - depreciation limit amount) or (cost * depreciation percent limit). By default, the
amount of depreciation taken per period is the minimum of the following:
Depreciation expense per period in the last fiscal year of the useful life
Recoverable cost less the life-to-date depreciation
For assets depreciating under a straight-line method, the corresponding formula is:
For assets using a straight-line depreciation method, you can control the depreciation expense
taken per period in the extended life. To do this, specify the length of the extended life in
years in the Set Extended Life window.
Depreciation per period = (1/ periods per year)*(Salvage Value/Extended Life in years)
Example 1
1 9000 9000
2 9000 18,000
: : :
9 9000 81,000
For the first ten years, Oracle Assets takes an annual depreciation expense of (100,000 -
10,000) / 10 = 9000 yen. If there are four periods per year and you are dividing depreciation
evenly, Oracle Assets takes a depreciation expense of 2250 yen per period.
In the 11th year, depreciation expense is also 9000 yen for the year, or 2250 yen per period.
In the 12th year, the depreciation expense is 999 yen. Thus Oracle Assets fully reserves the
asset in the first period of this year. Note that in the final year, Oracle Assets does not divide
the remaining recoverable cost evenly among the periods in the fiscal year. The depreciation
expense per period remains the same in all but the last period of life, when it is equal to the
amount necessary to fully reserve the asset.
Example 2
1 90,000 90,000
2 90,000 180,000
3 90,000 270,000
4 90,000 360,000
6 25,000 475,000
For the first five years, Oracle Assets takes an annual depreciation expense of (500,000 -
50,000) / 5 = 90,000 yen. If there are 12 periods per year and you divide depreciation evenly,
Oracle Assets takes depreciation expense of 7500 yen per period.
In the sixth year, the depreciation expense is 25,000 yen for the year. Depreciation expense is
7500 yen per month for the first three months, and 2500 yen in the fourth month.
Example 3
Based on this information, the depreciable basis (4,000,000 - 400,000) is 3,600,000. The
recoverable cost (4,000,000 - 1,000) is 3,999,000. The annual depreciation amount
(3,600,000/4) is 900,000.
The depreciation over the useful life of the asset is illustrated in the following table:
Year Cost (Won) Salvage Value Deprn Basis Annual Deprn. NBV
1 4,000,000 400,000 3,600,000 900,000 3,100,000
When the asset has completed its useful life, you query the asset in the Set Extended Life
window. You enter the number of years to depreciate the salvage value, for example, three
years.
The depreciation over the extended life of the asset is illustrated in the following table:
Year Cost (Won) Salvage Value Deprn Basis Annual Deprn. NBV
A list of values window appears containing the books in which you can set the
extended life of the asset.
Accounting
This chapter covers the following topics:
Create Accounting
The Create Accounting - Assets concurrent program creates journal entries for transaction
events in Oracle Assets. The journal entries can be transferred to and posted in General
Ledger. If you choose not to transfer the journal entries to General Ledger at this time, you
can run the Transfer Journal Entries to GL - Assets concurrent program to do this at a later
time.
Note: If you are upgrading from Release 11i and you have asset books set up, then the
upgrade program automatically sets the value of the FA: Use Workflow Account Generation
profile option to Yes, meaning the account generation rules set up in Oracle Workflow will
be used.
You should analyze your current customizations in the Oracle Workflow setup. If you need to
use the rules in Oracle Workflow for generating code combinations for asset transactions, do
one of the following:
Book Type Code: Choose the corporate book or the tax book from the list of values.
Process Category: Choose the transaction event from the list of values for which you want
to run Create Accounting. If this field is left blank, then Create Accounting is run for all
transaction events in Oracle Assets.
End Date: The default value for this is the system date. You can change the date. All
transactions with an accounting date that is the same or prior to this date will be processed by
this program.
Accounting Mode: The default value is Final. You can change the value to Draft. If the
accounting is done in Draft mode, the accounting can be re-run later again in Draft mode or
in Final mode.
If the mode is Draft, you can neither transfer accounting entries to General Ledger nor post
them in General Ledger.
Errors Only: The default value is No. Select Yes to limit the creation of accounting to
events for which accounting has previously failed. If you select Yes, the process selects only
those events that have a status of Error for processing. Select No to process all events. This
field is required.
Report: The default value is summary. You can select Detail or No Report The value
determines whether there will be a report output and also whether the output will be in
Summary or in Detail.
Transfer to General Ledger: The default value is Yes. You can select No if you do not want
to transfer journal entries to General Ledger.
Post in General Ledger: This field in enabled only if the Transfer to General Ledger value is
set to Yes. The default value for this field is No. If you set the value to Yes, the journal
entries that are transferred to General Ledger will be posted in General Ledger.
General Ledger Batch Name: This field is enabled only if the Transfer to General Ledger
value is set to Yes. You can optionally enter a batch name for the transfer. The batch name
will be prefixed to the Journal Entry Batch name.
Include User Transaction Identifiers: The default value is No. You can set the value to Yes
if you want the transaction identifiers to appear in the report output.
Event Model
Oracle Assets creates accounting events for every asset transaction that has accounting
impact. The Create Accounting process creates subledger accounting entries for these
accounting events.
For example, an asset transaction takes place when an asset is acquired. Simultaneously
Oracle Assets creates an accounting event for this asset addition. When you run the Create
Accounting process, accounting entries are generated and transferred to General Ledger for
this event.
Note: You do not need to run depreciation to process accounting for additions.
Event Entities
Similar accounting events called event classes are grouped under event entities. Oracle Assets
groups all the accounting events classes into the following four event entities
Transactions: This event entity groups the following event classes: Additions,
Adjustment, Capitalization, Category Reclass, CIP Additions, CIP Adjustments, CIP
Category Reclass, CIP Retirements, CIP Revaluation, CIP Transfers, CIP Unit
Adjustments, Depreciation Adjustments, Retirements, Retirement Adjustments,
Revaluation, Terminal Gain and Loss, Transfers, Unit Adjustments, and Unplanned
Depreciation.
Depreciation: This event entity groups the following event classes: Depreciation and
Rollback Depreciation.
Inter Asset Transactions: This event entity groups the following event classes:
Source Line Transfers, CIP Source Line Transfers, and Reserve Transfers.
Deferred Depreciation: This event entity groups the following event classes:
Deferred Depreciation.
Some event classes are further divided into event types. For example, the Retirements event
class is divided into the Retirements and Reinstatements event types. This is done to provide
more granular accounting flexibility.
Event classes are associated with process categories using the Event Class options. Process
categories allow you to run Create Accounting for a specific process. For example, if you
want to run accounting for the Revaluation transaction then you can specify the Revaluation
process category while running Create Accounting program.
Asset Accounting
Run the Create Accounting process to create accounting entries.
Note: You do not need to run Depreciation before creating accounting transactions. You can
run the Create Accounting process as many times as necessary within a period.
Journal Entries
The Create Accounting process creates journal entries for the appropriate ledger. You can
review these journal entries in the general ledger and post them.
Oracle Assets creates adjusting journal entries to depreciation expense, bonus expense,
accumulated depreciation accounts, and bonus reserve accounts when you enter prior period
additions, transfers, or retirements:
For a prior period addition, Oracle Assets creates journal entries for the missed
depreciation
For a prior period transfer, Oracle Assets reverses a portion of the depreciation
expense posted to the "from" depreciation expense account and posts it to the "to"
depreciation expense account
For prior period retirements, Oracle Assets creates journal entries that reverse the
depreciation taken for periods after the retirement prorate date
Depreciation Adjustments
Oracle Assets creates separate journal entries for adjustments to depreciation expense and
current period depreciation. You can review the effect of your adjustment transaction and
your current period depreciation expense separately in the general ledger.
You can create journal entries for any general ledger. If you do not use Oracle General
Ledger, you can copy the journal entry information from the GL tables.
Oracle Assets creates journal entries for the following general ledger accounts:
Accumulated Depreciation
Asset Clearing
Asset Cost
Bonus Expense
Bonus Reserve
CIP Clearing
CIP Cost
Cost of Removal Gain, Loss, and Clearing
Deferred Accumulated Depreciation
Deferred Depreciation Expense
Depreciation Adjustment
Depreciation Expense
Intercompany Payables
Intercompany Receivables
Net Book Value Retired Gain and Loss
Proceeds of Sale Gain, Loss, and Clearing
Revaluation Amortization
Revaluation Reserve
Revaluation Reserve Retired Gain and Loss
Debit (Dr.) A debit to the asset cost, asset clearing, bonus expense, CIP cost, CIP clearing,
depreciation expense, proceeds of sale clearing, or intercompany receivables account is an
addition to the account. A debit to the accumulated depreciation, bonus reserve, cost of
removal clearing, or intercompany payables account is a subtraction from the account. In the
journal entry examples, debits are in the left column.
Credit (Cr.) A credit to the accumulated depreciation, bonus reserve, cost of removal
clearing, or intercompany payables account is an addition to the account. A credit to the asset
cost, asset clearing, bonus expense, CIP cost, CIP clearing, depreciation expense, proceeds of
sale clearing, or intercompany receivables account is a subtraction from the account. In the
journal entry examples, credits are in the right column.
If you integrate Oracle Assets with Oracle General Ledger, use the Enter Journals window in
Oracle General Ledger to review, change or correct your entries.
If you use a different general ledger, you can review or change entries in that general ledger.
The journal entries are for the period that the asset transaction was entered into Oracle Assets.
Oracle Assets creates these journal entries when you run the Create Accounting - Assets
program.
The asset cost, accumulated depreciation, bonus reserve, and year-to-date depreciation
numbers in the following tables are end of quarter balances. The depreciation expense
numbers are per period.
Note: In the following examples, if you have set up specific bonus expense and bonus reserve
accounts, they behave like depreciation and accumulated depreciation accounts. However,
bonus expense and bonus reserve are treated separately in certain cases.
Depreciation
Additions and Capitalizations
Adjustments
Transfers and Reclassifications
Revaluations
Retirements and Reinstatements
Tax Accumulated Depreciation Adjustments
Related Topics
Running Depreciation
Oracle Assets creates the following journal entries for a current period depreciation charge of
$200 and a bonus charge of $50:
Related Topics
Depreciation Calculation
Running Depreciation
Capitalization
For manual additions, Oracle Assets gets the clearing account from the category. For mass
additions, the clearing account comes from your source system.
Example: The recoverable cost is $4,000 and the method is straight-line 4 years.
You purchase and place the asset into service in Year 1, Quarter 1.
Payables System
You place an asset in service in Year 1, Quarter 1, but you do not enter it into Oracle Assets
until Year 2, Quarter 2. Your payables system creates the same journal entries to asset
clearing and accounts payable liability as for a current period addition.
When you merge two mass additions, Oracle Assets adds the asset cost of the mass addition
that you are merging to the asset account of the mass addition you are merging into. Oracle
Assets records the merge when you perform the transaction. Oracle Assets does not change
the asset clearing account journal entries it creates for each line, so each of the appropriate
clearing accounts clears separately.
As an audit trail after the merge, the original cost of the invoice line remains on each line.
When you create an asset from the merged line, the asset cost is the total merged cost.
Oracle Assets creates journal entries for the asset cost account for the mass addition into
which the others were merged. Oracle Assets creates journal entries for each asset clearing
account. For example, you merge mass addition #1 into mass addition #2, so Oracle Assets
creates the following journal entries:
Oracle Assets
Oracle Assets creates no journal entries for deleted mass additions and does not clear the
asset clearing accounts credited by accounts payable. You clear the accounts by either
reversing the invoice in your payables system, or creating manual journal entries in your
general ledger.
Capitalization
When you capitalize CIP assets, Oracle Assets creates journal entries that transfer the cost
from the CIP cost account to the asset cost account. The clearing account has already been
cleared.
If you change the asset type from capitalized to CIP, Oracle Assets creates journal entries to
debit the CIP cost account and credit the asset clearing account. Oracle Assets does not create
capitalization or reverse capitalization journal entries for CIP reverse transactions.
Related Topics
Asset Setup Processes (Additions)
Life Adjustments
Capacity Adjustments
Expensed Adjustment
For expensed adjustments, Oracle Assets recalculates depreciation using the new information
and expenses the entire adjustment amount in the current period. Expensing the adjustment
results in a one-time adjusting journal entry.
Amortized Adjustment
For amortized adjustments, Oracle Assets spreads the adjustment amount over the remaining
life or remaining capacity of the asset. For flat-rate methods, Oracle Assets starts depreciating
the asset using the new information. You can set up your amortized adjustments to have a
retroactive start date by changing the default amortization start date (usually the system date)
to a date in a previous period. Any adjustment amount missed since the amortization start
date is taken in the current period.
If you amortize an adjustment for an asset, you cannot expense any future adjustments for
that asset in that book.
You can allow an amortized adjustment for the book in the Book Controls window.
Method Adjustments: For amortized method changes, Oracle Assets does not
recalculate accumulated depreciation, but uses the new information for the remaining
time the asset is in service.
o For table and calculated methods, Oracle Assets depreciates the cost less the
accumulated depreciation over the remaining life of the asset.
o For diminishing value methods, Oracle Assets calculates depreciation based
on the recoverable net book value of the asset as of the period you make the
change.
o If, instead, your depreciation method multiplies the flat-rate by the cost,
Oracle Assets begins using the new information to calculate depreciation.
Bonus Adjustments:
o For assets with a cost-based depreciation basis, the bonus rate is applied to the
cost.
o For assets with a net book value depreciation method basis, the bonus rate is
applied to the cost less total reserve (accumulated depreciation and bonus
reserve).
Related Topics
You can choose to expense or amortize the adjustment. See: Amortized and Expensed
Adjustments
Expensed
Related Topics
Expensed
Account Description Debit Credit
Amortized
Related Topics
Expensed
Amortized
Related Topics
Expensed
Amortized
Related Topics
Oracle Assets creates the following journal entries for a source line transfer between
capitalized assets.
When you transfer source lines from capitalized to CIP assets, Oracle Assets must back out
some of the depreciation from the capitalized asset, because CIP assets do not depreciate.
Oracle Assets creates the following journal entries for a source line transfer between
capitalized assets and CIP assets:
When you transfer source lines from CIP to capitalized assets, Oracle Assets takes catchup
depreciation as for any cost adjustment transaction.
Oracle Assets creates the following journal entries for a source line transfer between CIP
assets and capitalized assets:
Oracle Assets does not need to reverse depreciation expense when you transfer invoice lines
between CIP assets Because CIP assets do not depreciate.
Oracle Assets creates the following journal entries for a source line transfer between CIP
assets:
Related Topics
Changing Invoice Information for an Asset
If you want the existing asset to assume the asset category and description of the mass
addition, Oracle Assets creates a journal entry for the new total asset cost to the asset cost
account of the mass addition's category. It also creates journal entries for the clearing account
you assigned to the invoice line in accounts payable, and for the clearing or cost account of
the original addition category.
Oracle Assets creates the following journal entries for a capitalized $2,000 mass addition
added to a new, manually added $500 asset, where the asset uses the category of the mass
addition:
Related Topics
Expensed
Amortized
Account Description Debit Credit
Related Topics
Life Adjustments
Example: You place an asset in service in Year 1, Quarter 1. The asset cost is $4,000, the life
is 4 years, and you are using straight-line depreciation. In Year 2, Quarter 2, you change the
asset life to 5 years.
Expensed
Amortized
Related Topics
Rate Adjustments
Rate Adjustments - Flat-Rate Depreciation Method
Example: You place an asset in service in Year 1, Quarter 1. The recoverable cost is $4,000
and you are depreciating the asset cost at a 20% flat-rate. In Year 2, Quarter 3, you change
the flat-rate to 25%.
Expensed
Amortized
Related Topics
Depreciation Calculation
Expensed
Amortized
Related Topics
Depreciation Calculation
Capacity Adjustments
Example: You purchase an oil well for $10,000. You expect to extract 10,000 barrels of oil
from this well. Each quarter you extract 2,000 barrels of oil. In Year 1, Quarter 4 you
discover that you entered the wrong capacity. You increase the production capacity to 50,000
barrels.
Expensed
Amortized
Related Topics
In Year 2, Quarter 2, you transfer the asset from cost center 100 to cost center 200 in the
current period.
In Year 3, Quarter 4, you discover that an asset was transferred in Year 3, Quarter 3, from
cost center 100 to cost center 200.
In Year 3, Quarter 4, you transfer the asset from the ABC Manufacturing Company to the
XYZ Distribution Company.
ABC Manufacturing
XYZ Distribution
In Year 3, Quarter 4, you discover that the asset was transferred in Year 3, Quarter 3, from
the ABC Manufacturing Company to the XYZ Distribution Company.
ABC Manufacturing
XYZ Distribution
ABC Manufacturing
XYZ Distribution
Account Description Debit Credit
Unit Adjustment
A unit adjustment is similar to a transfer, since you must update assignment information
when you change the number of units for an asset. For example, you place the same $4,000
asset in service with two units assigned to cost center 100. In Year 2, Quarter 3, you realize
the asset actually has four units, two of which belong to cost center 200.
Note: If all units remain in the original cost center, Oracle Assets creates journal entries with
zero amounts.
Reclassification
Example: You reclassify an asset from office equipment to computers in Year 1, Quarter 3.
The asset cost is $4,000, the life is 4 years, and you are using straight-line depreciation.
When you reclassify an asset in a period after the period you entered it, Oracle Assets creates
journal entries to transfer the cost and accumulated depreciation to the asset and accumulated
depreciation accounts of the new asset category. This occurs when you create journal entries
for your general ledger. Oracle Assets also changes the depreciation expense account to the
default depreciation expense account for the new category, but does not adjust for prior
period expense.
Office Equipment
Computers
Office Equipment
Computers
Account Description Debit Credit
Related Topics
Assignments
Transferring Assets
Oracle Assets creates journal entries for the retirement accounts you set up in the Book
Controls window. If you enter distinct gain and loss accounts for each component of the
gain/loss amount, Oracle Assets creates multiple journal entries for these accounts. You can
enter different sets of retirement accounts for retirements that result in a gain and retirements
that result in a loss.
The retirement convention, date retired, and depreciation method control how much
depreciation Oracle Assets takes when you retire an asset.
Oracle Assets reverses the year-to-date depreciation if the asset's depreciation method does
not depreciate it in the year of retirement. In this case, when you perform a full retirement,
Oracle Assets reverses the year-to-date depreciation of the asset, and computes the gain or
loss using the resulting net book value. For partial retirements, Oracle Assets reverses the
appropriate fraction of the year-to-date depreciation and computes the gain or loss using the
appropriate fraction of the resulting net book value.
If the depreciation method takes depreciation in the year of retirement, Oracle Assets uses
your retirement convention to determine whether the asset is eligible for additional
depreciation in that year or whether some of that year's depreciation must be reversed.
When you perform a partial retirement, Oracle Assets depreciates the portion of the asset you
did not retire based on the method you use. If your depreciation method multiplies a flat-rate
by the cost, Oracle Assets depreciates the asset's cost remaining after a partial retirement. For
assets that use a diminishing value method, Oracle Assets depreciates the remaining fraction
of the asset's net book value as of the beginning of the fiscal year.
The retirement convention, date retired, and period in which you reinstate an asset control
how much depreciation Oracle Assets calculates when you reinstate an asset.
When you reinstate a retired asset, Oracle Assets usually calculates some additional
depreciation expense in the period in which you perform the reinstatement, unless you
perform it in the same period that you retired the asset. This additional depreciation is the
depreciation that would have been taken if you had not retired the asset.
Example: You place an asset in service in Year 1, Quarter 1. The asset cost is $4,000, the life
is 4 years, and you are using straight-line depreciation. In Year 3, Quarter 3, you sell the asset
for $2,000. The cost to remove the asset is $500. The asset uses a retirement convention and
depreciation method which take depreciation in the period of retirement. You retire
revaluation reserve in this book.
If you enter the same account for each gain and loss account, Oracle Assets creates a single
journal entry for the net gain or loss as shown in the following table:
Gain/Loss 600.00
Example: You discover that you retired the wrong asset. Oracle Assets creates journal entries
for the reinstatement to debit asset cost, credit accumulated depreciation, and reverse the gain
or loss you recognized for the retirement. Oracle Assets reverses the journal entries for
proceeds of sale, cost of removal, net book value retired, and revaluation reserve retired.
Oracle Assets also reverses the journal entries you made to clear the proceeds of sale and cost
of removal.
Oracle Assets also creates journal entries to recover the depreciation not charged to the asset
and for the current period depreciation expense.
Example: You place an asset in service in Year 1, Quarter 1. The asset cost is $4,000, the life
is 4 years, and you are using straight-line depreciation. In Year 2, Quarter 1, you retire the
asset. In Year 2, Quarter 4, you realize that you retired the wrong asset so you reinstate it.
If you add an asset with an accumulated depreciation equal to the recoverable cost, it is fully
reserved upon addition. When you retire it, Oracle Assets does not back out any depreciation,
even if you assigned the asset a depreciation method that backs out all depreciation in the
year of retirement. However, it creates all the other journal entries associated with retiring a
capitalized asset.
Reinstatement Transactions
When you reinstate an asset retired in the current accounting period that the calculate gains
and losses program has not yet processed, the retirement transaction is deleted, and the asset
is immediately reinstated. No journal entries are created.
When you reinstate an asset retired in a previous accounting period or already processed in
the current period, the existing retirement transaction gets a new Status REINSTATE, and the
asset is reinstated when you process retirements. Oracle Assets creates journal entries to catch
up any missed depreciation expense.
Related Topics
About Retirements
Retiring Assets
Example 1: You place an asset in service in Year 1, Quarter 1. The asset cost is $10,000, the
life is 5 years, and you are using straight-line depreciation.
In Year 2, Quarter 1 you revalue the asset using a revaluation rate of 5%. Then in Year 4,
Quarter 1 you revalue the asset again using a revaluation rate of -10%.
Revaluation Rules:
Oracle Assets bases the new depreciation expense on the revalued remaining net book value.
In Year 5, Quarter 4, at the end of the asset's life, you retire the asset with no proceeds of sale
or cost of removal.
Period (Yr, Qtr.) Asset Cost Deprn. Expense Accum. Deprn. Reval. Reserve
REVALUATION 1
REVALUATION 2
Example 2: You place an asset in service in Year 1, Quarter 1. The asset cost is $10,000, the
life is 5 years, and you are using straight-line depreciation.
In Year 2, Quarter 1 you revalue the asset using a revaluation rate of 5%. Then in Year 4,
Quarter 1 you revalue the asset again using a revaluation rate of -10%.
Revaluation Rules:
For the first revaluation, the asset's new revalued cost is $10,500. Since you do not revalue
the accumulated depreciation, Oracle Assets transfers the balance to the revaluation reserve
in addition to the change in cost.
Since you are also not amortizing the revaluation reserve, this amount remains in the
revaluation reserve account until you retire the asset, when Oracle Assets transfers it to the
appropriate revaluation reserve retired account. Oracle Assets bases the new depreciation
expense on the revalued net book value.
For the second revaluation, the asset's revalued cost is $9,450. Again, since you do not
revalue the accumulated depreciation, Oracle Assets transfers the balance to the revaluation
reserve along with the change in cost.
You retire the asset in Year 5, Quarter 4, with no proceeds of sale or cost of removal.
REVALUATION 2
Example 3: You place an asset in service in Year 1, Quarter 1. The asset cost is $10,000, the
life is 5 years, and you are using straight-line depreciation.
In Year 2, Quarter 1 you revalue the asset using a rate of 5%. Then in Year 4, Quarter 1 you
revalue the asset again using a rate of -10%.
Revaluation Rules:
For the first revaluation, the asset's new revalued cost is $10,500. Since you do not revalue
the accumulated depreciation, Oracle Assets transfers the entire amount to the revaluation
reserve. Since you are amortizing the revaluation reserve, Oracle Assets calculates the
revaluation amortization amount for each period using the asset's depreciation method.
Oracle Assets also bases the new depreciation expense on the revalued net book value.
For the second revaluation, the asset's revalued cost is $9,450. Again, since you do not
revalue the accumulated depreciation, Oracle Assets transfers the entire amount to the
revaluation reserve.
Period (Yr,Qtr.) Asset Cost Deprn. Expense Accum. Deprn. Reval. Amortize Reval. Reserve
REVALUATION 1
Oracle Assets creates the following journal entries each period to amortize the revaluation
reserve:
REVALUATION 2
Oracle Assets creates the following journal entries each period to amortize the revaluation
reserve:
Example 4: You place an asset in service in Year 1, Quarter 1. The asset cost is $10,000, the
life is 5 years, and you are using straight-line depreciation. The asset's life extension factor is
2 and the maximum fully reserved revaluations allowed for this book is 3.
In year 5, quarter 4 the asset is fully reserved. In Year 9, Quarter 1 you want to revalue the
asset with a revaluation rate of 5%.
Revaluation Rules:
First, Oracle Assets checks whether this fully reserved asset has been previously revalued as
fully reserved, and that the maximum number of times is not exceeded by this revaluation.
Since this asset has not been previously revalued as fully reserved, this revaluation is
allowed.
The asset's new revalued cost is $10,500. The life extension factor for this asset is 2, so the
asset's new life is 2 * 5 years = 10 years. Oracle Assets calculates depreciation expense over
its new life of 10 years. Oracle Assets calculates the depreciation adjustment of $2,000 using
the new 10 year asset life. It transfers the change in net book value to the revaluation reserve
account.
Oracle Assets revalues the accumulated depreciation using the 5% revaluation rate. The
change in net book value is transferred to the revaluation reserve account. Since you do not
amortize the revaluation reserve, the amount remains in the revaluation reserve account.
Yr1 to Yr4
Example 5: You place an asset in service in Year 1, Quarter 1. The asset cost is $10,000, the
life is 5 years, and you are using straight-line depreciation. The asset's life extension factor is
3.0 and its life extension ceiling is 2.
In Year 5, Quarter 4 the asset is fully reserved. In year 9, quarter 1 you want to revalue the
asset with a revaluation rate of 5%.
Revaluation Rules:
To determine the depreciation adjustment, Oracle Assets uses the smaller of the life extension
factor and the life extension ceiling. Since the life extension ceiling is smaller than the life
extension factor, Oracle Assets uses the ceiling to calculate the depreciation adjustment. The
new life used to calculate the depreciation adjustment is 2 * 5 years = 10 years, the life
extension ceiling of 2 multiplied by the original 5 year life of the asset.
Oracle Assets calculates the asset's depreciation expense under the new life of 10 years up to
the revaluation period, and moves the difference between this value and the existing
accumulated depreciation from accumulated depreciation to revaluation reserve.
Oracle Assets then determines the new asset cost using the revaluation rate of 5% and
revalues the accumulated depreciation with the same rate. Oracle Assets calculates the asset's
new life by multiplying the current life by the life extension factor. The asset's new life is 3 *
5 years = 15 years. Oracle Assets bases the new depreciation expense on the revalued net
book value and the new 15 year life.
Period (Yr, Qtr.) Asset Cost Deprn. Expense Accum. Deprn. Reval. Reserve
Yr1 to Yr4
Example 6: You own an asset which has been damaged during its life. You placed the asset
in service in Year 1, quarter 1. The asset cost is $10,000, the life is 5 years, and you are using
straight-line depreciation. You entered a revaluation ceiling of $10,300 for the asset.
In year 3, quarter 3 you revalue the asset's category with a revaluation rate of 5%.
Revaluation Rules:
If Oracle Assets applied the new revaluation rate of 5%, the asset's new cost would be higher
than the revaluation ceiling for this asset, so instead Oracle Assets uses the ceiling as the new
cost. The ceiling creates the same effect as revaluing the asset at a rate of 3%. Oracle Assets
bases the asset's new depreciation expense on the revalued asset cost.
Period (Yr, Qtr.) Asset Cost Deprn. Expense Accum.Deprn. Reval. Amortize Reval. Reserve
Yr1 to Yr 2
Oracle Assets creates the following journal entries each period to amortize the revaluation
reserve:
Related Topics
Revaluing Assets
Oracle Assets creates the following journal entries for the reserve adjustment:
Related Topics
Depreciation Calculation
Running Depreciation
QFA10. Explain in Asset Insurance.
Calculation Methods
Oracle Assets uses three methods to calculate the insurance value of an asset:
Value as New - This method calculates the base insurance value of the asset, based on
acquisition/production costs. This value can be indexed annually to give a current
insurance value. It can also incorporate the indexed value of transactions that affect
the asset value.
Market Value - This method calculates the current market value of the asset. Oracle
Assets automatically calculates the current value from the net book value of the asset,
incorporating indexation factors and the indexed value of any transactions that affect
the asset value.
Manual Value - This method allows you to manually enter an insurance value for an
asset, usually in agreement with the insurer. With this calculation method you can
also manually enter updates to the asset insurance value. Oracle Assets only updates
the current insurance value automatically if you enter an optional maintenance date
for the asset.
If an asset is partially retired, the insurance calculation process reduces the insurance value of
the asset in the same proportion as the current cost is reduced for the partial retirement.
For certain types of assets, such as buildings, the Swiss business practice is that the insurance
value may occasionally be reassessed by the insurance company, and manually redefined.
Indexation of the insurance value can then recommence from this point. The manual update
of an automatically calculated insurance value will only be allowed for these special Swiss
assets, which must be flagged in the Asset Insurance window.
Reports
Oracle Assets provides two reports for reviewing asset insurance information. The Asset
Insurance Data report lists all insurance policy data for an asset. The Asset Insurance Value
report lists insurance values, current insurance amounts, and a calculation of the insurance
coverage.
Prerequisites
1. From the Fixed Asset Insurance window, choose the Lines button to display insurance
policy line information.
2. At the Fixed Asset Insurance Policy Lines window, enter insurance policy
information, such as the insurance policy line number, the insurance category, and the
hazard class.
3. Enter any additional comments in the Comments field.
4. Save your work.
1. From the Fixed Asset Insurance window, choose the Maintenance button.
2. In the Fixed Asset Insurance Policy Maintenance window, update any information
that needs to be changed.
3. Save your changes.
Fixed Asset Insurance Window Reference
Assets Region
Asset Number. Contains the asset number of the asset on which you queried.
Tag Number. Contains the tag number of the asset on which you queried.
Asset Key. Contains the asset key of the asset on which you queried.
Asset Book. Contains the asset depreciation book of the asset on which you queried.
Policy Region
Insurance Company. Enter a valid insurance company name. The list of values for this field
will only display suppliers that have been set up in Oracle Payables with a supplier type of
Insurance Company.
Supplier Site. Enter the supplier site for the insurance company.
Address. The company address for the supplier site displays automatically.
Calculation Method. Enter the method of calculation to use for this asset insurance:
Value as New - the base insurance value, which can be indexed annually.
Market Value - the current market value, calculated as the base insurance value less
depreciation, which can be indexed annually.
Manual Value - a value you enter manually. This calculation method allows you to
update the Current Value field.
Note: If you enter a duplicate policy to cover another asset with the same policy
number and insurance company as an existing insurance record, the Calculation
Method automatically defaults to the method that was defined on the existing policy.
The Calculation Method must be the same for all occurrences of the same insurance
policy.
Special Swiss Asset. If the asset is a Swiss special-case asset, check the Special Swiss Asset
check box. This field will not be enabled unless you have set the profile option FA: Allow
Swiss Special Assets to Yes. See: User Profiles in Oracle Assets.
If an asset is marked as a Swiss special asset, you will be able to update the Current Insurance
Value, Insurance Index, and Base Index Date for the asset to reflect the reassessment of the
insurance value by the insurance company.
The insurance company may provide a new series of indexation factors to be applied to the
asset. You can record this by defining a new Price Index and then updating the Insurance
Index field.
Record the new insurance value provided by the insurance company, by updating the Current
Value field and recording the effective date for this new valuation in the Base Index Date
field. If the Base Index Date is set to a date in the future, the insurance value will not be
indexed again until that date is reached. The period up to this date represents a manual
maintenance period for the asset. Any adjustments or retirements affecting the asset value
during this period will not be incorporated into the new insurance value when the automatic
insurance calculations begin again.
Base Index Date. Enter the date that is used as the base date for indexation. The Base Index
Date must be one of the following:
For new assets, enter the date the asset was placed in service.
For assets purchased second-hand, enter the original date of construction of the asset.
For the Manual Value calculation method, you can enter a maintenance date. This
represents the date the optional indexation of the manual value begins.
For updated Swiss assets, record the date on which automatic indexation of the
insurance value will begin again. Until this date, you should maintain the insurance
value manually
Insurance Index. Enter the name of the price index that is used to calculate the annual
adjusted insurance value. If you want the Insurance Calculation process to automatically take
account of cost adjustments, retirements, and so on, but you do not want indexation
adjustment factors to be used, then enter a value in the Base Index Date field, but do not enter
an Insurance Index.
Base Insurance Value. Enter the base insurance value of the asset as defined in the insurance
policy. Enter one of the following:
For new assets, Oracle Assets displays the current cost of the asset. For Value as New
assets, you can overwrite this default with another value. For Current Market Value
assets, the value is shown in this field but is disabled. The value is disabled because
the Base Insurance Value is not used in this asset insurance calculation; instead, the
insurance value is derived from the asset net book value. For Manual Value assets, the
Base Insurance Value field is disabled because the Base Insurance Value is not used;
instead, you can manually enter a Current Value.
For assets purchased second-hand, enter the original construction cost of the asset.
Current Value. This field displays the current insurance value of the asset, calculated
automatically, unless you chose the Manual Value calculation method or your asset is flagged
as a Swiss special-case asset.
For Value as New, the value displayed is the indexed base insurance value. This value
will also be updated to account for transactions, such as adjustments or retirements,
that affect the asset value.
For Market Value, the value displayed is the indexed net book value of the asset
(original cost less depreciation). This value will also be updated to account for
transactions, such as adjustments or retirements, that affect the asset value.
For Manual Value, the value displayed can be updated. If you enter a maintenance
date for the asset in the Base Index Date field, indexation of the manual value begins
with this date, and then follows the Value as New calculation method.
For Swiss Assets with a calculation method of Value as New, the calculated value
will be the same as for all other assets. For Swiss Assets with a calculation method of
Current Market Value, the Current Value will calculate the insurance value following
the Value as New calculation method and adjust this value using the fraction Asset
Remaining Life / Asset Total Life. Also note that the calculated Current Value for
Swiss Assets can be manually updated.
Insured Amount. Enter the amount for which the asset is insured under that policy. The
information in this field is for reference only and is not used in the Oracle Assets
calculations.
Last Indexation Date. This field displays the end date of the closed depreciation period for
which the indexation process was last run.
Buttons
Maintenance. Use the Maintenance button to launch the Fixed Asset Insurance Policy
Maintenance window.
Lines. Use the Lines button to launch the Fixed Asset Insurance Policy Lines window
Related Topics
Insurance Category. Enter the insurance category in the Insurance Category field. Note that
an asset can only be insured once for each category of insurance, even if it is covered by
multiple insurance policies. You must have already defined your insurance category lookup
values for the lookup type FA_INS_CATEGORY (Application Developer: Application >
Validation > QuickCodes > Special).
Hazard Class. Enter the hazard class assigned to this policy line. You must have already
defined your hazard class lookup values for the lookup type FA_INS_HAZARD (Application
Developer: Application > Validation > QuickCodes > Special).
Comments. Enter any additional comments in the Comments field.
Related Topics
Policy Number. This field defaults to the policy number for the current policy record. You
can update the Insurance Company and Supplier Site for this policy. You can also update the
Calculation Method, as long as the automatic calculation routine has not yet been run for any
assets covered by this policy.
Insurance Company. This field displays the current insurance company for the policy
number. In this window, you can update the Insurance Company.
Supplier Site. This field displays the current supplier site for the policy number. In this
window, you can update the Supplier Site for this policy.
Calculation Method. This field displays the current calculation method for the policy
number. From this window, you can update the Calculation Method, as long as the automatic
calculation routine has not yet been run for any assets covered by this policy.
Related Topics
Normally, you should run the Insurance Calculation Routine program on a yearly basis to
update all your asset insurance values.
If you run the program part way through a year, the calculation process will run up to the end
of the last closed period in that year (i.e. the last period for which depreciation has been run).
You can then run the process again later in the year, when it will incorporate any new cost
adjustments, retirements, or reinstatements since the last run date, and it will also use a new
indexation factor if the factor has changed since the last run date.
The Insurance Calculation Routine program does not produce any output. When the program
finishes, the program updates the insurance values for all selected assets. You can review the
new insurance values in the Asset Insurance window or by running the Asset Insurance
Values report. See: Insurance Value Detail Report
Prerequisites
Set up insurance policy details using the Asset Insurance window. See: Overview of
Asset Insurance.
Run depreciation for at least one period of the year for which you are running the
process. See: Running Depreciation
Set up indexation factors for the year for which you are running the process. If you do
not define an index factor for that year, the process will use the latest available index
factor. See: Defining Price Indexes.
1. Navigate to Assets > Insurance > Insurance Calculation Routine to open the Submit
Request window.
If you run the process for a year where all the depreciation periods are not yet closed,
the process will run up to the end of the last closed period within the year. Before
running the insurance calculation process, you must run depreciation for at least one
period in this year. You cannot run the process for years prior to the current open
year.
If you do not enter a value, the report includes assets insured by all insurance
companies. The list of values for this field will display suppliers that have been set up
in Oracle Payables with a supplier type of Insurance Company.
Use the Insurance Data report to review insurance details for assets and to verify that the
assignments for insurance records are correct. The Insurance Data report prints all insurance
details for the selected assets.
Use the Insurance Value Detail Report to review calculations of insurance coverage for
selected assets. The Insurance Value Detail Report prints all insurance amounts for the
selected assets and displays totals at Balancing Segment level, Insurance Calculation Method
level, Insurance Company level, and Insurance Policy Number level. The insurance coverage
calculation indicates the differences between insured amounts and current insurance values.
Related Topics