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1
Oracle R12 Fixed Assets Overview
Picture removed
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2
Agenda
Overview of Fixed Assets Asset Control Setup Asset Books Asset Categories Manual Asset Additions Mass Asset Additions CIP Asset Additions Asset Adjustments Depreciation Asset Retirements Asset Accounting Asset Inquiry & Reporting Tax Accounting
3
Chapter 1 – Oracle Assets Overview
4
Asset Additions TransfersAdjustments
Retirements
Depreciation
Journal Entries
Reports
Online inquiry
Taxes
ExternalManual CIP
Overview of Oracle Assets
5
Oracle Payables
Oracle Projects
Oracle Human Resources
Journal Entries
Oracle Purchasing
Suppliers
Spreadsheet
Budget Information
Oracle Inventory
Invoice Lines
Oracle General Ledger
Oracle Assets
EmployeesUnits of MeasureItem Information
E-Business Suite Integration
ADIPhysical InventoryAsset Additions
CIP assets
6
Asset Books Positioning
Corporate
Tax
Budget
Asset Categories
Asset Calendars
Depreciation Methods
Asset BooksAssets
Assigned to
Assigned to
New assets are assigned to a Category then to a Book
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Asset Categories Positioning
Asset Categories
Corporate Book
Tax Book A
Tax Book B
Assets
Assign to
Attached to
Added to
Copied to
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Oracle Payables
Oracle Projects
Oracle General Ledger
Oracle Assets
Reconciling Data in Oracle Assets
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Chapter 2 –Assets Control Setup
10
Agenda
Oracle Assets Key Flexfields Asset Calendars
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Oracle Assets Key Flexfields
Oracle Assets contains three key flexfields that must be setup in order to run the application
Asset CategoryKey Flexfield
Asset LocationKey Flexfield
Asset KeyKey Flexfield
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Key Flexfield Examples
Asset Category Major Category (Facilities) Minor Category (Pipelines)
Asset Location (Physical Location) Facility or Report Center Address (Building, Street, Zip, County, State, Country)
Asset Key Asset Code Legal Entity Report Center
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Defining Fiscal Years and Calendars
Define Fiscal Years
Define Calendars
Prorate Calendar
DepreciationCalendar
Assign to Asset Books
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Chapter 3 – Asset Books
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Agenda
Asset Books Positioning Asset Books Regions
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Asset Books Positioning
Corporate
Tax
Budget
Asset Categories
Asset Calendars
Depreciation Methods
Asset BooksAssets
Assigned to
Assigned to
New assets are assigned to a Category then to a Book
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Asset Books Regions
CalendarAccounting
RulesNatural
AccountsTax Rules
Define Asset Books
4 Regions
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Chapter 4 – Asset Categories
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Agenda
Asset Categories Positioning Asset Categories Regions Setup of Asset Categories
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Asset Categories
Corporate Book
Tax Book A
Tax Book B
Assets
Assign to
Attached to
Added to
Copied to
Asset Categories Positioning
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Asset Categories
Asset Categories Regions
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Chapter 5 – Manual Asset Additions
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Agenda
Asset Life Cycle Asset Additions Required Data Quick Additions Detail Additions Manual Asset Additions Journal Entries
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Birth of an Asset
Asset Depreciates
Asset Retired
FA_MASS_ADDITIONS
Oracle Payables
Oracle Projects
Other/ Legacy
Systems
ADIManual Additions
Quick Additions
Detail Additions
AssetBooks
Asset Life Cycle
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Quick Additions Detail Additions
Assets that require more information
Oracle Assets
Assets added applying default
rules
Adding Assets Manually
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Current Cost
Original Cost
Recoverable Cost
Net Book Value
Original added cost +/- any cost adjustments
Original added cost (cannot be updated after first period)Current cost - salvage value -
ITC basis reductionCurrent cost - accumulated
depreciation
Asset Cost Terminology
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The journal entry created when manually adding an asset.
Asset Cost Asset Clearing
You must create a manual journal entry in General Ledger to clear the Asset Clearing Account.
Asset Clearing Appropriate Acct
50,000 50,000
50,000 50,000
Manual Asset Additions JE
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Chapter 6 – Mass Asset Additions
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Agenda
The Mass Additions Process Mass Additions Create Prepare Mass Additions Post Mass Additions Delete Mass Additions Enter Future Transactions Create Assets Using ADI
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Mass Asset Additions Process
FA_MASS_ADDITIONS
Oracle Payables
Oracle Projects
Other Systems
Legacy System
ADI
Asset Books
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Post Mass Additions Delete Mass Additions
Delete
The Mass Additions Process
Cost adjustmentAdd
FA_MASS_ADDITIONS
SplitMerge
Oracle Payables
3
Purge
Create Mass Additions1
Prepare Mass Additions2
3 4
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Enter invoice in Payables
Charge distribution to a clearing account
Invoice lines sent to interface table
Run the Mass Additions Create
process
Dr. Asset Clearing XXCr. Accounts Payable XX
Invoice Transferred to GL
View asset lines in the Prepare Mass Additions Summary form
Step 1 Mass Additions Create
FA_MASS_ADDITIONS
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Tracking Expensed Items in Oracle Assets
For those items you want to charge to expense…
But also want to track in Oracle Assets…
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Step 2 Prepare Mass Additions
Cost adjustmentAdd
SplitMerge
3
FA_MASS_ADDITIONS
Where you can…
Invoice
LinesLinesLines
Now in…
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Merging Mass Addition Lines
Invoice # 23567
1 Asset at 55,500
Line Description Amount
1 Truck 50,000
2 Tax 5,000
3 Delivery 500
Merge
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Splitting Mass Addition Lines
Invoice # 05011954
Line Description Amount
1 Laptops 9,000
Units
3
SPL
IT
Cost 3,000
Cost 3,000
Cost 3,000
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Step 1: Merge the tax line into the truck line.
Step 2: Split one invoice into three separate assets.
Cost: 32,000
Cost: 32,000
Cost: 32,00096,000 / 3 = 32,000
Merging Then Splitting Functionality
Invoice
Line Units Item Cost
1 3
Truck 90,000
2
Tax
6,000
Invoice Total 96,000
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Adding a Mass Addition Line to an Existing Asset
Mass Addition line for peripherals
1,000
Existing asset #825865,000
Post Mass Additions
Existing asset #82586
Now 6,000
Amortize Adjustment
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Step 3 Post Mass Additions
To Post Mass Additions:
Run the Mass Additions Post
program
New assets created
Reports
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Future Transactions
FA_MASS_ADDITIONS
Current open period JAN-10
Want to add in period MAR-10
Enter in JAN-10 with future date
When MAR-10 is open
Process Pending Transactions runs
Asset added to Corp Book
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ADI Upload to Oracle Assets
Select Upload Options
SUBMIT
FA_MASS_ADDITIONS
ADI Spreadsheet Upload to Interface
Oracle Assets
POST
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Chapter 7 – CIP Asset Additions
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Agenda
CIP Asset Additions Capitalizing CIP Assets
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Adding and Capitalizing a CIP Asset
Depreciate the asset Capitalize a CIP asset
Add a CIP asset Build a CIP asset
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Recording a CIP Asset Addition
Cost: $0Add a CIP asset
Add $5,000 invoice line
Journal entries created
Oracle Assets Oracle Payables
Dr CIP Cost $5,000 Cr CIP Clearing $5,000
Dr CIP Clearing $5,000 Cr Acct Payable $5,000
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Add CIP asset CIP asset
Add invoice line
CPU Cost: $10,000
Complete system
CapitalizeDepreciate
assetJournal entries
Apr2010
Apr2010
Oracle Payables
Oracle Asset Mgmt
Recording a Capitalization
GLJun
2010
or
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Chapter 8 – Asset Adjustments
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Agenda
Types of Asset Adjustments Amortizing Asset Adjustments Physical Inventory
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Asset Adjustments
Reclass
Unit Change Change
Financial Info
Transfer Changes via APIs
Oracle Assets
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Inheriting Depreciation Rules
BUILDING-OFFICE BUILDING-MANUFACTURING
STL 30 Yrs STL 25 Yrs
Performed at the book level
Depreciation rules are inherited in both the corporate and tax books
Must Allow Mass Changes in Accounting Rules region of the asset book
You cannot choose to have assets inherit only specified depreciation rules
If you do not check the Amortize adjustments check box, adjustments will be expensed
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Recording a Reclassification
Cost $4,800
STL 4 Yr
Per 1 Per 4 Per 48
In Period 4 you reclass the asset from COMPUTER-PC to
COMPUTER-NETWORK
Reclass journal entry:Asset Cost - COMPUTER-NETWORK
Asset Cost - COMPUTER-PC
Depr Exp (current) - COMPUTER-NETWORK
4,800
4,800
Depreciation journal entry:
Acc Depr - COMPUTER-NETWORK
Acc Depr - COMPUTER-PC
100
300
400
Dr Cr
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Choosing to Expense or Amortize Depreciation Adjustments
Original Cost 7,200
Cost Adjustment 3,600
Depreciation Adj 1,000
36 Period Life In Period 11
Amortize Adjustment ?
Depreciation Adjustment Expense Per 11
1,000 40
(1,000 / 25 periods)
No Yes
Current Period
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Amortizing Adjustments Using a Retroactive Start Date
OCT-09 JAN-10 APR-10 SEP-13
Asset Added Cost Adj
Amort Start Date
End of Life
45 periods
$24,000 $7,200
APR-10 Depreciation:
Depreciation Expense $660.00 New cost [$31,200 / 48 per] + [$450 / 45 per]
Depreciation Expense Adjustment
(1) Depr Adj - $7,200/48 * 3 periods
= $450
(1) (2)
(2) [JAN-MAR $7,200 / 48 per * 3 per] + [JAN-MAR $450 / 45 per * 3 per]
$480.00
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Single Asset Transfers
Depreciation Expense Accounts
FR.GV.PA.BLDG3US-CA-SF-BLDG3
Locations
EmployeesCharles Ackroyd Employee 33
Sandy Chen Employee 117
General Ledger Number
CompanyCost CenterAccountProductSubAcct
General Ledger Number
CompanyCost CenterAccountProductSubAcct
01110
73200000000
01120
73200000000
Before After
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Performing Physical Inventory
Enter physical inventory
Viewcomparison
Update assetsmanually
Reconciledifferences
Run inventorycomparison
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Integrating ADI with Physical Inventory
Enter physical inventory in ADI
FA_INV_INTERFACEtable
Run Physical Inventory
Comparison Report
Upload
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Chapter 9 – Depreciation
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Agenda
Depreciation Methods Prorate Conventions Running Depreciation Depreciation Projections
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Elements of Depreciation
Asset Books
Prorate Convention
Prorate Calendar
Depreciation Method
Depreciation Ceilings
Investment Tax Credits
Units of Measure
Price Indexes
Depreciation
Optional Elements
Depreciation Calendar
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Prorate Conventions
Date Placed in Service
01-APR-YYYY
Prorate Convention Prorate Date Following Month 01-MAY-YYYY
Mid Month 15-APR-YYYY
Current Month 01-APR-YYYY
Half-Year 01-JAN-YYYY
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Depreciation Program Processes
Running depreciation starts the following program processes:
Generate Accounts
Calculate Gains and Losses
Depreciation Run
Reserve Ledger Reports
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Asset
EstimatedYear 2: $9,000 Year 3: $6,000
Year 1: $12,000
Year 2: ?Depreciation
Projection Report
Projecting Depreciation for an Asset
Run Projection
Year 3: ?
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Chapter 10 – Asset Retirements
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Agenda
Tracking Asset Retirement Full and Partial Asset Retirements
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Overview of Retiring an Asset
Full retirement Partial retirement
Entire units and entire cost Partial unit Partial cost
Retired asset
Asset to retire
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Fully Retiring Assets
SOLD!
Asset # 78660
Total Cost $760,000,000
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Partially Retiring Assets
Asset # 100456
2 UnitsTotal Cost $10,000
Asset # 88658
Total Cost $100,000,000
1 Unit
Cost $5,000
RETIRE
Cost $1,000,000
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Calculate Gains and Losses Program
Run to the calculate gains and losses program to: Calculate gains and losses resulting from retirements Correct the accumulated depreciation for reinstated
assets
Calculating the Gain or Loss from an Asset Sale
Sale proceeds
Removal cost
Retirednet
book value
Retired revaluation
reserve - - +
= Gain/Loss
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Chapter 11 – Asset Accounting
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Agenda
Creating Journal Entries from Assets Account Generator Reports
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Assets Journal Entries Flow
In Asset Books:
-Allow GL Posting
-Ledger Name
-Journal Sources & Categories
RollbackJournals?
Run Depreciation to Generate Accounts
Create Journal Entries
Send entries to General Ledger
Not PostedYes
Post entries
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Account Generator Example – Build Asset Cost Account
Distribution CCID 01-110-7340-0000-000 (Assignments window)
Asset CategoryAsset Cost 01-000-1540-0000-000
Default CCID 01-000-9999-0000-000 (Book Controls)
Built Asset Cost Acct 01-000-1540-0000-000
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Cost Detail Report
Retirements Reclasses Transfers
Asset Additions
Report CostAdjustments
Report
Asset Retirements
ReportAsset
ReclassificationReconciliation
Report
Asset Transfer
ReconciliationReport
Net change
Cost retired Cost
Cost
matches matches matches matches
Cost Summary ReportEnding balance subtotals
Adjustments
Reconciling Asset Cost Accounts
General Ledger Ending Account Balances
matches
matches
Additions
Cost
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Reclasses
Asset Additions
Report
CostAdjustments
Report
AssetReclassificationReconciliation
Report
Asset Transfer
ReconciliationReport
Cost
Net change
Retirements
Asset Retirements
Report
Cost retired Cost
CIPCapitalization
Report
Cost Assigned cost
Balance
CIPAssetsReport
Cost Adjustments Capitalized Transfers
CIP Detail Report
CIP Summary ReportEnding balance subtotals
Reconciling a CIP Cost Account
General Ledger Ending Account Balancesmatches
Additions
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Additions Depreciation
Asset Additions
Report
ReserveAdjustments
Report
AssetReclassificationReconciliation
Report
Asset Transfers
Report
Accumulated depreciation
Reserve adjustments
AdjustmentsRetirements
Asset Retirements
Report
Cost retired NBV retired
Depreciation amountAsset
ReconciliationReserve Ledger
Accumulated depreciation
Reclasses Transfers
Accumulated depreciation
Reconciling a Reserve Account
Reserve Detail Report
Reserve Summary ReportEnding balance subtotals
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Mass AdditionsCreate
Mass AdditionsPosting Report
Cost ClearingReconciliation
Additions bySource Report
Cost Adjustmentsby Source Report
Reconciling Mass Additions
1
2
3
GeneralLedger
4
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Chapter 12 – Asset Inquiry & Reporting
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Agenda
Online Asset Inquiry Oracle Asset Reporting
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Viewing Asset Information Online
Depreciation Book
Financial Information
Employee Purchasing Information
Invoice Supplier
Inquiry
Location
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Asset Inquiry Options
Financial Information window
Transaction History window
Asset Detail
Assignment
Source Line
Lease
BookReference NumberAsset NumbersPeriodsTransaction TypeCategory
Find by:
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Chapter 13 – Tax Accounting
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Agenda
Creating a Tax Asset Book Entering Information in Tax Books Tax Rules Deferred Taxes Adjusting Depreciation Reserves CIP Assets in Tax Books
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Creating a Tax Book
Corporate book
Tax book
Monthly calendar
Quarterly calendar
Asset 325
Asset 843
Asset 325
Asset 843
FURNITURE.DESKS Straight-line 5 years MID-MONTHVEHICLE.OWNLUXURY Straight-line 4 years MID-MONTH
FURNITURE.DESKS MACRS 5 years HALF-YEAR
VEHICLE.OWNLUXURY MACRS 4 years HALF-YEAR
Assets in Independent Asset Books
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Entering Information in Tax Books
Corporate Book
Tax Book Tax Book Tax Book
Initial Mass Copy Periodic Mass Copy Manual Entry
85
Populating the Tax Book by Periodic Mass Copy
Tax book
Corporate book May 2010 June 2010 July 2010 August 2010
(open period)
July 2010 (open period)
August 2010 (not yet open)
May 2010 June 2010
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Updating a Tax Book Manually
Asset in Corporate Book
Manually Add in Asset Workbench
Asset in Tax Book
87
Tax Book Upload Interface
Asset added to Corporate book
Asset copied to Tax book
FA_TAX_INTERFACE
Updated data in Tax Book
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Deferred Depreciation
Asset # 10123Cost $110,000
Corporate BookSTL 5 Year
Year 1 Depreciation =$ 22,000
Tax BookMACRS 3 Year
Year 1 Depreciation =$ 36,663
Year 1 Deferred Depreciation$ 14,663
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Adjusting Depreciation Reserve for All Assets
All assets in a Tax book
Adjustments made by comparing values in all
three books
Corporate book
Tax book
Control Tax book
Enter adjustment
factor
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Automatically Adding CIP Assets to Tax Books
Corporate Book
CIP Assets
Mass Additions
Tax Book
You have the option of adding and maintaining CIP assets in your tax book and corporate book simultaneously. To enable this function, select the Allow CIP Assets check box in the Book Controls window for the tax book.
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Questions and Answers
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