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Oracle R12 Fixed

Assets Overview
Picture removed
Picture removed
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

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Chapter 1 Oracle Assets Overview
3
Asset Additions Transfers Adjustments
Retirements
Depreciation
Journal Entries
Reports
Online inquiry
Taxes
External Manual CIP
Overview of Oracle Assets
4
Oracle Payables
Oracle
Projects
Oracle Human
Resources
Journal Entries
Oracle Purchasing
Suppliers
Spreadsheet
Budget Information
Oracle
Inventory
Invoice Lines
Oracle General Ledger
Oracle Assets
Employees
Units of Measure
Item Information
E-Business Suite Integration
5
ADI
Physical Inventory
Asset Additions
CIP assets
Asset Books Positioning
6
Corporate
Tax
Budget
Asset
Categories
Asset Calendars
Depreciation Methods
Asset Books
Assets
Assigned to
Assigned to
New assets are assigned
to a Category then to a
Book
Asset Categories Positioning
7
Asset
Categories
Corporate Book
Tax Book A
Tax Book B
Assets
Assign to
Attached to
Added to
Copied to


Oracle Payables
Oracle Projects
Oracle General Ledger
Oracle Assets
Reconciling Data in Oracle Assets
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Chapter 2 Assets Control Setup
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Agenda
Oracle Assets Key Flexfields
Asset Calendars
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Oracle Assets Key Flexfields
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Oracle Assets contains three key flexfields that must be
setup in order to run the application
Asset Category
Key Flexfield
Asset Location
Key Flexfield
Asset Key
Key Flexfield
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
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Define Fiscal Years
Define Calendars
Prorate
Calendar
Depreciation
Calendar
Assign to Asset Books
Chapter 3 Asset Books
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Agenda
Asset Books Positioning
Asset Books Regions
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Asset Books Positioning
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Corporate
Tax
Budget
Asset
Categories
Asset Calendars
Depreciation Methods
Asset Books
Assets
Assigned to
Assigned to
New assets are assigned
to a Category then to a
Book
Asset Books Regions
17
Calendar
Accounting
Rules
Natural
Accounts
Tax Rules
Define Asset Books
4 Regions
Chapter 4 Asset Categories
18
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
ADI
Manual Additions
Quick Additions
Detail Additions
Asset
Books
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 reduction
Current 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 J E
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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
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Cost adjustment Add
FA_MASS_ADDITIONS
Split Merge
Oracle Payables
3
Purge
Create Mass Additions
1
Prepare Mass Additions
2
3 4
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 XX
Cr. Accounts Payable XX
Invoice
Transferred to GL
View asset lines in the Prepare
Mass Additions Summary form
Step 1 Mass Additions Create
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FA_MASS_ADDITIONS
Tracking Expensed Items in Oracle Assets
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For those items you want to charge to expense
But also want to track in Oracle Assets
Step 2 Prepare Mass Additions
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Cost adjustment Add
Split Merge
3
FA_MASS_ADDITIONS
Where you
can
Invoice
Lines
Lines
Lines
Now in
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: 32,000
96,000 / 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
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Mass Addition line
for peripherals
1,000
Existing asset
#82586
5,000
Post Mass
Additions
Existing asset
#82586
Now 6,000
Amortize
Adjustment
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
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Depreciate the asset Capitalize a CIP asset
Add a CIP asset Build a CIP asset
Recording a CIP Asset Addition
Cost: $0
Add 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
Capitalize
Depreciate
asset
Journal entries
Apr
2010
Apr
2010
Oracle
Payables
Oracle Asset
Mgmt
Recording a Capitalization
GL
Jun
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.BLDG3
US-CA-SF-BLDG3
Locations
Employees Charles Ackroyd
Employee 33
Sandy Chen
Employee 117
General Ledger Number
Company
Cost Center
Account
Product
SubAcct
General Ledger Number
Company
Cost Center
Account
Product
SubAcct
01
110
7320
0000
000
01
120
7320
0000
000
Before After
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Performing Physical Inventory
Enter physical
inventory
View
comparison
Update assets
manually
Reconcile
differences
Run inventory
comparison
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Integrating ADI with Physical Inventory
Enter physical
inventory in ADI
FA_INV_INTERFACE
table
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
Estimated
Year 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 Units
Total 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
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Calculating the Gain or Loss from an Asset Sale
Sale
proceeds
Removal
cost
Retired
net
book value
Retired
revaluation
reserve
- - +
=
Gain/Loss
Chapter 11 Asset Accounting
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Agenda
Creating Journal Entries from Assets
Account Generator
Reports

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Assets J ournal Entries Flow
In Asset Books:
-Allow GL Posting
-Ledger Name
-Journal Sources &
Categories
Rollback
Journals?
Run Depreciation to
Generate Accounts
Create Journal Entries
Send entries to
General Ledger
Not
Posted
Yes
Post entries
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Account Generator Example Build
Asset Cost Account
Distribution CCID 01-110-7340-0000-000 (Assignments window)
Asset Category
Asset 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
Cost
Adjustments
Report
Asset
Retirements
Report
Asset
Reclassification
Reconciliation
Report
Asset
Transfer
Reconciliation
Report
Net change
Cost retired Cost
Cost
matches matches matches matches
Cost Summary Report
Ending balance subtotals
Adjustments
Reconciling Asset Cost Accounts
General Ledger Ending Account Balances
matches
matches
Additions
Cost
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Reclasses
Asset
Additions
Report
Cost
Adjustments
Report
Asset
Reclassification
Reconciliation
Report
Asset
Transfer
Reconciliation
Report
Cost
Net change
Retirements
Asset
Retirements
Report
Cost retired Cost
CIP
Capitalization
Report
Cost Assigned cost
Balance
CIP
Assets
Report
Cost
Adjustments Capitalized Transfers
CIP Detail Report
CIP Summary Report
Ending balance subtotals
Reconciling a CIP Cost Account
General Ledger Ending Account Balances
matches
Additions
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Additions Depreciation
Asset
Additions
Report

Reserve
Adjustments
Report

Asset
Reclassification
Reconciliation
Report

Asset
Transfers
Report

Accumulated
depreciation
Reserve
adjustments
Adjustments
Retirements
Asset
Retirements
Report
Cost retired
NBV retired
Depreciation
amount
Asset
Reconciliation
Reserve Ledger
Accumulated
depreciation
Reclasses Transfers
Accumulated
depreciation
Reconciling a Reserve Account
Reserve Detail Report
Reserve Summary Report
Ending balance subtotals
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Mass Additions
Create
Mass Additions
Posting Report
Cost Clearing
Reconciliation
Additions by
Source Report
Cost Adjustments
by Source Report
Reconciling Mass Additions
1
2
3
General
Ledger
76
4
Chapter 12 Asset Inquiry & Reporting
77
Agenda
Online Asset Inquiry
Oracle Asset Reporting
78
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
Book
Reference Number
Asset Numbers
Periods
Transaction Type
Category
Find by:
80
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-MONTH
VEHICLE.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
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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
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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 # 10123
Cost $110,000
Corporate Book
STL 5 Year
Year 1 Depreciation =
$ 22,000
Tax Book
MACRS 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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Thank you for your participation!