Académique Documents
Professionnel Documents
Culture Documents
R 12 - FIXED ASSETS
Introduction:
R 12 - FIXED ASSETS
For detailed additions: list of information is required like: Asset
category, Asset name, cost of asset and depreciation of Asset.
Depreciation calculation is in 3 methods:
1. Straight line method
2. Diminition method
3. Production based
Straight line method: We will set a fixed amount for a fixed period as
depreciation. For example: Asset cost 1 Lac, asset life 5 years, so
depreciation per year 1 Lac / 5 = 20000
Diminition method: depreciation will be calculated on written down
value of asset.
For example:
Year 1
Asset value
Depreciation 10%
Balance
500000
50000
450000
Year 2
Depreciation 10%
Balance
45000
405000
Year 3
Depreciation 10%
Balance
40500
355000
R 12 - FIXED ASSETS
Asset reclassification is used to reclassify the assets from one category
to another category.
Projection: Through the projections we can have an idea of the future
depreciation. We can see the depreciation of a asset for the future
period also.
What if analysis: with if analysis we can analyze the differences
between two different depreciation methods.
Over ride depreciation:
a month producing 2000 units. If one month they used the plant per
day 3 shifts then the production is 3000 units. As per the regular
calculation system will consider depreciation only for 2000 units.
But if you want to consider depreciation for 3000 units we have to over
ride the depreciation. Over ride the depreciation where there is
unplanned activity takes place. System will consider first over ride
depreciation and then original depreciation.
Retirement: For every asset there will be a useful life of period. Once
this period completed every asset should me retired. Some other
reasons for retirement: Sale of Asset, Theft, Life of asset and Damage
of asset.
Roll back depreciation: If we run the depreciation without period
close, then we cannot make any modifications. Then if we want to do
any modifications we have to do Roll back depreciation.
Calendars: FA depreciation calendar & GL Accounting Calendar.
While transferring the information from FA to GL, the period name
should be same in the both calendars; otherwise data cannot be
transferred.
R 12 - FIXED ASSETS
Types of Books:
In Fixed Assets we have 3 types of books:
1. Corporate Book
2. Tax Book
3. Budget Book
Corporate Book:
This is also called Depreciation book, Asset book and Asset Register.
Corporate book is used to maintain the Asset information and to
maintain Depreciation information.
Depreciation information will be maintained by following The
Companies Act.
Tax Book:
We will maintain the depreciation information by following the Income
tax Act.
We will copy the Asset information from the corporate book to Tax
book.
We maintain companies Act and IT Act for depreciation, if the % of
depreciation is different for companies act and IT act.
Budget book:
We will maintain capital Budget information.
5
R 12 - FIXED ASSETS
The Asset information also required in the tax book.
It is an automatic activity
We will copy the asset information from the corporate book to the tax
book.
We have 2 options to copy the information:
1. Initial mass copy
2. Periodic mass copy
Type of Assets:
Assets are again 3 types as per Fixed Assets
1. Capitalized
2. CIP
3. Group Assets
Capitalized: Which Asset is started for using and Assets placed for service.
CIP: Construction in process: An asset which is under construction, for
example building under construction. CIP asset will changed to capitalized
when it starts service.
Group Assets: Grouping the assets related to same group.
R 12 - FIXED ASSETS
Depreciation: For particular period.
R 12 - FIXED ASSETS
Navigation:
System Administrator
Security Responsibility Define
Application:
Assets
Data Group:
Standard Assets
Menu:
FA _ Main
8
R 12 - FIXED ASSETS
Request Group:
Navigation:
System Administrator
Profile System
Profile
1.
2.
3.
4.
5.
Responsibility
BG
BG
HR: User
Ledger
OU
R 12 - FIXED ASSETS
KFF in FA - 3
Category KFF
Major category
Minor Category
Country
State
City
Building
R 12 - FIXED ASSETS
Navigation:
Fixed Assets
Setup Financials Flex fields Key Segments
Click on Segments
11
R 12 - FIXED ASSETS
12
R 12 - FIXED ASSETS
13
R 12 - FIXED ASSETS
We cannot define new location structure, we can use standard one available.
We can add up to 7 segments.
Navigation:
Fixed Assets
Setup Financials Flex fields Key Segments
14
R 12 - FIXED ASSETS
15
R 12 - FIXED ASSETS
Say OK
Definition will store FA _ Location _ KFV
Ensure concurrent program completed normal.
III. Asset key Flex Field:
It is optional Flex field, which is used to group the Assets based on the
Organization requirement.
We cannot define new structure but we can add up to 10 segments.
No FFQ to Asset Key Flex Field Segment
Fixed Assets
Setup Financials Flex fields Key Segments
16
R 12 - FIXED ASSETS
17
R 12 - FIXED ASSETS
Step: 1
Navigation:
Assets
Setup Financials Flex Fields Key Values
R 12 - FIXED ASSETS
Application:
Assets
Title:
Structure:
Segment:
Major Category
Click on Find
Say New
19
R 12 - FIXED ASSETS
Assets
Title:
Structure:
Segment:
Minor Category
Independent value:
20
R 12 - FIXED ASSETS
21
R 12 - FIXED ASSETS
Step: 2
Navigation:
Assets
Title:
Structure:
Segment:
Country
Say Find
22
R 12 - FIXED ASSETS
23
R 12 - FIXED ASSETS
Step: 2.2 Define State Segment values
Say Find
Say New
Enter value for State Segment
Save
24
R 12 - FIXED ASSETS
Step: 2.3 Define City Segment values
Place cursor on the Title, say view Find to go main menu
Say Find
Say New
25
R 12 - FIXED ASSETS
Step: 2.4 Define Building Segment values
Place cursor on the Title, say view Find to go main menu
Say Find
Say New
Enter vales for Building
Save.
26
R 12 - FIXED ASSETS
Step: 3
Navigation:
Application:
Assets
Title:
Structure:
Segment:
Asset key
Say Find
27
R 12 - FIXED ASSETS
Say OK
Ensure concurrent program completed normal
28
R 12 - FIXED ASSETS
SYSTEM CONTROLS
Navigation:
Setup Asset System System Controls
Change your enterprise name
No other Changes Required in the Screen
Save.
29
R 12 - FIXED ASSETS
FISCAL YEARS
Specify the start and end dates of each fiscal year for a fiscal year
name.
Create fiscal years from the oldest date placed in service through at
least one fiscal year beyond the current fiscal year.
Depreciation will fail if the current fiscal year is the last fiscal year.
You can assign different fiscal years to your different corporate books.
The calendar for a tax book must use the same fiscal year name as the
calendar for the associated tax book.
30
R 12 - FIXED ASSETS
31
R 12 - FIXED ASSETS
ASSET CALENDAR (DEPRECIATION CALENDAR)
Navigation:
Setup Asset System Calendars
32
R 12 - FIXED ASSETS
Notes:
You can use one calendar for multiple depreciation books and as both
the depreciation and prorate calendar for a book.
A tax book can have a different calendar than its associated corporate
book.
You must initially set up all calendar periods from the period
corresponding to the oldest date placed in service to the current
period.
You must set up at least one period before the current period. At the
end of each fiscal year, Oracle Assets automatically sets up the periods
for the next fiscal year.
33
R 12 - FIXED ASSETS
PRORATE CONVENTION CALENDAR
Navigation:
Setup Asset system Prorate Conventions
Divide the year in to 2 parts and enter from date to dates and enter
each period beginning date as prorated date. (Below 180 days & Above
180 days).
Save.
34
R 12 - FIXED ASSETS
DEPRECIATION METHODS
35
R 12 - FIXED ASSETS
R 12 - FIXED ASSETS
Navigation:
Setup Depreciation methods
37
R 12 - FIXED ASSETS
Under this method depreciation will be calculated based on the units
produced.
Navigation:
Setup Depreciation methods
Choose the Exclude Salvage Value check box if you want this method
to exclude the salvage value from the depreciable basis.
Production Enter
R 12 - FIXED ASSETS
Go to Formula
Define Formula
Test Formula
Say Calculate
R 12 - FIXED ASSETS
Table
ASSET BOOK
40
R 12 - FIXED ASSETS
Calendar
Accounting Rules
Natural Accounts
Define Calendars
Corporate
Tax
Budget
I. Corporate Book:
R 12 - FIXED ASSETS
We will Copy the Asset information from the Corporate book to Tax
book.
III.
Budget Book:
It is an automatic activity.
We will copy the asset information from the corporate book to the tax
book.
R 12 - FIXED ASSETS
Calendar
2.
Accounting Rules
3.
Natural Accounts
Step: 1
Calendar:
43
R 12 - FIXED ASSETS
Step: 2
Accounting Rules
44
R 12 - FIXED ASSETS
Allow Revaluation:
Natural Accounts:
45
R 12 - FIXED ASSETS
46
R 12 - FIXED ASSETS
ASSET CATEGORIES
Setup Asset System Asset Categories
Oracle Assets defaults these depreciation rules when you add an asset,
to help you add assets quickly.
The default depreciation rules that you set up for a category also
depend upon the date placed in service ranges you specify.
Category Types: 3
1. Lease
2. Non Lease
3. Lease holds Improvements
ii) Leased
47
R 12 - FIXED ASSETS
Property Types: 6
1. Personal
2. Residential
3. Real
4. Intangible
5. Property
6. Other
Step: 1
Define Asset Category
Navigation: Setup Asset System Asset Categories
Non lease
Ownership :
Owned
R 12 - FIXED ASSETS
Step: 2
Step: 3
49
R 12 - FIXED ASSETS
Save
50
R 12 - FIXED ASSETS
ASSET ADDITIONS
Type of Assets: 4
1. Expensed
2. Capitalized
3. CIP - Construction in Process
4. Group
51
R 12 - FIXED ASSETS
Step: 1
Create Asset
Click on Additions
Choose:
Description of the Asset
Category (Major & Minor)
52
R 12 - FIXED ASSETS
Asset Key
Asset type
Ownership & Bought
Manufacturer details
Say Continue
Step: 2
Books Information
Choose:
Asset book
Asset Cost
Depreciation Method
53
R 12 - FIXED ASSETS
Say Continue
Step: 3
Assignments
R 12 - FIXED ASSETS
Say OK
55
R 12 - FIXED ASSETS
ASSET ADDITIONS QUICK
Nav: Assets Asset work bench
Description
Category
Asset type: Capitalized
Supplier Name
Invoice Number
56
R 12 - FIXED ASSETS
Book:
Choose Book
Enter Cost
Depreciation method
Depreciation Rate
Prorate Convention
Assignment:
Enter Units
Employee Name
Expenses Account
Location
Say Done
57
R 12 - FIXED ASSETS
Choose Book
Say Find
58
R 12 - FIXED ASSETS
59
R 12 - FIXED ASSETS
RUN DEPRECIATION
Step: 1
Nav:
Step: 2
Nav:
60
R 12 - FIXED ASSETS
Say Find
61
R 12 - FIXED ASSETS
Click on Books
62
R 12 - FIXED ASSETS
Click on Transactions
63
R 12 - FIXED ASSETS
MASS ADDITION OF ASSETS
Step: 1
Navigation:
R 12 - FIXED ASSETS
Go to Folder Show field
Track as asset
Say OK
Save your work.
Validate, Create accounting from Actions button
65
R 12 - FIXED ASSETS
Step: 2
66
R 12 - FIXED ASSETS
Step: 3
Navigation:
Source:
Payables
67
R 12 - FIXED ASSETS
Say Import
Ensure program completed normal
Query the AP transactions in GL
Post the Journal Entries
Step: 4
68
R 12 - FIXED ASSETS
Say OK
Step: 5
R 12 - FIXED ASSETS
Navigation:
Say Find
say Open
70
R 12 - FIXED ASSETS
Post
Invoice number
Choose Asset Category & Location
Go to Asset details
Enter Description
71
R 12 - FIXED ASSETS
Say Done
Step: 6
Navigation:
Program Name:
Parameters:
72
R 12 - FIXED ASSETS
View output
73
R 12 - FIXED ASSETS
Step: 7
Navigation:
74
R 12 - FIXED ASSETS
CONVERSION OF CIP TO CAPITALIZE ASSET
Navigation:
CIP
Say Continue
choose your asset book
75
R 12 - FIXED ASSETS
Say Continue
Choose expenses account and location
Done
76
R 12 - FIXED ASSETS
Step: 2
Navigation:
Say Find
Say Capitalize
77
R 12 - FIXED ASSETS
Step: 3
Navigation:
78
R 12 - FIXED ASSETS
79
R 12 - FIXED ASSETS
ASSET TRANSFER
Employee
Expenses Account
Location
Navigation:
R 12 - FIXED ASSETS
Click on Assignments
Enter the unit number and make changes in the below line
81
R 12 - FIXED ASSETS
Say OK
Re query your asset number to view changes
Step: 1
Navigation:
82
R 12 - FIXED ASSETS
Say OK
Ensure program completed normal
83
R 12 - FIXED ASSETS
84
R 12 - FIXED ASSETS
Step: 2
Navigation
F11
Query your Mass Transaction number
85
R 12 - FIXED ASSETS
Say Run
Say OK
Say OK
Go to View Request
Ensure Mass Transfer program completed normal
86
R 12 - FIXED ASSETS
Go to View output
You can see in output, number of Success and number of failures
Step: 3
Navigation:
87
R 12 - FIXED ASSETS
ASSET CHANGES
Asset Cost
Life of the Asset
Depreciation Method and Rate
Step: 1
Navigation:
88
R 12 - FIXED ASSETS
Place the cursor on the asset number and
Click on Books
Choose Corporate Book and press tab then other fields will displayed
89
R 12 - FIXED ASSETS
Navigation:
Choose Book
You can select the following for to choose assets:
-
Asset number
Date placed in service
Category
Asset type
90
R 12 - FIXED ASSETS
Prorate convention
Depreciation method
Depreciation rate
Bonus rule
Say Preview
Go to View Request
Ensure program completed normal
91
R 12 - FIXED ASSETS
Go to View output
Step: 2
Navigation:
F11
Query Mass changes transaction number
92
R 12 - FIXED ASSETS
93
R 12 - FIXED ASSETS
Ensure program completed normal
Go to view output
Step: 3
Navigation:
94
R 12 - FIXED ASSETS
ASSET REVALUATION
In Oracle revaluation can be carried out only for the asset cost.
Revaluation can be done in 2 ways:
1. Individual Asset
2. Mass revaluation
Step: 1
Navigation:
95
R 12 - FIXED ASSETS
96
R 12 - FIXED ASSETS
97
R 12 - FIXED ASSETS
REVALUATION MASS ASSETS
Step: 1
Navigation:
Choose Book
Enter Comments
Choose Asset category
Enter Revaluation % rate
98
R 12 - FIXED ASSETS
Say OK
Say OK
View output
99
R 12 - FIXED ASSETS
Step: 2
Navigation:
100
R 12 - FIXED ASSETS
Say Run
Ensure program completed Normal
Re query mass transaction number
Status: Completed
Go to view Request to see output
101
R 12 - FIXED ASSETS
Step: 3
Query the assets in the Asset work bench to check the revaluation status
Navigation: Assets Assets work bench
Choose Book
Say Find
Place cursor on the asset
Say Books
Choose Book
Press tab
You will see the changed or revalued asset cost. Depreciation also changed
as per the revalued cost of the asset.
RECLASSIFICATION OF ASSETS
102
R 12 - FIXED ASSETS
Say Open
103
R 12 - FIXED ASSETS
Say OK
Say Done
104
R 12 - FIXED ASSETS
RECLASSIFICATION - MASS ASSETS
Step: 1
Navigation:
Choose Book
Choose category for Assets to re class
Choose new category
Select Copy Category Descriptive Flex Field to new Category
Say Preview
Go to View request
Ensure program completed normal
105
R 12 - FIXED ASSETS
View output
Step: 2
Navigation:
Step: 3
Navigation:
R 12 - FIXED ASSETS
RETIREMENT OF ASSETS
Navigation:
107
R 12 - FIXED ASSETS
Choose Book
Choose retirement date
Enter units retired
Cost of retired
Say Done
Step: 1
Navigation:
108
R 12 - FIXED ASSETS
Choose Book
Enter retire date
Retirement type: Retirement
Go to Retirement Criteria tab
Choose Category
Now Status is New
Say Create
R 12 - FIXED ASSETS
System generate mass transaction number
Go to View Request
Ensure program completed normal
View output
Step: 2
Navigation:
110
R 12 - FIXED ASSETS
Say Retire
111
R 12 - FIXED ASSETS
PROJECTIONS
Navigation:
Depreciation Projections
Choose Calendar
Enter number of periods
Choose Starting period
Choose Books
Say Run
Say OK
Ensure program completed Normal
112
R 12 - FIXED ASSETS
View output
113
R 12 - FIXED ASSETS
CALCULATE GAINS AND LOSSES
Navigation:
114
R 12 - FIXED ASSETS
View Output
115
R 12 - FIXED ASSETS
WHAT IF ANALYSIS
Navigation:
Choose Book
Currency: INR
Start period
Number of periods
Category
Say Run
116
R 12 - FIXED ASSETS
Say OK
117
R 12 - FIXED ASSETS
Choose:
Book
Period
Asset Number
Say New
Choose Book
Asset Number
Period
Depreciation amount
Status: post
To view result
118
R 12 - FIXED ASSETS
Choose Book
Say Find
PHYSICAL INVENTORY
Navigation:
119
R 12 - FIXED ASSETS
Say Open
Step: 2
Run comparisons
Navigation:
120
R 12 - FIXED ASSETS
Say Run
Say OK
Step: 3
view comparison
Navigation:
121
R 12 - FIXED ASSETS
Say Find
122
R 12 - FIXED ASSETS
SPLIT
123
R 12 - FIXED ASSETS
Step: 1
Navigation:
Step: 2
R 12 - FIXED ASSETS
Navigation:
View Request
Say Submit
Step: 3
125
R 12 - FIXED ASSETS
Say Submit
Ensure program completed normal
Step: 4
126
R 12 - FIXED ASSETS
Choose book
Say Find
R 12 - FIXED ASSETS
128
R 12 - FIXED ASSETS
Say Assignments
129
R 12 - FIXED ASSETS
Say OK
130
R 12 - FIXED ASSETS
Say OK
Select the Asset which status is on hold
Change the status to post
Choose Category
Choose Description
Say Done
Step: 5
Navigation:
131
R 12 - FIXED ASSETS
Choose Book
Say Submit
Ensure program completed normal
Step: 6
Navigation:
132
R 12 - FIXED ASSETS
TRANSFER TO GL
Step: 1
Navigation:
Fixed Assets
Create Accounting
Say OK
133
R 12 - FIXED ASSETS
Go to View request
Step: 2
Navigation:
General Ledger
Journals Import Run
Step: 3
Navigation:
Journals Enter
Choose Ledger
Source: Assets
Say find
Review unposted journals and post the journals.
R 12 - FIXED ASSETS
2. Initial mass copy
3. Periodic mass copy
135
R 12 - FIXED ASSETS
IMPORTANT REPORTS IN FIXED ASSETS
1.
2.
R 12 - FIXED ASSETS
running the Projections. Select the projection calendar, number of
periods, Starting period, the corporate book and click on the Run
button. Total Depreciation for the period will be shown as the
output in the concurrent request output.
3.
4.
5.
6.
7.
Now run the Depreciation program with the check box Close
Period Checked.
8.
9.
10.
11.
R 12 - FIXED ASSETS
1.
Checked, the period will be closed and the next period will be opened
automatically.
138