1/30/2018 DO YOU KNOW ALL ABOUT ORACLE FINANCIALS: CAPITALIZE TAX ON ASSETS

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DO YOU KNOW ALL ABOUT

ORACLE FINANCIALS
DO YOU KNOW ALL ABOUT ORACLE FINANCIALS

Thursday, 10 March 2016 Google+ Followers

SAURABH MODI
CAPITALIZE TAX ON ASSETS Add to circles

Asset Cost comprise of all the costs incurred until the asset is capitalized in the books (i.e., Followers list is private
cost of the asset, freight for bringing the asset to the installation area, installation/erection
costs,etc.). Recoverable taxes shouldn't be included in the cost for the assets as these taxes
will be recovered over period of time. However, in case of Non-recoverable taxes levied on the Subscribe To
assets, the non-recoverable taxes forms part of Asset cost and should be capitalized when
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asset is created in Oracle Assets.
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By default, the taxes on assets are not transferred from Payables module to Fixed Assets
Module and thus taxes on purchase of assets are never capitalized as per standard set-ups
readily available on Oracle Instance. In case the business wants the Non-Recoverable Taxes
to be included in the Asset Cost we have to do modify/update the setup in Payable's module to
ensure the same. The step by step approach is described with the supporting screen prints for
better understanding. Total Pageviews
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Navigation: Setup > Accounting Setups > Sub ledger Accounting Setup > Post-Accounting
Programs Query for Program Name 'Mass Additions Create' Home

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CAPITALIZE TAX ON ASSETS

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1/30/2018 DO YOU KNOW ALL ABOUT ORACLE FINANCIALS: CAPITALIZE TAX ON ASSETS
Select the Assignment Definition ‘Oracle Standard’ Assignment Code

Select the ‘Copy Assignment’ to create a new assignment

Enter a new assignment code and assignment name. Enter a ledger if we only want to modify
the assignment for one ledger

For the new assignment code, select the 'Accounting Class Assignments'
Insert a row, selecting ‘Non-Recoverable Tax’ from the LOV

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The ‘Mass Additions Create’ accounting class assignments is seeded by Oracle and cannot
be updated. Be sure to enable the assignment definition, and assign it to the appropriate
ledger. Tax lines will be transferred into the MERGED queue and can be reviewed in FA in the /
Assets /Asset Workbench / Source Lines window.

Now we can proceed with normal invoice creation and run create mass addition program as
usual
Create a new invoice

Key in the distribution details

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Click on ‘Calculate Tax’ tab to get tax calculated on invoice line

Validate Invoice and initiate approval and complete approval procedure (if required).

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‘Create Accounting – Final Post’ from ‘Actions’ tab

Submit ‘Mass Additions Create’ request from Others > Request > Run

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Go to ‘Assets Responsibility’
Search for invoice in ‘Prepare Mass Addition’ window from Assets responsibility

Tax lines are showing as merged and are attached to Invoice line. We need to post only
invoice line and all taxes will be included in asset cost.

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Change the queue of Invoice line to ‘Post’ and fill the mandatory details.

Click ‘done’ after filling all mandatory fields.

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Submit Run ‘Post Mass Addition’

Query for asset from ‘Asset Workbench’

Check ‘Financial Inquiry’ for the asset. Now, Asset cost is inclusive of non-recoverable tax.

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1/30/2018 DO YOU KNOW ALL ABOUT ORACLE FINANCIALS: CAPITALIZE TAX ON ASSETS

Posted by SAURABH MODI at 10:17

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