Embed Size (px)
Citation preview
Oracle EBS
Oracle Assets
1
2
Training Agenda
Areas Covered:
– Overview
– Concepts
– Setup
– Use Cases in Oracle ERP
– Q&A
3
Topics:
– Overview of Oracle Assets
– Concepts
– Setup
– Manual Addition
– Mass Addition
– Depreciation
– Retirement
– Accounting Process
– Reporting using XML Publisher
– Use case in ERP
– Q&A
4
Oracle Assets - Overview:
The Fixed Assets (FA) module allows you to maintain
equipment inventory, depreciation schedules using the best
accounting and tax strategies. It allows you to value assets
using different classifications, such as Construction in Process
(CIP) or expensed items.
With the Fixed Assets Module you can:
Utilize Oracle Payables invoices to create Mass additions
Monitor leasing information
Share depreciation expenses among different accounting
‘companies’ Depreciate as you use production material
Easily transfer between ledger accounts
5
Oracle Assets - Overview:
Features of Oracle Fixed Assets:
Mass Additions
Invoice lines automatically are added to a review status in the
assets module Split single lines into multiple asset lines
Combine multiple lines into single asset lines
Depreciation Management
Calculate gains and losses separate from the depreciation
books Create journal entries to the general ledger
Utilize flexible depreciation calendars Make mass changes to
assets due to tax law adjustments
Asset Revaluation
Change asset value due to inflation or deflation
Create a new amortization schedule due to revaluation
Define limits to revaluation for any asset.
6
Oracle Assets - Concepts:
Asset management encompasses three primary activities:
Physical Upkeep: Comprises asset location, asset condition and assignment
Asset Tracking: Covers the whole gamut from controlling, leased, loaned and consigned items from acquisition to asset
maintenance.
Financial Administration: Involves asset value, depreciation and taxation.
Two Types of Asset Books:
Corporate Books: Where are all assets are created or captured, accounted, Depreciated and retired as per the GAAP rules.
Tax Books: Tax books use the asset data of the corporate book but account, Depreciate and retire as per the tax rules.
Payables to Assets Integration
Payables now has a new level of detail between Invoice Header and Invoice Distribution. The new level is Invoice Lines. At
this new level, new field are available to enter details that will integrate to Assets, these fields are:
• Manufacturer
• Model
• Serial Number
• Warranty Number
• Asset Book
• Asset Category
7
Oracle Assets - Concepts:
Event Accounting
Assets now has event accounting, meaning that every transaction is treated as a new event to the assets. The impact on assets are as
follows:
• Audit trail will no longer show voided transaction types if changes occur in the month an asset was added.
• No longer forced to delete assets in the period it was added, due to the event accounting – Oracle treats the addition and retirement as
two separate events, so now Oracle allows assets to be retired in the period added.
• Event accounting also allows for transferring accounting to GL multiple times in a period.
Auto Prepare Mass Additions
New APIs and Quick Codes are available to automate the Prepare Mass Additions process. There are default rules available, you can accept
the defaults or choose to create custom rules. These APIs and Quick Codes will automatically process data and assign the required data
attributes, such as:
Asset Category
Asset Category – this is derived from the asset cost clearing account, as long as there is one to one relationship between the account and
asset category.
Depreciation Expense Account
Expense Account – this is derived from 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 asset category.
8
Oracle Assets - Concepts:
Auto Depreciation Rollback
In Release 12, you will no longer be required to run the Rollback Depreciation process in order to make corrections to assets.
After running depreciation when a correction or change is required, simply choose the asset to modify. Oracle will automatically
rollback depreciation for this single asset.
Month End Close
Create Accounting process is now used in Assets – journals are created not by a period, but by events and a date. This means
that one can create accounting on the 15th of a month for all transactions performed at the end of the month.
9
Oracle Assets - Setup:
FLEXFIELDS in ASSETS:
In Assets, there are 3 FLEXFIELDS:
Category Flexfield:
Category Flexfield is used to track the assets based on the depreciation method and rate.
In category flexfield, we can define a maximum 7 segments under that, one segment should be a mandatory segment. That is,
MAJOR SEGMENT.
Allow Dynamic Insert can not be enabled.
Location Flexfield:
Location Flexfield is used to track the asset based on the location of the country concern.
In Location Flexfield, we can define a Maximum 7 segment, under that, one segment should be mandatory segment. That is ,
STATE SEGMENT
Allow dynamic insert can be enabled
Asset Key Flexfield:
Asset Key Flexfield is used to track the assets Non Financial Information like Project numbers, Bar codes, etc.
In Asset Key Flexfield, we can define a Maximum 10 segments, under that, there are NO mandatory segments.
Allow dynamic insert is optional.
10
Oracle Assets - Setup:
FLEXFIELDS in ASSETS:
N----FA---SET UP---FINANCAIAL---FLEXFIELD—KEY---SEGMENTS
11
Oracle Assets - Setup:
ASSET CALENDAR:
Before defining an asset calendar, we have to definethe fiscal years of asset calendar to state that
the start of the asset calendar and the following year.
N---FA----SET UP---ASSET SYSTEM---FISCAL YEARS
12
Oracle Assets - Setup:
Asset books
there are 3 types of asset books :
1. Corporate book
2. Tax book
3. Budget book(Optional)
N---FA ---ASSET --- ASSET SYSTEM --- BOOKS CONTROL
13
Oracle Assets - Setup:
ASSET CATEGORIES:
Defining Asset Categories for Corporate Book
N---FA---SET UP---ASSET SYSTEM---ASSET CATEGORIES
14
Oracle Assets – Process Flow:
15
Manual Addition:
MANUAL ADDITION:
It is also called as detailed addition.
N---FA---ASSET ---ASSET WORKBENCH
16
Manual Addition:
MANUAL ADDITION:
17
Manual Addition:
MANUAL ADDITION:
18
Manual Addition:
MANUAL ADDITION:
Save the changes and note down the Asset number.
19
Asset Types:
TYPES OF ASSETS:
THERE ARE 3 TYPES OF ASSETS :
1. CAPITALISED ASSETS
2. EXPENSE ASSETS
3. CIP (CONSTRUCTION IN PROCESS) ASSETS
CAPITALISED ASSETS
We can run the depreciation on capitalized assets because the assets would have the capitalized cost to run the depreciation.
Expense assets
We can not run the depreciation on expense assets because it is an expenditure on assets. (For example fuel for car is an expense asset)
CIP asset
Initial worth of the CIP asset will be zero and we can not run the depreciation on the CIP asset.
We have to increase the CIP asset cost to interface, after increasing, it has to be capitalized, then only, we can run the depreciation.
(for example : any assembling of a product / asset) ERP package for development, it iwill start with zero, and cost will go up with time
and during process of development)
20
Mass Addition:
MASS ADDITION:
Adding the assets to the interface (Payable interface).
To raise an invoice
N – AP --- INVOICES --- ENTRY -- -INVOICES
Provide the Asset Book in Distributions
And do Final Post.
21
Mass Addition:
MASS ADDITION:
Create mass addition
go to view request submit a new request single request
select the program name as “mass addition - create”
22
Mass Addition:
MASS ADDITION:
TO PREPARE MASS ADDITIONS
N—FA--- MASS ADDITIONS --- PREPARE MASS ADDITION
Change the Queue to “NEW” and save.
Once done, POST MASS ADDITIONS
N---FA---MASS ADDITIONS --- POST MASS ADDITIONS
23
Depreciation:
WHAT IF ANALYSIS
What if analysis is run to know a new depreciation method, if
the old depreciation method is changed.
N---FA---DEPRECIATION---WHAT IF ANALYSIS
Click on Run and see the output.
24
Depreciation:
RUN THE DEPRECIATION:
N---FA—DEPRECIATION---RUN DEPRECIATION
NOTE : once the program closes the period, we can not re open
it.
25
Retirement:
select the asset you wish to retire
select retirements.
26
Retirement:
Enter the units to be returned (in negative number)
select done
select ok and close
27
Accounting Process:
TRANSFERRING THE ASSETS TO GL:
N—FA—CREATE ACCOUNTING
28
Reporting using XML Publisher :
XML reporting is available for the following asset reports:
Asset Transfers Report
Transaction History Report
Asset Reclassification Report
Mass Additions Create Report
Cost Adjustment Report
Cost Summary Report
CIP Summary Report
Reserve Summary
Journal Entry Reserve Ledger
Asset Additions Report
CIP Capitalization Report
Mass Additions Posting
Asset Retirements
29
Q&A:
