Notas FA R12

Group depreciation
Organizations such as utility companies or other entities that support a communal

infrastructure—such as federal, state, or municipal public utilities, highways, and roads—or
other infrastructure that owns, leases, or uses depreciable assets required special way to
record and report additional depreciation.
Therefore, Group depreciation is the practice of assembling several similar fixed assets
into a single group, which is used in aggregate as the cost base for depreciation
calculations. Assets should only be assembled into a group if they share similar
characteristics and have approximately the same useful lives. Examples of group
depreciation are "group of desks" and "group of trucks" that are treated as single assets.
The group depreciation feature enables you to set up logical groupings of assets based on
regulatory requirements and your own business needs.
These logical groupings of assets are referred to as group assets. Group depreciation also
handles complex transactions for group assets and their member assets.
In many countries, local property tax regulations require companies to depreciate assets in a
composite or aggregate form (in a group). The group depreciation functionality addresses
the requirements of depreciating assets in groups.Depreciation is computed and stored at
the group level, and is known as group depreciation.
Group Depreciation supports many of the composite or aggregate depreciation

requirements imposed by the following global regulatory requirements:
 United States Telecomm (FCC) and Utility (FERC) compliance reporting

 United Kingdom Writing Down Allowance (WDA) compliance reporting
 Canada Capital Cost Allowance (CCA) compliance reporting
 Japanese group asset inancial and compliance reporting
 Indian group asset management and compliance reporting
HOW GROUP DEPRECIATION CALCULATED
Group depreciation is generally used when the acquired assets are similar, such as 10
computers.
Say that your firm purchased 10 computers and each one cost $2,500, has a residual value
of $250 and an estimated life of 5 years (i.e., the computers will be depreciated
over 5 years). Depreciation for the group of 10 computers is calculated as follows:
 Cost $25,000
 Residual Value 2,500
 Amt. to be depreciated $22,500
$22,500 (amount to be depreciated) ÷ 5 (years) = $4,500 annual depreciation.
To calculate the depreciation rate, divide annual depreciation expense by total cost:
$4,500 annual depreciation ÷ 25,000 total cost = 18% annual depreciation rate
The adjusting entry for depreciation at year end would be:
Depreciation Expense (25,000 x 18%) 4,500

Accumulated Depreciation 4,500
No gain or loss is recorded when an individual asset in the group is retired. Instead, the
account Group Computers is credited for the original cost, and Accumulated Depreciation
is debited for the same amount less any salvage value. The same depreciation rate is used as
long as the estimated life and residual value remain the same.
Posted in Oracle Asset | No Comments »
FA Tax Book Implementation

Posted on May 28th, 2011 by Sanjit Anand | Print This Post | Email This Post
Tax book in FA is set up to track assets and depreciation as per you Tax laws.Basically
there are two depreciation - depreciation for you accounting and financial reporting - This
is based on the Corporate Book you set up and depreciation as per you tax laws - which is
based on your tax book.
Setup Configuration
The following setup processes are required for a Tax Book
1. Define a Tax Book which is attached to a corporate book

2. Define asset categories for those will be maintained in Tax Book
3. Copy asset from Corporate Book to Tax Book for the first time. CIP Assets are not copied
4. Copy asset from Corporate Book to Tax Book periodically
Read the rest of this entry »

What is Amortized Asset and Expensed-Off Assets

Adjustment? Part -II
Posted on February 11th, 2011 by Sanjit Anand | Print This Post | Email This Post
In last post, you have seen what is difference between Amortized Adjustment & Amortized
Adjustment , this post we will explore more on Oracle treatment for those two options.
Consider an asset (For e.g. a machine) who's cost is $100 and has a life in years = 5. Now at
the end of 3 yrs, you perform a life adjustment to increase the life of the asset to10 yrs. The
table below shows how the accumulated depreciation amount and the calculation will differ
for Expensed and Amortized adjustment.
Asset Cost :$100

Life in Years :5
Depreciation/Year :20
At the end of 3 yrs :60
Expense Adjustment
An expensed adjustment recalculates accumulated depreciation as if the adjustment has

been in effect since the asset has been added to service.
In an expense adjustment, accumulated depreciation is recalculated. For 5 yrs STL method,

at the end of 3 years accumulated depreciation would be $60. For 10 yrs STL method, at
the end of 3 years accumulated depreciation would be $30. When a life change is effected,
the accumulated depreciation is adjusted to $30 (60-30) and then on annual depreciation of
10 gets accumulated till the asset gets fully depreciated.
Amortized Adjustment
On the other hand an amortized adjustment spreads the change over the remaining period
of life
So with the same example, if you instead AMORTIZED the change, the accumulated
depreciation will still be $60 (that is, not reduced to $30), and annual depreciation of new
depreciable amount (cost - accumulated depreciation - salvage value)/remaining asset life
(assume salvage value = 0) = (100-60-0)/7 = $5.71 will be taken. The remaining life is
taken to the new life in months (If life adjustment has been performed) multiplied by the
Rate Adjustment Factor.
Rate Adjustment Factor aka RAF

After an amortized adjustment, the depreciation amount is adjusted by a Rate Adjustment
Factor which allocates amortized change over the remaining life.
Formula for the Rate Adjustment Factor is:
(New Recoverable Cost - Recalculated Depreciation Reserve)/New Recoverable Cost
What is Amortized Asset and Expensed-Off Assets

Adjustment?
Posted on February 11th, 2011 by Sanjit Anand | Print This Post | Email This Post
When you are changing financial information of any asset once its aquired in system then
you will have two options under financial side.
1. Effect of adjustment should have retrospective effect, ie, asset will be treated with new
financial information as though it would have been, when asset is added or
2. Effect of adjustment should have prospective effect,ie, the effect of adjustment will affect
only future depreciation amounts.
If you choose option 1,it is called EXPENSED ADJUSTMENTS. For expensed

adjustments, Oracle Assets recalculates depreciation using the new information and
expenses the entire adjustment amount in the current period. Any excess or deficit of
depreciation on account of change in financial information will be charged in the current
period.
If you choose option 2,it is called AMORTIZED ADJUSTMENTS. For amortized

adjustments, Oracle FA spreads the adjustment amount over the remaining life or
remaining capacity of the asset. For flat-rate methods, Oracle Assets starts depreciating the
asset using the new information. You can set up your amortized adjustments to have a
retroactive start date by changing the default amortization start date (usually the system
date) to a date in a previous period. Any adjustment amount missed since the amortization
start date is taken in the current period. If you amortize an adjustment for an asset, you
cannot expense any future adjustments for that asset in that book.
Amortize check box is available in scrren which you need to open via this navigation (N)
Asset workbench>Books
Posted in Oracle Asset | 1 Comment »
Accounting entries for the Asset Life Cycle

Posted on December 12th, 2010 by Sanjit Anand | Print This Post | Email This Post
Finally am able to put the detailed accounting entries for the Asset Cycle. As highlighted in
one of the post Oracle Assets creates journal entries for the following general ledger
accounts:
1. Asset Cost
2. Asset Clearing
3. Depreciation Expense
4. Accumulated Depreciation
5. Revaluation Reserve
6. Revaluation Amortization
7. CIP Cost
8. CIP Clearing
9. Proceeds of Sale Gain, Loss, and Clearing
10. Cost of Removal Gain, Loss, and Clearing
11. Net Book Value Retired Gain and Loss
12. Intercompany Payables
13. Intercompany Receivables
14. Deferred Accumulated Depreciation
15. Deferred Depreciation Expense
16. Depreciation Adjustment
Depreciation Question
Reader asked:
I am technical person and will you able tell where does depreciation really reflects in
financial statement context.. we know it is a non cash item but , up to that extent profit
gets reduced, so where does it really reflect in Balance sheet?
As mention is last post, various impact in financial impact would be:
 P&L = Depreciation expense

 Balance sheet = Accumulated depreciation
 Cash Flow Statement = Adjusted in Operating Cash Flow as a non cash expense
Here is explanation in layman language :
1. It's first recorded on Balance Sheet as a fixed asset when cash paid or liability incurred for
payment.
2. Then your cost center is responsible for a recurring charge (depreciation), similar to a
lease payment for the use of the fixed asset (office furniture, leasehold costs, PC
equipments, phone system, etc.) over time until fully paid (depreciated).
3. Balance Sheet also keeps track of charges called accumulated depreciation until the
recorded charges reduce the fixed asset to a zero book value. That's when it's fully
recouped from cost centers.
4. Your P&L account is charged with the recurring charges (depreciation) for book purposes
(intercompany allocation) which in essence requires no cash transfer because it's already
paid/charged on fixed asset account.
5. Your cost center is to reimburse for the use of the fixed assets over the estimated life or
statutory tax period, and as a result reduces your cost center's net profit.
6. Cash flow wise doesn't change because your cost center is one of many inside the same
company's cash account. It's simply paying one hand to the other, so your cost center's
profit gets debited on paper for depreciation, and it's a non-cash transfer - simply a journal
entry the accountants keep track monthly, quarterly, semi-annually or annually.
In another word an accrual based accounting system, depreciation expense matches the cost
of the asset with the revenues generated by it over it's useful life to get a better picture of
true profit (or loss) in a specific period. If you were to expense the asset at the time of
purchase (cash based) you would have artificially low profit in the period the asset was
purchased and artificially high. On the Balance Sheet, Accumulated depreciation reduces
the value of the asset to reflect the expensed portion moreover the the cash flow statement
will give you the picture of cash movement in a specific period.
Hope this helps to understand. Wait for next post for accounting details for asset life cycle
:)
Detail of Fixed Asset Accounting

Fixed asset accounting is a most important part of a any company's financial accounting
and reporting system because fixed, or long-term, assets generally represent substantial
investments. A company's top management usually asks department heads and finance
managers to establish fixed asset accounting procedures that conform to accounting
principles, industry standards and governmental directives.
Fixed Asset accounting involves the following main aspects:
1. Acquisition of a Fixed Asset: You need to consider the capitalization of incidental costs,
treatment of assets acquired in foreign exchange, treatment for leased assets, etc.
2. Depreciation: There may be separate rates of depreciation for Company Law and Income
Tax purposes etc etc
3. Retirement of Assets: You need to consider the treatment of profit/ loss on sale of asset,
writing back the accumulated depreciation pertaining to the asset sold, etc.
4. Other than these you have other aspects too:
1. Tracking
2. The Inventory Process
3. Financial Reporting : Two accounts is mostly important in BS and P & L context,
which is as discussed below.
Depreciation accounts
 Balance sheet accounts: the net value of the asset (carrying amount or book value of the
asset) is preserved through two accounts:
o Gross (acquisition) cost
o Accumulated depreciation
 Income statement account
o Depreciation expense of the current year
 Balances and details of these accounts are used in supplementary disclosures in the notes
to the accounts.
Next post you will see the greatest and latest accounting details for Oracle EBS 11i/R12 for
different.
Public API’s for FA Transactions

So far Oracle FA is have all the good things except the lack on reporting.Oracle FA is now
offer lot of public API's that can be used to interfacing with third party or Oracle
application other modules. Here are some of transaction's API's:
Posted in API Integration, Oracle Asset | No Comments »
Asset Reclass Programmatically

Last article you have seen some insight functionlity for Fixed asset Reclass functionality
and Business need.
Majority of time whenever there is merger/acquisitions or Instance consolidation exercise

reclassification plays an important role specially when you as project team not allow any
new category . Mapping all assets and aligning with Parent's company existing Category is
major challenge depending volume of assets. The more challenge come to IT when you did
not find right fitment for Mass reclassification native screen to cater the requirement
quickly thus Reclass via API's Programmatically is good options indeed.
API availability for Reclass
You can use Reclass API that uses the FA_RECLASS_PUB.DO_RECLASS procedure
You can achieve
 This API can also be used to automatically reclassify assets in all the tax books that are
associated with the corporate book where the reclassification originated.
 You can automatically reclassify assets to all of the reporting books when MRC is enabled
and without generating any rounding issues.
Let take a quick look the API details and Usage part.
Posted in API Integration, Oracle Asset | No Comments »
Reclassification of assets
Posted on November 28th, 2010 by Sanjit Anand | Print This Post | Email This Post
Though Reclassification of Financial assets is just a function in Oracle asset, but have
larger impact in reporting side for disclosure requirement.
Reclassification and mass reclassification
Reclassification of an asset is simply changing the category of an asset.
Mass Reclassification is a feature that allows you to reclassify a group of assets from one
asset category to another based on flexible selection criteria. Your flexiable flexible
selection criteria may be either inherit the depreciation rules of the new category or retain
depreciation rules of the old asset category. Also you have an option for an option to
choose to amortize or expense any depreciation adjustment resulting from the
reclassification. sounds Good:)

FA Books and Data transfer
Couple of questions from reader in FA, here is consolidated one:
In order to give you small background,take a note there are three type of books in Oracle
Fixed asset. Corp book, tax book and budget book.
The most commonly used books are Corp and tax books. The basic rule of thumb is that an
asset is created in Corp book and then migrated to tax book(s). Each corp book can have
multiple tax books associated with them. For example a corp book can have seperate tax
book for state, Federal, and other tax reporting needs. You can select the option in
Corporate and tax books to report FA activity to GL.
What is OAT(Oracle Asset Tracking) ..

Oracle Asset Tracking is an asset lifecycle management application that provides tracking,
visibility and control of dispersed assets for capital-intensive companies. Oracle Asset
Tracking maximizes asset utilization and return on investment by automatically
synchronizing the operational and physical events of assets with the financial updates in
Oracle Assets.
With Oracle Asset Tracking, you can give users access to tracking information without
allowing them access to sensitive processes related to assets and purchasing. You can also
track inventory items after they have been installed and link financial transactions to the
physical movement of equipment.
As part of the Oracle E-Business Suite, Oracle Asset Tracking offers tight integration with
other products to provide a comprehensive, reliable and efficient asset lifecycle tracking
application. This enterprise-wide integration helps achieve a single source of truth for
enterprise assets while reducing the total cost of ownership.
Oracle Asset Tracking (CSE) was a new product in 11.5.10, which integrates with Projects
allowing for capitalization of individual items. "Oracle Asset Tracking" was previously
known as "Oracle Enterprise Install Base". This application replaced the "Network
Logistics" application and CRL functionality in Projects. Oracle Asset Tracking (SCE) is
an add-on financial functionality based on transactions managed by Oracle Install Base
(CSI).
Who need this
If you company Business goals are:
 Create single source of truth for all inventory and asset information
 Reduce Supply Chain Inventory unit Cost
 Streamline and automate entire ‘Acquire to Retire’ process
Then owning the OAT is considerable with following Business benifits.
Business Value of Oracle Asset Tracking
 Accurate and real-time visibility of inventory and assets lead to better forecasting
 Improved asset utilization and tracking
 Synchronized Operational and financial asset transactions provide improved fiscal
and tax reporting.
 Integrated asset life cycle management provide fully auditable history of
transactions (Movements, Maintenance, attribute updates)
Who needed Most
Great fit for Industries with large Asset base - such as Telcos, Financial Services, State and
Local Gov’ts
Oracle Asset Tracking integrated with multiple 3rd Party and Oracle products
Functions Supported by Oracle Asset Tracking
This application supports the standard functions found in Oracle Inventory, Oracle
Purchasing, Oracle Assets, and Oracle Projects enabled for CRL Financials.
Oracle Asset Tracking supports the following functions:
 Purchase order receipt of items into Inventory

 Purchase order receipt of items into operating projects
 Move orders to issue an item either to a project or directly to a field location
 Miscellaneous issue to a project or field location
 Miscellaneous receipt from a project or field location
 Installation and un-installation of equipment
 In-service/Out-of-service of equipment
 Subinventory transfers
 Inter-organization transfers
 Miscellaneous receipts and issues
 Placement of assets into or out of service
 Retirement and reinstatement of the partial or full cost of an asset
 Asset item moves and asset item transfers
 Physical counts
 Internal sales order shipment
Understanding OAT Integration
Oracle Asset Tracking is a tracking system that integrates with and stores information
collected from Oracle Inventory, Oracle Purchasing, Oracle Projects, Oracle Assets, Oracle
Payables, and Oracle Install Base. The application facilitates financials transactions based
on physical movements of material and equipment, by each instance of such goods. Users
can locate the goods instances anywhere in the system, on a warehouse sub
inventory,installed in a complex system, or sent out to a project work site. In addition,
Oracle Asset Tracking can provide a life-cycle history of all activity for that equipment.The
data and information flow can be best understood as per fig 1 below:
Fig :1 - OAT Integration
Tracking Internal Products and Assets
The following diagram shows a summary of the Oracle application modules and the
transactions associated with Oracle Asset Tracking.
Fig 2: Summary of Oracle Processes that Track Internal Products and Assets
R12 :FA Close process

Posted on March 12th, 2009 by Sanjit Anand | Print This Post | Email This Post
If you are coming from 11i, there is slightly change in FA Period Closure process because
of SLA.
Here are steps & procedures for performing period-end processing in Oracle Assets Release
12.
In FA, at period end, we require to run depreciation for depreciation books set up for the
organization, and to Create accounting for Oracle General Ledger. Oracle Assets has only a
single open depreciation period in each depreciation book.
1.Complete All Transactions for the Period Being Closed
You need to ensure that all transactions have been entered for the period being closed. Once
a depreciation period in Oracle Assets has been closed, it cannot be re-opened. Check that
no-one is entering transactions as Oracle Assets prevents transaction data entry while the
Depreciation Run Process is running. You need to complet all transactions for Oracle
Assets:
 Prepare and Post Mass Additions

 Complete Manual Additions
 Complete Adjustments
 Complete Retirements
 Complete Transfers
 Complete Reinstatements
2.Then if you required, you need to assign distribution lines to all assets.
If an asset has not been assigned to a distribution line, the period end Depreciation Process
will not complete, and will not close the period. Take the advantage of running "Assets Not
Assigned to Any Cost Centers Listing " report to determine which assets have not been
assigned to a distribution line.
3.Run Calculate Gains and Losses
This is optional , the Calculate Gains and Losses program for retirements can be submitted
prior to running depreciation. The Calculate Gains and Losses process is performed
independently for each depreciation book.
4.Run the depreciation
In Release 11i when you ran depreciation you would automatically close the period
whereas in Release 12 you can now run depreciation without closing the period.
5.Create accounting
Create Journal Entries (FAPOST) is replaced by Create Accounting – Assets process

(FAACCPB)
6.RollBack Depreciation for adjustment
When you are trying to do adjustment on a particular asset, FA automatically rolls-back

depreciation for that particular asset.This is one of the area where you will experience
change if you are coming from other versions.
7.Once you are sure that all the balances are correct you need to run depreciation and
close the period.
8.Create accounting
You need to run "create accounting" very similar as mention in step 5.
9.Post Asset Transaction in GL
You need to make sure the step 8 must be completed only if you done transfer and posting
for the accounting entries to GL.
These steps are basically takes care of data movement , then next step for you to tie FA and
GL.
For reconciliation of assets you need to take advantage of some of seeded and newly added
report that will help business user to reconcile and closing the period.
10. Reconcile your Fixed Asset and GL
 Reconcile Assets to the GL Using Reports

o Journal Entry Reserve Ledger - reconcile with the Account Analysis with
Payables Details Report.
o Tax Reserve Ledger Report
o Account Reconciliation Reserve Ledger Report
 Balance Report
o Cost Detail and Cost Summary Reports
o CIP Detail and CIP Summary Reports
o Reserve Detail and Reserve Summary Reports
o Revaluation Reserve Detail and Revaluation Reserve Summary Reports
 GL Report
o Journal - posted/Unposted
o Account analysis
Once these report can tally, there is no way that your P & L report is not going to tally.
Suggested Reading
 Fixed Asset Transfer to GL

 Fixed Asset & SLA
 Release 12: 6 New and Changed Feature in "Oracle Assets"
Posted in Oracle Asset, R12 | 3 Comments »
Fixed Asset Transfer to GL

Posted on December 1st, 2008 by Sanjit Anand | Print This Post | Email This Post
How Fixed Assets (FA) Passes Journals To General Ledger (GL)

Before 11.5.9 and Fixed Assets patchset M (11i.FA.M), Journals created by the Create
Journals process in FA were entered directly to the journal tables. For some time it was
possible to have different period names between the two ledgers and change them using the
General Ledger Change Periods feature.
Financials Family pack G or higher all journals to be passed from FA through the
gl_interface table using the standard import mechanism (GLLEZL). Initially the import had
to be launched from GL separately.Check out old post for R12 SLA Changes.
How to generate FA journal entries and transfer to GL?
In FA module, the
journals should be
generated after asset
addition,
depreciation,revaluation, adjustment, transfer, and retirement. It is suggested that in end of

each month, after run depreciation and close FA module, user should generate journal
entries and transfer to GL module.
1. Login to system and switch to FA responsibility, select Other -> Request -> Run, select
“Single Request”, click “OK” button.
2. In “Submit Request” form, input “Create Journal Entries” in name field.
3.Input or select the book and period that you want to generate journals entries
How and what FA Populates into GL
These are the columns which are used for capturing the information from FA to GL.
Convention :GL_INTERFACE table column (GL_LINES table COLUMN) :FA

REFERENCE
 REFERENCE21(REFERENCE_1):TRANSACTION_HEADER_ID
 REFERENCE22(REFERENCE_2):ASSET_ID
 REFERENCE23(REFERENCE_3):DISTRIBUTION_ID
 REFERENCE24(REFERENCE_4):ADJUSTMENT_LINE_ID
 REFERENCE25(REFERENCE_5):BOOK_TYPE_CODE
 REFERENCE26(REFERENCE_6):PERIOD_COUNTER
 REFERENCE27(REFERENCE_7):FA_TRANSFER_TO_GL
 REFERENCE28(REFERENCE_8):ADJUSTMENT_TYPE / LOOKUP_CODE
 REFERENCE29(REFERENCE_9):CJE_ID
Journal categories used while FA to GL Transfer
These are the transaction type used for JE creation in GL.
 Addition
 Reinstatement
 Full Retirement
 Transfer
 Partial Retirement
 Adjustment
 Unit Adjustment
 Reclass
 Depreciation
 Revaluation
Query for Subledger Transfer to GL
If you want to get details of different journals transferred to GL, use this to get the result.
You can also fine tune with period , currency or clearing company code or Journal Type.
Here is the query:
1.
2. SELECT gjjlv.period_name period_name
3. , gjb.name batch_name
4. , gjjlv.header_name Journal_Entry
5. , gjjlv.je_source Source
6. , gjjlv.line_entered_dr Entered_Debit
7. , gjjlv.line_entered_cr Entered_credit
8. , gjjlv.line_accounted_dr Accounted_Debit
9. , gjjlv.line_accounted_cr Accounted_Credit
10. , gjjlv.currency_code Currency
11. , fasv.TRX_TYPE_NAME Trans_Type
12. , fasv.TRX_NUMBER_DISPLAYED Transaction_Number
13. , fasv.TRX_DATE Transaction_Date
14. , fasv.ASSET_NUMBER Reference
15. , glcc.CONCATENATED_SEGMENTS
16. ,gjjlv.created_by
17. FROM apps.GL_JE_JOURNAL_LINES_V gjjlv
18. , gl_je_lines gje
19. , apps.fa_ael_gl_v fasv
20. , gl_je_headers gjh
21. , gl_je_batches gjb
22. , apps.gl_code_combinations_kfv glcc
23. WHERE gjh.period_name BETWEEN 'SEP-2008' AND 'OCT-2008'
24. AND glcc.code_combination_id = gje.code_combination_id
25. AND glcc.code_combination_id = fasv.code_combination_id
26. AND gjh.JE_BATCH_ID = gjb.JE_BATCH_ID
27. AND gjh.JE_HEADER_ID = gje.JE_HEADER_ID
28. AND gjh.period_name = gjb.default_period_name
29. AND gjh.period_name = gje.period_name
30. AND gjjlv.period_name = gjh.period_name
31. AND gjjlv.je_batch_id = gjh.je_batch_id
32. AND gjjlv.je_header_id = gjh.je_header_id
33. AND gjjlv.LINE_JE_LINE_NUM = gje.je_line_num
34. AND gjjlv.je_header_id = fasv.je_header_id
35. AND glcc.segment1='22'
36.
Verification Report
You can use these Verification Report for your FA and GL monthly Reconcilation.
1. Cost Detail Report :Use the Cost Detail and Cost Summary reports to reconcile
your asset cost accounts to your general ledger to reconcile with Oracle General
Ledger, compare the Cost Summary report with the Account Analysis Report.
2. Asset Retirements Report :Use this report to review the assets you retired for the
Book and accounting Period range you choose. The report is sorted by balancing
segment, asset type, asset
account, cost center, and asset number. It prints totals for each cost center,
account,asset type, and balancing segment.
3. Asset Reclassification Reconciliation Report
4. Asset Transfer Reconciliation Report :Use this report to review asset transfers for
the Book and Period you choose. For each transaction Oracle Assets lists the
expense account, balancing segment, cost center,and location of the asset before and
after the transfer. Oracle Assets sorts the report by
asset number.
5. Journal Entry Reserve Ledger Report : This report can be used to review how
much depreciation Oracle Assets charged to a depreciation reserve account in an
accounting period. The report is sorted by, and prints totals for each balancing
segment, asset account, reserve account, and cost center.
6. CIP Capitalization Report
7. CIP Assets Report
8. Unposted Mass Additions Report
9. CIP Detail Report (If using adding asset through Project)
10. Asset Addition Report
11. Cost Adjustment Report
Important FAQ - that user may ask
1. Are journal entries transferred to the GL in summary or detail format?
Journal entries are summarized to code combination ids within journal categories.
2. Why do I have journal entries for zero dollar amounts (i.e., debit 0, credit 0)?
The expense segment is part of a single distribution row, which also contains the assets
owner and location. Changes to any one of these items will result in the creation of a new
distribution. If a change is made in the location or owner, journal entries are posted to
reflect the new distribution, even though there has been no accounting impact (thus the zero
dollar accounting entries).
3. How often can I create journal entries?
You can run the Create Journal Entries program once per accounting period after you run
the depreciation program.
4. What happens if I forget to create journal entries for an accounting period? For
example, I created journal entries for AUG-08 and OCT-08, but forgot to create journal
entries for SEP-08).
Oracle Assets lets you create journal entries for accounting periods in any order as long as
you have ran depreciation for the period and the period is open in your general ledger.
5. How do I reconcile Oracle Assets with my general ledger?
Oracle Assets has a set of reports you use to reconcile asset cost, depreciation expense, and
depreciation reserve accounts to your general ledger.
Similar Post
 Fixed Assets:Journal Entries

 Fixed Asset & SLA
Posted in Oracle Asset | 3 Comments »
Fixed Asset & SLA

Posted on July 2nd, 2008 by Sanjit Anand | Print This Post | Email This Post
As mention earlier, SLA played a key role in most of accounting event based
application.Some of high points of SLA and Fixed asset are:
 Oracle Assets is fully integrated with SLA, which is a common accounting platform
for Sub Ledgers
o There is no need to explaining again , we already seen why this concept
brought into Financial application . Fixed asset though one of Application,
which heavily utilize the accounting information ,therefore its is obvious
Choice.
 You can use the seeded Account Derivation definitions or modify them as required
o ADD as discussed in earlier post , can be used for as it is or we can manage
and configure the definition to accommodate own custom derivation rule.
 SLA does supports Account Generator functionality for existing Asset Books
o For those who are coming from 11i background knows Oracle FA Module
uses the Account Generator to generate accounting flexfield combinations
for which to create journal entries into GL. The Account Generator normally
allows to designate a specific source for each segment in the account for
which Oracle Assets creates a journal entry. These flexibility options can be
archived by anyone ..
 Flexibility to create journal entries that mean you can specify to what
detail to create journal entries
 Flexibility of managing detail level for each book and account type.
Technically speaking Account Generator in Oracle Assets is Oracle Workflow driven

component which can be viewed and customized with some skill in Oracle Workflow.
In Release 12 , by default, Subledger Accounting is used to generate accounts which is

defined at ADD, still you have options to use the 11i workflow based account generator.
The minimum you have to do is to keep "FA: Use Workflow Account Generation" profile
option is set to Yes, that mean the account generation rules set up in Oracle Workflow will
be used.
 And, last ..SLA in FA can heavily used for SLA Accounting report and online
account inquiry purpose.
How SLA works in Fixed asset
Subledger Accounting Process consist of these three steps
1. It start with entering transactions in the application.

2. Then running the Create Accounting Program to process accounting.
3. Once step 2 completed successfully, you can use this for inquire . You can also
drilldown information from SLA Pages
Lets take yet another granular look for SLA with FA..
 Accounting Events
 Oracle Assets creates accounting events for every asset transaction
These are major four event entries Accounting Events Classes you can get in Fixed asset.
 Oracle Assets groups all the accounting events classes into the following four event
entities:
Transactions: This event entity groups the following event classes: Additions,
Adjustment, Capitalization, Category Reclass, CIP Additions, CIP Adjustments,
CIP Category Reclass, CIP Retirements, CIP Revaluation, CIP Transfers, CIP Unit
Adjustments, Depreciation Adjustments, Retirements, Retirement Adjustments,
Revaluation, Terminal Gain and Loss, Transfers, Unit Adjustments, and Unplanned
Depreciation.
 Depreciation: This event entity groups the following event classes: Depreciation
and Rollback Depreciation.
 Inter Asset Transactions: This event entity groups the following event classes:
Source Line Transfers, CIP Source Line Transfers, and Reserve Transfers.
 Deferred Depreciation: This event entity groups the following event classes:
Deferred Depreciation.
Apart from this there few additional event class exist like Retirements .
The Accounting Flow
Journal entries get created that summarize the activity for each account for each transaction
type.
 There is significant mean of period ,for which you want to create journal entries and
the period must be open or future entry , as discussed in last post.
 The period name used in the depreciation calendar assigned to the asset book must
be the same as the period name in the general ledger calendar for the ledger you
want to send the journal entries to.
 When you run the Create Accounting program, Oracle Assets sends entries directly
to the GL_JE_BATCHES, GL_JE_HEADERS, and GL_JE_LINES tables.
 Oracle Assets allows you to run the Create Accounting program multiple times
before closing the depreciation period.
 You can post journal entries to Oracle General Ledger for all transactions that have
occurred thus far in an open depreciation period.
 If additional transactions occur during the open depreciation period, you need to
rerun Depreciation, then you can rerun the Create Accounting program.
Posted in Oracle Asset | Comments Off on Fixed Asset & SLA
Fixed Assets:Journal Entries

Posted on July 1st, 2008 by Sanjit Anand | Print This Post | Email This Post
Oracle Fixed Assets creates journal entries for your depreciation expense, asset cost, and
other accounts. That means application automatically creates transaction journal entries for
your general ledger, if you have defined and configure set up the journal entry category for
that transaction type for that book. Oracle Assets creates journal entries that summarize the
activity for each account for each transaction type.
Another good things for FA is its allows you to run the Create Journal Entries program
multiple times before closing the depreciation period. You can post journal entries to
Oracle General Ledger for all transactions that have occurred thus far in an open
depreciation period. If additional transactions occur during the open period, you need to
rerun Depreciation, then you can rerun the Create Journal Entries program.
Not only it create the Journal entry but also allows you to roll back journal entries in an
open depreciation period,and this should be as long as applies to those journals which
havn't posted to General Ledger. After doing the necessary adjustments, you can run the
Create Journal Entries program once again and post the journals to General Ledger.
You should also note , you cannot roll back individual journal entries. The reason .. when
you run the Rollback Journal Entries program, all journals created thus far in the current
open depreciation period will be rolled back. These journals will be reprocessed the next
time you run the Create Journal Entries program.
In case of Rollback Journal Entries program failure, for example, if you have already
posted some additional journals to General Ledger, you can still continue to process
additional transactions. However, you will not be able to re-run journal entries for that
period until you have fixed the error and run the Rollback Journal Entries program
successfully.Sound good!!
Once you close the depreciation period, you can run the Create Journal Entries program
only once more. When the depreciation period is closed, you cannot roll back Create
Journal Entries, and therefore, cannot run the program again.Hope this makes clear.
Creating journal entries
Creation of Journal entries in Oracle Consist into two step process:
1. At the end of each accounting period, run the depreciation program for each of your
books.
2. Run the Create Journal Entries program to create journal entries to your general
ledger.
 Case 1 : Period is Closed

o If the period is closed, you can run the Create Journal Entries program only
once for each period in each book for which you allow posting to the general
ledger.
 Case II : Period is Open
o If the period is still open, you can run the Create Journal Entries program
multiple times before closing the period.
Journal Entries :
Case 1 : When you are in 11i

The create journal entries process creates journal entries for the appropriate general
ledger set of books.
Case 2 :When you are in R12
The Create Accounting process creates journal entries for the appropriate Ledger.
Asset Accounts for which Oracle Assets journal entries Created
These are asset account for which are used for JE Line creation. We will see a seperate post
for accounting entry in some of the transaction events so that if you are coming from non -
Oracle accounting system, you can see how its works here.
 Accumulated Depreciation
 Asset Clearing
 Asset Cost
 CIP Clearing
 CIP Cost
 Cost of Removal Gain,Loss, and Clearing
 Deferred Accumulated Depreciation
 Deferred Depreciation Expense
 Depreciation Adjustment
 Depreciation Expense
 Intercompany Payables
 Intercompany Receivables
 Net Book Value Retired Gain and Loss
 Proceeds of Sale Gain, Loss, and Clearing
 Revaluation Amortization
 Revaluation Reserve
 Revaluation Reserve Retired Gain and Loss
Will take a more granular details for JE and SLA in another post. Keep watching this space.
Fixed Asset : Oracle Vs Others

Posted on June 26th, 2008 by Sanjit Anand | Print This Post | Email This Post
If you are customer/client is coming from other system like SUN or SAP, you can notice
some good features and some missing feature Oracle Fixed Asset while comparing.
1. Assets purchased through AP coded to an asset clearing account are dynamically

transferred into the asset register; there is no need for them to be re-input. This is
what called asset Tracking in Oracle.
2. GL codes, depreciation method and useful lives default from asset category and do
not need to be input, therefore reducing error. This is yet another good feature.
3. Ability to run and rollback depreciation many times to review results and correct
errors in Oracle.
4. Ability to make mass changes (additions, adjustments, transfers, disposals) e.g. cost
centre transfers,location, employee and to a group of assets therefore process will
get faster.
5. Retirement and Disposal does not have any distinction in Oracle.
6. Capital budgeting requirements at category level as nicely controlled in Oracle, as
compare to SAP.
7. In SAP, there is some good automation of feature like "Asset Shutdown" where
SAP users like.Asset Shutdown can be consider in case if you have an asset which
you do not want not be used for production purposes for next six months as the
company is being closed for whatever reason.
8. See how you can transfer assets from one cost centre to another and across
entities?
o [Oracle ] As mention earlier also, assets can be owned by one entity and
have depreciation charge going to another. Asset transfers would be
typically be treated as a disposal and purchase by the new entity if across
completely different legal entities- this can either be gone as a GL journal or
via the AR/AP modules - the process will depend upon and varies business
process and the local legislative requirements
o [SAP] The SAP system provides transactions to transfer assets from one
cost centre to another and from one company to another where-in the asset
values and accumulated gets transferred automatically.
9. Asset register Usage and Maintance
o [SAP] The asset register is a standard report available in the asset
management module of SAP. This reports does shows all acquisitions,
transfers, retirements, depreciations, revaluations.In asset management you
create an asset first and then use the asset number created for capitalising the
asset.
o [Oracle] Assets (ideally) are created from Payables as invoices which goes
to a Fixed Assets additions screen from where the Asset Manager/user can
review which items to incorporate to the asset register.Assets can also be
created in the Fixed Assets modules. CIP based assets can directly integrated
with Project and PO modules.
 Assets integrates with the general ledger which can process the
journals automatically - this is typically done at month end so the
depreciation can be run and rerun many times if required
10. Oracle does have iAsset , a purly web based application designed to cater to manage
employees and access information about a company's capital assets, such as
equipment and machinery.
Disclaimer : SAP Functionality which is discussed is based out of Personal observation

and discussion with SAP user, which they are using bit older version.Any Conflicts with
SAP functionlity must be validated. Oracle Version which is used for reference is
11.5.10.2/R12.
Fixed Asset :Retirement & Disposal

Posted on June 23rd, 2008 by Sanjit Anand | Print This Post | Email This Post
Oracle Asset does not draw a distinction between the retirement and the disposal of an
asset. Since there may be a significant time elapse between the retirement of an asset (it is
no longer being used) and the physical disposal of the asset.
The generic retirement Procedure normally consist of these sub-procedures from place to
place.
1. Identification of assets to be retired.

2. Collection of details and supporting documentation including proper authorization.
3. Data entry of disposal information.
4. Data entry of retirement information.
The Oracle Asset Retirement Process
You can retire all or part of an asset when it is no longer in service. For example, you can
retire an asset that was lost, stolen, damaged, sold, returned, or any other reason that caused
you to stop using it. If necessary, you can undo the retirement. Oracle Assets will continue
to track a fully reserved asset until you retire it.
The other feature and functionality that Oracle handles are:
 Retiring assets by units or cost.

 Performing a mass retirement by retiring a group of assets if using.
 You can synchronize asset disposal information between Oracle Assets and external
systems , this can be achieved by Mass External Retirements interface, which is
discussed at the end.
 You can create journal entries to separate accounts for each component of the gain
or loss.
Retirement Limitation
These Limitation you should be familiar:
 You can only retire assets that were added in previous periods and are effective in
the current fiscal year.
 You cannot retire an asset that you added in the current period. Therefore it is
advisable that you must enter your retirement as a prior period retirement after you
run depreciation. [[This is 11i Functionality]
You perform current and prior period retirements and reinstatements within the same fiscal
year.
You create journal entries to separate accounts for each component of the gain or loss.
Oracle Processes & Navigation
(N) Assets > Asset Workbench (B) Retirements
Full Retirement
This mean retiring an entire asset including all of its units and cost.
When entering the date of the retirement, it must be in the current fiscal year, and cannot be
before any other transaction on the asset.
Oracle Assets lets you use a different prorate convention when you retire an asset than
when you added it. The retirement convention in the Retirements window and the Mass
Retirements window defaults from the retirement convention you set up in the Asset
Categories window.
If you perform a prior period retirement, Oracle Assets backs out the depreciation expense
through the date of retirement.
Partially Retiring an Asset
You can retire part of an asset by cost or by units or by By Source Line in your corporate
book. You cannot perform partial unit retirements in your tax books; you can only perform
cost retirements (partial and full) in your tax books. The procedure to partially retire an
asset is identical to the procedure for fully retiring the asset. The only difference occurs
when you specify the cost or units to retire.
If you perform multiple partial retirements on an asset within a period, you must run the
Calculate Gains and Losses program between transactions.
Asset Transfer
Posted on June 21st, 2008 by Sanjit Anand | Print This Post | Email This Post
Asset transfer is a complex process and should not be entered into lightly, if your customer
business is bit complex in nature. The complexity varies from companies to companies
along with industry type.This post will briefly tells about Asset Transfer functionality of
Oracle.
You may have three main business scenario's within Asset Transfer.
1. Location Transfer without ownership change

2. Location Transfer with ownership change
3. Ownership Transfer without location change
In reality 1,2 is sort of intra Transfer of asset where as #3 is consider as Inter Transfer. Lets
take a detail understanding what is meant and see key difference:
Transfer Intra Entity
Assets are sometimes transferred between locations within the same entity. These are
referred to as INTRA Entity transfers as opposed to INTER Entity transfers where the asset
transfers between two entities.
Companies have requirement , when an asset is transferred Intra Entity the location of the
asset changes. It is therefore necessary that those changes are identified and recorded in the
Fixed Assets module for controlling the physical location of the asset.
Oracle Navigation
Navigation -> Assets -> Asset workbench -> Assignments
You can use Find Assets form to make a transfer of a particular asset.
Asset Transfers -Process
(N) Assets > Asset Workbench (B) Assignments
To get use of Intra Entity transfer which might be location change , you can transfer assets
between employees, depreciation expense accounts, and locations. These are some of key
things which you need to have a clarity:
 You can change the transfer date to a date in a prior period for a particular
transfer, but the transfer must occur within the current fiscal year
 You can change the transfer date of an asset to a prior period only once per
asset.
 Oracle does not allow you to transfer an asset to a future period.
 Oracle does not transfer an asset after its normal life is completed.
 In the Unit Change field of the Assignments window, enter a negative
number for the assignment line from which you want to transfer the asset.
Enter a positive number if you want to add units to existing assignments or
create new assignments. Only one negative line is allowed per transaction.
 A journal entry is created as soon as an asset is transferred from one
Depreciation Expense Account to another.
Transfers - Inter Entity
In reality , Oracle Asset does not have a facility to transfer assets from one corporate book
to another. For the purpose of understanding you can consider corporate book to be
synonymous with legal entity. In order to transfer assets from one legal entity to another it
is necessary to retire the asset in one corporate book and add it to the other corporate book.
In EBS, there is no standard functionality/process in FA for transfer assets Inter Entity.
The work around for handling such scenarios consist of 2 simple steps.
1) In Entity book(s)1 you need to adjust Current Cost = 0, retire the assets.
This will reverse all accumulated depreciation and have no gain/loss on the retirements
passed to GL.
2) Add the assets to the new book(s)(entity 2) via FA_MASS_ADDITIONS or the Addition
API.
Here you probably do not want to add with DEPRN_RESERVE values - just let FA re-
establish the balances when you run depreciation and create JEs > GL.
How Transfer works
A tranfer is recorded as such in the FA_TRANSACTION_HEADERS table. The old and

the new line is shown in the FA_DISTRIBUTION_HISTORY table and the journal lines
are shown in FA_ADJUSTMENTS after depreciation is run. In FA_DEPRN_DETAIL you
see a row with the old distribution_id and the new distribution_id in the period_counter of
the transfer.
Asset Transfer API
You can get use the Oracle Transfer API's to add assets directly by writing a PL/SQL based
driven program . The Transfer API FA_TRANSFER_PUB.DO_TRANSFER can be used .
Scenarios in Intra entity Transfer - Asset Accounting

Similar Post
 Oracle Fixed Assets Process Overview
Changes in to “Mass Additions Create” in R12

1) R12, the Mass Additions Create program inserts the records into the
FA_MASS_ADDITIONS_GT table, a global temporary table whereas in 11i, it is inserted
the records directly into the FA_MASS_ADDITIONS table.
2) The Mass Additions Create process calls the fixed assets code,
FA_MASSADD_CREATE_PKG , which determines whether the selected data meets the
criteria to be set moved to the FA_MASS_ADDITIONS table based on the asset book
controls and the configured asset and CIP clearing accounts.
3) In R12 profile option "FA: Include Nonrecoverable Tax in Mass Addition" is obsolete.
4)The asset book and asset category can be defined in Payables on the invoice line. If these
are defined in Payables, they will appear in the Mass Additions Prepare screen when the
asset is reviewed.
Reference
1. Note:464780.1 :R12 Non Recoverable Tax Lines Not Interfacing to Mass Additions
2. Note:559980.1 :How To Include Nonrecoverable Tax In Mass Addition In R12
FA : Capital Budgeting & Depreciation Forecast
If your client/customers's company want to use the capital budgeting function of Oracle
Asset , then you will able to create, upload and amend a budget by asset category, cost
centre within a legal entity.
What minimum you have to do is to do setup a budget book, which is basically subsidiary
to a Corporate book and is used to hold capital budget information. Please note no actual
assets are held in a Budget book. You can also manage multiple Budget books and can be
linked to one Corporate book. For details for budget books refer this .
Capital Budgeting
Client Requirement : To establish if Capital Budgeting within FA will be required
Oracle Assets budget allows you to enter budget information manually, or you can maintain
your budget information in another system and upload the information via the budget
interface.
Budgeting is done at either the major category level or at the full category flex field
combination per period. Update of budget can be restricted to authorized user by function
and menu exclusion.Therefore, you need to be very careful while designing and providing
the menu to user community.
In Oracle you can get use of budget entry report is available within the standard report set.
The Budget to Actual Standard Report list the actual and budgeted amounts for each major
category and cost centre and the percent variance between the budget and actual regardless
of the budget information detail whilst the Capital Spending Report compares the budgeted
and actual amounts for all major categories, for which there exists a budget and it sums
them up by major category. It also sums up the actual expenditures for non-budgeted
categories by major category.
Sometime it has requirement to be able to project/forecast depreciation over future periods

using all fields within fixed assets,if customer wants.
Depreciation Forecast
Depreciation Forecast is achieved within Oracle standard functionality via What if Analysis
or Depreciation Projections.
What-if Depreciation Analysis is use to forecast depreciation for groups of assets in

different scenarios without making changes to your Oracle Assets data. You can run what-if
depreciation analysis on assets defined in your Oracle Assets system or on hypothetical
assets that are not defined in Oracle Assets.
What-if depreciation analysis differs from depreciation projections in that what-if
depreciation analysis allows you to forecast depreciation for many different scenarios
without changing your Oracle Assets data. Depreciation projection allows projection only
for the parameters set up in Oracle Assets.
The important fields that can be used for What If analysis are;
1. Asset Book , Start Period and number of period , these are mandatory parameter.
2. Range of asset numbers
3. Range of Date in Service
4. Asset Category
5. Indicate the depreciation method, years you wish to simulate. For example the
impact of changing the depreciation method from straight Line to Sum of Digits.
Use the what-if depreciation analysis to forecast depreciation for groups of assets in
different scenarios without making changes to your
Oracle Assets data.
Steps to use Forecast Depreciation using WHAT-IF DEPRECIATION Analysis:
1. First you need to navigate to the What-If Depreciation Analysis window .

2. Next you need to enter the book containing the assets for which you want to run
what-if analysis.
3. Now , in the Assets to Analyze tabbed region, enter the parameters you want to use
to identify the set of assets for which you want to run
what-if depreciation analysis or you can use other options like ..In the Hypothetical
Assets tabbed region, enter the parameters to identify the hypothetical asset for
which you want to run what-if depreciation analysis.
4. Next you need to enter the Depreciation Scenario parameters to identify the
depreciation rules to be used in the analysis.
5. Run what-if depreciation analysis.
6. Review the results of the What-If Depreciation Report or the Hypothetical What-If
Report by navigating to the View My Requests window.
7. Update your assets according to the specified parameters in the Mass Changes
window or repeat this with other parameters.
Asset budgeting : EBS Out of box possiblity
 Possibility to create a budget by asset category (type of asset) within a legal entity.
 Possibility to create a budget by cost centre within a legal entity
 Possibility to modify a budget
 Possibility to upload a budget by assets category (type of assets) within a legal
entity.
 Possibility to upload a budget by cost centre within a legal entity.
 Ability to forecast current asset depreciation for future periods and what if analysis
Some Quick Question Answer

Q: What is the use of Budget Book?
A: Capital Budgeting
Q: How will you Create Asset in Budget Book?

A: Via the application or Budget Upload interface table.
Q: Is there any process where in assets can be transfered from Corporate book to Budget
Book?
A: NO
Q:Link between FA Budget and GL Budgets

A:To establish the link between FA budget and GL Budget , you need to do customization
on Account Generator.
Q:What is Budget Open Interface ?

A:As mention this is Capital Budgeting Process in which you can maintain your budget
information in a spreadsheet, and then upload it to Oracle Assets using the budget interface.
You can transfer budget data from any software package that prints to an ASCII file, and
then use SQL*Loader to load the FA_BUDGET_INTERFACE table.
Similar Post
 Depreciation and Amortization

 Deep Drive : â€œDepreciationâ€• in Oracle Fixed Asset
 Oracle Fixed Asset:Security by Book
 Know the â€œSecurity by Bookâ€• in Fixed Asset
 Understanding Depreciation Books
 FA : Capital Budgeting & Depreciation Forecast
Understanding Depreciation Books: Back to Basic

Fixed Asset is one of the easiest application in Financial side but whenever its comes to
discussion for depreciation, people roll their eyes and shudder. I received lot many emails
and offline request for understanding asset tax book and deprecation. This is back to basic
subject, an attempt to draw a line in the sand.
In EBS , there are three types of Depreciation Books you can manage:
Corporate Book :This is the main asset book type used to hold the Fixed Asset Register
in accordance with your corporate policy. The Corporate Book is linked to the appropriate
GL Set of Books for journal postings.
The Corporate Book into which the invoice lines from Oracle Payables or Oracle Projects
flow. It is the main depreciation book from which journal entries are created for General
Ledger.
Tax Book : This book type is subsidiary to the your corporate book and is used to hold
the same assets as in the Corporate book but depreciate them differently for tax or legal /
fiscal purposes.
From the corporate book the transactions can be copied into the Tax Book. It is called tax
book because it is generally used to keep the tax depreciation. One can maintain different
depreciation methods and life from the corporate book for the same assets. The
accumulated depreciation of previous fiscal years can only be adjusted for tax books.
Budget Book :This book type is also subsidiary to a Corporate book and is used to hold
capital budget information. No actual assets are held in a Budget book. Multiple Budget
books can be linked to one Corporate book.
Once you created Budget Book and budget assets, you can run budget reports and project
depreciation expense for amounts budgeted to each category. Planning to have another post
on Asset Budgeting.
Implementation Consideration :Steps/process
When setting up the depreciation books, one defines which set of books and therefore
which Accounting Flex field/Calendar/Currency will be the basis and for which set of
books journal entries will be created. The depreciation and prorate calendar need to be
chosen. The current open period needs to be chosen and the method for dividing the annual
depreciation amount over the periods in the fiscal year.
The accounting rules have to be chosen and the profit/loss accounts that the account
generator will use to create the account combinations. The journal categories for the journal
entries in General Ledger have to be chosen.
Asset Calendars are assigned to asset books for purposes of calculating and allocating
depreciation expense.
Asset Categories are assigned for use with asset books. All assets are assigned to an asset
category which designates accounting information and default depreciation rules for the
assets. Depreciation methods are
assigned to asset categories.
Creating a Tax Book
 Tax books can be created before

you add and depreciate assets.
 Driving factors for deciding tax
books is to comply with tax laws
.
 You Can manage multiple tax
books that are associated for
each corporate book.
 You can also define independent
tax depreciation books for each
reporting authority.
 You can copy assets into each book and depreciate these according to each book's
depreciation rules.
Entering Information in Tax Books
 Mass Copy can be used moving corporate book to your tax books automatically .
 As mention above , you can manage multiple tax book but you need to maintain
your asset information in your corporate book, and then update your tax books with
assets and transactions from your corporate book.
 If you choose to copy adjustments, Oracle Assets copies cost adjustments from the
associated corporate book if the unrevalued cost in the corporate book before the
adjustment matches the unrevalued cost in the tax book. It copies both adjustments
that are ADJUSTMENT type in the tax book and adjustment transactions that create
a new ADDITION type and update the ADDITION/VOID in the tax book.
 You should note that initial mass copy is used to initially populate your tax book by
adding existing assets to a tax book.
 Assets and transactions into the tax book can be entered manually.
 Periodic Mass Copy each period can be used to keep your tax book updated with
your corporate book.
 You cannot copy assets from one corporate book into another corporate book.
What is the difference between book depreciation and tax depreciation?
Corporate book depreciation is the amount recorded on the â€œbooksâ€• and reported on
the financial statements. This depreciation is based on the matching principle of accounting.
Whereas , the tax depreciation is recorded on the companyâ€™s income tax returns and
will be based on the Local Internal Revenue Serviceâ€™s rules.The IRS might specify that
the machine is a 7-year machine regardless of a companyâ€™s situation. The IRS rules
also allow a company to accelerate the depreciation expense. Accelerated depreciation
means taking more depreciation in the first few years and less depreciation in the later years
of the machineâ€™s life. This saves income tax payments in the first few years of the
assetâ€™s life but will result in more taxes in the later years. Companies that are profitable
will find the accelerated depreciation to be attractive.[Apoted]
Some FAQ
Q. Which Book allows mass copies checked in order for the mass copy to copy.
A. Only the tax book needs to have the allow mass copy checked
Q. How do I disable a Book?

A. You can disable the book is to end date it.The end date The end date is as of today or
later and cannot be post-dated.
Q. Can be manage multiple FA Books pointing to a GL book?

A. Yes, you may have multiple FA books tied to the same GL Set of Books.
Create Journal Entries, which is where the interface from FA to GL occurs, is run by
individual book in FA.
Q. Can it be possible to push the same payables item into 2 different fixed asset books to
get depreciated with 2 different methods?
A. Yes, you can ..If you would create a corporate book and attach a tax book with different
depreciation rules. Then you can send the invoice from AP to the corporate book and later
mass copy it to the tax book.
Similar Post
 Depreciation and Amortization

 Deep Drive : â€œDepreciationâ€• in Oracle Fixed Asset
 Oracle Fixed Asset:Security by Book
 Know the â€œSecurity by Bookâ€• in Fixed Asset
 Understanding Depreciation Books: It May Be More Simple Than You Think
Oracle Fixed Asset:Security by Book

You can manage your Asset Book Security, as mention in one of last post.This
Functionality you can
 Secure access to each depreciation book

 Create a flexible hierarchy of asset organizations
 Associate a responsibility with one or more depreciation books
Asset Book Security allows multiple asset books/registers to be manage/administered
independently.
Depreciation and Amortisation

Posted on April 15th, 2008 by Sanjit Anand | Print This Post | Email This Post
Amortization and depreciation are two words that are often used synonymously. Is
different or similar. How?
Deprecaition is the reduction in the value of a company's physical assets-building, plant,

cars,machines, pc that must be applied against Operating profit as a non cash expense as the
goods are used.
Amortisation is a similar Charge related to intangible aseets like patents as well as loans
and capital leases, and there associated intrested. Both are a burden to compnies because
they lower net earning and earning per share. Companies sometimes review tangible and
intangibale assets for impairment, hoping they are worth less than their current value in the
balanace sheet. They then "write down " or devalute, those asset and recognize the
reduction as a large charge agaist earning.
You can understand Amortisation as : lets say a company's did research and made a patent
on medical equipment which has a life of 15 years. There are certian cost involved while
creating the medical equipment, and that is spread out over the life of the patent, with each
portion being booked as an expense on the company's income statement.
Oracle FA :From 10.7SC, 10.7 ,11 , 11i & Release 12

Posted on January 26th, 2008 by Sanjit Anand | Print This Post | Email This Post
Know the difference in product version functionality.This document might be very helpful
to those group and team, who is still working on some older version of OracleApps and
same time exploring the new feature of higher versions release. This document is compiled
for Fixed asset and put all five different version's new and enhanced feature in one place.
You can download the document here for Fixed Asset.

Release 12: 6 New and Changed Feature in “Oracle
Assets”
Posted on January 25th, 2008 by Sanjit Anand | Print This Post | Email This Post
Here are the six new and Changed features for Oracle Assets in Release 12 .
 Sub Ledger Accounting Architecture

 Enhanced Mass Additions for Legacy conversions
 Automatic Preparation of Mass Additions
 Flexible Reporting using XML publisher
 Automatic depreciation rollback
 Enhanced functionality for Energy industry
Fixed Assets tied with SLA(Sub Ledger accounting)
As we have already seen in few earlier post "Oracle Subledger Accounting " is a rules-
based engine for generating accounting entries based on source transactions from ALL
Oracle Applications. Therefore Fixed Asset module does integrated with such functionality
to cater the asset accounting at ledger level. With this feature:
 Oracle Assets is fully integrated with SLA, which is a common accounting platform
for Sub Ledgers.
 Customers can use the seeded Account Derivation definitions or modify them as
required.
 Continue to support Account Generator functionality for existing Asset Books.
 New SLA Accounting report and online account inquiry.
What you will notice create Journal Entries (FAPOST) process feeding into the
GL_INTERFACE table is no more exist .This is replaced with the Create Accounting â€“
Assets process (FAACCPB). With this replacement, the some of high point in term of
benefits are:
 It leads to faster closings: Since there is no requirement of having to close the

period, accounting can be created for FA transactions and sent to GL on a
continual basis throughout the period.
 There is no need to wait until the end of the month to run Create Accounting in
order to get the data to GL.
Therefore with this new enhancement allows clients to meet multi-GAAP, corporate, and
fiscal accounting requirements. The tool, Accounting Methods Builder, allows you to
determine the accounts, lines, descriptions, summarization, and dates of your journal
entries.
This can be best understood as this example, if you do a large amount of asset additions on
the first day of the month, you can run Create Accounting and get all the Cost and Cost
Clearing lines over to GL at the close of business that day.
Enhancements have been made to the FA_MASS_ADDITIONS table.
Now with this enhanced feature, we can populate the values for the new attributes directly
in the FA Mass Additions interface table rather than accepting default values from the asset
category. Legacy conversion can be completely automated.These are new adds-on:
 Asset Life
 Depreciation Method
 Prorate Convention
 Bonus Rule Ceiling Name
 Depreciation Limit
What it is understood , is that Web ADI has also been upgraded to include the new
Attributes.
 New columns in the Asset Additions WebAdi

 Additional attribute can be used to populate values directly thereby eliminating the
need to override the defaults from the Asset Category
 These new data fields will benefit data conversion by allowing the converted data to
be brought into Oracle with the asset life information.
New Automatic Preparation of Mass Additions
 This new feature consists of default rules and Public APIs that can be used by
customers to complete the preparation of mass addition lines automatically.
o Auto populate required fields such as Expense Account, Asset Category etc.
o Avoid manual intervention during the Mass Additions prepare process
o Avoid customization and use public APIs to effect custom business logic.
 Assets now uses Flexible Reporting using XML publisher
o Major Asset Transaction reports have been modified to support XML
publisher.
o Users can modify or use new templates to view report output.
Those who are very new to Asset module must have question, What is maent by
Default Rules.
 Asset Category â€“ this is derived from the asset cost clearing account, as
long as there is a one to one relationship between the account and asset
category. This process will only impact items in the â€Ñewâ€™ and â€Õn
Holdâ€™ queue names.
 Expense Account â€“ 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. If
the program cannot derive an expense combination, the queue name is set to
â€Õn Holdâ€™.
So what is meant for Consultant by this feature..please note
 This should minimize the amount of manual efforts involved in the Prepare
Mass Additions Process. Manual updating is still required some fields may
not be populated but are required.
 Asset Category â€“ a one to one relationship between cost clearing account
and asset category â€“ this will expand the COA of many companies.
 Expense Account â€“ the expense combination is going to be derived from a
BS account. Oracle will simply overlay the natural account segment,
replacing the cost clearing account with the depreciation expense account
leaving all other segment values alone. If there are certain requirements for
P&L accounts versus BS accounts, I.e. cost center required for P&L, this
may present issues.
 Manual efforts are required to perform Merging, Splitting, Add to Assets,
and Merge Then Split functionality.
Flexiable Reporting into XML Publisher
These Thirteen asset reports have been converted in XML Publisher based report.
 Create Accounting â€“ Assets

 Transfer Journal Entries to GL â€“ Assets
 Journal Entry Reserve ledger Report
 Asset Additions Report
 Asset Transfer Report
 Asset Retirement Report
 Transaction History Report
 Asset Reclassification Report
 Mass Additions Create Report
 Mass Additions Posting Report
 Cost Adjustment Report
 Cost Detail report
 Cost Summary Report
 Reserve summary Report
 Reserve Details Report
 Mass Revaluation Preview Report
 Revalution Reserve Details Report
 Revalution Reserve Summary Report
 CIP Capitaliization report
 CIP Detail Report
 CIP Summary Report
You can design and control how the report output will be presented in separate template
files. Publish in PDF format that can support colors, images, font styles, headers and
footers, and other formatting. You can create new report templates, or modify existing
templates to view your report output.
Automatic Depreciation Rollback
Depreciation is rolled back automatically by the system when any transaction is performed
on an asset if the following conditions are met:
 Depreciation has been processed in that period

 The period is not closed
That mean, it is no longer required to run depreciation rollback program manually as we

have seen in release 11i.
Depreciation rollback is executed only on select assets as required and not on the entire
Asset Book this enhances performance of the program.
Since release 11i, users have been able to run depreciation for an asset book without closing
the period. If additional adjustments are required in the current period, then the user
submits a process to roll back depreciation for the entire book, performs the necessary
adjustment(s) and then resubmits the depreciation program. In Release 12 the intermediate
manual step of rolling back depreciation for the entire book in order to process further
adjustments on selected assets is no longer necessary. As before users may submit
depreciation for the entire book prior to closing the period. If it becomes necessary to
process financial adjustments on one or more assets, the user may proceed with the
transaction normally via the asset workbench or mass transactions.
Oracle Assets automatically rolls back the depreciation on just the selected assets (instead
of the whole book) and allows the transaction(s) to be processed normally. The asset(s) for
which depreciation was rolled back is automatically picked up during the next depreciation
run or at the time that the depreciation period is finally closed.
Enhanced functionality for Energy Industry
As per RCD , this can be understood as;
 Energy Units of Production Method for Group Assets
In the oil & gas industry, asset properties may include fields, leases and wells. These assets
are typically associated with units of production (UOP) and are depreciated using a special
UOP depreciation method. â€˜Energyâ€™ assets are generally structured into two levels,
group and member assets, where the group asset is a collection of several members.
 Allow Production method for Group Assets

 Allow Production upload to Group Assets
 Energy Straight line Method
This feature is used in oil & gas industry ,where non-producing assets are depreciated using
the energy straight-line method based on the assetâ€™s net book value. Assets that
depreciate using the energy straight-line method may either depreciate at the member asset
level or group asset level.
A note on Straight-Line Depreciation â€“ Assets that depreciation using energy straight-
line method may either depreciate at the member asset level or group asset level.
 When at the member level, depreciation is calculated based on each

memberâ€™s life and then summarized up to the group asset.
 When at the group level, depreciation is calculated at the group asset level,
the life of the group asset is used.
 Net Book Value / Remaining Life

 Asset Impairment â€“ this is basically an unplanned depreciation and will utilize
this feature to perform asset impairments. Now the â€˜impairmentâ€™ expense
account may be derived from the asset category setup or manually entered.
Suggested Reference
 Note:421352.1 :Release 12: Where is the Option for Rollback Depreciation?
Posted in Oracle Asset, R12, Release12 | 4 Comments »
Whats different EAM and Fixed Asset?

Whats different EAM and Fixed Asset?
In Short, EAM - Enterprise Asset Management - deals mostly with asset management
(physical - not financial) . Typical example are:
 optimizing inspections
 improving efficiency of work order and preventative maintenance programs
 asset tracking from purchases through warranties
 implementing effective equipment-based maintenance schedules to reduce
downtime
Whereas Fixed Asset will achieve many of the same goals for financial management
(streamlining, cost reductions etc.) , this mostly deal with deprecaition , disposal etc .
Posted in Oracle Asset, Oracle eAM | No Comments »
Month End /Year End Process in Fixed Asset & Relevant

Standard Reports
Posted on October 23rd, 2007 by Sanjit Anand | Print This Post | Email This Post
The month end process of FA is bit similar to other modules, but the important is that data
is flowing from some other modules . Lets take a close microscopic view of month end
close process of Fixed asset.Typically this consist of 13 steps process, as per figure below.
Typically the month end close process start with "Fixed Assets Manager Responsibility" or
any other custom defined responsibility.
Step 1 : Complete Mass Additions from AP
This consist of these steps.
a. Review or Run Mass Addition Create Report to view Payables transactions inserted
into FA Mass Additions interface table.
b. Run Mass Additions Status Reports by Hold, Post, New and Delete to verify all assets
have been processed.
c. Prepare Mass Additions resulting from AP Close:Mass Additions: Prepare Mass
Additions
d. Post Mass Additions:Mass Additions: Post Mass Additions
e. Delete Mass Additions:Mass Additions: Delete Mass Additions
f. Rerun Mass Additions Status Reports by Hold, Post, New and Delete to confirm all
assets have been processed.
g. Run the Posted Mass Additions Report to verify posted asset details.
Step 2 : Review Additions to Corporate Book
Here you have to Run Asset Additions Report for CORPORATE Book and then you have
to Verify that all new Additions for the period have the correct Depreciation Method, Life,
Prorate Date and Date in Service. The report lists all the assets you added to Oracle Assets
or capitalized during the specified accounting period.
Step3 : Complete Retirements,Re-classes and Transfers
 Retire or transfer assets as required for the current period.
Assets: Asset Workbench [Asset Workbench]
or
Mass Transactions: Changes [Mass Changes] to mass transfer assets.
 Calculate Gain/Loss if any retirements are done.
Depreciation: Calculate Gains and Losses
Step 4 : Run Depreciation Projection for Corporate Book
Then you need to run Depreciation Projection for the CORPORATE Book:
Depreciation: Projections
Step 5 : Run Depreciation for Corporate Book
You have to first run the Depreciation for the CORPORATE Book.Take a note your period
defaults to current open period and should NOT be changed at any cost. additionally if the
check box "close period" is checked, you will not be able to rollback depreciation. This
closes the current period and opens the next, and it cannot be reversed. Run for
CORPORATE Book only. If the close period box is not checked, you may rollback
depreciation to restore balances prior to the depreciation run.
Once this get completed advice to Reprint the Journal Entry Reserve Ledger Report
Step 6 : Create GL Journals
Creating journal entries in GL to reflect all FA transactions in the Corporate Book, for the
period which is just closed:This process creates all the depreciation, transfer,
reclassification, capitalization, addition, adjustment and retirement journal batch entries for
all of the transactions.
Step 7 : Print Journals in GL
You need to switch to in General Ledger responsibility and need to submit a standard report
Run Journals General(180 Char) for current Period where your source should be
Assets.Once report get completed you need to review the journal detail.
Step 8 : Post Journals
This is very similar to any GL post process. You are suppose to post Journal where source
is Asset.
Step 9 : Print Summary Trail Balance in GL
 Run Trial Balance Summary1 Report (Balance Type=PTD)

 Review Trial Balance report to confirm that final balances are correct. Use this
report for further reconciliation
Step 10 : Mass Copy to Tax Books
Copy all asset transactions (additions, transfers, retirements, etc.) for the closed period to
the Tax books:
Step 11 : Check Asset Additions to Tax Books
 Run the Asset Additions Report for each Tax Book

 Verify that all Additions for the period have the correct Depreciation Method, Life
and Date in Service.
 Run Depreciation for Tax Books and review results. Once audit is complete,
rollback deprecation and re-run with "close period" check box checked.
Step 12 : Review Additions to Corporate Book
In Fixed Assets:
Run Period Close Reports for FA Request Set to produce:Â·
 Cost Summary Reports for All BooksÂ·
 Reserve Summary Report for CORPORATE BookÂ·
 Cost Clearing Reconciliation Report for CORPORATE Book Detail
versions of the Summary reports can also be run, if required.
Step 13 : Reconcile FA to GL
Using the Period Close reports reconcile the FA Clearing, Cost, CIP and Depreciation
amounts to the appropriate GL accounts.b. Run GL Account Analysis Reports for details on
GL transaction activities for reconciling any account balance discrepancies.
This makes a end of month end close for Fixed asset.
Hope this helps..signing off.:)
Reference
1. Assets Standard Reports in Oracle Applications 11i :Metalink doc :131562.1
Posted in Functional, Oracle Asset | 1 Comment »
Process Outline –>FA Mass Addition

Posted on October 22nd, 2007 by Sanjit Anand | Print This Post | Email This Post
This is brief process outline for Mass addition program in Oracle.
1.Asset Invoice Creation within AP
For assets to be transferred to Assets, it must be approved and posted in the GL and charged
the distribution to a clearing account that is already assigned to an asset category or charge
directly to the asset cost account.
The track as asset flag will be automatically checked if the accounts have been set up as
Asset within the GL.
Invoice can be posted either to the asset clearing account or directly to the asset cost
account.
Having a clearing account provides more control particularly if an asset does not get added
in the correct period. That would therefore make the reconciliation between GL and FA
easier.
Typical steps are herewith:
1. Navigate to the Submit a New Request Window and select REQUEST SET.
2. Select the Mass Additions Create Request Set. This set contains two programs:
 Mass Additions Create

 Mass Additions Create Report
2.Mass Addition Create

Following the successful creation of invoice in AP,the Mass Addition Create program is
ran from the Account Payables.
Mass Addition Create lets you send Mass Addition lines from Oracle Payables as cost
adjustments or as potential new assets. Create Mass Additions sends valid invoice line
distributions and associated discounts from Payables to an interface table in Oracle Assets.
The Mass Addition Create process generates a Mass Addition Execution Report which
shows the number of records inserted, Invoice ID and the asset account.
We can download the Mass Addition Create Report , it shows assets that have been
successfully created from the process which will aid the reconciliation between Asset
created and Asset Purchased (entered in AP). The report contains such information as legal
entity name, asset account(as indicated on AP) , cost centre (as indicated on AP), Supplier
name, Invoice Number & Date, the asset description and the cost of the asset.
Also to ensure that assets created matches assets purchased, if the prepare mass addition
form is queried for all assets, a queue name other than POSTED indicates that the asset
invoice has not yet been successfully created as an asset on Fixed Asset.
3.Mass Addition Post
The posting process creates assets from mass addition lines in the POST queue using the
data you entered. It also adds mass additions in the COST ADJUSTMENT queue to
existing assets. You can run this program as often as you want during a period.
At this state, they become an asset and available on the Asset Workbench. The queue name
at this point changes to POSTED .Mass Additions Posting Report FAS824 is the output of
this process.
Navigation > Mass Additions > Post Mass Additions

4.Depreciation & Transfer to GL
Depreciation computations depend on such factors as the type of depreciation (Life, units of
production, or flat rate), the depreciation life and the depreciation method.
The asset category specifies a default depreciation method to be used with an asset. You
will usually want to set up categories in such a way that you do not need to override the
defaults they establish.
Data Flow:
Here is underline data flow diagram based out of the above discussed sub processes.
Posted in Functional, Oracle Asset, Technical | 2 Comments »
Oracle API Availability -Oracle Assets (FA)

Posted on October 21st, 2007 by Sanjit Anand | Print This Post | Email This Post
Importing of Asset information into the Oracle Assets module is achieved by the transfer of
the following five segments of data:
1. Adjusted current earnings (ACE) information

2. Budget data
3. Mass additions of Assets
4. Production Information which is typically related to depreciation
5. Physical Inventory data.
Each of the procedures are described in detail below.
Budget Data
The budget information can be entered manually, or it can be maintained in another system
and the information uploaded using the budget interface. The budget information is
prepared and analyzed on any feeder system and then automatically transferred into Oracle
Assets. This information can be used to project depreciation expense for the capital budgets
and to compare actual and planned capital spending in Oracle Assets.
 Manual Loading of the Budget Data

Manual loading of Budget Data is achieved by the following five step process: Open the
Capital Budgets window. Choose the budget Book, asset Category, and general ledger
Expense Account for which you want to budget. Enter or update the budget amounts for
this period. The budget amount is the amount you plan to spend on new assets in this
category in this period for this expense account. Save your work. Review the capital budget
for the year using the Budget Report
 Automatic Loading of the Budget Data:
Transfer of Budget information is achieved by transferring the data using a file transfer
method. The Budget information from various systems is first copied into an ASCII file
which is transferred into the Budget interface file FA_BUDGET_INTERFACE. This file
is used to load the Budget data into the Oracle Assets system.
Uploading budgets from other systems (such as a spreadsheet on a personal computer) into
Oracle Assets is a five step process. A file transfer program is used to upload the ASCII
budget file from any personal computer to the computer where Oracle Assets resides.
SQL*Loader is then used to move the budget data into the Budget Interface. The Upload
Capital Budget window is used to move the budget into the Budget Worksheet. 'Delete
Existing Budget' needs to be checked if replacing an existing budget. The Capital Budgets
window can be used to review or change the budget. The Capital Budget window is then
used to move the budget into a budget book.
ACE Information
Oracle Assets looks at the asset's financial information in either the Alternate Minimum
Tax(AMT) or the federal book to determine new ACE information. If an asset is
depreciating in the federal tax book using ACRS, Oracle Assets uses the federal book
information. If the asset is depreciating in the federal book using MACRS, Oracle Assets
uses the AMT book information. Oracle Assets automatically updates your assets when you
run the Update ACE Book program.
For transferring the ACE information from the legacy system, it can either be entered
manually, or it can be calculated by the Oracle Assets program. The difference is the
process of populating the ACE interface table.
 Automatic population of the ACE conversion table
Manually, create an ACE tax book with ACE depreciation rules. Using the Mass Copy
program, the assets are copied into the ACE book from the corporate book. The ACE
conversion table (FA_ACE_BOOKS) is populated using the Populate ACE Interface Table
program. The Update ACE Book program is then run to update the information in the ACE
conversion table.
 Manually Loading the ACE conversion table

Manually, create an ACE tax book with ACE depreciation rules. Using the Mass Copy
program , the assets are copied into the ACE book from the corporate book. The ACE
conversion table is populated by loading the table manually with the ACE information from
the previous system. The Update ACE Book program is then run to update the information
in the ACE conversion table.
Mass Addition of Assets
The mass additions process lets the addition of new assets or cost adjustments from other
systems to your system automatically without reentering the data. For example, new assets
can be added from invoice lines brought over to Oracle Assets from Oracle Payables, or
from CIP asset lines sent from Oracle Projects. Oracle Assets is already integrated with
Oracle Payables; and it can easily be integrated with other payables systems. The mass
additions process can also be used to convert assets from an outside system to Oracle
Assets. Assets data can be transferred in one of the following three methods, depending on
where the source is located.
 Creating Assets From Oracle Payables
The Create Mass Additions program creates mass additions from invoice information in
Oracle Payables. The concurrent process places the new mass additions in a holding area
(the table FA_MASS_ADDITIONS) interface tables, so that the mass additions are
reviewed and approved, before they become asset additions.
 Creating Asset Additions From Another Payables System
To integrate Oracle Assets with another system, a program is created to add mass additions
to the FA_MASS_ADDITIONS table. This new Custom Concurrent process has to be
defined and added to the Oracle Assets menu in order to run it, when needed.
 Converting Assets From Other Systems
Oracle Assets allows the conversion of assets data from non-Oracle asset systems by using
mass additions. Instead of loading the asset information into multiple Oracle Assets tables,
the information is loaded into the FA_MASS_ADDITIONS table and the mass additions
process is used to simplify the work.
Production Information
Typically, production information relates to the depreciation of assets in a production

environment, where assets are depreciated depending on the number of units produced by
the asset.
The production information can be entered manually, or it can be maintained in another
system and the information uploaded into the Oracle Assets, using the production interface.
Oracle Assets uses the information to calculate the depreciation of the units of production
assets.
 Automatic Loading of the Production Information
The automatic loading is achieved in the following 4-step process:
1. An import program or utility is used to export data from the feeder system to
populate the FA_PRODUCTION_INTERFACE table.
2. The Upload Production program is run to move the production information
into Oracle Assets.
3. The Production History report is run to review the status of all imported
items.
4. The Periodic Production window can be used to review or change the
production information.
 Manual Loading of the Production Information
The manual entry involves the following tasks: Open the Periodic Production window; Find
assets within a corporate Book for which you the production information is being entered;
Enter the from and to date and the total Production for an asset; Optionally enter production
for multiple non-overlapping date ranges within a single period; Save your work.
Physical Inventory
Physical inventory is the process of ensuring that the assets a company has listed in its
production system match the assets it actually has in inventory. A company takes physical
inventory by manually looking at all assets to ensure they exist as recorded, are in the
appropriate locations, and consist of the recorded number of units. The Physical Inventory
feature in Oracle Assets assists in comparing and reconciling your physical inventory data.
The physical inventory data can be loaded into Oracle Assets using one of the following
methods:
 Importing data from an Excel spreadsheet using ADI
The physical inventory data is entered into an Excel spreadsheet and exported to Oracle
Assets using the Applications Desktop Integrator (ADI). ADI is a spreadsheet-based
application that allows the user to format data inside a Microsoft Excel spreadsheet and
then upload into Oracle Applications. ADI uses Wizards and Templates to simplify the data
entry.
 Entering data in the Physical Inventory Entries window
Data for each asset is entered directly into Oracle Assets using the Physical Inventory
Entries window. The limiting factor is that data for only one asset can be entered at a time
when using this method
 Importing data from a non-Oracle system using SQL*Loader

SQL Loader is used to import the Physical inventory data in the following way: A single
interim table it be used, if possible. Multiple tables may be used if the data exists in
multiple tables or files in the system from which data is being loaded. In either case, the
data must eventually be placed in a single table, the FA_INV_INTERFACE table. If
preferred, data can be loaded directly into the FA_INV_INTERFACE table, but it is more
difficult due to the complexity of the table SQL*Loader is used to import information from
outside the Oracle database. SQL*Loader accepts a number of input file formats and loads
the physical inventory data into the interim table. If the data already resides within an
Oracle database, there is no need to use SQL*Loader. The physical inventory information
is consolidated in the interim table using SQL*Plus or imported by any other method.
Oracle API Table Definitions Fixed Assets
Here is reference note for API table definitions based out of my for previous article for
Oracle API Availability -Oracle Assets (FA).
FA_ACE_BOOKS
FA_ACE_BOOKS, the ACE conversion table, is organized into the following columns
which store ACE information:
FA_BUDGET_INTERFACE
FA_BUDGET_INTERFACE, the budget interface table, is organized into columns in

which Oracle Assets stores budget information.
FA_INV_INTERFACE
To use the Physical Inventory feature in Oracle Assets, you must load physical inventory
data that you have collected into the FA_INV_INTERFACE table in Oracle Assets.
FA_PRODUCTION_INTERFACE
FA_PRODUCTION_INTERFACE, the production interface table, is organized into

columns in which Oracle Assets stores production information. Enter values for the
following required columns
Name Null? Type

ASSET_NUMBER NOT NULL VARCHAR2(30)
PRODUCTION NOT NULL NUMBER
START_DATE NOT NULL DATE
END_DATE NOT NULL DATE
Posted in API Integration, Oracle Asset, Technical | 2 Comments »
Deep Drive : “Depreciation” in Oracle Fixed Asset

Posted on October 15th, 2007 by Sanjit Anand | Print This Post | Email This Post
What is Depreciation?
Procedure to use for calculating depreciation and create journals that will be posted to the
General Ledger. This is also to be used to close the period.
The depreciation program calculates depreciation expense and adjustments, and updates the
accumulated depreciation and year-to-date depreciation.
When we run depreciation, the depreciation program submits three separate requests to:
 Calculate gains and losses for retired assets and catch up depreciation for retired and
reinstated assets
 Calculate depreciation expense and adjustments for the period, and close the current
period
 Run the reserve ledger report Depreciation expense is calculated as follows:
< STRONG >
Depreciation Expense = (Current Cost - Recoverable Cost) * Basic Rate< /FONT >
What is RollBack Depreciation?

This is used to reverse the following processes:
1. Calculated depreciation in Fixed Assets

2. Created journal in Fixed Assets
3. Posted journal in General Ledger
What is Forecast Depreciation?
Oracle Assets estimates depreciation expense for the periods for which you project
depreciation based on the financial information for your existing assets at the start of that
period. The projection includes additions, transfers, and reclassification transactions you
perform in the
current period.
It ignores other asset transactions you make in the current period, such as the depreciation
adjustment for retroactive additions and retroactive transfers you enter in the current period.
The program also ignores fully reserved and fully retired assets. Depreciation projections
are estimates of actual depreciation expense. You can project depreciation expense for any
depreciation book.
The standard depreciation process in EBS
Depreciation computations depend on such factors as the type of depreciation (Life, units of
production, or flat rate), the depreciation life and the depreciation method.
The asset category specifies a default depreciation method to be used with an asset. You
will usually want to set up categories in such a way that you do not need to override the
defaults they establish.
This is oracle standard Depreciation Process.

Overview of the Process
Prior to running the Deprecation process you have to unsure that these reports submission
is completed.
 Select Depreciation from the navigation menu and then select Calculate Gains and
Losses. Here oracle Assets will automatically run this report when Depreciation is
ran, but the forecast report will not be accurate if their are any retirements pending.
 Run the Projections report which will project depreciation expense for a specific
depreciation book. Use this report to review project depreciation expense for your
assets for each book you request. This report is sorted by, and prints the total
depreciation for each balancing segment, cost center, and expense account. You can
request asset detail at the Cost Center and/or Asset level.
Step 1.0 :Run depreciation on corporate book.

The depreciation program automatically calculates gains and losses for unprocessed
retirements, calculates depreciation expense and depreciation adjustments, and generates
the appropriate Reserve Ledger and Journal Entry Reserve Reports . Ensure that the close
period box is unchecked. This 'trial' run enables an opportunity to review depreciation
calculations and work any errors prior to running your final period depreciation.
Step 2.0 : Run Create Journal
This process creates all of the depreciation, transfer, reclassification, capitalization,

addition, adjustment and retirement journal entries for all of the transactions within the
asset sub-ledger. It also transfers these journals to the general ledger once they have been
created.
Please take a note oracle Assets journals updated the GL tables rather than the GL interface
tables.
Step 3.0 : Reconcile FA sub-ledger to the General Ledger and Accounts Payable
 Using the Period Close reports reconcile the FA Clearing, Cost and Depreciation
amounts to the appropriate GL accounts.
 To reconcile the cost accounts with GL, you can run the cost summary and cost
detail report. The summary report can only be sorted by balancing segment and
asset account. A detail (by asset) version is also available for these reports.
 Depreciation expense reconciliation can be done using the Journal Entry Reserve
Ledger report. This report provides details on all active assets in addition to those
assets that you might have retired during the year.
 Run GL Accounts Analysis Report for details on GL transaction activities for
reconciling any account balance discrepancies.
If we are happy with the reports we can go ahead to Run the Depreciation Process again
(Step 4.0) otherwise, we will perform these processes;
 Sub Step 3.a Â· Rollback Journals

 Sub Step 3.b Rollback Depreciation
 Sub step 3.c Necessary adjustments and for rewind the whole process again
Step 4.0 :Run the Depreciation Process Again

Once you are satisfied with the reconciliation, the process with the close period box
checked, the process closes the current depreciation period and opens the next period
calendar.
Step 5.0 :Copy transactions to tax books
This process copies the transaction that occurred in the corporate book during a period to a
tax book using the Periodic Mass Copy functionality as opposed to the Initial Mass copy.
The timing of the Periodic Mass Copy process will depend on what type of calendar has
been assigned to the Tax Book. If it's Monthly, then the copy process should occur each
month after the Corp Book is closed.
Step 6.0 :Run these reports for the verification of the Copy Process
1. The Tax Addition Report shows you asset additions and capitalization for the period
range you selected. The report is sorted by Balancing Segment, Fiscal Year Added,
Asset Account, and Asset Number. It prints totals for Asset Account, Fiscal Year,
and Balancing Segment.
2. The Financial Adjustments Report shows you all of the adjustments you made to the
financial information for your assets for the Book and Period you choose. Asset
Number sorts the report and by when the transaction was effective.
3. The Tax Retirements Report shows you all the Gains and Losses and any
Investment Tax Credit (ITC) Recapture for your asset retirements. This report sorts
by Balancing Segment, Fiscal Year Placed in Service Date, Asset Account, and
Asset Number. The report prints totals for each Fiscal Year and Balancing Segment.
These three reports provide all the details on Assets copied from Mass Copy.
Step 7.0 :Run depreciation on tax books.
Depreciation is calculated separately on each tax book according to the depreciation

methods and life defined for each tax book. The same process for running tax depreciation
applies as detailed in Step 1.0 discussed above.
Step 5 to 7 is required if your company is maintaining tax books, else this become optional.
Oracle Fixed Assets Process Overview

There are four main business Process in Oracle Assets Process Cycles:
 Additions
 Adjustments/Transfers
 Depreciation
 Retirements
Oracle Asset Addition Methods
Assets are created when entered into the Oracle Assets module. The three ways assets can
be entered are via Manual Additions , Details addition and Mass Additions.
 Quick Additions or Manual addition

o It allows you to use the QuickAdditions process to quickly enter
ordinary assets when you must enter them manually. You can enter
minimal information in the QuickAdditions window, and the remaining
asset information defaults from the asset category, book, and the date
placed in service.The good is that quick addition requires only one
screen to enter an asset.
Navigation Path
Assets -> Asset Workbench
In the Find Assets window, click the QuickAdditions button
 Detail Additions
Detailed Additions provides three separate screens in order to input more complex assets
that cannot accept defaults. Additional asset details could include lease and leasehold
improvements, salvage value,multiple assignments, or changes to category defaults.
Detail Additions process to manually add complex assets which the QuickAdditions
process does not handle:
 Assets that have salvage value

 Assets with more than one assignment
 Assets with more than one source line
 Assets to which category default depreciation rules do not apply
 Subcomponent assets
 Leased assets and leasehold improvements
Navigation
Assets -> Asset Workbench
In the Find Assets window, click the New button
 Mass Additions
Mass Additions is the process of taking asset information from an external system or
another module, such as Payables or Projects, and importing it into F/A via the
FA_MASS_ADDITIONS table. Prepare the asset(s) by assigning an asset category, a date
placed in service, and a depreciation expense account. The â€˜Run Mass Additionsâ€™
process creates the asset(s) in the F/A module.
Assets Adjustments
 Changing Asset Details - You can change descriptive information for an asset at
any time. Changing asset descriptive information other than category and units has
no financial impact on the asset.
 Reclassifying Assets â€“ Reclassify assets to update information, correct data entry
errors, or when consolidating categories. You can update financial information for a
single asset or a group of assets. When you reclassify an asset in a period after the
period you entered it, Oracle Assets creates journal entries to transfer the cost and
accumulated depreciation to the asset cost and accumulated depreciation accounts of
the new asset category.
 Adjusting Accounting Information - You can adjust financial, depreciation,
distribution, and invoice information for a single asset or a group of assets. Before
running depreciation in the period in which you added the asset you can change any
field. After you have run depreciation in any period after the one you added the
asset, you can change asset cost, salvage value, prorate convention, depreciation
method, and life .You can choose whether to amortize or expense the adjustment
 Assets Transfers
o You can transfer assets between employees, depreciation expense accounts,
and locations. When transferring assets, you should consider the following:
 You can change the transfer date to a date in a prior period for a
particular transfer, but the transfer must occur within the current
fiscal year
 You can change the transfer date of an asset to a prior period only
once per asset.
 You cannot transfer an asset to a future period.
 You can transfer a single asset or a group of assets.
Depreciation
Running depreciation to process all assets in a book for a period. If you have assets that
have not depreciated successfully, these assets are listed in the log file created by Oracle
Assets when you run depreciation.
When you run depreciation, Oracle gives you the option of closing the current period if you
check the Close period check box on the Run Depreciation window. If all of your assets
depreciate successfully, Oracle automatically closes the period and opens the next period
for the book. If you do not check the Close Period check box when you run depreciation,
Oracle Assets does not close the period.
Once depreciation has been processed for an asset in the current open period, you cannot
perform any transactions on those assets unless depreciation is rolled back or the current
period is closed.
Asset Retirements
Retire an asset when it is no longer in service. For example, retire an asset that was stolen,
lost, or damaged, or that you sold or returned.
You can retire an entire asset or you can partially retire an asset. When you retire an asset
by units, Oracle Assets automatically calculates the fraction of the cost retired. When you
retire an asset by cost, the units remain unchanged and the cost retired is spread evenly
among all remaining assignment lines.
You can retire a single asset or a group of assets.
Mass/Group Retirements can be achieved using any of the following criteria:
 Expense Account
 Location
 Category
 Range of Asset numbers
 Date placed in service
You cannot retire an asset if you added it in the current period.
Although the depreciation program automatically processes retirements, you can run the
Calculate Gains and Losses program several times during the period to reduce period end
processing time.
When an asset is retired before it is fully depreciated, Oracle FA calculates the gain or loss
on the asset retirement. The calculation is based on the following formula: Proceeds of Sale
minus Cost of Removal minus NBV Retired plus Revaluation Reserved Retired equals
Gain/Loss on Retirement.
Please take a note , Oracle calculates the gain/loss based upon
 Proceeds: The sale price

 Cost of Removal: How much did it cost to remove it?
 Current Net Book Value: Original cost less accumulated depreciation.
With this information Oracle calculates the gain or loss as well as creates the appropriate
journal entries to remove the asset cost and accumulated depreciation from the general
ledger. It also uses clearing accounts to make a Receivables entry if you sold the asset and a
Payables entry if you had to pay someone to remove it.
At asset retirement , the cost of removal and disposal proceeds is entered which aids in the
computation of Gain/Loss on Disposal, however there is no direct link between the sub-
ledgers (AP or AR)
Know the “Security by Book” in Fixed Asset

Security by Book is the model that allows organization security in Fixed Asset module.
The set up restricts users access and view to their organization. This is achieved by
attaching fixed asset related security profile to their responsibilities.
To understand the asset books security , lets understand this way. There is one BU ABC as
shown in figure below.
Now , within the ABC Business Group, we

are going to have two operating units with
each having its own asset book, the security
by book concept will ensure that users are
only able to view and update assets within their organization. If there is only one user at X
to perform Fixed Asset accounting, he/she will be able to switch responsibilities to access
each asset book (X and Y).
All operating units will be set up as Asset Organizations and attached to the Asset hierarchy
defined for each business group.
5 Easy steps to make Secured by "Security by Book"
The reason for security important because of these reasons:
 Normally person who runs Mass Copy must have visibility to Corporate and Tax
Books
 Many time it is observed that restriction at users level cannot update data
In EBS there are 5 simple steps that makes asset book secured:
Step 1. Define Organization
 This can be done by an existing or new organization

 The most important things is that that organization must be define as an asset
organization in main setup screen.
 Then , you need to Assign depreciation books to the organizations
 Please take a note depreciation books can only be assigned to one organization
Step 2. Define Hierarchy
Then the next is to define Hierarchy. Lets say my tax Books Organization is subsidiary of
the Corporate Book Organization, then accordingly we can do setup for Hierarchy also.
Step 3. Define Security Profile
This is used to determine the top organization in the hierarchy that can be viewed by a
responsibility.
Step 4. Run Security List Maintenance
This is one of the step where seeded program need to run. The Security List Maintenance
process can be run under HR responsibility
Step 5. Set Profile Option
The last step is to setup the FA: Security Profile at the responsibility level
..
ABC: An Introduction to Asset Books in Oracle Fixed

Asset
EBS's Oracle Assets allows for the use of multiple asset registers, or asset books, and
different types of book. In typical business scenario and to address the need to be able to
hold asset in global and local book books to meet tax regulation, corporate book and tax
book will be set up.
Corporate Books are used to hold the all asset information and to post depreciation to the
relevant Corporate General Ledger Set of Books in accordance with corporate policy and
business practice.
Tax Books are used to retain information regarding the statutory rules for depreciating
assets/fiscal rules and asset data is copied from the Corporate book on a regular basis
excluding depreciation information. Mass Copy is the process of transferring assets and
transactions from the corporate book to the tax book(s).
Mass Copy can be either be Initial Mass Copy or Periodic Mass Copy.
Initial Mass Copy is used to initially populate the tax book by adding existing assets to a
tax book. Initial Mass Copy copies all the assets added to your corporate book before the
end of the current tax fiscal year into the open accounting period in your tax book
When the Initial Mass Copy program copies an asset into a tax book, the following basic
financial information comes from the corporate book
 Cost
 Original Cost
 Units
 Date Placed in Service
 Salvage Value, if you choose to Copy Salvage Value for the tax book in the
Book Controls window
 Asset Category - set up at initial configuration.
The remaining depreciation information comes from the default category information for
your tax book according to the asset category and the date placed in service. You must set
up your asset categories with default information for your tax book before you run Initial
Mass Copy.
You should also take a note, the initial Mass Copy Process is also used when a new tax
book is created due to new statutory filing requirements.
Periodic Mass Copy is used each period to keep your tax book up to date with your
corporate book. Oracle Assets copies new assets and

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Group depreciation

Organizations such as utility companies or other entities that support a communal

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The adjusting entry for depreciation at year end would be:

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FA Tax Book Implementation

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What is Amortized Asset and Expensed-Off Assets

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What is OAT(Oracle Asset Tracking) ..

If you company Business goals are:

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Fig :1 - OAT Integration

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R12 :FA Close process

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