Overview of Oracle Asset Management

Release 12 Oracle Asset Management Fundamentals

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 Objectives

After completing this module, you should be able to do

the following:
• Describe the overall Oracle Asset Management
process from Setup through asset data flow to the
General Ledger
• Identify the key functional areas that are part of
Oracle Asset Management

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 Agenda

• Asset Management Process Overview

• Key Areas within Asset Management

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 Overview of Oracle Assets

Adjustments Asset Additions Transfers

Manual External CIP

Retirements
Online inquiry

Depreciation
Reports Taxes

Journal Entries

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 E-Business Suite Integration
Oracle
Projects
Invoice Lines
Suppliers

CIP assets
Oracle Payables Oracle Purchasing

Physical Inventory
Budget Information Web
Asset Additions
ADI
Oracle
Spreadsheet Assets/iAssets
Journal Entries
Units of Measure
Employees Item Information

Oracle
Oracle Human Inventory
Resources Oracle General Ledger

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Implementation Considerations
for Oracle Financials

Oracle Applications Future Oracle

without customization upgrades

Costly future
upgrades

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 The Best Project Team for the Job

Client experts

Implementation End users

consultants

Implementation team

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 Critical Implementation Issues

Identify critical implementation issues that affect

multiple business areas:
• Shared information
• Information flows
• Open interfaces
• Non-Oracle systems

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 Oracle Assets Setup Steps
Optional
Unit of Measure
Classes
Required Units of Measure
Required w/Defaults Employees
Ledger Account Generator Descriptive FF
Numbering
Asset Key Flexfield QuickCodes
Suppliers
Asset Category Depreciation
Locations
Flexfield Methods Combinations
Location Flexfield Asset Keys
Combinations
System Controls
Security
Fiscal Years Investment Tax
Credits
Calendars
Price Indexes
Book Controls
Distribution Sets
Prorate/Retirement Leases
Conventions
Warranties
Asset Categories Profile Options
Insurance

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 Oracle Assets Key Flexfields

To run the application, three key flexfields must be set up.

Asset Category Asset Location Asset Key

Key Flexfield Key Flexfield Key Flexfield

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 Implementing Oracle Assets

1 2
Plan Implementation Setup Asset Mgmt
including iAssets

3 4
Convert Existing Reconcile With
Asset Information Previous System

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 Asset Books Positioning

New assets are assigned

to a Category then to a
Book Corporate

Tax

Budget
Asset Books
Assets
Assigned
to

Asset Asset Calendars

Categories

Assigned
to Depreciation Methods

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 Asset Categories Positioning

Assign Added to
to

Assets
Corporate Book

Copied to

Attached to Tax Book A

Asset
Tax Book B
Categories

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 Asset Life Cycle

Oracle Oracle Other/ WebADI

Manual Additions Payables Projects Legacy
Quick Additions Systems

Detail Additions

Birth of an
Asset

FA_MASS_ADDITIONS
Asset
Books

Asset Retired

Asset
Depreciates

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 Adding Assets Manually

Quick Additions Detail Additions

Assets added Assets that

applying default require more
rules information

Oracle Assets

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 Mass Asset Additions Process

Oracle
Projects
Oracle Other
Payables Systems

FA_MASS_ADDITIONS

Legacy Web
System ADI

Asset Books

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 Adding and Capitalizing
a CIP Asset

Add a CIP asset Build a CIP asset

Depreciate the asset Capitalize a CIP asset

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 Acquire and Build CIP Assets

Asset
Lines

Oracle
Projects

FA_MASS_ADDITIONS Manual
Additions
Mass
Additions

Oracle
CIP
Payables
ASSET

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 Asset Adjustments

Unit
Change Change
Reclass Financial
Info

Oracle Changes
Transfer
Assets/iAssets via APIs

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 Asset Adjustment Overview

Mass
Adjustment Action Performed Transaction
Available
Reclassification Change Asset Category Yes

Unit Change Change Number of Asset No

Units

Financial Change Asset Cost and/or Yes (Prorate

Information Depreciation Information Convention,
Method, Life
only)
Transfer Change Asset Assignment Yes
Information

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 Performing Physical Inventory

Enter physical Run inventory View

inventory comparison comparison

Reconcile
differences

Update assets
manually

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 Elements of Depreciation

Prorate
Convention
Prorate
Asset Books
Calendar

Depreciation Depreciation
Method Calendar

Depreciation Depreciation Units of

Ceilings Measure

Investment Price
Optional
Tax Credits Indexes Elements

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 Basic Depreciation Calculation
Prorate Prorate
Convention Calendar
Prorate
FOL Month Period
May
Apr 1
15
Prorate Date
Date Placed in Get
Service Rate
Journal
Entry R = 20%
Depreciation
Expense per
period
Rate Table

Depreciation Calendar,
Divide Depreciation Annual
flag, and Depreciate Depreciation Multiply by Cost
When Placed in Service or Net Book Value
flag

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 Tracking Asset Retirements

Asset Life
Automated Manual
addition addition

Invoice

Adjustment Transfer

Depreciation

Create
journal entries

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 Assets Journal Entries Flow

Run Create
Accounting

Run Depreciation to
Set up SLA Generate Accounts
Send entries
to General
In Asset Books: No Ledger
-Allow GL Posting
Yes
-GL Ledger Name

Post entries

Run Transfer Journal

Entries to GL

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Default Account Generator Process for Oracle
Assets
For example, the Operations Accounting flexfield structure
from the Vision demo database is used.
Company-Cost Center-Account-Product-SubAccount
Segment Name Default Segment Sources

Company (Balancing Distribution CCID

Segment) (Assignments screen)
Cost Center (Cost Center Default CCID (Book
Segment) Controls screen)
Account (Natural Account Account Segment Value
Segment)
Product Default CCID (Book
Controls screen)
Sub-Account Default CCID (Book
Controls screen)
CCID = Code Combination ID

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Reconciling Data in Oracle Assets

Oracle General Ledger

Oracle Assets
Oracle Payables

Oracle Projects

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 Viewing Asset Information Online

Inquiry

Financial Depreciation
Information Book

Employee Purchasing Location

Information

Invoice Supplier

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 Oracle Assets Reporting

Oracle Assets Reports

Standard Variable Format Report Manager

Reports Reports (RXi)

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 Assets Reports Groupings

Budget CIP Asset Maintenance

Reports Reports Listings Reports

Setup Data Depreciation Accounting Responsibility

Listings Reports Reports Reports

Tax Transaction Additions Mass Addition

Reports History Reports Reports

Adjustment Transfers Retirement

Reports Reports Reports

Mass Transaction Reclassification

Reports Reports

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 Creating a Tax Book

Assets in Independent Asset Books

FURNITURE.DESKS
Corporate
Straight-line 5 years
book
MID- Asset 325
MONTH
VEHICLE.OWNLUXURY
Monthly
Straight-line 4 years
calendar
MID-MONTH Asset 843
FURNITURE.DESKS
Tax MACRS 5 years
book HALF-YEAR
Asset 325

VEHICLE.OWNLUXURY
Quarterly MACRS 4 years
calendar HALF-YEAR
Asset 843

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 Entering Information in Tax Books

Corporate Book

Initial Mass Copy Periodic Mass Copy Manual Entry

Tax Book Tax Book Tax Book

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 Transaction APIs

Submit transactions directly thru PL/SQL using APIs.

• Additions
• Adjustments
• Retirements and Reinstatements
• Transfer and Unit Adjustments
• Reclassifications
• Capitalizations
• Unplanned Depreciation
• Asset Description

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 Business Events
Business Events were first introduced in Oracle
Workflow to:
• Provide subscription-based & cross-system
processing for streamlined cross-product
integration
• Eliminate trigger-based solutions or modification of
standard code
• Simplifies implementation of custom programs
Define post-event actions in the Event Subscription to:
• Pass information back to the system that originates
the transaction
• Generate exception reports for trouble-shooting
• Send notifications to users

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 Asset Business Event Triggers

Asset Addition

Asset Transfer

Asset Retirement

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 Summary

After completing this module, you should now be able

to:
• Describe the overall Oracle Asset Management
process from Setup through asset data flow to the
General Ledger
• Identify the key functional areas that are part of
Oracle Asset Management

Copyright © 2007, Oracle. All rights reserved.