OAUG Asset SIG Meetingassetsig.communities.oaug.org/multisites/assetsig/media/Documents/...Fixed Assets Componentization & ... Overview 3B Room ... In R12 the prior restrictions of

OAUG Asset SIG Meeting

Brian Bouchard

SIG Coordinator

Copyright © 2010 Chi-Star Technology®

Agenda


• OAUG Announcements

• SIG Announcements

• Fixed Assets Componentization &

Fixed Asset Impairments – Helle

Hennings (Oracle)

• Transacting with Source Line data in

Assets – (Optional)

• Questions & Answer

OAUG Ambassadors Are you the OAUG Ambassador for your company or organization? Stop by the

OAUG membership booth for a special giveaway and a wristband for entry into

our Appreciation Cocktail Reception Wednesday night. The OAUG also scheduled

an additional Ambassador Informational Meeting and Webinar during OpenWorld:

Wednesday, October 3

12:00 – 12:30 pm PDT

Level 3 of Moscone West, Overview 3B Room

So grab your daily boxed lunch from Oracle and stop by to learn more about what

is free and unlimited to you and your colleagues as employees of member

companies. And don’t forget to VOTE by October 10 on behalf of your member

organization in this year’s Board Elections.


3 Years in a row

CONGRATULATIONS!

2012 OAUG Certificate of

Distinction Award


Asset SIG Board Asset SIG Board Introductions:

Group Coordinator - Brian Bouchard

Co-Coordinator – Saray Rodriguez

Communication Chairperson – Alla Lande

Secretary / Treasurer – Stacy Allen

Oracle Liaison - Usha Thothathri (Dev), Sundar Narayanan

(Dev), Gary Chen (Dev), Roopa Sunku (Proactive Support),

Helle Hennings (Product Strategy Director)


Asset SIG Board Opportunities Open Board Positions:

European Chairperson

AsiaPac Chairperson

Enhancement Chairperson

Newsletter Editor


Asset SIG Purpose Discuss Asset specific questions/issues within Oracle Assets

Application

Discuss Asset specific questions/issues with integrated

Applications (i.e. Purchasing, Payables, Projects, Inventory, EAM,

iAssets, etc.)

Share tricks of the trade

Conduct educational opportunities (Conference & Webinars)

Ask the Group – ask inquiries during the year to the group for

feedback

Highlight issues and resolutions


Asset SIG Website url: http://assetsig.oaug.org

Download presentations

Share tricks of the trade

Issues and Resolutions

Ask the Group Q&A postings

Events – Advertise upcoming meetings

Enhancements – identify enhancements presented to Oracle


Help us to improve What can we do better?:

Reaching out and getting new members

Increasing conference attendance

Change meeting to a week day session

Increase communication

Periodic Newsletter (Quarterly)

Periodic Conference Calls (Quarterly)

Website enhanced and operational

Conference door prizes / give-a-ways


OAUG Collaborate 13

Next Meeting:

April 8 – 11, 2013

Denver Convention Center

Denver, Colorado

Fixed Assets Componentization &

Fixed Assets Impairments

Helle Hennings (Oracle)


Utilizing Asset Source Lines


Agenda


• Source Lines

• Transfers

• Retirements

• Using Source Lines

• Partial Cost Retirements

• Questions & Answers

Asset Source Lines



Asset Source Lines Source Line:

• Source line is the details that make up an asset value. The sources can come from Payables invoice distribution lines, Projects asset lines, WebADI rows, or manually entered on the asset.

• Source lines can tell the user what items / components make up a specific asset.

• Source lines retain details from Payables and Projects, so the user will know what invoice or purchase order the item was acquired on or the project the asset is associated with.

• This presentation will look at how to utilize source lines to perform transactions against assets.

Transfers



Asset Transfers Oracle allows source line details to be transferred between assets. So if an invoice distribution line

was added to the wrong asset, you can transfer that source line details to the correct asset.

If required, choose to transfer source line information from one asset to another. This type of

adjustment will have financial impact, thus will generate a journal entry. In order to transfer source

line information, perform this through the Asset Workbench. Select the Source Line button.

Determine if this transfer should result in missed depreciation being expensed or amortized. Enter

the transfer amount for each source line that need to be transferred. If the source line will be 100%

transferred, place a checkmark in the box to the far left of the source line. If a portion of the source

line will be transferred, enter the desired amount in the Transfer Amount field for the desired source

lines. Select the Transfer To button. Oracle will pop up a new form. Query the desired asset to

receive the source line information. Select the Done button to complete the transaction. The result

will be a reduction in cost to one asset and an increase in cost to the other asset. Oracle will debit

asset clearing account, debit accumulated depreciation and credit asset cost for the asset losing the

source lines and debit asset cost, credit accumulated depreciation and credit asset clearing account

for the asset receiving the source lines.


Asset Transfers Navigation Path: Navigator, Assets, Asset Workbench, [Query Asset], Find (Button)


Asset Transfers Navigation Path: Source Lines (Button)

Transfer Invoice lines – You can transfer all or partial invoice lines from one asset to another.

Full Invoice Transfer – check the box on the left hand side for the invoice you wish to transfer

Partial Invoice Transfer – enter a value less than the Line Amount in the Transfer Amount field


Asset Transfers Navigation Path: Source Lines (Button) > Enter transfer amounts > Transfer To (button)

Transfer Invoice lines – You can transfer all or partial invoice lines from one asset to another.


Asset Transfers Navigation Path: F11 (Query Mode) > Enter Asset to transfer to > CTRL+F11 (Execute Query)



Results of Transfer: Transfer to asset



Results of Transfer: Transfer from asset


Asset Transfers Transferring Source Lines Between Assets (FINANCIAL IMPACTS):

Capitalized and Capitalized – Oracle will either reverse or catch up depreciation depending upon

the two assets involved in this transfer.

Based On:

Date Placed in Service

Depreciation Method

Depreciation Life

etc.

Capitalized and CIP - Oracle will reverse out depreciation for the transferred amount

CIP and Capitalized - Oracle will book a depreciation expense adjustment to catch up

depreciation

CIP and CIP – No impact non-depreciable.


Asset Transfers

RESTRICTIONS:

Prior to R12 Oracle limited source lines transfers to assets that were both added in the

current period or both in prior period, Oracle would not allow a source line from a

prior period addition to be transferred to an asset added in the current period.

In R12 the prior restrictions of Prior to Prior and Current to Current are no longer

restrictions. Transfers can occur between a current asset and a prior period asset

and vice versa.


Asset Transfers Navigation Path: Navigator, Assets, Asset Workbench, [Query Asset], Find (Button) Books (Button)

Cost Adjustments



Results of Cost Adjustment: Asset Cost and Line Amounts do not equal







Retirements



Asset Retirements Oracle allows source line details to be retired. So if an item / component of an asset is no longer in

service that item / component can be retired using source lines functionality.

If required, choose to retire source line information from an asset. In order to retire source line

information, perform this through the Asset Workbench. Select the Source Line button. Enter the

retirement amount for each source line that need to be retired. If the source line will be 100% retired,

place a checkmark in the box to the far left of the source line. If a portion of the source line will be

retired, enter the desired amount in the Transfer Amount field for the desired source lines. Select the

Retire button. Oracle will pop up the retirement form. Oracle will treat this as a partial cost retirement.

Verify the Retire date. Enter the Retirement Type and if applicable, proceeds of sale and cost of

removal. Complete the transaction by selecting the Done button. The saving of the retirement is

simply flagging this asset to be retired this asset is not yet retired. Oracle has a program, Calculate

Gains and Losses that will process the retirement.

Why choose to retire source line information. Well Oracle maintain the asset cost and source line

information and initially they asset cost should equal the total of all the source lines. If a partial

retirement is performed not initiate from the source lines, then you run the risk of have the asset cost

different than the total of the source line information, this may be a red flag to an auditor.


Asset Retirements Navigation Path: Navigator, Assets, Asset Workbench, [Query Asset], Find (Button)


Asset Retirements Navigation Path: Source Lines (Button)

Retire Invoice lines – You can retire all or partial invoice lines.

Full Invoice Retirement – check the box on the left hand side for the invoice you wish to transfer

Partial Invoice Retirement – enter a value less than the Line Amount in the Transfer Amount field


Asset Retirements Navigation Path: Source Lines (Button) > Enter retire amounts > Retire (button)

Retire Invoice lines – You can retire all or partial invoice lines.


Asset Retirements Navigation Path: Retirements> Enter Book and Retirement details


Asset Retirements Navigation Path: Done (Button) – Creating a partial retirement based on cost



Results of Retirement: partial Retired asset (NOTE: Asset Cost and Line Amounts equal)


Asset Retirements You may ask why perform retirements using source line details. Well before I answer that question,

lets look at doing a partial retirement without using source line details.

I am going to undo the retirement we just did and use that same asset to show how to perform a

partial retirement not using source line details.





NOTE: Asset is back with the original source lines




Asset Retirements Navigation Path: Retirements> Enter Book and Retirement details

Note: Cost is blank here unlike the source line route.


Asset Retirements Navigation Path: Done (Button) – Creating a partial retirement based on cost



Results of Retirement: partial Retired asset (NOTE: Asset Cost and Line Amounts do not equal)

Line total =

224,230.00


Asset Retirements

Utilizing Source Lines – keeps source line and asset total in sync.

Partial Cost Retirements not using Source Line details – risk is that the total of the source lines

for the asset can be greater than the asset cost. This could be a red flag to an auditor.

Questions?

Questions after the fact –

Send email to:

[email protected]
