1. System Controls2. Define Fiscal Years3. Define Calendars4. Account Generator5. Define Prorate Conventions6. Define QuickCodes7. Define Category Key Flexfield Value Sets8. Define Location Key Flexfield Value Sets9. Define Asset Key Flexfield Value Set10. Define Category Key Flexfield Segments11. Define Location Key Flexfield Segments12. Define Asset Key Flexfield Segments13. Define Category Key Flexfield Segment Values14. Define Location Key Flexfield Segment Values15. Define Asset Key Flexfield Segment Values16. Establish Security by Book – Create Assets Hierarchy17. Define Book Controls using Security by Book18. Establish Security by Book – Add site specific OU to Assets Hierarchy19. Establish Security by Book – Security Profile20. Establish Security by Book – Run Security List Maintenance program21. Assign Profile Option Values22. Define Value Set Security23. Assign Value Set Security24. Define Asset Categories25. Define Location Codes26. Define Asset Keys27. Define Descriptive Flexfields28. Define Depreciation Methods 29. Define Depreciation Ceilings30. Define Investment Tax Credit Rates31. Define Investment Tax Credit Recapture Rates32. Define Price Indexes33. Define Leases/Lease Payment Schedules34. Define Warranties35. Define Distribution Sets36. Define Bonus Depreciation Rules
Navigation:Setup-> Financial->Flexifield->Segment
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Define Your Asset Category FlexfieldThe asset category flexfield allows you to define asset categories andsubcategories. For example, you can create an asset category for yourcomputer equipment. You can then create subcategories for personalcomputers, terminals, printers, and software. You must assign themajor category segment qualifier to one segment of your categoryflexfield. The major category segment facilitates capital budgeting. Allother segments are optional. You use the same setup windows to create your asset category flexfield as you do for your other keyflexfields
Default – This is a required step. If you skip this step, you will not beable to use Oracle Assets.Context: You need to perform this step only once per installation.
Create the segments
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Create the major category values:
Create Location Flexifield:
Location:
Enter the physical location of the asset. Oracle Assets uses location
information for Property Tax reports.
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Click on Segment and create the segment
Create Value set :
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Enter the location values into value set .
Defining Additional Depreciation Method
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Use a flat–rate method to depreciate the asset over time using a fixedrate.Oracle Assets uses a flat–rate and either the recoverable cost or therecoverable net book value as of the beginning of the fiscal year tocalculate depreciation using a flat–rate depreciation method. The assetcontinues to depreciate until its recoverable cost and accumulateddepreciation are the same.
Depreciation in the First Year of LifeAn asset’s prorate convention and depreciation method control whenOracle Assets starts to depreciate new assets. For assets using flat–ratemethods, depreciation starts in the accounting period that either thedate placed in service or the prorate date falls into, depending on thedepreciate when placed in service flag. Oracle Assets allocates the firstyear’s depreciation to the accounting periods remaining in the fiscal year.
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ExampleSuppose your fiscal year ends in May, you have a monthly (12 period)depreciation calendar, and you want to allocate depreciation evenly toeach period in the year. You place a $10,000 asset in service in the thirdperiod of your fiscal year (AUG–12) using a half–year prorateconvention. The rate for the diminishing value (calculation basis ofNBV) depreciation method is 20%.Since the asset is using a half–year prorate convention, the prorate dateis in December––the mid–point of your fiscal year. For assets that havea prorate date at the mid–point of the fiscal year, depreciation expensefor the first fiscal year of life is 50% of the amount for a full fiscal year.For the asset in our example, a full fiscal year depreciation amount is$2,000 (20% of $10,000), so the depreciation for the first year (fiscal1913) is $1,000.You can specify whether to start taking depreciation in the period of thedate placed in service or the prorate date using the depreciate whenplaced in service flag for the prorate convention. If you elect to startdepreciation in the accounting period corresponding to the date placedin service, Oracle Assets starts to depreciate the asset in AUG–12, andthe depreciation for each period is $100 ($1000 divided by 10––thenumber of periods from August to May).
If you elect to start depreciation on the prorate date, Oracle Assets doesnot start to depreciate the asset until December. The depreciation foreach period from DEC–12 to MAY–13 is $166.67 ($1,000 divided by6––the number of periods from December to May).
To define a calculated depreciation method:
Navigate to the Depreciation Methods window.
Enter a depreciation Method name and Description.
Select Calculated from the Method Type poplist.
The calculation basis automatically defaults to Cost (NBV is not valid for calculated methods).
Choose whether this depreciation method allows you to depreciate an asset in the year it is retired.
Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis.
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Enter the number of Years and Months of asset life.
Save your work.
To define a table-based depreciation method:
Navigate to the Depreciation Methods window.
Enter a depreciation Method name and Description.
Select Table from the Method Type poplist.
Choose whether to use Cost or NBV as the basis for calculating depreciation from the Calculation Basis poplist.
Choose whether this depreciation method allows you to depreciate an asset in the year it is retired.
Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis.
Choose whether this method is a straight-line method.
Enter the number of Years and Months of asset life.
Enter the number of Prorate Periods Per Year this method uses.
Choose the Rates button to enter rates in the Depreciation Rates window.
Enter annual depreciation rates.
You must enter rates that fully depreciate an asset over its life. If you specify a calculation basis rule of Cost, the sum of all the years' rates for each period must be one. If you specify a calculation basis rule of NBV, the rate for the last year of life for each period must be one and all the other rates must be between zero and one.
Attention: For table methods, the annual rate you enter for each prorate period must reflect the fraction of the fiscal year the asset was in service. The rate must be prorated based on the number of periods in the year and on the prorate convention.
To define a units of production depreciation method:
Navigate to the Depreciation Methods window.
Enter a depreciation Method name and Description.
Select Production from the Method Type poplist.
The calculation basis automatically defaults to Cost (NBV is not valid for units of production methods).
Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis.
Save your work.
To define a flat-rate depreciation method:
Navigate to the Depreciation Methods window.
Enter a depreciation Method name and Description.8
Select Flat from the Method Type poplist.
Choose whether to use Cost or NBV as the basis for calculating depreciation from the Calculation Basis poplist.
Choose whether this depreciation method allows you to depreciate an asset in the year it is retired.
In the Depreciable Basis Rule field, select a depreciable basis rule from the poplist.
Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis. You can exclude salvage value only if you have a flat-rate method that uses NBV as the calculation basis.
Check the Polish Adjustment Calculation Basis check box, if applicable. This check box affects the calculation when creating negative cost adjustments to assets depreciating under Polish tax depreciation.
This check box is available only if you have selected one of the Polish tax depreciable basis rules as your depreciable basis rule.
Choose the Rates button to enter rates in the Depreciation Rates window.
Enter basic rates.
Enter the adjusting rate, or loading factor.
Defining Bonus Depreciation Rules
A bonus rule can have a different bonus rate for each year of the asset's life. You can modify the rate at any time for current and future fiscal years.
You can use bonus rules with corporate books as well as tax books. Bonus rates let you increase the annual depreciation expense for assets using flat-rate, straight-line, table-based, and formula-based depreciation methods. Oracle Assets also allows you to set up negative bonus rates to amortize bonus reserve.
For reporting purposes, you can set the bonus year and rate to 0. Oracle Assets does not calculate any bonus expense.
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To define your bonus rules: Open the Bonus Depreciation Rules window. Enter a Bonus Rule name and description. Check the One-Time Depreciation check box, if applicable. Enter the fiscal year range of the asset life to which the bonus rate applies. Enter the bonus rate for each fiscal year range.
If you are setting up a bonus rule for use with Polish tax depreciation, enter a depreciation factor and an alternate depreciation factor. When you enter either a depreciation factor or an alternate depreciation factor, the value in the Rate % field is automatically set to 0%.
Note: You need to ensure the depreciation factor and alternate depreciation factor are set up appropriately. Oracle Assets does not validate that the factor is between a predetermined range.
Setting Up Asset Categories
Category information is common for a group of assets. Oracle Assets defaults these depreciation rules when you add an asset, to help you add assets quickly. If the default does not apply, you can override many of the defaults for an individual asset in the Asset Details or Books windows. You set up default values for each category in each book. The default depreciation rules that you set up for a category also depend upon the date placed in service ranges you specify
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Next click on Default Rules
And give the depreciation details.
Flat rate method:
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Straight line method.
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Creating Fiscal Years
Specify the start and end dates of each fiscal year for a fiscal year name. Create fiscal years from the oldest date placed in service through at least one fiscal year beyond the current fiscal year. Depreciation will fail if the current fiscal year is the last fiscal year.
Specifying Dates for Calendar Periods
You can set up as many calendars as you need. Each book you set up requires a depreciation calendar and a prorate calendar. The depreciation calendar determines the number of accounting periods in a fiscal year, and the prorate calendar determines the number of prorate periods in your fiscal year. You can use one calendar for multiple depreciation books, and as both the depreciation and prorate calendar for a book.
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Specifying Dates for Prorate Conventions
You can set up or review prorate and retirement conventions in the Prorate Conventions window.
You must initially set up all your prorate conventions from the convention period corresponding to the oldest date placed in service through the end of the current fiscal year. At the end of each fiscal year, Oracle Assets automatically sets up your prorate conventions for the next fiscal year.
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Prorate Convention and Prorate Date
Oracle Assets uses the prorate convention to determine how much
depreciation to take in the first and last years of asset life.
Oracle Assets determines the prorate date from the date placed in
service and the prorate convention. It uses this date to determine how
much depreciation to take during the first and last years of asset life.
Specifying System Controls
Use this form to specify your company name, asset numbering scheme, and key flexfield structures.
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Defining Depreciation Books
You can define corporate, tax, and budget depreciation books. You must set up your depreciation books before you can add assets to them. You can set up multiple corporate books that create journal entries for different ledger, or to the same ledger. In either case, you must both run depreciation and create journal entries for each depreciation book. For each corporate book, you can set up multiple tax and budget books that are associated with it.
Book
An asset can belong to any number of depreciation books, but must
belong to only one corporate depreciation book. You must assign a
new asset to a corporate depreciation book before you can assign it toany tax books. You can only assign the asset to a book for which you
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defined the asset category. Oracle Assets defaults financial information
from the asset category, book, and date placed in service.
Each book can have independent accounts, an independent calendar,
and independent depreciation rules. You can specify for which general
ledger set of books a depreciation book creates journal entries.
The asset can also have different financial information in each book.
For example, you can make the asset cost in your tax book different
from the cost in your financial reporting book. The depreciation books
are independent, so you can run depreciation for each book on adifferent schedule
Cost
Current Cost
The current cost can be positive, zero, or negative. Oracle Assets
defaults a cost of zero for construction–in–process (CIP) assets and you
cannot change it. Oracle Assets automatically updates the cost to the
sum of the invoice line costs after you add invoice lines to a CIP asset
using the Mass Additions process. You can also change the cost of a
CIP asset manually by entering non–invoiced items or transferring
invoice lines between assets in the Source Lines window.
If this is a capitalized leased asset, and you previously calculated the
cost to capitalize for the lease in the Lease Payments window and you
have not override the result of the capitalization test, Oracle Assets
automatically enters the Cost to Capitalize amount in the Current Cost
field, and you can change it.
Original Cost
Oracle Assets displays the original cost of the asset and updates it if
you make a cost adjustment in the period you added the asset. After
the first period, Oracle Assets does not update the original cost.
Recoverable Cost
The recoverable cost is the portion of the current cost that can be
depreciated. It is the current cost less the salvage value less the
Investment Tax Credit basis reduction amount. If you specify a
depreciation cost ceiling, and if the recoverable cost is greater than that
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ceiling, Oracle Assets uses the cost ceiling instead
Depreciation Amounts
Depreciation
You normally enter zero accumulated depreciation for new capitalized
assets. If you are adding an asset that you have already depreciated,
you can enter the accumulated depreciation as of the last depreciation
run date for this book, or let Oracle Assets calculate it for you. If you
enter a value other than zero, Oracle Assets uses that amount as the
accumulated depreciation as of the last depreciation run date. If you
have bonus reserve, the amount should be added to the accumulated
depreciation and is no longer tracked as bonus reserve.
If you enter too little accumulated depreciation, Oracle Assets adjusts
depreciation to the correct amount for the current fiscal year. If you
enter too much accumulated depreciation, the asset becomes fully
reserved before the end of its life.
If you enter zero accumulated depreciation, Oracle Assets calculates
the accumulated depreciation and the bonus reserve, if any, based on
the date placed in service. You can have a different accumulated
depreciation for each depreciation book.
Enter the amount of depreciation taken in the current fiscal year, if any,
for the year–to–date depreciation. If the asset is placed in service in the
current fiscal year, the accumulated depreciation amount and the
year–to–date depreciation amount must be the same.
For Oracle Assets to recognize an asset as fully reserved when you add
it, enter an accumulated depreciation amount equal to the recoverable
cost.
You cannot change the accumulated depreciation after the period in
which you added the asset. You can, however, change the depreciation
taken for prior fiscal years in your tax books using the Tax Reserve
Adjustments window.
You cannot enter year–to–date or life–to–date depreciation when you
add a units of production asset. Instead, enter the asset with zero
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accumulated depreciation, and enter the total life–to–date production
as production for the current period to catch up depreciation.
Salvage Value
The salvage value cannot exceed the asset cost, and you cannot enter a
salvage value for credit (negative cost) assets.
Net Book Value
The net book value is defined as:
Net Book Value = Current Cost – Total Reserve (Accumulated
Depreciation + Bonus Reserve)
Revaluation Amounts
You can only enter revaluation amounts if you allow revaluation in the
Book Controls window.
Revaluation Reserve
If you are adding an asset, enter the revaluation reserve, if any. You
cannot update the revaluation reserve after the period you added the
asset. After that, Oracle Assets updates the revaluation reserve when
you perform revaluations.
Revaluation Reserve = Existing Revaluation Reserve + Change in Net
Book Value due to current revaluation
Depreciation Method
The depreciation method you choose determines the way in which
Oracle Assets spreads the cost of the asset over the time it is in use.
You specify default depreciation rules for a category and book in the
Asset Categories window. You can use predefined Calculated, Table,
units of Production, or Flat–rate type methods, or define your own in
the Methods window.
Depending on the type of depreciation method you enter in the Books
window, Oracle Assets provides additional fields so you can enter
related depreciation information. For example, if you enter a
Calculated or Table depreciation method, you must also enter a life for
the asset. In contrast, for a units of production depreciation method,
you must enter a unit of measure and capacity. The table below
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illustrates information related to the depreciation types:
Method Type Related Fields
Calculated or Table Life in Years and Months
Calculated or Table Bonus Rule
Flat–Rate Basic Rate
Flat–Rate Adjusted Rate
Flat–Rate Bonus Rule
Units of Production Unit of Measure
Units of Production Capacity
Units of Production Year–to–Date Production – display only
Units of Production Life–to–Date Production – display only
Table 2 – 1 (Page 1 of 1)
Calculated and table methods must be set up with the same number of
prorate periods per year as the prorate calendar for the book. The
depreciation method must already be defined for the life you enter.
Assets Workbench
Use the Assets Workbench windows to add new assets to the system, and to perform transactions, such as retirements, adjustments, source line adjustments, and transfers
Oracle Assets workbenches let you find critical information in a flexible way, see the results in your defined format, and selectively take appropriate action. For example, in the Assets Workbench, you can findyour assets based on asset detail, assignment, invoice, or lease information. Then, for that asset, you can review financial, assignment, and other detailed asset information, perform transfers, review thepurchasing or other source information, or retire the asset. All the windows you need are accessible from just one form; you can query an asset then perform several transactions without having to find it again.
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Click the Addition button
Click on continue button
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Next click on continue and give the details
Next click on Done.
Asset Number
An asset number uniquely identifies each asset. When you add an
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asset, you can enter the asset number, or leave the field blank to use
automatic asset numbering. If you enter an asset number, it must be
unique and not in the range of numbers reserved for automatic asset
numbering. You can enter any number that is less than the number in
the Starting Asset Number field in the System Controls window, or you
can enter any non–numeric value.
Description
Use list of values to choose a standard description you defined in the
QuickCodes window, or enter your own.
Tag Number
If you enter a tag number, it must be unique. A tag number uniquely
identifies each asset. For example, use the tag number to track asset
barcodes, if you use them.
Asset Category
Oracle Assets defaults depreciation rules based on the category, book,
and date placed in service. All assets in a category share the same asset
cost accounts and depreciation accounts for each depreciation book.
Category Descriptive Flexfield
Descriptive flexfields allow you to collect and store additional
information about your assets. For each asset category, you can set up
a descriptive flexfield to prompt you for additional information based
on the asset category you enter. For example, you might want to track
the license number for automobiles, but the square footage for
buildings. When you specify a category for a new asset, you can enter
your information in a descriptive flexfield.
Units
The number of units represents the number of components included as
part of an asset. Use units to group together identical assets. For
example, you might add an asset that is composed of ten separate but
identical chairs. If you are adding an asset, accept the default value of
one, or enter a different number of units.
Asset Type24
Valid asset types are:
Capitalized: Assets included on the company balance sheet.
Capitalized assets usually depreciate. Charged to an asset cost
clearing account.
CIP (Construction–In–Process): Unfinished assets being built,
not yet in use and not yet depreciating. Once you capitalize a
CIP asset, Oracle Assets begins depreciating it. Charged to a
construction–in–process clearing account.
Expensed: Items that do NOT depreciate; the entire cost is
charged in a single period to an expense account. Oracle Assets
tracks expensed items, but does not create journal entries for
them. Oracle Assets does not depreciate expensed assets, even if
the Depreciate check box in the Books and Mass Additions
Prepare windows is checked for that asset.
Warranty Number
You can set up and track manufacturer and supplier warranties online.
Each warranty has a unique warranty number. Use the list of values or
enter a previously defined warranty number to assign the asset to the
coinciding warranty
Lease Information
You can enter lease information only for an asset assigned to a leased
asset category. You must define the lessor as a valid supplier in the
Suppliers window, and define leases in the Lease Details window,
before you can attach a lease to an asset you are adding in the Asset
Details window.
If you are entering a leasehold improvement and you completed the
Parent Asset field in the Asset Details window, Oracle Assets displays
the related lease information from the parent asset. You cannot provide
separate lease information for the leasehold improvement.
Source Lines
You can track information about where assets came from, including
sources such as invoice lines from your accounts payable system and
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capital assets from Oracle Projects.
Each source line that came from another system through Mass
Additions may include the following information:
Invoice Number
Line
Description
Supplier
Purchase Order Number
Source Batch
Cost
Project Number
Task Number
You change invoice information for a line using the Source Lines
window only if you manually added the source line. For example, you can manually add a line, adjust the cost of an existing line, or delete a
line for a CIP asset. You also can transfer lines between assets.
You cannot change invoice information if the line came from another
system through Mass Additions.
If the source of the line is Oracle Projects, choose the Project Details
button to view detail project information for the line in the Asset Line
Details window
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