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First OracleApps 12i Implementation

Posted on October 31st, 2007 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

After a long time, the first public news for R12 now finally came into end. Indeed, It was most awaiting news since its release which was happened sometime 9 months ago(31st Jan 2007).

As website reported the important highlight of rollout@SolFocus a CA based solar energy based manufacturer are:

  • Multi-Organization Access Control: which Enables transactions for multiple operating units to be entered from single responsibility thereby enhancing user productivity
  • Centralized Setups of Intercompany and Intracompany Accounts: Facilitates control, monitoring and reconciliations of intercompany and intracompany transactions
  • Order Management: Enables invoicing and revenue recognition to be deferred until customer acceptance

Go to News details

Wow ! this is great news a week before. Hope we will hear some good news & updates for Release 12i in Oracle World.:)

Posted in News | 5 Comments »

Understanding Security in : Oracle Financials and Manufacturing

Posted on October 28th, 2007 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Understanding the data access implications at all organization levels is an important factor in designing your responsibility matrix. As we know whenever a user signs in to Oracle Applications, the first thing application enforce you is to select a responsibility. That chosen responsibility allows them access to a menu of screens and a list of reports and processes they wish to run, as well as the ability to view and/or update specific data. We can define your own responsibilities.

In real time scenario , normally these kind of implementions take place:

  1. Financial with HRMS (Shared Mode)
  2. Financial plus manufacturing
  3. Financial and HRMS(Full mode)
  4. Financial and Manufacturing & HRMS(Full mode)

I haven' consider CRM modules in discussion here as they hardly requires any Extra security rule to understand. For the sake of understanding we would categorize my discussion into Financial & manufacturing and HRMS.Lets start first with financial and manufacturing.

security

Depending on the Oracle module accessed, a responsibility allows the user to view and process data associated with a set of books, operating unit , or inventory organization as follows:

• GL responsibilities allow access to one financial set of books via the GL Set of Books Name profile option.

Take a note if there is only one set of books, you can set this profile option at the site level, meaning it applies to the entire database instance. Those who is still using 10.7 and want to drilldown from GL to operating unit sub ledgers ,then you need to setup GL responsibilities by operating unit and assign the MO: Operating Unit profile option to these responsibilities.The biggest enhancement in recent years is in 11, you do not need operating unit specific GL responsibilities for drilldown.

• In PO, AP, OE, AR, and other operating unit modules, setup a separate responsibility for each operating unit.

You cannot access more than one operating unit in a particular responsibility. This is achieved by setting the MO: Operating Unit profile option at the responsibility level. If there is only one operating unit, you can set this profile option at the site level.

• before multiorg , Fixed Assets data was not partitioned at all in terms of security but In 11i we can assign the profile option FA: Security Profile to responsibilities giving them access to one or more FA books.

For details do refer my old post for security in FA.

• In the Manufacturing and Inventory modules, you can restrict a responsibility to one or more inventory organizations using the Organization Access setup form.

Take a note if you do not setup any responsibilities in this form,users will access to all inventory orgs. When a user signs in to any manufacturing or Inventory responsibility, the first screen displays a list of accessible inventory organizations and the user must select one.

Generally users can run reports only within the responsibility's organization

  • Set of books
  • Operating unit
  • Inventory org

Beginning in 11i you can run some reports across operating units within a set of books. You control this by setting the MO: Top Reporting Level profile option to set of books, legal entity, or operating unit, typically assigning the profile option to responsibilities.

* If the MO: Top Reporting Level profile option is set to Set of Books, you can run your reports at the set of books level, legal entity, or
operating unit level.

* If the MO: Top Reporting Level profile option is set to Legal Entity, you can run your reports at the legal entity, or operating unit level.

* If the MO: Top Reporting Level profile option is set to Operating Unit, you can run your reports at the operating unit level only. You are
only allowed to view data in the operating unit assigned to your responsibility.

Users can then enter as a report parameter a Reporting Level of set of books or legal entity to report across operating units in their set of books.

Typical Reports that allow and uses the above functionality includes:

  • Payable
    • Accounts Payable Trial Balance
    • Posted Invoice Register
    • Posted Payment Register
    • Unaccounted Transactions
    • Tax Audit Trail
    • Use Tax Liability
  • Accounts Receivables
    • Aging 7 & 4 Bucket Reports
    • Aging Reports- Executable
    • Bills Receivable By Status Report
    • Bills Receivable Summary Report
    • Credit Hold Report
    • Customer Credit Snapshot Report
    • Tax Register
    • Tax Reconciliation
  • Report Exchange (RXi)
    • RXi for GL, AP, AR: Financial Tax Register
  • Various localizations and region-specific reports

What is the MO:Operating Unit profile option used for?

The MO:Operating Unit profile option must be set to the appropriate value at either the Responsibility or User level.This profile option is used to distinguish which Operating Unit will be used by the users that login into Oracle Applications.

Will continue with discussion..:)

Posted in 11i, Functional, Oracle Application | 12 Comments »

Month End /Year End Process in Fixed Asset & Relevant Standard Reports

Posted on October 23rd, 2007 by Sanjit Anand |Print This Post Print This Post |Email 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.

monthendFA

Typically the month end close process start with "Fixed Assets Manager Responsibility" or any other custom defined responsibility.

redarrow-1

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.

redarrow-1Step 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.

redarrow-1Step3 : 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

redarrow-1Step 4 : Run Depreciation Projection for Corporate Book

Then you need to run Depreciation Projection for the CORPORATE Book:

Depreciation: Projections

redarrow-1Step 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

redarrow-1Step 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.

redarrow-1Step 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.

redarrow-1Step 8 : Post Journals

This is very similar to any GL post process. You are suppose to post Journal where source is Asset.

redarrow-1Step 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

redarrow-1Step 10 : Mass Copy to Tax Books

Copy all asset transactions (additions, transfers, retirements, etc.) for the closed period to the Tax books:

redarrow-1Step 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.

redarrow-1Step 12 : Review Additions to Corporate Book

In Fixed Assets:
Run Period Close Reports for FA Request Set to produce:·

  • Cost Summary Reports for All Books·
  • Reserve Summary Report for CORPORATE Book·
  • Cost Clearing Reconciliation Report for CORPORATE Book Detail versions of the Summary reports can also be run, if required.

redarrow-1Step 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 Print This Post |Email 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.

addition1Invoice 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.

addition2

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

addition3

 

 

 

 

 

 

 

 

 

 

 

 

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.

Addition

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Print This Post |Email 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.

redarrow-1Budget 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.

redarrow-1ACE 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.

redarrow-1Mass 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.

redarrow-1Production 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.

redarrow-1Physical 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.

Posted in API Integration, Finance, Oracle Asset | 2 Comments »

Oracle API Table Definitions Fixed Assets

Posted on October 20th, 2007 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Here is reference note for API table definitions based out of my for previous article for Oracle API Availability -Oracle Assets (FA).

redarrow-1FA_ACE_BOOKS

FA_ACE_BOOKS, the ACE conversion table, is organized into the following columns which store ACE information:

FA ACE BOOKS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

redarrow-1FA_BUDGET_INTERFACE

FA_BUDGET_INTERFACE, the budget interface table, is organized into columns in which Oracle Assets stores budget information.

budget

redarrow-1FA_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 INV INTERFACE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

redarrow-1FA_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 Print This Post |Email 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.

DepreciationFixed asset

 

 

 

 

 

 

 

 

 

 

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 · 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.

Posted in Oracle Asset | 4 Comments »

Oracle Fixed Assets Process Overview

Posted on October 13th, 2007 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

There are four main business Process in Oracle Assets Process Cycles:

  • Additions
  • Adjustments/Transfers
  • Depreciation
  • Retirements

redarrow-1Oracle 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
    • 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

quickaddition

 

 

 

 

 

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

quickadditionnews

 

 

 

 

 

 

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 ‘Run Mass Additions’ process creates the asset(s) in the F/A module.

redarrow-1Assets 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 – 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
    • 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.

redarrow-1Depreciation

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.

redarrow-1Asset 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)

Posted in Oracle Asset | 14 Comments »

Know the “Security by Book” in Fixed Asset

Posted on October 13th, 2007 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

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.

setup 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

asset Orgnization

 

 

 

 

 

 

 

 

 

 

 

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.

asset Orgnization Hier

 

 

 

 

 

 

 

 

Step 3. Define Security Profile

This is used to determine the top organization in the hierarchy that can be viewed by a responsibility.

asset Orgnization Hier1

 

 

 

 

 

 

 

 

 

 

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

asset Orgnization Hier4

 

 

 

 

 

 

 

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Posted in Oracle Asset | 12 Comments »

ABC: An Introduction to Asset Books in Oracle Fixed Asset

Posted on October 12th, 2007 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

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 transactions you made in your corporate book during one accounting period in the current fiscal year into the open period of your tax book

Typically most of organization will be using both the corporate and tax types of asset books.

Posted in Oracle Asset | 5 Comments »

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