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 Oracle Fusion Applications (OFA) is a portfolio of next generation suite of software applications from Oracle Corporation. It is distributed across various product families; including financial management, human capital management, customer relationship management, supply chain management, procurement, governance, and project portfolio management
 Get a Free Magzine ...Profit:The Executive's Guide to Oracle Applications

Group depreciation

Posted on July 18th, 2013 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

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


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.

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Fusion Applications – Sizing Requirement

Posted on July 10th, 2013 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Here is what Oracle says for "Fusion Applications - How to get Sizing Requirement

  • Oracle wants to ensure that each customer is successful with Fusion Applications and as it has over a hundred different components giving a sizing estimate has proven to be a bit of a challenge.
  • So instead of giving a one-size fits no-one estimate Oracle has a special process in place that will lead to a proper sizing advice.
  • It consists of contacting your Oracle Sales / Account person who in turn engages the Oracle Fusion Applications environment sizing experts team.
    Based up on your inputs they will provide a proper sizing report recommending the disk and memory requirements and CPU sizes for your configurations and usage level.

Check it out note id ID 1379929.1 :Fusion Applications - How to get Sizing Requirement?

So no guessing, if you want to know the hardware requirements, you need to contact Oracle.

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