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Asset Transfer

Posted on June 21st, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

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Asset transfer is a complex process and should not be entered into lightly, if your customer business is bit complex in nature. The complexity varies from companies to companies along with industry type.This post will briefly tells about Asset Transfer functionality of Oracle.

You may have three main business scenario's within Asset Transfer.

  1. Location Transfer without ownership change
  2. Location Transfer with ownership change
  3. Ownership Transfer without location change

In reality 1,2 is sort of intra Transfer of asset where as #3 is consider as Inter Transfer. Lets take a detail understanding what is meant and see key difference:

dgreybarrow Transfer Intra Entity

Assets are sometimes transferred between locations within the same entity. These are referred to as INTRA Entity transfers as opposed to INTER Entity transfers where the asset transfers between two entities.

Companies have requirement , when an asset is transferred Intra Entity the location of the asset changes. It is therefore necessary that those changes are identified and recorded in the Fixed Assets module for controlling the physical location of the asset.

dgreybarrowOracle Navigation

Navigation -> Assets -> Asset workbench -> Assignments

You can use Find Assets form to make a transfer of a particular asset.

dgreybarrow Asset Transfers -Process

(N) Assets > Asset Workbench (B) Assignments

To get use of Intra Entity transfer which might be location change , you can transfer assets between employees, depreciation expense accounts, and locations. These are some of key things which you need to have a clarity:

  • 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.
  • Oracle does not allow you to transfer an asset to a future period.
  • Oracle does not transfer an asset after its normal life is completed.
  • In the Unit Change field of the Assignments window, enter a negative number for the assignment line from which you want to transfer the asset. Enter a positive number if you want to add units to existing assignments or create new assignments. Only one negative line is allowed per transaction.
  • A journal entry is created as soon as an asset is transferred from one Depreciation Expense Account to another.

dgreybarrow Transfers - Inter Entity

In reality , Oracle Asset does not have a facility to transfer assets from one corporate book to another. For the purpose of understanding you can consider corporate book to be synonymous with legal entity. In order to transfer assets from one legal entity to another it is necessary to retire the asset in one corporate book and add it to the other corporate book.

In EBS, there is no standard functionality/process in FA for transfer assets Inter Entity.

The work around for handling such scenarios consist of 2 simple steps.

1) In Entity book(s)1 you need to adjust Current Cost = 0, retire the assets.
This will reverse all accumulated depreciation and have no gain/loss on the retirements passed to GL.

2) Add the assets to the new book(s)(entity 2) via FA_MASS_ADDITIONS or the Addition API.

Here you probably do not want to add with DEPRN_RESERVE values - just let FA re-establish the balances when you run depreciation and create JEs > GL.

dgreybarrowHow Transfer works

A tranfer is recorded as such in the FA_TRANSACTION_HEADERS table. The old and the new line is shown in the FA_DISTRIBUTION_HISTORY table and the journal lines are shown in FA_ADJUSTMENTS after depreciation is run. In FA_DEPRN_DETAIL you see a row with the old distribution_id and the new distribution_id in the period_counter of the transfer.

dgreybarrow Asset Transfer API

You can get use the Oracle Transfer API's to add assets directly by writing a PL/SQL based driven program . The Transfer API FA_TRANSFER_PUB.DO_TRANSFER can be used .

dgreybarrow Scenarios in Intra entity Transfer - Asset Accounting

accounting

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Posted in Oracle Asset | 9 Comments »Email This Post Email This Post | Print This Post Print This Post

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9 Responses
  1. Mike Says:

    Is there any way to updating FA Account Generator to capture the Intercompany segment value on the Accounting flexfield for the transfer from/transfer to legal entity, when transfering an asset across legal entities (balancing segment values)? This is related to R12.

  2. Sanjit Anand Says:

    Hey, Mike This will be implemented in Release 12 via SLA and the I/C accounting engine.

    UNchecked the “Create Intercompany Balancing Entries” at the book level. This allows GL to generate the I/C entry upon posting the unbalanced Asset Tranfser journal. The generated I/C entries balance the journal and populate the I/C segment for each side.

    Is this what you wants.

  3. Fixed Asset : Oracle Vs Others Says:

    […] Asset : Oracle Vs OthersContactResourcesArchivesFixed Asset :Retirement & DisposalAsset TransferChanges in to “Mass Additions Create” in R12FA : Capital Budgeting & Depreciation […]

  4. Hank Says:

    Hello Sanjit,

    Can you let me know how to delete an assets transfer transaction once I did incorrectly?

    I forget to change the transfer date, when I tried again to prior date, it won’t let me do it cause the perious transfer transaction is implemented.

    Any advice??
    Thanks a lot

    Hank

  5. paresh Says:

    Dear sanjit,pls advice me on below scenario

    1. When the Asset is transferred, in Inventory module, The Depreciation account (CCID related to the Depreciation reserve Account) should be updated in the back end of the FA module automatically based on the truncated value of the code combination segment of the CCID of inventory Location of the material transaction location.
    2. Also, Fixed Asset Location (Location ID of Locations Segment combination of 3 FA locations Segment) should get updated in the backend tables of FA Module

  6. Abhishek Gupta Says:

    Hi Sanjit Sir,

    How do we ensure that the FA Account Generator is indeed getting kicked? I had put some debug messages by customizing the FAFLEXWF workflow, but nothing comes up.. Seems the WF is not getting kicked.. Any way to verify if setup is okay and complete or not?

    Abhishek

  7. sdweik Says:

    pleas explain to me the accounting entry for asset pursuing PO to AP to FA

  8. Gunawan, R Says:

    Please advise for the following:
    User has process the payment related to FA in AP system as 1 unit asset while it was actually represented as 2 units. How to split the assest into 2 units in FA system ?

  9. Ranganath Bala Says:

    Can some one mail me the “Procedure for Physical Transfer of Assets between different factories within the same group”
    My email : tbranganath@gmail.com
    Cheers

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