Oracle Cloud offers a broad portfolio of software as a service applications, platform as a service, and social capabilities, all on a subscription basis. Oracle Cloud delivers instant value and productivity for end users, administrators, and developers alike through functionally rich, integrated, secure, enterprise cloud services.
 Get a Free Magzine ...Profit:The Executive's Guide to Oracle Applications

Subscribe to the OracleAppsHub to receive notifications when there are new posts:

 get RSS feed
 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

Detail of Fixed Asset Accounting

Posted on December 11th, 2010 by Sanjit Anand ||Email This Post Email This Post

Have you tried OracleappsHub in ipad/iphone/smart Phone? Don't wait. try it today

Fixed asset accounting is a most important part of a any company’s financial accounting and reporting system because fixed, or long-term, assets generally represent substantial investments. A company’s top management usually asks department heads and finance managers to establish fixed asset accounting procedures that conform to accounting principles, industry standards and governmental directives.

Fixed Asset accounting involves the following main aspects:

  1. Acquisition of a Fixed Asset: You need to consider the capitalization of incidental costs, treatment of assets acquired in foreign exchange, treatment for leased assets, etc.
  2. Depreciation: There may be separate rates of depreciation for Company Law and Income Tax purposes etc etc
  3. Retirement of Assets: You need to consider the treatment of profit/ loss on sale of asset, writing back the accumulated depreciation pertaining to the asset sold, etc.
  4. Other than these you have other aspects too:
    1. Tracking
    2. The Inventory Process
    3. Financial Reporting : Two accounts is mostly important in BS and P & L context, which is as discussed below.

dgreybarrow Depreciation accounts

  • Balance sheet accounts: the net value of the asset (carrying amount or book value of the asset) is preserved through two accounts:
    • Gross (acquisition) cost
    • Accumulated depreciation
  • Income statement account
    • Depreciation expense of the current year
  • Balances and details of these accounts are used in supplementary disclosures in the notes to the accounts.

Next post you will see the greatest and latest accounting details for Oracle EBS 11i/R12 for different.

Related Posts

Posted in Oracle Asset | 1 Comment »Email This Post Email This Post |

Have you tried OracleappsHub in ipad/iphone/smart Phone? Don't wait. try it today
One Response
  1. Depreciation Question | OracleApps Epicenter Says:

    […] QuestionDetail of Fixed Asset AccountingPublic API’s for FA TransactionsAsset Reclass ProgrammaticallyReclassification of assets […]

Leave a Comment

Please note: Comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.