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Fixed Asset & SLA

Posted on July 2nd, 2008 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

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As mention earlier, SLA played a key role in most of accounting event based application.Some of high points of SLA and Fixed asset are:

  • Oracle Assets is fully integrated with SLA, which is a common accounting platform for Sub Ledgers
    • There is no need to explaining again , we already seen why this concept brought into Financial application . Fixed asset though one of Application, which heavily utilize the accounting information ,therefore its is obvious Choice.
  • You can use the seeded Account Derivation definitions or modify them as required
    • ADD as discussed in earlier post , can be used for as it is or we can manage and configure the definition to accommodate own custom derivation rule.
  • SLA does supports Account Generator functionality for existing Asset Books
    • For those who are coming from 11i background knows Oracle FA Module uses the Account Generator to generate accounting flexfield combinations for which to create journal entries into GL. The Account Generator normally allows to designate a specific source for each segment in the account for which Oracle Assets creates a journal entry. These flexibility options can be archived by anyone ..
      • Flexibility to create journal entries that mean you can specify to what detail to create journal entries
      • Flexibility of managing detail level for each book and account type.

Technically speaking Account Generator in Oracle Assets is Oracle Workflow driven component which can be viewed and customized with some skill in Oracle Workflow.

In Release 12 , by default, Subledger Accounting is used to generate accounts which is defined at ADD, still you have options to use the 11i workflow based account generator. The minimum you have to do is to keep "FA: Use Workflow Account Generation" profile option is set to Yes, that mean the account generation rules set up in Oracle Workflow will be used.

  • And, last ..SLA in FA can heavily used for SLA Accounting report and online account inquiry purpose.

dgreybarrow-2How SLA works in Fixed asset

Subledger Accounting Process consist of these three steps

  1. It start with entering transactions in the application.
  2. Then running the Create Accounting Program to process accounting.
  3. Once step 2 completed successfully, you can use this for inquire . You can also drilldown information from SLA Pages

SLA -FA Process

Lets take yet another granular look for SLA with FA..

  • Accounting Events
  • Oracle Assets creates accounting events for every asset transaction

SLA FA

These are major four event entries Accounting Events Classes you can get in Fixed asset.

  • Oracle Assets groups all the accounting events classes into the following four event entities:
    Transactions: This event entity groups the following event classes: Additions, Adjustment, Capitalization, Category Reclass, CIP Additions, CIP Adjustments, CIP Category Reclass, CIP Retirements, CIP Revaluation, CIP Transfers, CIP Unit Adjustments, Depreciation Adjustments, Retirements, Retirement Adjustments, Revaluation, Terminal Gain and Loss, Transfers, Unit Adjustments, and Unplanned Depreciation.
  • Depreciation: This event entity groups the following event classes: Depreciation and Rollback Depreciation.
  • Inter Asset Transactions: This event entity groups the following event classes: Source Line Transfers, CIP Source Line Transfers, and Reserve Transfers.
  • Deferred Depreciation: This event entity groups the following event classes: Deferred Depreciation.

Apart from this there few additional event class exist like Retirements .

dgreybarrow-2The Accounting Flow

Journal entries get created that summarize the activity for each account for each transaction type.

  • There is significant mean of period ,for which you want to create journal entries and the period must be open or future entry , as discussed in last post.
  • The period name used in the depreciation calendar assigned to the asset book must be the same as the period name in the general ledger calendar for the ledger you want to send the journal entries to.
  • When you run the Create Accounting program, Oracle Assets sends entries directly to the GL_JE_BATCHES, GL_JE_HEADERS, and GL_JE_LINES tables.
  • Oracle Assets allows you to run the Create Accounting program multiple times before closing the depreciation period.
  • You can post journal entries to Oracle General Ledger for all transactions that have occurred thus far in an open depreciation period.
  • If additional transactions occur during the open depreciation period, you need to rerun Depreciation, then you can rerun the Create Accounting program.

 

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