Fixed Assets:Journal Entries

Posted on July 1st, 2008 by Sanjit Anand | Print This Post | Email This Post

Oracle Fixed Assets creates journal entries for your depreciation expense, asset cost, and other accounts. That means application automatically creates transaction journal entries for your general ledger, if you have defined and configure set up the journal entry category for that transaction type for that book. Oracle Assets creates journal entries that summarize the activity for each account for each transaction type.

Another good things for FA is its allows you to run the Create Journal Entries 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 period, you need to rerun Depreciation, then you can rerun the Create Journal Entries program.

Not only it create the Journal entry but also allows you to roll back journal entries in an open depreciation period,and this should be as long as applies to those journals which havn't posted to General Ledger. After doing the necessary adjustments, you can run the Create Journal Entries program once again and post the journals to General Ledger.

You should also note , you cannot roll back individual journal entries. The reason .. when you run the Rollback Journal Entries program, all journals created thus far in the current open depreciation period will be rolled back. These journals will be reprocessed the next time you run the Create Journal Entries program.

In case of Rollback Journal Entries program failure, for example, if you have already posted some additional journals to General Ledger, you can still continue to process additional transactions. However, you will not be able to re-run journal entries for that period until you have fixed the error and run the Rollback Journal Entries program successfully.Sound good!!

Once you close the depreciation period, you can run the Create Journal Entries program only once more. When the depreciation period is closed, you cannot roll back Create Journal Entries, and therefore, cannot run the program again.Hope this makes clear.

Creating journal entries

Creation of Journal entries in Oracle Consist into two step process:

1. At the end of each accounting period, run the depreciation program for each of your books.
2. Run the Create Journal Entries program to create journal entries to your general ledger.

• Case 1 : Period is Closed
  • If the period is closed, you can run the Create Journal Entries program only once for each period in each book for which you allow posting to the general ledger.
• Case II : Period is Open
  • If the period is still open, you can run the Create Journal Entries program multiple times before closing the period.

Journal Entries :

Case 1 : When you are in 11i

The create journal entries process creates journal entries for the appropriate general ledger set of books.

Case 2 :When you are in R12

The Create Accounting process creates journal entries for the appropriate Ledger.

Asset Accounts for which Oracle Assets journal entries Created

These are asset account for which are used for JE Line creation. We will see a seperate post for accounting entry in some of the transaction events so that if you are coming from non -Oracle accounting system, you can see how its works here.

• Accumulated Depreciation
• Asset Clearing
• Asset Cost
• CIP Clearing
• CIP Cost
• Cost of Removal Gain,Loss, and Clearing
• Deferred Accumulated Depreciation
• Deferred Depreciation Expense
• Depreciation Adjustment
• Depreciation Expense
• Intercompany Payables
• Intercompany Receivables
• Net Book Value Retired Gain and Loss
• Proceeds of Sale Gain, Loss, and Clearing
• Revaluation Amortization
• Revaluation Reserve
• Revaluation Reserve Retired Gain and Loss

Will take a more granular details for JE and SLA in another post. Keep watching this space.

1. Oracle Fixed Assets Process Overview
2. Deep Drive : “Depreciation” in Oracle Fixed Asset
3. Month End /Year End Process in Fixed Asset & Relevant Standard Reports
4. Year End Closing
5. Fixed Asset :Retirement & Disposal