There are four main business Process in Oracle Assets Process Cycles:
Oracle Asset Addition Methods
Assets are created when entered into the Oracle Assets module. The three ways assets can be entered are via Manual Additions , Details addition and Mass Additions.
- Quick Additions or Manual addition
- It allows you to use the QuickAdditions process to quickly enter ordinary assets when you must enter them manually. You can enter minimal information in the QuickAdditions window, and the remaining asset information defaults from the asset category, book, and the date placed in service.The good is that quick addition requires only one screen to enter an asset.
Assets -> Asset Workbench
In the Find Assets window, click the QuickAdditions button
Detailed Additions provides three separate screens in order to input more complex assets that cannot accept defaults. Additional asset details could include lease and leasehold improvements, salvage value,multiple assignments, or changes to category defaults.
Detail Additions process to manually add complex assets which the QuickAdditions process does not handle:
- Assets that have salvage value
- Assets with more than one assignment
- Assets with more than one source line
- Assets to which category default depreciation rules do not apply
- Subcomponent assets
- Leased assets and leasehold improvements
Assets -> Asset Workbench
In the Find Assets window, click the New button
- Mass Additions
Mass Additions is the process of taking asset information from an external system or another module, such as Payables or Projects, and importing it into F/A via the FA_MASS_ADDITIONS table. Prepare the asset(s) by assigning an asset category, a date placed in service, and a depreciation expense account. The â€˜Run Mass Additionsâ€™ process creates the asset(s) in the F/A module.
Changing Asset Details - You can change descriptive information for an asset at any time. Changing asset descriptive information other than category and units has no financial impact on the asset.
Reclassifying Assets â€“ Reclassify assets to update information, correct data entry errors, or when consolidating categories. You can update financial information for a single asset or a group of assets. When you reclassify an asset in a period after the period you entered it, Oracle Assets creates journal entries to transfer the cost and accumulated depreciation to the asset cost and accumulated depreciation accounts of the new asset category.
Adjusting Accounting Information - You can adjust financial, depreciation, distribution, and invoice information for a single asset or a group of assets. Before running depreciation in the period in which you added the asset you can change any field. After you have run depreciation in any period after the one you added the asset, you can change asset cost, salvage value, prorate convention, depreciation method, and life .You can choose whether to amortize or expense the adjustment
You can transfer assets between employees, depreciation expense accounts, and locations. When transferring assets, you should consider the following:
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.
You cannot transfer an asset to a future period.
You can transfer a single asset or a group of assets.
Running depreciation to process all assets in a book for a period. If you have assets that have not depreciated successfully, these assets are listed in the log file created by Oracle Assets when you run depreciation.
When you run depreciation, Oracle gives you the option of closing the current period if you check the Close period check box on the Run Depreciation window. If all of your assets depreciate successfully, Oracle automatically closes the period and opens the next period for the book. If you do not check the Close Period check box when you run depreciation, Oracle Assets does not close the period.
Once depreciation has been processed for an asset in the current open period, you cannot perform any transactions on those assets unless depreciation is rolled back or the current period is closed.
Retire an asset when it is no longer in service. For example, retire an asset that was stolen, lost, or damaged, or that you sold or returned.
You can retire an entire asset or you can partially retire an asset. When you retire an asset by units, Oracle Assets automatically calculates the fraction of the cost retired. When you retire an asset by cost, the units remain unchanged and the cost retired is spread evenly among all remaining assignment lines.
You can retire a single asset or a group of assets.
Mass/Group Retirements can be achieved using any of the following criteria:
- Expense Account
- Range of Asset numbers
- Date placed in service
You cannot retire an asset if you added it in the current period.
Although the depreciation program automatically processes retirements, you can run the Calculate Gains and Losses program several times during the period to reduce period end processing time.
When an asset is retired before it is fully depreciated, Oracle FA calculates the gain or loss on the asset retirement. The calculation is based on the following formula: Proceeds of Sale minus Cost of Removal minus NBV Retired plus Revaluation Reserved Retired equals Gain/Loss on Retirement.
Please take a note , Oracle calculates the gain/loss based upon
- Proceeds: The sale price
- Cost of Removal: How much did it cost to remove it?
- Current Net Book Value: Original cost less accumulated depreciation.
With this information Oracle calculates the gain or loss as well as creates the appropriate journal entries to remove the asset cost and accumulated depreciation from the general ledger. It also uses clearing accounts to make a Receivables entry if you sold the asset and a Payables entry if you had to pay someone to remove it.
At asset retirement , the cost of removal and disposal proceeds is entered which aids in the computation of Gain/Loss on Disposal, however there is no direct link between the sub-ledgers (AP or AR)