- OracleApps Epicenter - http://www.oracleappshub.com -

Reclassification of assets

Though Reclassification of Financial assets is just a function in Oracle asset, but have larger impact in reporting side for disclosure requirement.

Reclassification and mass reclassification

Reclassification of an asset is simply changing the category of an asset.

Mass Reclassification is a feature that allows you to reclassify a group of assets from one asset category to another based on flexible selection criteria. Your flexiable flexible selection criteria may be either inherit the depreciation rules of the new category or retain depreciation rules of the old asset category. Also you have an option for an option to choose to amortize or expense any depreciation adjustment resulting from the reclassification. sounds Good:)

Why its needed

In Fixed asset module majority of time all assets are tracked for long-term assets. Time to time certain information needs to be changed as asset level thus reclassification serves the purpose of asset maintenance by enabling managers of the asset system to change asset details efficiently. so far i can figure out only two major reason which make qualifying for reclassification:

How many way you can do reclass:

Oracle Assets also allows you to reclassify assets using any of the following methods:



This is applicable for both CIP and capitalize asset

The Process of Reclassify of Financial Assets

Navigation: Asset -> Asset Workbench
From the Asset form, click on the Open option in the bottom of the form. From the Asset Details form ,place cursor in the category field and
proceed to change the category or you can mass reclassification.


Reclassification Changes that Affect Accounts

Oracle Assets updates the depreciation expense account and transfers the cost and accumulated depreciation and reserve associated with the asset to the new category. In this process the depreciation rules which consist of Method , EUL and convention nothing get changed.

Depreciation expense already taken remains in the account associated with the old category. The system will charge current depreciation expense according to the newly defined category.

Accounting Treatment

Oracle Assets creates journal entries for the asset by using the accounts associated with the new category, including the depreciation expense account only in subsequent period, where no accounting entry get created in the period when it was added and reclassified

Original Category
Asset Cost CR
Accumulated Depreciation DR

New Category
Asset Cost DR
Accumulated Depreciation CR


You reclassify an asset from office equipment to computers in Year 1, Quarter 3. The asset cost is $4,000, the life is 4 years, and you are using straight-line depreciation

Underline Reports

Oracle have two major report for Reclassification.

Technical insight

These Oracle tables directly or indirectly involved with Reclassification or mass reclassification.

  1. The FA_MASS_RECLASS table stores asset selection and reclass criteria for mass reclassification requests.
  2. The FA_MASS_RECLASS_ITF stores report results for Mass Reclass Preview
  3. FA_BOOK_CONTROLS table stores the depreciation book information assigned to assets to be reclassed.
  4. FA_ADDITIONS table stores parameters for additions created by mass reclassification process.
  6. FA_CATEGORIES table is referenced for asset category information.
  7. FA_ASSET_KEYWORDS stores asset information classified by FA_MASS_RECLASS.

What happen during the Reclassification

When you re-class an asset in the same period it was added, the following tables get updated

When you re-class an asset after the period it was added, Oracle Assets updates the following tables:

When you next run depreciation, the following tables are updated:

1 Comment (Open | Close)

1 Comment To "Reclassification of assets"

#1 Comment By samuelCHIKWE On February 21, 2012 @ 8:33 am

It is concise.