Here are the six new and Changed features for Oracle Assets in Release 12 .
- Sub Ledger Accounting Architecture
- Enhanced Mass Additions for Legacy conversions
- Automatic Preparation of Mass Additions
- Flexible Reporting using XML publisher
- Automatic depreciation rollback
- Enhanced functionality for Energy industry
Fixed Assets tied with SLA(Sub Ledger accounting)
As we have already seen in few earlier post "Oracle Subledger Accounting  " is a rules-based engine for generating accounting entries based on source transactions from ALL Oracle Applications. Therefore Fixed Asset module does integrated with such functionality to cater the asset accounting at ledger level. With this feature:
- Oracle Assets is fully integrated with SLA, which is a common accounting platform for Sub Ledgers.
- Customers can use the seeded Account Derivation definitions or modify them as required.
- Continue to support Account Generator functionality for existing Asset Books.
- New SLA Accounting report and online account inquiry.
What you will notice create Journal Entries (FAPOST) process feeding into the GL_INTERFACE table is no more exist .This is replaced with the Create Accounting â€“ Assets process (FAACCPB). With this replacement, the some of high point in term of benefits are:
- It leads to faster closings: Since there is no requirement of having to close the period, accounting can be created for FA transactions and sent to GL on a continual basis throughout the period.
- There is no need to wait until the end of the month to run Create Accounting in order to get the data to GL.
Therefore with this new enhancement allows clients to meet multi-GAAP, corporate, and fiscal accounting requirements. The tool, Accounting Methods Builder, allows you to determine the accounts, lines, descriptions, summarization, and dates of your journal entries.
This can be best understood as this example, if you do a large amount of asset additions on the first day of the month, you can run Create Accounting and get all the Cost and Cost Clearing lines over to GL at the close of business that day.
Enhancements have been made to the FA_MASS_ADDITIONS table.
Now with this enhanced feature, we can populate the values for the new attributes directly in the FA Mass Additions interface table rather than accepting default values from the asset category. Legacy conversion can be completely automated.These are new adds-on:
- Asset Life
- Depreciation Method
- Prorate Convention
- Bonus Rule Ceiling Name
- Depreciation Limit
What it is understood , is that Web ADI has also been upgraded to include the new Attributes.
- New columns in the Asset Additions WebAdi
- Additional attribute can be used to populate values directly thereby eliminating the need to override the defaults from the Asset Category
- These new data fields will benefit data conversion by allowing the converted data to be brought into Oracle with the asset life information.
New Automatic Preparation of Mass Additions
- This new feature consists of default rules and Public APIs that can be used by customers to complete the preparation of mass addition lines automatically.
- Auto populate required fields such as Expense Account, Asset Category etc.
- Avoid manual intervention during the Mass Additions prepare process
- Avoid customization and use public APIs to effect custom business logic.
- Assets now uses Flexible Reporting using XML publisher
- Major Asset Transaction reports have been modified to support XML publisher.
- Users can modify or use new templates to view report output.
Those who are very new to Asset module must have question, What is maent by Default Rules.
- Asset Category â€“ this is derived from the asset cost clearing account, as long as there is a one to one relationship between the account and asset category. This process will only impact items in the â€˜Newâ€™ and â€˜On Holdâ€™ queue names.
- Expense Account â€“ this is derived from the clearing account combination and overlaying the natural account segment with the value of the natural account segment of the depreciation expense defined in the asset category. If the program cannot derive an expense combination, the queue name is set to â€˜On Holdâ€™.
So what is meant for Consultant by this feature..please note
- This should minimize the amount of manual efforts involved in the Prepare Mass Additions Process. Manual updating is still required some fields may not be populated but are required.
- Asset Category â€“ a one to one relationship between cost clearing account and asset category â€“ this will expand the COA of many companies.
- Expense Account â€“ the expense combination is going to be derived from a BS account. Oracle will simply overlay the natural account segment, replacing the cost clearing account with the depreciation expense account leaving all other segment values alone. If there are certain requirements for P&L accounts versus BS accounts, I.e. cost center required for P&L, this may present issues.
- Manual efforts are required to perform Merging, Splitting, Add to Assets, and Merge Then Split functionality.
Flexiable Reporting into XML Publisher
Thirteen asset reports have been converted in XML Publisher based report.
- Create Accounting â€“ Assets
- Transfer Journal Entries to GL â€“ Assets
- Journal Entry Reserve ledger Report
- Asset Additions Report
- Asset Transfer Report
- Asset Retirement Report
- Transaction History Report
- Asset Reclassification Report
- Mass Additions Create Report
- Mass Additions Posting Report
- Cost Adjustment Report
- Cost Detail report
- Cost Summary Report
- Reserve summary Report
- Reserve Details Report
- Mass Revaluation Preview Report
- Revalution Reserve Details Report
- Revalution Reserve Summary Report
- CIP Capitaliization report
- CIP Detail Report
- CIP Summary Report
You can design and control how the report output will be presented in separate template files. Publish in PDF format that can support colors, images, font styles, headers and footers, and other formatting. You can create new report templates, or modify existing templates to view your report output.
Automatic Depreciation Rollback
Depreciation is rolled back automatically by the system when any transaction is performed on an asset if the following conditions are met:
- Depreciation has been processed in that period
- The period is not closed
That mean, it is no longer required to run depreciation rollback program manually as we have seen in release 11i.
Depreciation rollback is executed only on select assets as required and not on the entire Asset Book this enhances performance of the program.
Since release 11i, users have been able to run depreciation for an asset book without closing the period. If additional adjustments are required in the current period, then the user submits a process to roll back depreciation for the entire book, performs the necessary adjustment(s) and then resubmits the depreciation program. In Release 12 the intermediate manual step of rolling back depreciation for the entire book in order to process further adjustments on selected assets is no longer necessary. As before users may submit depreciation for the entire book prior to closing the period. If it becomes necessary to process financial adjustments on one or more assets, the user may proceed with the transaction normally via the asset workbench or mass transactions.
Oracle Assets automatically rolls back the depreciation on just the selected assets (instead of the whole book) and allows the transaction(s) to be processed normally. The asset(s) for which depreciation was rolled back is automatically picked up during the next depreciation run or at the time that the depreciation period is finally closed.
Enhanced functionality for Energy Industry
As per RCD , this can be understood as;
- Energy Units of Production Method for Group Assets
In the oil & gas industry, asset properties may include fields, leases and wells. These assets are typically associated with units of production (UOP) and are depreciated using a special UOP depreciation method. â€˜Energyâ€™ assets are generally structured into two levels, group and member assets, where the group asset is a collection of several members.
- Allow Production method for Group Assets
- Allow Production upload to Group Assets
- Energy Straight line Method
This feature is used in oil & gas industry ,where non-producing assets are depreciated using the energy straight-line method based on the assetâ€™s net book value. Assets that depreciate using the energy straight-line method may either depreciate at the member asset level or group asset level.
A note on Straight-Line Depreciation â€“ Assets that depreciation using energy straight-line method may either depreciate at the member asset level or group asset level.
- When at the member level, depreciation is calculated based on each memberâ€™s life and then summarized up to the group asset.
- When at the group level, depreciation is calculated at the group asset level, the life of the group asset is used.
- Net Book Value / Remaining Life
- Asset Impairment â€“ this is basically an unplanned depreciation and will utilize this feature to perform asset impairments. Now the â€˜impairmentâ€™ expense account may be derived from the asset category setup or manually entered.
Note:421352.1 :Release 12: Where is the Option for Rollback Depreciation?