Accounting Entries – Fixed Assets

APRIL 8, 2012 LEAVE A COMMENT

In this article, we will cover accounting entries made by Oracle Fixed Asset module
(FA). First we will cover some of the natural accounts that are setup and then we will
cover what entries are made.
In the Assets module, following are some of the accounts we setup. Some accounts
(like Clearing) are used by other modules as well.
Note: All of these accounts are natural accounts, and are created as flexfield values for
the natural account (GL account) segment.

Account Segment Qualifier

1 Asset Cost Asset Account

2 Asset Clearing Asset Account
3 Depreciation Expense Expense Account
4 Accumulated Depreciation Contra-Asset Account
5 Deferred Depreciation Reserve Liability Account
6 Deferred Depreciation Expense Expense Account
7 Depreciation Adjustment Expense Account
8 Proceeds of Sale Clearing Asset Account
9 Cost of removal Clearing Liability Account
10 Gain & Loss Revenue Account

Here are the entries made by FA.

Transaction Natural Account Debit Credit
Asset is added Asset Cost $100
Asset Clearing $100
Asset Depreciation Depreciation Expense $100
Accumulated $100
Depreciation
Asset Retirement – Accumulated $60
W/o proceeds and W/o Depreciation
removal cost
Gain/Loss $40
Asset Cost $100
Asset Retirement – Accumulated $60
With Proceeds, W/o Cost Depreciation
of removal
Gain/Loss $40
Gain/Loss $10

Proceeds from Sale $10

Asset Cost $100

Asset Retirement - Accumulated $60

With Cost of removal Depreciation
Gain/Loss $40
Gain/Loss $5
Cost of removal Clearing $5
Asset Cost $100