Fusion Assets

Lesson 10: Configuring Oracle Fusion Assets

Lesson 10: Objectives
After completing this lesson, you should be able to:
 Explain Oracle Fusion Assets functions.

 Manage Assets key flexfields and value sets.
 Manage system controls.
 Manage fiscal years and calendars.
 Manage locations.
 Manage asset books.
 Define Subledger Accounting rules.
 Manage asset categories.
 Review optional implementation steps.
Copyright © 2012, Oracle and/or its affiliates. All rights reserved. 625
Understanding Oracle Fusion Assets
Oracle Fusion Assets is part of the Oracle Asset Lifecycle Management solution.
It is a complete asset management solution that accurately maintains the
financial information of your property and equipment, and helps you to meet
global accounting and tax requirements.
Oracle Fusion Assets:
 Automates asset management and simplifies fixed asset accounting tasks.

 Uses a unified source of asset data to provide visibility into your assets
worldwide.
 Provides data and function security.
626 Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
 Uses automated business flows to streamline standard asset management tasks,

such as asset additions, asset transfers, disposals, reclassifications, financial
adjustments, and legacy data.
Oracle Fusion Assets Lifecycle
Oracle Fusion Assets:
 Supports the end-to-end asset lifecycle from asset acquisition to retirements.

 Improves the capital asset management by providing more visibility, tracking, and
control for the capital assets.
Assets Tasks
Use Assets to perform standard asset management tasks:
 Additions
 Financial adjustments
 Reclassifications
 Transfers
 Retirements
Legacy Data Conversions
Assets provides automated business flows to help streamline data conversions from
other systems.
Accounting
Assets adapts to various countries' tax and accounting laws to accommodate fluctuating
economies, unplanned depreciation, and other unforeseen circumstances.
Reports
Assets provides standard accounting, operational, and registry reports for ease of
reconciliation and analysis.
Use reports to inform the fixed asset manager of additions, transfers, retirements, or
other changes, ensuring that the asset information remains accurate.
NOTE: Instructor Demonstration Viewing an Asset
Implementing Oracle Fusion Assets
Implementing Oracle Fusion Assets requires:
 Planning and setting up Assets-specific information, such as: key flexfields,

system controls, fiscal years, calendars, categories, locations, depreciation rules,
and asset books.
 Converting and reconciling existing asset information from and with the
previous system.
There are four implementation phases to be considered when planning your Assets
implementation:
 Planning the Implementation
 Setting Up Oracle Fusion Assets

 Converting Existing Asset Information
 Reconciling with the Previous System
Planning Your Implementation
Consider your organizational structure and business dimensions. By carefully

evaluating your business needs, you can design and set up Oracle Fusion Assets to
take advantage of its flexible tools for recording and maintaining asset information.
Implementation planning includes the following:
 Inquiring About Your Company's History

 Obtaining Existing Asset Information
 Determining the Conversion Period
 Decide on Oracle Assets Setups
Inquiring About Your Company's History
Before implementing Oracle Fusion Assets, ensure you have answered the following
questions:
 What accounting changes have occurred in the company's history?

 Have the calendar, fiscal year, or prorate rules changed?
 Has the company been acquired or have there been any mass adjustments?
 What are the future plans of the company?
 What is the strategic plan of the company?
 How may future events affect the accounting procedures of the company?
Obtaining Existing Asset Information
Based on your existing asset information:
 Decide how to bring the information into Oracle Fusion Assets. Consider the new
implementation as an opportunity to clean up the asset data.
 Obtain and review the existing asset information and how the company is
currently maintaining its asset inventory. Find out, for example, what data is
available, how many assets exist, and what detailed information is stored.
 Determine the location of the data, how to access it, the type of format it is in,
and who has the authority to access the information.
 Decide how to import the information into Oracle Fusion Assets by using the
Mass Additions interface table FA_MASS_ADDITIONS. Consider using the
Assets features of the Oracle Application Development Framework (ADF)
Desktop Integration.
Determining the Conversion Period
Determine the best time to convert your assets:
 Many companies find that it is convenient to convert at fiscal year-end because

year-end numbers are easy to reconcile, and year-to-date figures are correct in
the new year.
 If you convert in mid-fiscal period, consider keeping the previous assets
system running in parallel with Oracle Fusion Assets until year-end for
reconciliation, if possible.
Decide on Oracle Assets Setups
Decide on key Oracle Fusion Assets setup steps such as:
 Key Flexfield Structures

 Asset Books
 Asset Categories
 System Controls
 Fiscal Years and Calendars
 Prorate Conventions
 Locations
 Asset Keys
NOTE: These steps will be discussed in more detail later on in this lesson.
Prerequisite Setup
The following steps are prerequisites before implementing Oracle Fusion Assets:
Oracle Fusion General Ledger
 Ledgers
 Currencies
 Currency Rates
 Conversion Rate Types
 Cost Center as a segment in the chart of accounts (optional)
Human Capital Management (HCM): Employees
Oracle Fusion Payables: Suppliers
Financials Common Module: Reference Data Sets
Oracle Fusion Subledger Accounting: Accounting Methods
Oracle Fusion Assets Implementation Steps
Begin in the Setup and Maintenance work area > Select the All Tasks tab > In the
Search region, enter Define Fixed Assets Configuration in the Name field > Select
the Search button.
It is recommended that Oracle Fusion Assets implementation steps be performed in

the following order (required setups are in bold and marked with an asterisk):
 Manage Fixed Assets Value Sets*

 Manage Fixed Assets Key Flexfields*
 Manage System Controls*
 Manage Fiscal Years*
 Manage Asset Keys
 Manage Asset Locations*

 Manage Asset Calendars*
 Manage Prorate Conventions*
 Manage Asset Books*
 Manage Asset Categories*
 Define Subledger Accounting Rules

 Manage Depreciation Methods
 Manage Bonus Rules
 Manage Ceilings
 Manage Distribution Sets
 Manage Fixed Assets Profile Options
 Manage Fixed Assets Lookups
 Manage Fixed Assets Descriptive Flexfields
Managing Assets Key Flexfields and Value Sets
You must define the following three key flexfields:
Asset Category Flexfield
The Asset Category flexfield groups assets by financial information.
Asset Location Flexfield
The Asset Location flexfield groups and tracks assets by physical location.
Asset Key Flexfield
The Asset Key flexfield groups assets based on non-financial information.
Value Sets
Before defining key flexfields, you must first define value sets for each segment you
plan to use for your flexfields.
NOTE: Assets flexfields will be discussed further in later topics.
Managing System Controls
System controls provide information about the structure of your company.
Defining Your System Controls
Navigate to: Setup and Maintenance work area > Define Fixed Assets
Configuration > Manage System Controls
Enterprise Name
The enterprise name establishes the name that appears on Oracle Fusion Assets
reports.
Oldest Date Placed in Service

The oldest date placed in service controls what dates are valid to place assets in
service and on what date to begin your calendars. You can only update the oldest date
placed in service before you assign any calendars to depreciation books.
Flexfield Structures
 Define your company's Category, Location, and Asset Key flexfields

structures, which will be used to record transactions.
 Define your Category, Location, and Asset Key flexfields before defining
system controls.
 Configure flexfield segments to capture data that represents the values of
attributes.
 Define any number of segments for each flexfield, but Assets supports only one
structure.
NOTE: The administrator must choose a structure for each key flexfield that will be used
to record transactions.
Automatic Asset Numbering
The starting asset number defines the number to begin automatically numbering your
assets. Some asset numbers may be skipped.
Manually entered asset numbers must be less than the starting asset number
established for automatic numbering. For example, automatic numbering starts at
50,001; manual numbering must be between 1 and 50,000.
Mass additions can be automatically numbered with a unique number when using
the prepare mass additions automatically feature.
Asset numbers with a letter in them are not reserved for automatic asset numbering,
since the automatic numbers are a numerical sequence.
If you are converting from another system, you can enter a starting number greater
than the number of assets you want to convert so converted assets keep the same
number from the previous system.
Example: If you are converting 75,000 assets, you can enter 100,001 as the starting
number to reserve the numbers 1 to 100,000 for manual asset numbering. Note that
adding the 75,000 assets will increment the automatic numbering sequence by 75,000
and automatically numbered assets will begin at 175,001.
System Controls Implementation Considerations
Before setting up system controls, consider the following:
 You must define your Category, Location, and Asset Key flexfields before
defining system controls.
 The enterprise name is displayed on all reports. Ensure you define the
enterprise name appropriately.
 The oldest date placed in service controls the valid dates on which assets can
be placed in service and the date on which calendars begin.
 Automatic numbering of assets begins with the starting number defined in your
system controls, so you need to ensure that the starting number is appropriate.
Knowledge Check: System Controls
You must define your Category, Location, and Asset Key flexfield structures
before defining system controls.
1. True
2. False
Knowledge Check: System Controls Answer
You must define your Category, Location, and Asset Key flexfield structures
before defining system controls.
1. True
2. False
Managing Fiscal Years and Calendars
You must first define fiscal years. You then define asset calendars based on those fiscal
years.
Fiscal Years
Fiscal years group your accounting periods.
Calendars
Calendars are based on the fiscal years you set up.
 Depreciation calendar: Determines the number of accounting periods in a fiscal

year.
 Prorate calendar: Determines what rate is used to calculate annual depreciation
by mapping each date to a prorate period.
Defining Fiscal Years
A fiscal year is:
 A standard set of periods used to prepare annual financial statements for

reporting and tax purposes.
 Also referred to as a financial year or budget year.
 Normally a twelve-month period, but this varies from business to business and
country to country.
Defining Fiscal Years
 Define the start date and end date for each of your fiscal years starting from the
earliest date placed in service through at least one fiscal year beyond the current
fiscal year.
 Define at least one calendar for each fiscal year to break the fiscal year into
multiple reportable periods, such as months.
 Set up multiple fiscal years and assign different fiscal years to your different
corporate books to meet the various reporting and tax requirements.
Important
At the end of each fiscal year, the Calculate Depreciation program automatically
generates the dates for the next fiscal year and calendars, if they are not defined.
Fiscal Year Implementation Considerations
Before defining fiscal years, consider the following:
 Prepare a list of all the assets that need to be entered.

 Sort the assets in the order of the date placed in service.
 Ensure the calendar for the tax book uses the same fiscal year name as the
calendar for its associated corporate book.
Defining Asset Calendars
Calendars break down your fiscal year into accounting periods.
Define your calendars with as many periods as necessary for your reporting and tax
regulation requirements.
Asset books:
 Must have a depreciation calendar and a prorate calendar.

 Can use the same calendar as both the depreciation and prorate calendar.
Initially set up all calendar periods from the period corresponding to the oldest date
placed in service to the last day of the current fiscal year.
Set up at least one period before the current period. At the end of each fiscal year,
Oracle Fusion Assets automatically sets up the periods for the next fiscal year.
Example
To define a 4-4-5 calendar, set up your fiscal years, depreciation calendar, and prorate
calendar with different start and end dates, and fill in the uneven periods. You can
divide annual depreciation proportionately according to the number of days in each
period or evenly in each period.
Depreciation Calendar
The depreciation calendar determines the number of accounting periods in your

fiscal year.
Prorate Calendar
The prorate calendar determines what rate Assets uses to calculate annual
depreciation by mapping each date to a prorate period, which corresponds to a set of
rates in the rate table.
The Calculate Depreciation process uses the prorate calendar to determine the
prorate period that is used to choose the depreciation rate.
Calendar Implementation Considerations
Before defining calendars, consider the following:
 Corporate books can share the same calendar.

 Multiple books can use a single calendar.
 Tax books must use the same fiscal year as their associated corporate book.
 Tax books can have different calendars than their associated corporate
books.
 Depreciation and prorate calendars must be defined before defining asset
books.
 Different calendars can be set up for reporting and tax purposes, depending
upon statutory requirements.
 All calendar periods must be set up from the period corresponding to the oldest
date placed in service to the last day of the current fiscal year.
 At least one period must be set up after the current period.
 Define calendars only after you have finished defining system controls and
fiscal years.
Knowledge Check: Fiscal Years and Calendars
You must first define asset calendars before defining fiscal years.
1. True
2. False
Knowledge Check: Fiscal Years and Calendars

Answer
You must first define asset calendars before defining fiscal years.
1. True
2. False
You must first define fiscal years, and then you define asset calendars based on those
fiscal years.
Prorate Convention Concepts
Oracle Fusion Assets uses prorate and retirement conventions to determine how
much depreciation to take in the first and last year of an asset's life.
Assets can be acquired at any time in a given period. Therefore, prorate conventions
must account for every date in the fiscal year for assets to depreciate properly.
Other considerations:
1. The prorate convention and the date placed in service determine the prorate
date.
2. Assets uses the prorate date to determine the prorate period in your prorate
calendar.
3. Assets prorates the depreciation taken for an asset in its first fiscal year of
life according to the prorate date.
Example 1
You use the half-year prorate convention. The prorate date of all assets using that
convention is the midpoint of your fiscal year, so assets acquired in the same fiscal
year take the same amount (half a year's worth) of depreciation in the first year.
Example 2
You use the following month prorate convention. The prorate date is the beginning
of the month following the month placed in service, so the amount of depreciation
taken for assets acquired in the same fiscal year varies according to the month they
were placed in service.
Retirement Conventions
If you do business in a country that requires you to use a different prorate convention for
retirements than for additions, define retirement conventions to determine how much
depreciation to take in the last year of life, based on the retirement date.
If you retire the asset before it is fully reserved, then Assets uses the prorate date from
the retirement convention to determine how much depreciation to take in the asset's last
year of life.
Prorate Convention Implementation Considerations
Initially set up all your prorate conventions from the convention period
corresponding to the oldest date placed in service through the end of the current
fiscal year. At the end of each fiscal year, Assets automatically sets up your prorate
conventions for the next fiscal year.
Review your reporting authority's depreciation regulations. Your reporting

authority's depreciation regulations determine the amount of depreciation to take in the
asset's first year of life.
Example 1
Regulations require that you prorate depreciation according to the number of months
you hold an asset in its first fiscal year of life. In this case, your prorate convention has
twelve rate periods, one for each month of the year.
Example 2
Regulations require that you prorate depreciation according to the number of days that
you hold an asset in its first year of life. In this case, the fiscal year depreciation amount
would vary depending on the day you added the asset. Thus, your prorate convention
contains 365 prorate periods, one for each day of the year.
Align the prorate convention with the prorate calendar.
In the following example, you use the mid-month prorate convention:
NOTE: Student Activities Managing Fiscal Years and Managing Asset Calendars
Managing Asset Locations
Asset locations track the physical location of assets. Assets can be reported on and
transferred based on their locations.
 Define locations based on the current and anticipated future assignments of

assets.
 Ideally, use standardized location names or abbreviations where the names
are too long, since locations are used for grouping, tracking and reporting
purposes.
Location Key Flexfield Implementation Considerations
Planning Your Location Flexfield Structure
 Choose the number of segments, the length of each segment, the name, and the
order of each segment in your Location flexfield.
 Define the Location flexfield structure based on the asset tracking requirements
of your enterprise.
 Important: Plan your flexfield carefully. Once you begin entering assets using
the flexfield, you cannot change it.
Defining Your Flexfield Segments
 You must define a state segment and up to six other location segments.
 If you do business internationally (or plan to do so in the future), you should
create a segment for Country to track the country an asset is in.
 You may also want to include segments such as state, city, and site.
 If you track asset locations in more detail, for example, if you use barcodes, you
can also add segments for the building and room number.
 The location name (all segments concatenated) appears on forms and reports,
which display only a limited number of characters. You may want to abbreviate
some location segment values.
Defining Asset Locations
Define location combinations by using Location flexfield segment values.
Managing Asset Books
You can set up an unlimited number of independent asset books. Each book has its
own set of accounting rules and accounts so that you can organize and implement
your fixed assets accounting policies. When you define a tax book, you must specify an
associated corporate book.
NOTE: After a book is created, roles are automatically created and can be assigned
to users to provide access to the asset books.
Corporate Books
When defining asset books, keep in mind that corporate books:
 Hold all asset information and are used to post journal entries for all accounting
activity, including depreciation to the relevant primary ledger in accordance with
corporate policy and business practices.
 Must be assigned to a primary ledger.
Tax Books
When defining asset books, keep in mind that tax books:
 Are used to comply with statutory rules for depreciating assets. Data can be
copied from the corporate book on a regular basis, excluding depreciation
information.
 Can use a different calendar than their associated corporate book, provided
both calendars use the same fiscal year.
 Can optionally be used to post journal entries to either the corporate book's
primary ledger or to its secondary ledger.
Use the Perform Periodic Mass Copy process to transfer assets and transactions
from the corporate book to the tax book.
Asset Books and Ledgers, Subledgers, and Business

Units
When defining asset books, keep in mind the asset books' relationship to ledgers,
subledgers, and business units.
 Asset books are linked to ledgers.

 Asset books are not directly linked to business units.
 Business units are assigned to primary ledgers.
 Business units can interact with corporate asset books assigned to the same
ledger.
 Asset tax books provide alternative asset accounting.
In the following example:
 The corporate book is populated by Oracle Fusion Payables and business

units in the same primary ledger.
 The tax book is populated by Oracle Fusion Assets.
 The tax book uses alternate accounting.
 The tax book can post accounting entries to the corporate book's primary
ledger or to its secondary ledger, as required.
Asset Book Implementation Considerations
Consider the following when defining asset books:
 Access to asset data is secured at the asset book level.

 Define asset books according to your depreciation and accounting
requirements.
 Set the default accounts for retirement and deferred depreciation
transactions at the book level.
 Select the reference data set for each setup object to restrict their values
during transaction entry.
 Define tax book rules to copy transactions from the corporate book.
 Enable group assets for your book and select the group asset rules.
Defining Your Asset Book: Multiple Depreciation

Requirements
In this example, your company has operations in the United States only, and you
need to prepare financial statements for reporting purposes. Additionally, your
company must meet depreciation requirements under federal and state laws.
Recommended: Create a corporate book and two associated tax books.
Defining Your Asset Book: Multiple Currency

Representations
In this example, your company has operations in Singapore, and the company is a
subsidiary of a US company. Your company must prepare its financial statements in
Singapore dollars (SGD) for reporting purposes, and in United States dollars (USD)
to fulfill the parent company's US generally accepted accounting principles (GAAP) and
consolidation requirements.
 Primary currency: SGD

 Reporting currency: USD
Recommended: Create a corporate book that is assigned to the primary ledger with
the primary currency SGD and the reporting currency USD.
Important: When you define the corporate book for the primary ledger with
reporting currencies, Oracle Fusion Assets automatically creates a reporting
book for each reporting currency of the ledger.
You need to perform transactions only in the primary currency. Assets automatically
generates currency representations for the transactions in all the reporting
currencies.
In Assets, you can view transaction details, run reports, and create accounting
entries in both the primary and reporting currencies.
Defining Your Asset Book: Multiple Accounting

Representations
In this example, your company has operations in the United States. Your company
needs to prepare its financial statements under both US Generally Accepted
Accounting Principles (GAAP) and International Financial Reporting Standards
(IFRS).
Recommended: Create a corporate book for the US GAAP primary ledger and an
associated tax book for the IFRS secondary ledger. Both the primary and
secondary ledgers should use the same chart of accounts and currency.
Implementation Questions
Implementation Questions (continued)
Knowledge Check: Managing Asset Books
Can I create more than one corporate book for a ledger?
1. Yes
2. No
Knowledge Check: Managing Asset Books Answer
Can I create more than one corporate book for a ledger?
1. Yes
2. No
You can create an unlimited number of corporate books for a primary ledger.
Reference Data Sharing Across Asset Books
Use reference data sets to share reference data across books and to restrict
access to reference data by book.
Oracle Fusion Assets contains a common set of predefined set-enabled objects to

meet the business needs of sharing reference data across books.
You can also create new reference data sets to limit the access to certain setup
objects in one or more books.
The following set-enabled objects are available in Assets:
Depreciation methods
Prorate conventions
Bonus rules
Depreciation ceilings
Asset lookups:
 Queue names
 Asset descriptions
 Retirement types
 Unplanned types
For more information, see the Define Reference Data Sharing topic.
Reference Data Sharing: US Company Example
In this example, your company is headquartered in the United States and has two
subsidiaries. There are three corporate books and your company wants to eliminate
duplication of reference data.
Recommended: Use the predefined reference data set Common to share reference
data across all the books.
Reference Data Sharing: Multinational Company

Example
In this example, your company is a multinational company with operations in the

United States and Japan. The company has two corporate books: US CORP and
JAPAN CORP. Because the depreciation methods used in these two countries are
different, US depreciation methods should not be available to JAPAN CORP and
Japanese depreciation methods should not be available to US CORP.
Recommended: Define two reference data sets and segregate the methods.
NOTE: Student Activity Managing Asset Books
Define Subledger Accounting Rules
Begin configuring Oracle Fusion Subledger Accounting from the Setup and
Maintenance work area.
Define Subledger Accounting Rules Task List
Navigation: Home page > Navigator > Tools > Setup and Maintenance > Manage
Implementation Projects > <Your implementation project>. Expand your specific
product task list to access the Define Subledger Accounting Rules task list.
This graphic displays the tasks to complete to set up Subledger Accounting for your
product. You can determine the task lists and tasks that are included when you define
the Configure Offerings attributes. You can include either the Manage Subledger
Accounting Method task list or the Maintain Subledger Application and Accounting
Method task list in your offering.
Oracle Fusion Assets provides the predefined subledger accounting method Standard
Accrual. You can create additional subledger accounting methods if necessary.
NOTE: See the Configuring Oracle Fusion Subledger Accounting lesson for
additional information on the Define Subledger Accounting Methods task.
NOTE: See the Oracle Fusion Accounting Hub Implementation guide for additional
information on Maintain Subledger Application and Accounting Method.
Accounting Event Model
Accounting Event Model Example:
The following is an example of an accounting event model for a loan application:
Process Category
A process category consists of specific event classes and the event types within those
classes. To restrict the events selected for accounting, users can select a process
category when they submit the Create Accounting process. This may be useful for
segmenting events due to processing volumes.
Accounting Event Classes
An accounting event class categorizes transaction types and groups event types for
accounting rules. You can assign a transaction view, system transaction identifiers, and
optionally user transaction identifiers and processing predecessors for an event class.
The transaction view should include all columns that have been mapped to system
transaction identifiers for the accounting event class as well as the user transaction
identifiers.
System transaction identifiers uniquely identify transactions from the source systems.
An identifier is the primary key of the underlying subledger transaction. At least one
system transaction identifier must be defined for the accounting event class.
User transaction identifiers constitute the user oriented key of the underlying subledger
transaction, and are typically drawn from one or more database tables. These identifiers
are primarily used in accounting events inquiry and on accounting event reports, to
uniquely identify transactions. You can specify up to ten columns from a view that are
available for inquiry and reports. As part of the implementation, an individual with
technical support personnel (not a functional user) defines the view (called a transaction
view) which will be used to store the identifiers.
The processing predecessor establishes an order in which the Create Accounting

process processes events selected for accounting.
Assets Accounting Event Classes
Oracle Fusion Assets provides the following predefined accounting event classes:
 Addition
 Adjustment
 CIP Addition
 CIP Adjustment
 CIP Category Change
 CIP Retirement
 CIP Source Line Transfer
 CIP Transfer
 CIP Unit Adjustment
 Capitalization
 Category Change
 Deferred Depreciation
 Periodic Depreciation
 Reserve Transfer
 Retirement
 Retirement Adjustment
 Source Line Transfer
 Terminal Gain and Loss
 Transfer
 Unit Adjustment
 Unplanned Depreciation
How should events be grouped together into accounting event classes?
The determinants:
 Whether they share common information. For example, if there is a significant

amount of shared information across event types, they may be logically grouped
into an event class.
 Whether you would like to be able to share accounting rules across the events.
For example, most rules can be shared if they are in the same event class.
 Whether accounting treatments can be simplified by storing the rules at the class
level. For example, the data is different per transaction, but the accounting
treatment is the same.
Accounting Event Type
An accounting event type represents a business operation that may have an accounting
impact. For accounting event types, specify whether their accounting events have
accounting impact. When the Create Accounting process is submitted, it only accounts
business events that are enabled for accounting.
Managing Asset Categories
Asset categories group assets that share financial accounts and usually
depreciate using the same rules.
Use categories to group assets for transaction and reporting purposes.
Asset categories must be assigned to asset books with default accounts and
depreciation rules. The default account values are used to account asset
transactions in this category. The depreciation rules are automatically defaulted to
assets when they are added.
Defining Asset Categories
Configuration > Manage Asset Categories
General category information includes a description of the category, and default

information such as whether assets in this category are leased or owned, personal or
real property, and whether they are capitalized. You can also specify if assets are by
default in physical inventory or are enabled in Oracle Fusion Assets.
Asset categories also contain:
 General Ledger accounts

 Default depreciation rules
 Tax book depreciation rules
 Default subcomponent depreciation rules
 Group asset depreciation rules
Defining Default Depreciation Rules
Define depreciation rules with care for each category, because Oracle Fusion Assets
automatically defaults the rules to assets when they are added.
Defining Oracle Fusion General Ledger Accounts
 Define the balance sheet accounts carefully, because they cannot be

changed once assets are added to the category.
 Define asset clearing accounts that are used in the processing of invoices from
Oracle Fusion Payables.
Category Key Flexfield Implementation

Considerations
Planning Your Asset Category Flexfield Structure
 Define the structure after reviewing your company’s business needs to ensure
assets are grouped according to depreciation rules.
 Define your Asset Category key flexfield so that you can create categories and
group assets by financial information in relevant categories.
Important: Plan your flexfield carefully. Once you begin entering assets using the
flexfield, you cannot change it.
 Organize category hierarchies so that valid subcategory values depend on a

major category value. For example, in the category Vehicle-Owned, the second
segment can be used as a minor segment.
 Define at least one subcategory segment to allow for distinctions within a major
category.
 Define up to seven segments for your Asset Category key flexfield.
Important: Oracle Fusion Assets displays only a limited number of characters on its
forms and reports, so you may want to use only two or three segments so that all of
them can be displayed. Also keep in mind that you must define depreciation rules for
each category flexfield combination, so more segments require more setup and
maintenance effort.
NOTE: Student Activity Defining Category Key Flexfield Values
Category Implementation Considerations
When implementing asset categories, consider the following:
 Define the Category flexfield such that assets are grouped according to
depreciation rules.
 Organize category hierarchies such that valid subcategory values depend on
a major category value.
 Ensure that the category is compliant with the chart of accounts.
 Set up default accounts and rules for each Category flexfield combination
and for each book.
Define depreciation rules with care for each category, because they will be
automatically defaulted to assets.
 Assign a category to an asset book before entering assets with that category in
that book.
NOTE: Following the Knowledge Check questions there is a Student Activity Managing
Asset Categories.
Knowledge Check: Managing Asset Categories
Asset categories group assets that share financial accounts.
1. True
2. False
Knowledge Check: Managing Asset Categories

Answer
Asset categories group assets that share financial accounts.
1. True
2. False
Optional Implementation Steps
You can implement the following optional setup steps in Oracle Fusion Assets:
 Manage distribution sets

 Manage profile options
 Manage lookups
 Manage descriptive flexfields
 Manage asset keys
 Manage depreciation rules
Managing Distribution Sets
Configuration > Manage Asset Distribution Sets
Distribution sets allow you to automatically assign a predefined set of one or more
distributions to a new asset mass addition.
Defining Distribution Sets
Define distribution sets to allocate percentages of asset units to different

depreciation expense accounts, locations, and employees.
Define one or more distributions in a set.
Change the distribution information for a distribution set at any time.
Important: If you change the distribution information for a distribution set, note that
it does not affect assets already assigned to that distribution set.
Managing Profile Options
Set profile options to specify how Oracle Fusion Assets controls access to and
processes data, such as:
 The number of requests you can run in parallel

 The timing diagnostic message value
 The amount of database information retained in a concurrent process
 The cache reset value
 The batch size used for bulk processing in mass processes
 The book selected by default in Assets pages
Profile Options Settings
The following table displays the names, default values, and the effect each profile
option has on your Oracle Fusion Assets setup:
Profile Options Settings (continued)
Profile Options Settings (continued)
Managing Lookups
Lookups are containers for the list items that appear in an application. Users select one
of the items from such lists to enter a value on the application UI.
Oracle Fusion Assets comes with the following predefined lookups. You can define
additional lookups if required for your business.
NOTE: For more information, see the Lookups topic in the Appendix.
Managing Descriptive Flexfields
Use Oracle Fusion Assets descriptive flexfields to record additional information

about assets that is not included in the standard information on Assets pages.
For example, you can set up a descriptive flexfield for each asset category to collect
information relevant to your business, such as the license number for cars and the
square footage for buildings. When you assign a new asset to a category, you enter
the additional information in a descriptive flexfield.
NOTE: For more information on defining descriptive flexfields, see the Descriptive
Flexfield topic in the Appendix.
Assets provides the following descriptive flexfields:
Managing Descriptive Flexfields (continued)
Managing Descriptive Flexfields (continued)
Managing Asset Keys
Define asset keys to group assets or identify groups of assets quickly.
Define asset key combinations. You must first define Asset Key flexfield segment
values before defining asset keys.
Assign the same asset keys to multiple assets to easily identify similar assets.
Provide additional descriptive data to group assets by project or other functional

group.
Asset keys are similar to asset categories in that they allow you to group assets.
However, asset keys do not have any financial impact.
Asset Key Flexfield Implementation Considerations
Planning Your Asset Key Flexfield Structure
 Define the Asset Key flexfield structure based on your asset tracking
requirements.
 You can assign the same asset key to many assets to easily find similar assets.
 Asset key setup is required even though it is not required that you capture this
information during entry.
 Important: Plan your flexfield carefully. Once you begin entering assets using
the flexfield, you cannot change it.
 Define up to 10 segments.
 If you choose not to track assets using the asset key, you must define at least
one segment without validation, because the Asset Key flexfield structure is
required to set up the system controls.
Knowledge Check: Managing Asset Keys
The Asset Key flexfield groups assets by financial information.
1. True
2. False
Knowledge Check: Managing Asset Keys Answer
The Asset Key flexfield groups assets by financial information.
1. True
2. False
The Asset Key flexfield groups assets based on non-financial information.
Managing Depreciation Rules
Depreciate assets to decrease the value of an asset due to obsolescence or use.
 Use predefined depreciation methods or create your own custom

depreciation methods.
 Accommodate additional depreciation in the early fiscal years of an asset life
using bonus depreciation. Bonus depreciation is frequently used in the United
States for tax books.
 Limit the amount an asset depreciates using depreciation ceilings.
 Restrict or share depreciation elements for books by setting up reference data
sets.
Defining Depreciation Methods
Oracle Fusion Assets has many predefined depreciation methods. You can define
additional methods, if necessary.
Defining Depreciation Methods (continued)
Defining Bonus Rules
Bonus rules help you to calculate additional depreciation as required under special
provisions in certain countries. Bonus rules can have different bonus rates for each
year of the asset's life. You can modify the rate at any time for current and future fiscal
years.
Use bonus rules with corporate books as well as tax books. Bonus rates let you
increase the annual depreciation expense for assets using flat-rate, straight-line, table-
based, and formula-based depreciation methods.
You can:
 Charge bonus expense and reserve to an account that is different from the
normal depreciation expense and reserve.
 Set up negative bonus rates to amortize bonus reserve.
NOTE: After assigning a bonus rule to an asset, it cannot be removed. If you need to
remove a bonus rule, set up a bonus rule with a 0 rate and assign it to the asset.
Defining Depreciation Ceilings
Depreciation ceilings allow you to limit the annual depreciation expense for certain
types of assets.
 Depreciation expense ceilings limit the annual amount of depreciation expense

you can take on an asset.
 Depreciation cost ceilings limit the recoverable cost of an asset.
There are two types of depreciation limits allowed:
 The annual amount of depreciation expense.

 The recoverable cost of an asset.
For example, for tax purposes, the depreciation amount for luxury cars in the United
States is limited to $11,060 for the first year for assets placed in service after
12/31/2009 and before 1/1/2011.
Knowledge Check: Depreciation Methods
What type of depreciation method should you use when depreciation must be
spread evenly across the life of an asset?
1. Calculated (straight-line)
2. Flat-rate
3. Table
Knowledge Check: Depreciation Methods Answer
What type of depreciation method should you use when depreciation must be
spread evenly across the life of an asset?
1. Calculated (straight-line)
2. Flat-rate
3. Table
Lesson 10: Highlights
In this lesson, you should have learned to:
 Explain Oracle Fusion Assets functions.

 Manage Assets key flexfields and value sets.
 Manage system controls.
 Manage fiscal years and calendars.
 Manage locations.
 Manage depreciation rules.
 Manage asset books.
 Define Subledger Accounting rules.
 Manage asset categories.
 Review optional implementation steps.

Fusion Assets

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Fusion Assets

Caricato da

Copyright:

Formati disponibili

Lesson 10: Configuring Oracle Fusion Assets

Lesson 10: Configuring Oracle Fusion Assets

After completing this lesson, you should be able to:

 Explain Oracle Fusion Assets functions.

Understanding Oracle Fusion Assets

Oracle Fusion Assets:

 Automates asset management and simplifies fixed asset accounting tasks.

 Uses automated business flows to streamline standard asset management tasks,

Oracle Fusion Assets Lifecycle

Oracle Fusion Assets:

 Supports the end-to-end asset lifecycle from asset acquisition to retirements.

Use Assets to perform standard asset management tasks:

NOTE: Instructor Demonstration Viewing an Asset

Implementing Oracle Fusion Assets

Implementing Oracle Fusion Assets requires:

 Planning and setting up Assets-specific information, such as: key flexfields,

 Planning the Implementation

 Setting Up Oracle Fusion Assets

Planning Your Implementation

Consider your organizational structure and business dimensions. By carefully

Implementation planning includes the following:

 Inquiring About Your Company's History

Inquiring About Your Company's History

 What accounting changes have occurred in the company's history?

Obtaining Existing Asset Information

Based on your existing asset information:

Determining the Conversion Period

Determine the best time to convert your assets:

 Many companies find that it is convenient to convert at fiscal year-end because

Decide on Oracle Assets Setups

Decide on key Oracle Fusion Assets setup steps such as:

 Key Flexfield Structures

Oracle Fusion General Ledger

Oracle Fusion Assets Implementation Steps

It is recommended that Oracle Fusion Assets implementation steps be performed in

 Manage Fixed Assets Value Sets*

 Manage Asset Locations*

 Define Subledger Accounting Rules

Managing Assets Key Flexfields and Value Sets

You must define the following three key flexfields:

Asset Category Flexfield

The Asset Category flexfield groups assets by financial information.

Asset Location Flexfield

Asset Key Flexfield

The Asset Key flexfield groups assets based on non-financial information.

NOTE: Assets flexfields will be discussed further in later topics.

Managing System Controls

System controls provide information about the structure of your company.

Defining Your System Controls

Oldest Date Placed in Service

 Define your company's Category, Location, and Asset Key flexfields

Automatic Asset Numbering

System Controls Implementation Considerations

Before setting up system controls, consider the following:

Knowledge Check: System Controls

Knowledge Check: System Controls Answer

Managing Fiscal Years and Calendars

Fiscal years group your accounting periods.

Calendars are based on the fiscal years you set up.

 Depreciation calendar: Determines the number of accounting periods in a fiscal

Defining Fiscal Years

A fiscal year is:

 A standard set of periods used to prepare annual financial statements for

Defining Fiscal Years