R12.x Oracle Asset Management Fundamentals (Sudent Guide) 1

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Edition 1.0
March 2010
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R12.x
Oracle
Asset
Manage
ment
Funda
mental
s
Volume 1-
Student
Guide
Copyright © 2008, 2010, Oracle and /or its affiliates All rights reserved.
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Author
Gail D’Aloisio, Brent A. Bosin, Paul Scott, Assad Akhavan
Technical Contributors and Reviewers
Kathy Wohnoutka, Ruth Kukla, Jan Quist, JongSung Ahn, Chris Rudd, Som Viswapathy, Bruce
Isner, Ivy Farren, Bruce Ingram
This book was published using: oracletutor

Table of Contents
Overview of Oracle Asset Management.........................................................................................................1-1

Overview of Oracle Asset Management.........................................................................................................1-3
Objectives.......................................................................................................................................................1-4
Agenda............................................................................................................................................................1-5
Overview of Oracle Assets.............................................................................................................................1-6
E-Business Suite Integration...........................................................................................................................1-7
Implementation Considerations for Oracle Financials....................................................................................1-8
The Best Project Team for the Job.................................................................................................................1-9
Critical Implementation Issues........................................................................................................................1-10
Oracle Assets Setup Steps...............................................................................................................................1-12
Oracle Assets Key Flexfields..........................................................................................................................1-13
Implementing Oracle Assets...........................................................................................................................1-14
Asset Books Positioning.................................................................................................................................1-15
Asset Categories Positioning...........................................................................................................................1-17
Asset Life Cycle..............................................................................................................................................1-18
Adding Assets Manually.................................................................................................................................1-19
Mass Asset Additions Process........................................................................................................................1-21
Quiz................................................................................................................................................................1-23
Adding and Capitalizing a CIP Asset.............................................................................................................1-24
Acquire and Build CIP Assets........................................................................................................................1-25
Asset Adjustments..........................................................................................................................................1-26
Asset Adjustment Overview...........................................................................................................................1-27
Performing Physical Inventory.......................................................................................................................1-28
Elements of Depreciation...............................................................................................................................1-30
Basic Depreciation Calculation......................................................................................................................1-32
Tracking Asset Retirements............................................................................................................................1-34
Assets Journal Entries Flow............................................................................................................................1-35
Default Account Generator Process for Oracle Assets...................................................................................1-37
Reconciling Data in Oracle Assets.................................................................................................................1-38
Viewing Asset Information Online.................................................................................................................1-39
Oracle Assets Reporting.................................................................................................................................1-40
Assets Reports Groupings..............................................................................................................................1-41
Creating a Tax Book.......................................................................................................................................1-42
Entering Information in Tax Books................................................................................................................1-43
Transaction APIs............................................................................................................................................1-45
Business Events..............................................................................................................................................1-47
Asset Business Event Triggers.......................................................................................................................1-48
Quiz................................................................................................................................................................1-49
Summary.........................................................................................................................................................1-50
Asset Controls Setup.........................................................................................................................................2-1
Asset Controls Setup......................................................................................................................................2-3
Objectives.......................................................................................................................................................2-4
Agenda............................................................................................................................................................2-6
Oracle Assets Setup Steps...............................................................................................................................2-7
Setup Steps Flow............................................................................................................................................2-8
Quiz................................................................................................................................................................2-11
Setup Steps Flow............................................................................................................................................2-12
Oracle Assets Key Flexfields..........................................................................................................................2-16
Setting Up Key Flexfields...............................................................................................................................2-17
Asset Category Key Flexfield.........................................................................................................................2-18
Location Key Flexfield...................................................................................................................................2-19
Asset Key Key Flexfield.................................................................................................................................2-20
Copyright © Oracle, 2010. All rights reserved.
R12.x Oracle Asset Management Fundamentals Table of Contents

i
Creating Key Flexfield Combinations............................................................................................................2-21
Specifying System Controls...........................................................................................................................2-22
QuickCodes....................................................................................................................................................2-24
Available QuickCodes....................................................................................................................................2-27
Defining Fiscal Years and Calendars.............................................................................................................2-35
Setting Up Fiscal Years..................................................................................................................................2-36
Setting Up Asset Calendars............................................................................................................................2-37
Sharing Calendars...........................................................................................................................................2-38
Defining Price Indexes...................................................................................................................................2-39
Profile Options................................................................................................................................................2-41
Asset Insurance...............................................................................................................................................2-47
Entering Asset Insurance Information............................................................................................................2-49
Planning Implementation................................................................................................................................2-51
Key Flexfields Planning Considerations........................................................................................................2-53
The Key Flexfields Planning Phase................................................................................................................2-55
Convert Existing Asset Information...............................................................................................................2-59
Using the FA_MASS_ADDITIONS Table for Conversion...........................................................................2-61
Post Conversion Reconciliation......................................................................................................................2-64
Other Conversion Issues.................................................................................................................................2-65
Maintaining an Audit Trail.............................................................................................................................2-66
Maintaining Audit Trails................................................................................................................................2-67
Defining Asset Warranties..............................................................................................................................2-69
Creating Leases...............................................................................................................................................2-70
Quiz................................................................................................................................................................2-71
Summary.........................................................................................................................................................2-72
Asset Books........................................................................................................................................................3-1
Asset Books....................................................................................................................................................3-3
Objectives.......................................................................................................................................................3-4
Agenda............................................................................................................................................................3-5
Asset Books Positioning.................................................................................................................................3-6
Quiz................................................................................................................................................................3-8
Asset Books Regions......................................................................................................................................3-9
Calendar Region.............................................................................................................................................3-11
Accounting Rules Region...............................................................................................................................3-13
Natural Accounts Region................................................................................................................................3-15
Security by Book............................................................................................................................................3-17
Organizations and Security by Book..............................................................................................................3-18
How Security by Book Is Used within Process Flow.....................................................................................3-19
Security by Book Setup Steps.........................................................................................................................3-20
Quiz................................................................................................................................................................3-24
Troubleshooting Security by Book.................................................................................................................3-25
Implementation Considerations for Security by Book...................................................................................3-27
Summary.........................................................................................................................................................3-28
Asset Categories................................................................................................................................................4-1
Asset Categories.............................................................................................................................................4-3
Objectives.......................................................................................................................................................4-4
Agenda............................................................................................................................................................4-5
Asset Categories Positioning..........................................................................................................................4-6
Quiz................................................................................................................................................................4-7
Asset Categories Regions...............................................................................................................................4-8
Asset Categories Setup...................................................................................................................................4-9
Summary.........................................................................................................................................................4-17
Manual Asset Additions...................................................................................................................................5-1
Manual Asset Additions.................................................................................................................................5-3
Objectives.......................................................................................................................................................5-4
Agenda............................................................................................................................................................5-6
Asset Life Cycle.............................................................................................................................................5-7
Adding Assets Manually................................................................................................................................5-8
Quiz................................................................................................................................................................5-10
Asset Additions Required Data......................................................................................................................5-11

QuickAdditions...............................................................................................................................................5-12
Quiz................................................................................................................................................................5-15
Detail Asset Additions....................................................................................................................................5-16
Detail Additions - Asset Details Window......................................................................................................5-18
Quiz................................................................................................................................................................5-20
Detail Additions - Books Window.................................................................................................................5-21
Asset Cost Terminology.................................................................................................................................5-23
Accumulated Depreciation Considerations....................................................................................................5-24
Depreciate Checkbox Actions........................................................................................................................5-26
Detail Additions - Assignments Window.......................................................................................................5-27
Detail Additions - Source Lines Window.......................................................................................................5-28
Manual Asset Additions Journal Entries........................................................................................................5-29
Group Depreciation........................................................................................................................................5-30
Group Depreciation in the Global Market......................................................................................................5-32
Group and Member Asset Rules.....................................................................................................................5-33
Set Up Group Assets.......................................................................................................................................5-35
Assigning Member Assets to Group Assets...................................................................................................5-37
Group Asset Reserve Transfer........................................................................................................................5-39
Quiz................................................................................................................................................................5-40
Energy Assets.................................................................................................................................................5-41
Summary.........................................................................................................................................................5-43
Mass Asset Additions........................................................................................................................................6-1
Mass Asset Additions.....................................................................................................................................6-3
Objectives.......................................................................................................................................................6-4
Agenda............................................................................................................................................................6-6
Mass Asset Additions Process........................................................................................................................6-7
Using the Mass Additions Interface Table.....................................................................................................6-9
Adding Assets from Invoice Distribution Lines.............................................................................................6-10
Quiz................................................................................................................................................................6-11
The Mass Additions Process...........................................................................................................................6-12
Step 1 Mass Additions Create........................................................................................................................6-14
Requirements to Create Mass Addition Lines................................................................................................6-16
Tracking Expensed Items in Oracle Assets....................................................................................................6-18
Other Mass Additions Considerations............................................................................................................6-19
Quiz................................................................................................................................................................6-21
Step 2 Prepare Mass Additions.......................................................................................................................6-22
Required Fields and Mass Additions..............................................................................................................6-23
Automatic Preparation of Mass Additions.....................................................................................................6-24
Automatic Preparation of Mass Additions Process........................................................................................6-25
Mass Addition Queues....................................................................................................................................6-27
Changing Asset Information...........................................................................................................................6-28
Merging Mass Addition Lines........................................................................................................................6-29
Splitting Mass Addition Lines........................................................................................................................6-30
Merging Then Splitting Functionality............................................................................................................6-31
Adding a Mass Addition Line to an Existing Asset.......................................................................................6-32
Accounting for Cost Adjustments Example...................................................................................................6-33
Step 3 Post Mass Additions............................................................................................................................6-34
Effect of Post Mass Additions on Queue Names............................................................................................6-35

iii
Step 4 Delete Mass Additions........................................................................................................................6-36
Purge Mass Additions.....................................................................................................................................6-37
Future Transactions........................................................................................................................................6-38
Quiz................................................................................................................................................................6-41
View Pending Transactions............................................................................................................................6-42
Quiz................................................................................................................................................................6-43
Creating Assets Using Web ADI....................................................................................................................6-44
Web ADI Upload to Oracle Assets.................................................................................................................6-46

Summary.........................................................................................................................................................6-48
CIP Asset Additions..........................................................................................................................................7-1
CIP Asset Additions.......................................................................................................................................7-3
Objectives.......................................................................................................................................................7-4
Agenda............................................................................................................................................................7-5
Adding and Capitalizing a CIP Asset.............................................................................................................7-6
Acquire and Build CIP Assets........................................................................................................................7-7
Automatically Adding CIP Assets to Tax Books..........................................................................................7-8
Quiz................................................................................................................................................................7-10
Modifying the Cost of CIP Assets..................................................................................................................7-11
Recording a CIP Asset Addition....................................................................................................................7-13
Capitalizing a CIP Asset.................................................................................................................................7-14
Quiz................................................................................................................................................................7-15
Reversing a Capitalized Asset........................................................................................................................7-16
Updating Asset Fields When Capitalizing CIP Assets...................................................................................7-17
Updating Transaction Types When Capitalizing CIP Assets.........................................................................7-18
Recording a Capitalization - Adding and Capitalizing in the Same Period...................................................7-19
Recording a Capitalization - Adding and Capitalizing in Different Periods..................................................7-20
CIP Assets and Oracle Projects......................................................................................................................7-22
Tracking Capital Projects in Oracle Projects..................................................................................................7-23
Capital Projects Flow Integration...................................................................................................................7-24
Creating Mass Additions from Oracle Projects..............................................................................................7-25
Integrating Oracle Projects with Oracle Assets..............................................................................................7-27
Summary.........................................................................................................................................................7-29
Asset Adjustments and Maintenance..............................................................................................................8-1
Asset Adjustments and Maintenance..............................................................................................................8-3
Objectives.......................................................................................................................................................8-4
Agenda............................................................................................................................................................8-6
Asset Adjustments..........................................................................................................................................8-7
Quiz................................................................................................................................................................8-8
Asset Adjustment Overview...........................................................................................................................8-9
Single Asset Reclassification..........................................................................................................................8-10
Mass Reclassification.....................................................................................................................................8-11
Quiz................................................................................................................................................................8-12
Inheriting Depreciation Rules.........................................................................................................................8-13
Copying Category Descriptive Flexfield Information...................................................................................8-15
Mass Transactions Process.............................................................................................................................8-16
Recording a Reclassification..........................................................................................................................8-17
Adjusting Units...............................................................................................................................................8-18
Adjusting Financial Information.....................................................................................................................8-19
Choosing to Expense or Amortize Depreciation Adjustments.......................................................................8-20
Amortizing Adjustments Using a Retroactive Start Date...............................................................................8-22
Using Mass Changes.......................................................................................................................................8-23
Single Asset Transfers....................................................................................................................................8-24
Mass Asset Transfers......................................................................................................................................8-26
Asset Revaluation...........................................................................................................................................8-28
Quiz................................................................................................................................................................8-30
Scheduling Asset Maintenance.......................................................................................................................8-31
Performing Physical Inventory.......................................................................................................................8-32
Entering Physical Inventory...........................................................................................................................8-34
Physical Inventory Comparison......................................................................................................................8-35
Physical Inventory Reconciliation..................................................................................................................8-37
Integrating Web ADI with Physical Inventory...............................................................................................8-38
Summary.........................................................................................................................................................8-40
Depreciation......................................................................................................................................................9-1
Depreciation....................................................................................................................................................9-3
Objectives.......................................................................................................................................................9-4
Agenda............................................................................................................................................................9-5
Elements of Depreciation...............................................................................................................................9-6
Depreciation Setup Areas...............................................................................................................................9-8
Basic Depreciation Calculation......................................................................................................................9-9
Depreciation Methods.....................................................................................................................................9-11
Using the Life-Based Method.........................................................................................................................9-12
Life-Based Method Terms..............................................................................................................................9-13
Life-Based Method Example..........................................................................................................................9-14
Using the Flat-Rate Method............................................................................................................................9-15
Flat-Rate Method Example.............................................................................................................................9-17
Using the Units-of-Production Method..........................................................................................................9-19
Quiz................................................................................................................................................................9-20
Units-of-Production Method Example...........................................................................................................9-21
Entering Production Information....................................................................................................................9-22
Units-of-Production Method Production Amount Restrictions......................................................................9-24
Units-of-Production Method Restrictions.......................................................................................................9-25
Units-of-Production Capacity Restrictions.....................................................................................................9-26
Prorate Conventions........................................................................................................................................9-27
Run Depreciation Process...............................................................................................................................9-28
Quiz................................................................................................................................................................9-30
Depreciation Program Processes....................................................................................................................9-31
Projecting Depreciation for an Asset.............................................................................................................9-32
Defining a Projection......................................................................................................................................9-33
Quiz................................................................................................................................................................9-34
Depreciation Forecasts....................................................................................................................................9-35
Using Depreciation Override..........................................................................................................................9-36
Useful Depreciation Reports...........................................................................................................................9-38
Summary.........................................................................................................................................................9-40
Asset Retirements.............................................................................................................................................10-1
Asset Retirements...........................................................................................................................................10-3
Objectives.......................................................................................................................................................10-4
Agenda............................................................................................................................................................10-5
Tracking Asset Retirements............................................................................................................................10-6
Overview of Retiring an Asset.......................................................................................................................10-7
Restrictions on Retirements and Reinstatements............................................................................................10-8
Quiz................................................................................................................................................................10-10
Fully Retiring Assets......................................................................................................................................10-11
Partially Retiring Assets.................................................................................................................................10-12
Mass Asset Retirements..................................................................................................................................10-14
Quiz................................................................................................................................................................10-16
External Retirements......................................................................................................................................10-17
Reinstating Retired Assets..............................................................................................................................10-19
Calculate Gains and Losses Program.............................................................................................................10-20
Retirement Processing Flow...........................................................................................................................10-21
Processing a Pending Retirement and Reinstatement.....................................................................................10-22
Calculating Depreciation for the Period Retired............................................................................................10-23
Recording Retirements and Reinstatements...................................................................................................10-24
Recording Retirements...................................................................................................................................10-25
Recording a Retirement on Multiple Accounts.............................................................................................10-27
Retirement Journal Entries Example..............................................................................................................10-28
Recording Prior Period Reinstatement Entries...............................................................................................10-29
Retirement Reports.........................................................................................................................................10-30
Summary.........................................................................................................................................................10-33
Asset Accounting...............................................................................................................................................11-1
Asset Accounting............................................................................................................................................11-3
Objectives.......................................................................................................................................................11-4
Agenda............................................................................................................................................................11-5
Setting Up Asset Accounting.........................................................................................................................11-6
Assets Journal Entries Flow...........................................................................................................................11-8
Oracle Subledger Accounting.........................................................................................................................11-10
Accounting Event Entities and Classes..........................................................................................................11-11
Create Accounting – Assets Program.............................................................................................................11-13
Journal Entries Created...................................................................................................................................11-14
Quiz................................................................................................................................................................11-16
Reconciling Data in Oracle Assets.................................................................................................................11-17
Generating Reports to Reconcile to the General Ledger................................................................................11-18
Reconciling an Asset Cost Account...............................................................................................................11-19
Reconciling Asset Cost Accounts...................................................................................................................11-20
Reconciling a CIP Cost Account....................................................................................................................11-21
Reconciling a Reserve Account......................................................................................................................11-22
Reconciling Depreciation Expense.................................................................................................................11-24
Reconciling Mass Additions...........................................................................................................................11-25
Quiz................................................................................................................................................................11-27
Summary.........................................................................................................................................................11-28
Asset Inquiry & Reporting..............................................................................................................................12-1
Asset Inquiry & Reporting.............................................................................................................................12-3
Objectives.......................................................................................................................................................12-4
Agenda............................................................................................................................................................12-5
Viewing Asset Information Online.................................................................................................................12-6
Types of Asset Inquiries.................................................................................................................................12-7
Asset Inquiry Options.....................................................................................................................................12-8
iAssets Search for Assets................................................................................................................................12-9
Viewing Financial Information.......................................................................................................................12-11
Viewing Transaction History..........................................................................................................................12-13
Viewing Transaction Accounting...................................................................................................................12-14
Quiz................................................................................................................................................................12-15
Viewing Subledger Accounting Transactions................................................................................................12-16
iAssets.............................................................................................................................................................12-17
iAssets Setup Steps.........................................................................................................................................12-18
Oracle Assets Reporting.................................................................................................................................12-20
Assets Reports Groupings..............................................................................................................................12-22
Variable Format Reports................................................................................................................................12-23
Assets Reports Using XML Publisher............................................................................................................12-24
Summary.........................................................................................................................................................12-25
Tax Accounting.................................................................................................................................................13-1
Tax Accounting..............................................................................................................................................13-3
Objectives.......................................................................................................................................................13-4
Agenda............................................................................................................................................................13-6
Creating a Tax Book.......................................................................................................................................13-7
Asset Books Regions......................................................................................................................................13-8
Prerequisites for Setting Up Tax Book Asset Categories...............................................................................13-10
Quiz................................................................................................................................................................13-11
Entering Information in Tax Books................................................................................................................13-12
Quiz.................................................................................................................................................................13-14
Populating the Tax Book by Initial Mass Copy..............................................................................................13-15
Populating the Tax Book................................................................................................................................13-17
Populating the Tax Book by Periodic Mass Copy.........................................................................................13-18
Updating a Tax Book Manually.....................................................................................................................13-20
Quiz.................................................................................................................................................................13-21
Tax Book Upload Interface............................................................................................................................13-22

Discussing Tax Rules.....................................................................................................................................13-24
Deferred Depreciation....................................................................................................................................13-26
Calculating Deferred Depreciation.................................................................................................................13-27
Adjusting Accumulated Depreciation.............................................................................................................13-28
Adjusting Depreciation Reserve for a Single Asset.......................................................................................13-29
Adjusting Depreciation Reserve for All Assets..............................................................................................13-31
Controlling Mass Depreciation Adjustment...................................................................................................13-32
Calculating Mass Depreciation Adjustment...................................................................................................13-33
Automatically Adding CIP Assets to Tax Books..........................................................................................13-34
General Tax Reports.......................................................................................................................................13-36
Special Tax Reports........................................................................................................................................13-37
Depreciation Adjustment Reports...................................................................................................................13-38
Summary.........................................................................................................................................................13-39
Preface
Profile
Before You Begin This Course
 Basic knowledge of business accounting concepts
 Familiarity with data processing concepts and techniques
Prerequisites
 R12 Navigate Oracle Applications
 R12 eBusiness Suite Essentials for Implementers
How This Course Is Organized
This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations
and written practice sessions reinforce the concepts and skills introduced.

ix
Related Publications
Oracle Publications
Title Part Number
Oracle Assets User Guide E13586-03

Oracle iAssets User Guide E13435-02
Additional Publications
 System release bulletins
 Installation and user’s guides
 Read-me files
 International Oracle User’s Group (IOUG) articles
 Oracle Magazine
Typographic Conventions
Typographic Conventions in Text
Convention Element Example
Bold italic Glossary term (if The algorithm inserts the new key.
there is a glossary)
Caps and Buttons, Click the Executable button.
lowercase check boxes, Select the Can’t Delete Card check box.
triggers, Assign a When-Validate-Item trigger to the ORD block.
windows Open the Master Schedule window.
Courier new, Code output, Code output: debug.set (‘I”, 300);
case sensitive directory names, Directory: bin (DOS), $FMHOME (UNIX)
(default is filenames, Filename: Locate the init.ora file.
lowercase) passwords, Password: User tiger as your password.
pathnames, Pathname: Open c:\my_docs\projects
URLs, URL: Go to http://www.oracle.com
user input,
User input: Enter 300
usernames
Username: Log on as scott
Initial cap Graphics labels Customer address (but Oracle Payables)
(unless the term is a
proper noun)
Italic Emphasized words Do not save changes to the database.
and phrases, For further information, see Oracle7 Server SQL
titles of books and Language Reference Manual.
courses, Enter user_id@us.oracle.com, where user_id is the
variables name of the user.
Quotation Interface elements Select “Include a reusable module component” and click Finish.
marks with long names
that have only This subject is covered in Unit II, Lesson 3, “Working with
initial caps; Objects.”
lesson and chapter
titles in cross-
references
Uppercase SQL column Use the SELECT command to view information stored in the
names, commands, LAST_NAME
functions, schemas, column of the EMP table.
table names
Arrow Menu paths Select File > Save.
Brackets Key names Press [Enter].
Commas Key sequences Press and release keys one at a time:
[Alternate], [F], [D]
Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]
Typographic Conventions in Code
Convention Element Example
Caps and Oracle Forms When-Validate-Item
lowercase triggers
Lowercase Column names, SELECT last_name
FROM s_emp;
table names
Passwords DROP USER scott

IDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER
(OG_GET_LAYER (‘prod_pie_layer’))
Lowercase Syntax variables CREATE ROLE role

italic
Uppercase SQL commands and SELECT userid
functions FROM emp;
Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
This simplified path translates to the following:
1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches
Summary.
2. (M) From the menu, select Query then Find.
3. (B) Click the Approve button.
Notations:
(N) = Navigator
(M) = Menu
(T) = Tab
(B) = Button
(I) = Icon
(H) = Hyperlink
(ST) = Sub Tab

Typographical Conventions in Oracle Application Help System Paths
This course uses a “navigation path” convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.
The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals
—represents the following sequence of actions:
1. In the navigation frame of the help system window, expand the General Ledger entry.
2. Under the General Ledger entry, expand Journals.
3. Under Journals, select Enter Journals.
4. Review the Enter Journals topic that appears in the document frame of the help system
window.
R12.x
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Overview of Oracle Assets
Overview of Oracle Assets

• adjust for a single asset, groups of assets,
• online inquiry
• reports
• journal entirs
• depreciation
• retirments
• taxes
• transfers
Overview of Oracle Asset Management

Chapter 1 - Page 6
E-Business Suite Integration

Implementation Considerations for Oracle Financials
Implementation Considerations for Oracle Financials

Oracle Applications without customization:
• Simplifies future upgrades.

• Saves time and money on upgrades.
• Simplifies patching.
• Reduces integration problems.
• Standardizes training.
Oracle Applications with customizations and Legacy systems:
• Increased costs of upgrades.
• Increased decisions in determining which systems to keep.
• Increased number of interfaces needed.
• Increased data management issues:
- What information is stored in GL or the Legacy system.
- What data to migrate.
- How to migrate data.
The Best Project Team for the Job
The Best Team for the Job

Client experts
End users
Implementation team
Implementation consultants
Oracle Assets Setup Steps
Critical Implementation Issues

 Shared information
 Information Flows
 Open interfaces
 Non-Oracle Systems

Oracle Assets setup requires a series of steps categorized in the following manner:
1) Required Steps
o Ledger
o Asst key flexifeild
o Ocation flexfield
o System controls
o Fiscal years
o Calendars
o Book controls
2)Required Steps With Defaults
 Acc generator
 Quick codes
 Depreciation methods
2) Optional Steps
 Units of measure classes
 Unit of measure
 Employees
 Descriptive ff
 Numbering supplies
Oracle Assets Key Flexfields

 The Asset Category Flexfield
 The Location Flexfield

 The Asset Key Flexfield
Implementing Oracle Assets

• Planning the Implementation
• Setting Up Oracle Assets

• Converting Existing Asset Information
• Reconciling with the Previous System
Asset Categories Positioning
Asset Books Positioning

• Define asset books to store financial information for a group of assets.
• There are 3 types of asset books:

- Corporate—A book that you use to track financial information for your balance
sheet.
- Tax—A book that you use to track financial information for your tax reporting
authorities.
- Budget—A book that you use to track planned capital expenditures.
• Asset Calendars are assigned to asset books for purposes of calculating and allocating
depreciation expense.
• Asset Categories are assigned for use with asset books. All assets are assigned to an asset
category which designates accounting information and default depreciation rules for the
assets. Depreciation methods are assigned to asset categories.
Asset Life Cycle
Asset Life Cycle
1)manual additions
2)books of asset
3)asset depreciates
4)asset retired
5)Fa mass additions
 Payables
 Oracle projets
 Other legacy system
 Web ADI
Adding Assets Manually

 Using Quick Additions
 Using Detail Additions
 Assets that require more information
 Oracle assets
Mass Asset Additions Process
•
 Oracle Payables
 Oracle projets
 Other /
 Web ADI
 Asset books
 legacy system
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Chapter 1 - Page 21

Chapter 1 - Page 22
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Adding and Capitalizing a CIP Asset
 Add a cip asset

 Build a cip asst
 Captalize a cip asset
 Depreciate the asset

Chapter 1 - Page 24
Acquire and Build CIP Assets

Create CIP assets using mass additions or manual additions. Oracle Assets identifies invoices
with distributions to CIP clearing accounts in Oracle Payables, and creates mass additions from
them. You can create new CIP assets from your mass additions, or add them to existing assets.
You can also add non–invoiced expenses, such as labor cost, to your CIP assets. You can
perform transfers or adjustments on your CIP assets if necessary.
• Initially, CIP assets have zero costs. They act as shells for the costs that make up the
assets.
• Adding source lines to the new CIP assets will increase the costs.
• Since CIP assets are not ready for use, they are non-depreciable assets.
• For costs that originate in Oracle Payables, you can send CIP costs to Oracle Projects,
and then send capitalized costs to Oracle Assets.
• Consider using the asset key flexfield to group CIP assets from the same project if you
are not using Oracle Projects.
• You cannot add production amounts to a CIP asset.
Asset Adjustments
Asset Adjustments
You adjust an asset by reclassifying, changing the number of units, adjusting the financial
information, or performing a mass change. These adjustments are automatically reflected in the
reporting currencies asset books. All cost adjustments use the daily exchange rate based on the
transaction date entered during adjustment. Oracle Assets calculates new weighted average rate
for the asset.
You can also submit transactions directly thru PL/SQL using convenient Transaction API's
(Application Program Interface) . Instead of navigating thru the regular application, you can
bypass the forms to directly submit various financial transactions against your assets.
Asset Adjustment Overview
Asset Adjustment Overview

 Reclassifying an Asset
 Adjusting Asset Units

 Adjusting Financial Information
 Transferring
Elements of Depreciation
 Asset books
 Prorate convention
 Prorate calendar
 Deprecation calendar
 Units of measures
 Price indexes
 Investing tax credits
 Depreciation ceillings
 Depreciation method

Chapter 1 - Page 30
Tracking Asset Retirements
Tracking Asset Retirements

• You retire an asset fully or partially when it is lost, stolen, damaged, sold, returned, or for
any other reason that causes you to stop using it.
• You retire assets by units or cost.
• You perform a mass retirement by retiring a group of assets.
• You can synchronize asset disposal information between Oracle Assets and external
systems via the Mass External Retirements interface.
• You can reinstate retired assets within certain limits.
• You perform current and prior period retirements and reinstatements within the same
fiscal year.
• You create journal entries to separate accounts for each component of the gain or loss.
Assets Journal Entries Flow
Assets Journal Entries Flow

(N) Create Accounting
Oracle Assets creates journal entries for depreciation expense, asset cost, and other accounts.
Oracle Assets automatically creates transaction journal entries for your general ledger when
you run the Create Accounting program.
Oracle Assets creates journal entries that summarize the activity for each account for each
transaction type.
• The general ledger period for which you want to create journal entries must be open or
future entry.
• The period name used in the depreciation calendar assigned to the asset book must be the
same as the period name in the general ledger calendar for the ledger you want to send
the journal entries to.
• Oracle Assets allows you to run the Create Accounting program multiple times before
closing the depreciation period.
- You can post journal entries to Oracle General Ledger for all transactions that have
occurred thus far in an open depreciation period.
Default Account Generator Process for Oracle Assets
Default Account Generator Process for Oracle Assets

By default, Oracle Assets creates journal entries without cost center level detail, except for
depreciation expense. Using the default process, it creates journal entries using the balancing
segment from the distribution line in the Assignments window and the account segment from
the asset category or book, depending on the account type. The Account Generator gets the
other segments from the default segment values you entered for the asset book. You can
modify the default Account Generator process so that Oracle Assets creates journal entries to a
different detail level.
For example, when creating journal entries for asset cost, you can specify that the cost center
segment comes from the depreciation expense account of the distribution line you entered for
the asset in the Assignments window. Or, you can specify that the cost center comes from the
default value you defined in the asset book.
Note: The default process is different for the depreciation expense account. Using the default
process, Oracle Assets creates full detail journal entries for depreciation expense. Oracle
Assets creates journal entries for depreciation expense using all the segments from the
distribution line you enter for the asset in the Assignments window.
Reconciling Data in Oracle Assets
Reconciling Assets Data

• To confirm data in reports, reconcile Oracle Assets to Oracle Payables and Oracle
Projects, and to non-Oracle feeder systems.
• You use reports to reconcile journal entries that are sent to Oracle General Ledger.
Viewing Asset Information Online
Viewing Asset Information Online

You can view and query assets online to verify or research asset information:
• Perform online inquiries to view the financial information about an asset
• Query all assets assigned to a general ledger account by asset detail, assignment, source
lines, and lease
• Query all assets assigned to a depreciation account
• View the transaction, depreciation, and cost history of an asset
• View transactions for any depreciation book and accounting period
• View accounting lines for transactions
Report manager
Standard reports
Variable format report
Oracle Assets Reporting
Oracle Assets Reporting
Assets Reports Groupings
Assets Reports Groupings

See the Release 12.1 Oracle Assets User Guide for detail information on all available reports.
Creating a Tax Book
Creating a Tax Book

• You create tax books before you add and depreciate assets.
• You set up a new tax books to comply to tax laws and to take advantage of optimal tax
strategies.
• You set up multiple tax books that are associated for each corporate book.
• You define independent tax depreciation books for each reporting authority.
• You create a separate federal tax book and state tax book.
• You copy assets into each book and depreciate these according to each book's
depreciation rules.
- Several authorities may be able to use the same book. For example, some states use
information from the United States Federal tax book instead of requiring a separate
book.
Entering Information in Tax Books
Entering Information in Tax Books

You can copy your assets and transactions from your corporate book to your tax books
automatically using Mass Copy.
• You can create as many tax books as you need, maintain your asset information in your
corporate book, and then update your tax books with assets and transactions from your
corporate book.
• You must allow Mass Copy and choose whether to copy additions, cost adjustments,
retirements, and salvage value for your tax book in the Book Controls window before you
can run mass copy.
• You also specify which corporate book mass copy uses as the source.
• You cannot copy assets from one corporate book into another corporate book.
• If you choose to copy adjustments, Oracle Assets copies cost adjustments from the
associated corporate book if the unrevalued cost in the corporate book before the
adjustment matches the unrevalued cost in the tax book. It copies both adjustments that
are ADJUSTMENT type in the tax book and adjustment transactions that create a new
ADDITION type and update the ADDITION/VOID in the tax book.
• Use Initial Mass Copy to initially populate your tax book by adding existing assets to a
tax book.
• Use Periodic Mass Copy each period to keep your tax book up to date with your
corporate book.
You can also enter assets and transactions into the tax book manually.
Transaction APIs
Transaction APIs
• Additions: Used to add assets.
• Adjustments: Make cost adjustments to your assets.
• Retirements and Reinstatements—Perform asset retirements and reinstatements.
- You can use the Retirement Requests feature to identify and submit requests for
asset retirements. These requests are received and reviewed by those responsible for
asset retirements in Oracle Assets, who then edit the requests and complete the
retirement process.
- The retirement request captures all of the information about the asset that is
available in the field, such as asset category, location, date placed in service,
quantity retired, serial number, manufacturer, model number, tag number, and
more. Information captured about the retirement transaction also includes project,
task, and any removal cost or sales proceeds. The person responsible for asset
retirements in Oracle Assets, the fixed asset accountant, reviews the request, makes
any necessary additions or corrections, and completes processing of the retirement
request.

Chapter 1 - Page 45
- An inbound API enables retirement information from external asset tracking
systems to be interfaced directly into Oracle Assets as retirement requests. Since the
imported retirement requests may result in high volumes of required processing
each period, you have the option of batch processing all imported retirement
requests. Using batch processing can eliminate the need for manual intervention and
review of individual requests.
• Transfer and Unit Adjustments: Used for asset transfers and unit adjustments.
• Reclassifications: Perform asset reclassifications.
• Capitalizations: Capitalize your assets.
• Unplanned Depreciation: Enter unplanned depreciation.
• Asset Description: Update asset details.

Chapter 1 - Page 46
Business Events
Business Events
Business Events is a feature in Oracle Workflow that provides subscription-based & cross-
system processing for streamlined cross-product integration. It offers application service that
leverages the Oracle Advanced Queuing (AQ) infrastructure. It simplifies implementation and
maintenance of custom programs by eliminating the needs for trigger-based solutions.
Oracle Assets Business Events include Addition, Transfer and Retirement. You can choose the
actions to be performed after these Business Events by specifying them in the Event
Subscription. Examples of such actions are:
• Passing information back to the system that originates the transaction.
• Generating exception reports for trouble-shooting.
• Sending notifications to users.
Asset Business Event Triggers
The Asset Business events triggers are:

• Asset Addition:
• Asset Transfer:
• Asset Retirement:
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Oracle Assets setup requires a series of steps categorized in the following manner:
Required Steps
Must be completed in order to run the application. No pre-seeded defaults are provided.
Required Steps With Defaults
Setup functionality that comes with pre-seeded, default values in the database. You should
however, review these defaults and decide whether to change them to suit your business needs.
If you want or need to change them, you should perform that setup step.
Optional Steps
You need to perform Optional steps only if you plan to use the related feature or complete
certain business functions.
Asset Controls Setup

Chapter 2 - Page 7
Setup Steps Flow
Setup Steps Flow

Before you set up Oracle Assets, set up an Oracle Applications System Administrator
responsibility.
You can set up Oracle Assets in many different ways and defer optional setup steps until you
are ready to use the corresponding functionality.
Legend
Required Step = Rectangle with solid line
Required Step with Defaults = Rectangle with dashed lines
Optional Steps = Oval
Step 1 Define Ledger (Required)
(N) Setup> Financials >Accounting Setup Manager > Accounting Setups
You need to define at least one ledger before you can implement and use Oracle Assets.
An Oracle Ledger consists of a chart of accounts, calendar, functional currency, and a

subledger accounting method. Appropriate values must be in place for the chart of accounts
before the Ledger can be used. If you previously defined your ledger while setting up a
different Oracle Financials' product, proceed to the next step. You need to perform this step
only once per installation.
Step 2 Define Unit of Measure Classes (Optional)

(N) Setup > Financials > Units of Measure > Classes

If you do not install Oracle Inventory or Oracle Purchasing, use the Unit of Measure Classes
window in Oracle Assets to define your unit of measure classes. You can define classes for the
units you use to measure capacity and production for those assets that should be depreciated
using the units of production method. The profile option HR: User Type and Inventory
Organizations must be defined first before you can setup Units of Measure.
Step 3 Define Units of Measure (Optional)
(N) Setup > Financials > Units of Measure > Units of Measure
If you do not install Oracle Inventory or Oracle Purchasing, use the Units of Measure window
in Oracle Assets to define your units of measure. You can define classes for the units you use
to measure capacity and production for those assets that should be depreciated using the units
of production method. The profile option HR: User Type and Inventory Organizations must be
defined first before you can setup Units of Measure.
Step 4 Define Employees (Optional)
(N) Setup > Financials > Employees
If you do not install Oracle Personnel, Oracle Payroll, Oracle Purchasing, or Oracle Payables,
use the Enter Person window in Oracle Assets to define employees. You must enter an
employee before you can assign an asset to the employee.
Step 5 Define Descriptive Flexfields (Optional)
(N) Setup > Financials > Flexfields > Descriptive > Segments
You can set up descriptive flexfields to track additional information. For example, you might
want to track the license number for cars, but the square footage for buildings. Then, when you
assign a new asset to a category, you can enter the additional information.
Step 6 Decide How to Use the Account Generator (Required with defaults)
Use Oracle Workflow Builder if modification required.
Oracle Assets uses the Account Generator to generate accounting flexfield combinations for
journal entries. You must review the default process that Oracle Assets uses to see if it meets
your accounting requirements. You can optionally customize the Account Generator for each
ledger that you have defined. Note that you must set up Oracle Workflow in order to use the
Account Generator.
Step 7 Define Additional Journal Entry Sources (Required with defaults)
(N) Setup > Financials > General Ledger > Journal Sources
If you do not install Oracle General Ledger, use the Journal Entry Sources window in Oracle
Assets to define additional journal entry sources. Journal entry sources are used to identify the
origin of your journal entry transactions.
Step 8 Define Additional Journal Entry Categories (Required with defaults)
(N) Setup > Financials > General Ledger > Journal Categories
If you do not install Oracle General Ledger, use the Journal Entry Categories window in Oracle
Assets to define additional journal entry categories. Journal entry categories describe the
purpose or type of your journal entries.
Step 9 Define Supplier and Employee Numbering Schemes (Optional)
(N) Setup > Financials > General Ledger > Financial System Options
If you do not install Oracle Purchasing or Oracle Payables, use the Financials Options window
in Oracle Assets to define your supplier and employee numbering schemes. You need to
specify how to number your suppliers and employees before you can enter suppliers or
employees.
Step 10 Define Suppliers (Optional)
(N) Setup > Financials > Suppliers
If you do not install Oracle Purchasing or Oracle Payables, use the Suppliers window in Oracle
Assets to define your suppliers. You must define suppliers before you can bring over mass
additions purchased from that supplier or optionally enter supplier information for manual
asset additions. Oracle Assets only uses the supplier name, number, and inactive date.
Step 11 Define the Asset Key Flexfield (Required)
(N) Setup > Financials > Flexfields > Key > Segments
The asset key flexfield allows you to define asset keys that let you name and group your assets
so you do not need an asset number to find them. The asset key is similar to the asset category
in that it allows you to group assets. However, the asset key has no financial impact.
Step 12 Define the Asset Category Flexfield (Required)
The asset category flexfield allows you to define asset categories and subcategories. For
example, you can create an asset category for your computer equipment. You can then create
subcategories for personal computers, terminals, printers, and software.

Chapter 2 - Page 10
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Setup Steps Flow
Setup Steps Flow

Step 13 Define the Location Flexfield (Required)
The location flexfield allows you to specify and track the exact location of your assets.
Step 14 Define System Controls (Required)
(N) Setup > Asset System > System Controls
Set up your system controls. You specify your enterprise name, asset numbering scheme, and
key flexfield structures in the System Controls window. You also specify the oldest date placed
in service of your assets.
Step 15 Define Location Combinations (Optional)
(N) Setup > Asset System > Locations
Define valid locations. Your location flexfield combinations tell Oracle Assets what locations
are valid for your company. Oracle Assets uses location for tracking assets and for property tax
reporting. If your location flexfield has dynamic insertion turned off, this is the only place you
can define valid combinations.
Step 16 Define Asset Key Combinations (Optional)

Chapter 2 - Page 12
(N) Setup > Asset System > Asset Keys
Define valid asset keys. You can use the list of values to choose these combinations for your
assets when you enter them. If dynamic insertion is turned off for this key flexfield, use the
Define Asset Key form to enter new combinations.
Step 17 Define QuickCode Values (Required with defaults)
(N) Setup > Asset System > QuickCodes

QuickCode values are values that you can choose from a list of values when you enter and
maintain assets. Items includes asset descriptions, queue names, retirement types, and others.
Step 18 Define Fiscal Years (Required)
(N) Setup > Asset System > Fiscal Years
Use the Fiscal Years window to define the beginning and end of each fiscal year since the start
of your company. Your fiscal year groups your accounting periods. Create fiscal years from the
oldest date placed in service through one fiscal year beyond the current fiscal year.
Step 19 Define Calendars (Required)
(N) Setup > Asset System > Calendars
Set up as many depreciation and prorate calendars as you need. Calendars break down your
fiscal year into accounting periods. Define your calendars with as many periods as you need.
Step 20 Setup Security by Book (Optional)
(N) Setup > Security > Security
If you have multiple depreciation books, you may need to set up security for each book. Oracle
Assets allows you to limit access to each book so that only certain individuals can view the
information. If you skip this step, all asset depreciation books will be accessible to all users.
Step 21 Define Book Controls (Required)
(N) Setup > Asset System > Book Controls
You can set up an unlimited number of independent depreciation books. Each book has its own
set of accounting rules and accounts so you can organize and implement your fixed assets
accounting policies. When you define a tax or budget book, you must specify an associated
corporate book.
Step 22 Define Additional depreciation Methods and rates (Required with defaults)
(N) Setup > Depreciation > Methods
Depreciation methods specify how to spread the asset cost. Oracle Assets includes many
standard depreciation methods, and you can define additional methods if necessary.
Step 23 Define Depreciation Ceilings (Optional)
(N) Setup > Depreciation > Ceilings
Depreciation ceilings limit the depreciation expense you can take for an asset. Set up
depreciation expense ceilings to limit the annual amount of depreciation expense you can take
on an asset. Or set up depreciation cost ceilings to limit the recoverable cost of an asset.
Step 24 Define Investment Tax Credits (Optional)
(N) Setup > Depreciation > ITC Rates
Set up your Investment Tax Credit (ITC) rates, recapture rates, and ceilings. Investment tax
credits (ITC) allow you to reduce the recoverable cost of an asset.

Chapter 2 - Page 13
Setup Steps Flow
Setup Steps Flow

Step 25 Define Prorate and Retirement Conventions (Required)
(N) Setup > Asset System > Prorate Conventions
Prorate and retirement conventions determine how much depreciation expense to take in the
first and last year of life, based on when you place the asset in service. Oracle Assets lets you
set up as many prorate and retirement conventions as you need.
Step 26 Define Price Indexes (Optional)
(N) Setup > Asset System > Price Indexes
A price index lets you calculate gains and losses for retirements using current value rather than
historical cost. If you do business in a country that requires you to base gains and losses on
current value rather than historical cost, Oracle Assets lets you set up price indexes to calculate
the gains and losses for your asset upon retirement.
Step 27 Define Asset Category Combinations (Required)
(N) Setup > Asset System > Asset Categories

Chapter 2 - Page 14
Asset categories let you define information that is common to all assets in a category, such as
depreciation method and prorate convention. Oracle Assets uses this information to provide
default values to help speed asset entry.
Step 28 Define Distribution Sets (Optional)
(N) Setup > Asset System > Distribution Sets
Distribution sets let you automatically assign distributions to a new asset or mass addition
quickly and accurately by using a predefined distribution set.
Step 29 Enter Leases (Optional)
(N) Setup > Asset System > Leases > Lease Details
You can define asset leases and in turn assign assets to these defined leases for tracking
purposes. You can also test your leases in accordance with generally accepted accounting
principles to determine if they must be capitalized (United States GAAP accounting)
Step 30 Define Warranties (Optional)
(N) Setup > Asset System > Warranties
Define and track descriptive information on manufacturer and vendor warranties.
Step 31 Set Profile Options (Optional)
From System Administrator Responsibility:
Profile > System
Profile options specify how Oracle Assets controls access to and processes data.
Step 32 Define Asset Insurance (Optional)
(N) Assets > Insurance > Insurance Policy Details
You can define insurance information for your assets, such as insurance policy information and
calculation methods. You can enter multiple insurance policies for an asset for different
categories of insurance. Oracle Assets uses the insurance information that you enter here to
calculate the current insurance value of the asset.

Chapter 2 - Page 15

The Asset Category Flexfield
The asset category flexfield groups assets by financial information.
The Location Flexfield
The location flexfield groups and tracks assets by physical location.
The Asset Key Flexfield
The asset key flexfield identifies groups of assets by non financial information.
Setting Up Key Flexfields
Setting Up Key Flexfields

Create A Value Set For Each Segment
• Create a value set for each segment using the Value Set windows.
Enable Each Segment For Your Flexfield
• Define new segments using the Define Key Segments form.
Define Values For Each Segment
• Create a list of valid values for each segment using the Segment Values Window. Since
Oracle Assets only displays a limited number of characters for flexfields on forms and
reports, you may want to keep the values short.
It is very important to note that Oracle Assets allows only one structure for each key flexfield
defined per application install. In other words, the segment structure you define for each key
flexfield will apply to all users and locations of that Oracle Assets installation.
Asset Category Key Flexfield
Asset Category Key Flexfield

• Design the category flexfield by grouping assets according to depreciation rules.
• Define one major category segment for capital budgeting and up to six subcategory
segments.
• Organize category hierarchies so that valid subcategory values depend on a major
category value.
• Do not use dynamic insertion for this key flexfield as new combinations require default
depreciation rules be setup in the Asset Categories form.
• Plan each flexfield structure carefully; you cannot change it after entering data.
• Most sites limit the number of segments to three or less to avoid the truncation of the
concatenated flexfield on forms and reports.
• Use the Asset Categories window to assign the category to an asset book before entering
assets in that category and book.
• Enter the default rules for each category flexfield combination for each book.
Location Key Flexfield
Location Key Flexfield

• You can report on your assets by location and also transfer assets that share location
information as a group.
• If you do business internationally (or plan to do so in the future), you may want to track
the country an asset is in. Other segments you may want include are state, city, and site.
If you track asset location to more detail, such as for bar-coding, you can also add
segments for building and room number.
• You must define a state segment and you can also define up to six other location
segments. The State segment is used as the primary sort segment for Property Tax
Reporting. In order to change the sorting of the Property Tax Report, you must reassign
the State segment qualifier to another segment. However, if you run the Property Tax
Report using the Request Center feature of the Applications Desktop Integrator, you
could send the report to an Excel spreadsheet and perform your needed sorting there.
• You may find it productive to use shorthand aliases to tie location codes to the location
flexfield combinations.
Asset Key Key Flexfield
Asset Key Key Flexfield

• Although you must setup the Asset Key key flexfield, it is not a required field of entry in
order to add an asset. Therefore, if you do not want to use the asset key flexfield, define a
one-segment asset key flexfield without validation and not required. When you move to
the asset key flexfield, the flexfield window does not open, and you can pass the field
without entering a value.
• You can assign the same asset key to various assets to easily identify similar assets. For
example, you can use the asset key to group assets by project number or capital
appropriations request number. A natural gas company used the Asset Key key flexfield
to group assets located above versus below ground level.
• All Oracle Assets transaction forms allow you to query using the asset key, and help you
find your assets without an asset number.
Creating Key Flexfield Combinations
Creating Key Flexfield Combinations

If dynamic insertion is turned off for a key flexfield structure, you must manually create new
flexfield combinations.
For Location key flexfield combinations follow this menu path:
• (N) Setup > Asset System > Locations
For Asset Key key flexfield combinations follow this menu path:
• (N) Setup > Asset System > Asset Keys
Be sure to check the Enabled box when defining new key flexfield combinations.
Specifying System Controls
Specifying System Controls

(N) Setup > Asset System > System Controls
Enterprise Name
• The Enterprise Name you define here will be the heading used on all Oracle 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. If you change this field, you do not affect the
assets already in the system. However, you cannot place new assets in service before the
new date.
• You can only update the Oldest Date Placed in Service before you assign any calendars
to depreciation books.
Flexfield Structures
• Note that you can designate only one structure for each key flexfield and once saved you
cannot update these fields.
Automatic Asset Numbering
• The Oracle Assets application reserves all asset numbers above the number you place in
the Starting Asset Number field for automatic numbering. If you are converting from
another system, 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.
• Note that asset numbers with a letter in them are not reserved for automatic asset
numbering, since the automatic numbers are a numerical sequence. You could assign a
letter prefix to legacy asset numbers to keep them out of the automatic asset numbering
range while maintaining a reference to the prior asset number.
• Oracle Assets does not support asset numbers that exceed 2,000,000,000
Set up system controls only once per installation.
In the System Controls form, note the following:
• All fields except the Enterprise Name field are not updatable. If this was a new
installation, all fields would allow entry but only the Enterprise Name and Oldest Date
Placed in Service would allow update after the record was saved. The Oldest Date Placed
in Service can be updated only until any calendar is assigned to any asset book.
• Last number used is updated each time a new asset number is assigned by the system.
QuickCodes
QuickCodes
• A QuickCode is an Oracle Assets feature that enters standard asset information for the
business. QuickCodes are mostly accessed through form fields with a List of Values.
• Note that some QuickCodes are used to report on certain groups of assets. For example,
you can report on all retirements with a particular retirement type for the Form 4684:
Casualties and Thefts Report.
List of available QuickCodes:

ASSET KEY HIERARCHY MAPPING
ASSET KEY HIERARCHY SOURCE
ASSET KEY PROJECT MAPPING
ASSET STATUS
CATEGORY MAPPING FOR CHART OF ACCOUNTS
GROUP ASSET DEFINITION SEGMENT IN ASSET CATEGORY
LOCATION MAPPING IN CLEARING ACCOUNT
LOCATION SEGMENT1 MAPPING TO CLEARING ACCOUNT

Chapter 2 - Page 24

RETIREMENT TYPE FOR WRITE OFF
SECURED PROGRAM
SOURE LINE TYPE
VALUE FOR GROUP ASSET IN ASSET CATEGORY
VALUE FOR GROUP ASSET IN ASSET KEY PROJECT SEGMENT

Chapter 2 - Page 25
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Available QuickCodes
QuickCodes
List of available quickcodesL

ASSET STATUS

Chapter 2 - Page 27
SECURED PROGRAM
SOURCE LINE TYPE


Chapter 2 - Page 28
QuickCodes

ASSET STATUS

Chapter 2 - Page 29
SECURED PROGRAM
SOURCE LINE TYPE


Chapter 2 - Page 30
QuickCodes

ASSET STATUS

Chapter 2 - Page 31
SECURED PROGRAM
SOURCE LINE TYPE


Chapter 2 - Page 32
QuickCodes

ASSET STATUS

Chapter 2 - Page 33
SECURED PROGRAM
SOURCE LINE TYPE


Chapter 2 - Page 34
Defining Fiscal Years and Calendars
Defining Fiscal Years & Calendars

You must first define fiscal years then asset calendars based on those fiscal years.

Chapter 2 - Page 35
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Setting Up Asset Calendars
Setting Up Asset Calendars

(N) Setup > Asset System > Calendars
• Each asset book requires a depreciation calendar and a prorate calendar. Set up as many
calendars as needed under the same fiscal year name.
• The date placed in service and prorate convention determine the prorate date that
associates with a period in the prorate calendar. This period specifies the annual
depreciation rate.
• Set up all calendar periods initially from the period corresponding to the oldest date
placed in service to the current period.
• Set up at least one period after the current period.
• At the end of each fiscal year, Oracle Assets automatically sets up the periods for the next
fiscal year.
• You can define your calendar however you want. For 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.

Chapter 2 - Page 37
Sharing Calendars
Sharing Calendars
Corporate Calendars
Corporate books can share the same calendar as its depreciation calendar and prorate calendar.
Corporate calendars use the same fiscal year name.
Tax Book Calendars
Tax books can have a different calendar from their associated corporate book.
Both the corporate and tax calendars must use the same fiscal year name.
General Ledger Calendars
Oracle Assets calendars are additional to and different from the general ledger calendar. To
create journal entries from an asset book, the period names for the depreciation calendar should
match those in the general ledger calendar.
The depreciation calendar period names should be identical to the general ledger calendar
period names for proper transfer of journal entries. The comparison is case-sensitive.
Since only the period names should match, you need not create an adjusting general ledger
period in Oracle Assets.
Defining Price Indexes
Defining Price Indexes

• You must set up your price indexes before you can assign them to an asset category and
book in the Asset Categories window. You can use one price index for several asset
categories in the same or different books. Or you can have a different price index for each
asset category in each depreciation book.
• The Revalued Asset Retirement Report uses your price indexes to determine the revalued
asset cost. It then uses this cost to calculate gains and losses for your retired assets. You
can review all of the price indexes you defined by running the Price Index Listing.
• If you want to actually revalue the cost of your assets in your books, you must revalue the
asset or category.
How to define Price Indexes
(N) Setup > Asset System > Price Indexes
1. Open the Price Indexes window.
2. Enter the name of the Index you want to define.
- Suggestion: The name you enter appears in list of values windows which allow no
more than 16 spaces. You may want to limit your name to 16 characters.
3. Enter the index value as a percentage.
4. Enter the dates that this index value is effective. If you leave the To Date blank, the index
is effective indefinitely.
5. (I) Save
Profile Options
Profile Options
System Administrator Responsibility
Profile > System
During your implementation, you set a value for each profile option in Oracle Assets to specify
how Oracle Assets controls access to and processes data.
Profile Options
Account Generator: Purge Runtime Data
Always set this profile option to Yes to ensure that Oracle Workflow has finished generating
accounting flexfield code combinations.
Temporarily set this option to No at the user level if you are debugging the account generator.
Running the account generator with this option set to No fills up the workflow tables and slows
performance.
FA: Allow Swiss Special Assets
Controls whether you can use the Swiss insurance calculation method.
If this profile option is set, when you add insurance details on the Fixed Asset Insurance
window, you can check the Special Swiss Assets check box, which signifies that this asset will
use the Swiss insurance calculation method.
FA: Archive Table Sizing Factor
This profile option controls the space allotted for the temporary tables created when you
archive and purge a book.
The sizing factor specifies how many storage kilobytes to reserve for the initial extent. The
default value is 100 kilobytes.
Update this option if you are archiving a large number of records for a fiscal year.
FA: Cache Sizing Factor
This profile option controls the database information retained in the concurrent program for
performance improvement. The range is 0 to 25.

FA: Deprn Single
Controls the caching buffer used when you run depreciation. You can set the buffer to either
No (20) or Yes (1).
If you set FA: Deprn Single to No, the cache is reset after every 20 assets. If you set FA: Deprn
Single to Yes, the cache is reset after every asset.
FA: Generate Expense Account
Allows you to generate the depreciation expense account based on Workflow rules.
When you set this profile option to Yes, Generate Accounts reads the profile option and
generates the expense account using Workflow rules. If you do not set this profile option or
you set it to No, Generate Accounts uses the expense account entered for an asset in the
Assignments window.

Chapter 2 - Page 43
Profile Options
Profile Options
FA: Large Rollback Segment Name
This profile option indicates the rollback segment name that Oracle Assets uses for programs
requiring large rollback space.
If you do not specify a large rollback segment, Oracle Assets uses the first available rollback
segment.
FA: Number Mass Addition Parallel Requests
• Controls the number of requests the Mass Additions Post program will run in parallel.
When you run the program, Oracle Assets spawns a parent process with several child
processes.
• Enter a number between 1 and 20 to specify the maximum number of parallel requests
you want to allow. The parent process is not included in this number.
FA: Number of Parallel Requests
• This profile option controls the number of requests that Oracle Assets programs can run
in parallel.

Chapter 2 - Page 44
• Enter a number between 1 and 20 to specify the maximum number of parallel requests
that you want to allow.
FA: Print Debug
This option indicates whether debug tracing messages are printed in concurrent program log
files. Support uses these messages to identify a problem with the code.
FA: Print Timing Diagnostics

This option indicates whether timing diagnostic messages are printed in concurrent program
log files. Support. uses these messages to identify a problem with the code.

Chapter 2 - Page 45
Profile Options
Profile Options
FA: Security Profile
Restricts access to the organizations defined in the security profile. This option is seeded at the
site level with the view–all security profile created for the Startup Business Group.
FA: Default DPIS to Invoice Date
Enables you to use the Future Transactions feature by allowing the default date–placed–in–
service to be the invoice date, even when the invoice date is in a future accounting period. If
you set this profile option to Yes, Oracle Assets defaults the date–placed–in–service to the
invoice date for future transactions. If you set this profile option to No, Oracle Assets does not
default the date–placed–in–service to the invoice dates, and you cannot use the Future
Transactions feature.
FA: Mass Copy All Cost Adjustments
Allows the Mass Copy program to copy all cost adjustments, even when the un-revalued cost is
different in the corporate book and the associated tax books.
Asset Insurance
Asset Insurance
Calculation Methods
Oracle Assets uses three methods to calculate the insurance value of an asset:
• Value as New – This method calculates the base insurance value of the asset, based on
acquisition/production costs. This value can be indexed annually to give a current
insurance value. It can also incorporate the indexed value of transactions that affect the
asset value.
• Market Value – This method calculates the current market value of the asset. Oracle
Assets automatically calculates the current value from the net book value of the asset,
incorporating indexation factors and the indexed value of any transactions that affect the
asset value.
• Manual Value – This method allows you to manually enter an insurance value for an
asset, usually in agreement with the insurer. With this calculation method you can also
manually enter updates to the asset insurance value. Oracle Assets only updates the
current insurance value automatically if you enter an optional maintenance date for the
asset.
If an asset is partially retired, the insurance calculation process reduces the insurance value of
the asset in the same proportion as the current cost is reduced for the partial retirement.
For certain types of assets, such as buildings, the Swiss business practice is that the insurance
value may occasionally be reassessed by the insurance company, and manually redefined.
Indexation of the insurance value can then recommence from this point. The manual update of
an automatically calculated insurance value will only be allowed for these special Swiss assets,
which must be flagged in the Asset Insurance window.

Reports
Oracle Assets provides two reports for reviewing asset insurance information.
• The Asset Insurance Data report lists all insurance policy data for an asset.
• The Asset Insurance Value report lists insurance values, current insurance amounts, and a
calculation of the insurance coverage.
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• Planning the Implementation
• Setting Up Oracle Assets
• Converting Existing Asset Information
• Reconciling with the Previous System

Chapter 2 - Page 50
Planning Implementation
Planning Implementation
Inquiring About Company History
• Determine what accounting changes have occurred in the company 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 for 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 existing asset information, decide how to bring the information into Oracle
Assets. Consider the transfer 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 authority to access the information.
• Decide how to import the information into Oracle Assets by using the Mass Additions
interface table FA_MASS_ADDITIONS. Consider using the Assets features of the

Oracle Web Applications Desktop Integrator (Web ADI).
• Also determine how to verify and reconcile the information.
Determining the Conversion Period
• 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 Assets until year-end for reconciliation, if feasible.
Decide on Oracle Assets Setups
Decide on key Oracle Assets setups such as:
• Key Flexfield Structures (discussed in more detail following)
• Asset Books
• Asset Categories
• System Controls
• Fiscal Years and Calendars
Key Flexfields Planning Considerations
Key Flexfield Planning Considerations

Planning the Accounting Key Flexfield
The Accounting Flexfield structure is shared by many products and is usually set up in Oracle
General Ledger.
Planning the Key Flexfields in Oracle Assets
When your organization initially installs Oracle Assets, you customize the key flexfields to
incorporate code segments that are meaningful to the business.
• Oracle Assets has three required key flexfields: Category, Location, and Asset Key
flexfields
• You decide what each segment means, what values each segment has, and what the
segment values represent.
• You also define rules to specify which segment values are combined to make a valid,
complete code (also called a combination).
• Be sure to obtain company information to properly set up these flexfields
Planning the Category Flexfield
• Review how the company is currently grouping its assets.

Chapter 2 - Page 53
• Use the chart of accounts to determine what asset cost and accumulated depreciation
accounts are set up.
- There is only one asset cost and one accumulated depreciation account segment
value for each category in each book.
- Compare the depreciation methods and prorate conventions used.
- Determine the flexfield structure and segment values.

Tax books can be converted after the initial corporate conversion.
• Many sites perform taxes manually; using Mass Copy from the corporate book and doing
a manual tax reconciliation is often a worthwhile effort in this case.
Planning the Location Flexfield
• Many sites encode the location instead of explicitly tracking asset location in their
previous asset system. For example, some sites track location in the cost center segment
of the Accounting flexfield.
• Many sites use segments such as Country, State, City, and Site. Some require further
detailed information, such as room number, bar codes, or property taxes.
• Some sites set up shorthand aliases using a short code from a previous system. Using
aliases enables users to continue using the same codes, but provides more readable
flexfield combinations for others.
Planning the Asset Key Flexfield
The asset key flexfield is usually used to store non financial data such as a project number for
CIP assets or capital appropriations request numbers.

Chapter 2 - Page 54
The Key Flexfields Planning Phase
The Key Flexfields Planning Phase

Deciding Which Flexfield to Implement
Oracle Assets and Oracle Applications rely on some key flexfields as central parts of the
applications:
• Set up the Accounting flexfield in Oracle General Ledger to set up the general ledger
account numbers.
• Set up the Asset Category, Location, and Asset Key flexfields in Oracle Assets. These
flexfields are mandatory.
Learning About a Specific Flexfield
Understand the purpose and requirements for the flexfield that you are defining. Some
flexfields have restrictions on how you can define them.
Planning the Structure
Plan structures carefully for future needs. Once you have defined structure, you cannot change
its number, order, or maximum length.
Planning the Segments

Chapter 2 - Page 55
Select two lengths for each segment: the displayed and the maximum length. The maximum
length is less than or equal to the underlying column length corresponding to the segment.
Because these column sizes vary among flexfields, know what column lengths are available for
the flexfield.
Planning the Segment Validation
Consider value types used in the flexfield segments. Your answers to the following questions
affect how you set up the value sets and values:

• Do you want to provide a list of values for each segment to make data entry faster and
easier for the users?
• Do you want to share values among segments in different structures or among different
flexfields?
• Do you want the available values in a segment to depend on what value a user entered in
a prior segment?
• Do you not want to validate a segment? Not validating a segment would allow the user to
enter any value that is not predefined.
Allowing for Future Needs
Values change over time. An organization may add more values as the business grows or
reorganizes.

Chapter 2 - Page 56

The detailed Oracle Assets Setup Steps were covered previously in this lesson.

Chapter 2 - Page 57
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Convert Existing Asset Information
Convert Existing Asset Information

Loading Asset Information
Load readily available information and map any hidden information. Then ask users to
complete the information in the Mass Additions window and run the Post Mass Additions
process.
Transferring Data into ORACLE Tables
If the data is not residing in ORACLE, extract it from the previous system and load it into an
interim table.
For example, create a flat file of asset information by stripping the headers and footers from a
report from the previous system. Use SQL*Loader to load the flat file.
Mapping Information into Identification Codes
Map information into identification numbers.
• For example, look up the employee number or asset category ID.
• Try some test cases to verify behavior and tune scripts.
• Index and tune interim conversion tables, but do not tune standard Oracle Applications
tables.

Chapter 2 - Page 59
You can also use the Text Import feature of the Applications Desktop Integrator. The Import
Text File feature allows you to import data from legacy systems, third party payables
applications, barcode scanners, or any other flat data file sources, to your worksheet. Using the
Import Text File feature, you can map fields in your source file to fields in your worksheet.
Once you have created the map using the Import Text File feature, you can save it and apply it
to future conversions.

Chapter 2 - Page 60
Using the FA_MASS_ADDITIONS Table for Conversion
Using the FA_MASS_ADDITIONS Table for Conversion

Loading the FA_MASS_ADDITIONS Table
You can load asset information into the FA_MASS_ADDITIONS table.
• Decide how you will bring existing asset information into Oracle Assets using the Mass
Additions interface table FA_MASS_ADDITIONS.
• All columns are nullable, so you can fill in columns in any order.
• Some information is required. Note that the Oracle Assets Technical Reference Manual
lists all columns as nullable.
• Load all available asset information to enable users to review and update the data in the
Mass Additions window.
Filling in Additional Details
• Review the asset information in the Mass Additions window, and enter any additional
information. You might need to add some required information that is missing.
• Consider using custom hold queues to specify what information is still needed or which
person at the client site is responsible for providing the information.
Sending Mass Additions to Oracle Assets

Chapter 2 - Page 61
When you are satisfied that the information is complete in mass additions, run Post Mass
Additions to create assets.
• If necessary, override depreciation rules by using Mass Change or the Books window.
• Do not manipulate the rates for a depreciation method.
• Process assets in batches for better performance.
• Be sure to compare record counts, and check the SQL*Loader bad and log files.
• Consider using a phased approach to loading FA_MASS_ADDITIONS:
- All base information from the legacy system
- Category ID
- Location ID
- Depreciation Expense Account CCID and Payables CCID
- Asset Key CCID

Chapter 2 - Page 62
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Post Conversion Reconciliation
Post Conversion Reconciliation

Reconciling Asset Information
You can use standard and custom reports to compare asset information.
• Consider projecting depreciation to reconcile estimated depreciation. Note that a
projection does not include all current period transactions. Refer to the Release 12.x
Asset Management Fundamentals lesson Depreciation for more information
• Be sure to take any adjustments in the new fiscal year.
Running Systems in Parallel
• Consider converting to Oracle Assets a few periods before the end of the fiscal year.
Then run Oracle Assets in parallel with the legacy asset system to the end of the fiscal
year and reconcile with year end figures.
• Consider also running both systems forward into the new fiscal year for a few periods.
• Consider closing the year on the legacy system, perform a conversion the month before
fiscal year end, and open the new year in Oracle Assets.

Chapter 2 - Page 64
Other Conversion Issues
Other Conversion Issues

Pooled Assets
• If the site is currently tracking assets in pools, consider using a separate asset category
and asset cost account for each pool and letting the pools finish out their lives. If feasible,
perform physical inventories and then track assets individually.
• Refer to an ancillary Oracle Assets product named Capital Resource Logistics (CRL)
which has the ability to track and depreciate pooled assets.
Barcodes
• If your site is using barcodes, use the Tag Number field to store the barcode number.
• You can enter barcode information directly (by using the keyboard) or with a "wedge" or
wand that deciphers the barcode. Some customization may be required here.
Acquisitions
• If the company has been acquired and has restated their asset values, the new values
become the depreciable basis. Convert these assets with the new values.
• If a company is acquired after installing Oracle Assets, reconvert with the new asset
values.
Maintaining an Audit Trail
Maintaining an Audit Trail

Oracle Assets keeps a complete audit trail of transactions. Most transactions are stored in these
primary tables:
• FA_BOOKS
• FA_DISTRIBUTION_HISTORY
• FA_TRANSACTION_HEADERS
Maintaining Audit Trails
Maintaining Audits Trails

Oracle Assets keeps a complete audit trail of all transactions that create a record. The
current record is the row where TRANSACTION_HEADER_ID_OUT is NULL.
Adding an Asset
When Oracle Assets creates an ADDITION transaction, it creates a new row for the asset in the
corporate asset book.
• A TRANSFER IN transaction is created by adding a new row that is used to track the
distribution.
• The ADDITION/TRANSFER IN pair corresponds to adding the asset.
Adjusting in the Period Added
• Oracle Assets updates the original ADDITION transaction to ADDITION/VOID.
• A new ADDITION transaction is created by adding a new row for the asset in the
corporate asset book and terminating the old one.
Running Depreciation
When depreciation is run and the close period checkbox is chosen, Oracle Assets closes the
period and creates journal entries.
Transferring the Asset
Oracle Assets creates a TRANSFER transaction by creating a new row for the asset to track the
distribution, and terminating the old row.
Adjusting the Asset in a Later Period
• When Oracle Assets creates an ADJUSTMENT transaction, it creates a new row for the
asset in the corporate asset book and terminates the old one.
• Oracle Assets will void the original transaction if you change asset information before
running depreciation because the asset cost account has not been charged yet.
Tracking Distribution Information
Oracle Assets tracks distribution information once per asset and tracks financial information
for each book.
• The employee, location, and general ledger depreciation expense number are stored in
FA_DISTRIBUTION_HISTORY.
• The asset category and units are stored in FA_ASSET_HISTORY.
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Creating Leases
Creating Leases
Use the Lease Details window and Lease Payments window to define new leases. You cannot
update or delete leases that are in use.
If you want Oracle Assets to test your lease to determine whether to capitalize and depreciate
assets assigned to it, enter information in the Capitalization Test region of the Lease Details
window. If you have already defined a payment schedule for your lease, attach it to the lease in
the Lease Details window. Otherwise, you can navigate to the Lease Payments window to
define a payment schedule and to calculate the present value of your lease payments. Oracle
Assets depreciates Capitalized leased assets and expenses Operating leased assets. Oracle
Assets will capitalize and depreciate leased assets if any one of the following criteria is met:
• Test 1—The ownership of the asset transfers to the lessee at the end of the lease.
• Test 2—A bargain purchase option exists.
• Test 3—The term of the lease is more than 75% of the economic life of the leased asset.
• Test 4—The present value of the minimum lease payments exceeds 90% of the fair
market value of the asset at lease inception.
When you add leased assets using the Detail Additions process, you can attach the assets to
leases you have previously defined. You can assign multiple assets to the same lease.

Chapter 2 - Page 70
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• Define asset books to store financial information for a group of assets.
• There are 3 types of asset books:
- Corporate > A book that you use to track financial information for your balance
sheet.
- Tax > A book that you use to track financial information for your tax reporting
authorities.
- Budget > A book that you use to track planned capital expenditures.
• Define corporate books first and then tax and budget books.
• For each corporate book, you can set up multiple tax and budget books that are associated
with it.
• You can set up multiple corporate books that create journal entries for different general
ledger sets of books, or to the same ledger. In either case, you must run depreciation and
create journal entries for each asset book.
• All assets must be added to a corporate book first. They then can be copied to tax books
as required.
Asset Books
Chapter 3 - Page 6
• Asset Calendars are assigned to asset books for purposes of calculating and allocating
depreciation expense.
• Asset Categories are assigned for use with asset books. All assets are assigned to an asset
category which designates accounting information and default depreciation rules for the
assets. Depreciation methods are assigned to asset categories.
Asset Books
Chapter 3 - Page 7
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Asset Books Regions
Asset Books Regions

(N) Setup > Asset System > Book Controls
Before you can define an asset book, the following items must be completed:
• In Oracle Assets, specify System Controls
• Define your asset calendars.
• Set up your General Ledger Account segment values and combinations.
• Set up your General Ledger journal entry sources and categories.
To define an Asset Book:
• Enter a book name and description.
• Choose a Corporate, Tax, or Budget book class.
- If defining a Tax or Budget book, you must associate those books with a Corporate
book. If the book you are defining is a Corporate book, it will automatically be
associated with itself.
• Enter calendar information for your book.
• Enter accounting rules for your book.
Asset Books
Chapter 3 - Page 9
• Enter natural accounts for your book.
• You must complete each region for every book you define regardless of whether the
information will be used or not. For example, in defining a tax book, you must complete
the natural accounts and journal categories regions even if you do not intend to generate
journal entries for the book.
Asset Books
Chapter 3 - Page 10
Calendar Region
Calendar Region
Implementation considerations for the Calendar Region:
Allow Purge
• You must check the Allow Purge checkbox in order to purge information from this asset
book. It is recommended that you leave the checkbox unchecked until you are ready to
purge data from the book. You can then enable the Allow Purge option, purge your data,
then again disable the checkbox. This helps to ensure against unwanted purges of data
from this book.
GL Ledger
• Enter the ledger for which you want to create journal entries.
Allow GL Posting
• Enable if you want to create journal entries for this book. You cannot allow general
ledger posting for your budget books.
Prorate Calendar
• Use the prorate calendar with the smallest period size or resolution you need for
determining your depreciation rate. For example, you may want to use a monthly prorate
Asset Books
Chapter 3 - Page 11
calendar in a tax book that uses a quarterly depreciation calendar to allow finer control of
the annual depreciation amount for some monthly prorate/method combinations.
Current Period
• The Oracle Assets system will update the current period field each time the current period
is closed and the next period is opened. Keep in mind there can be only one open period
at a time for each asset book. You must set up the depreciation calendar for at least one
period before the current period.

Divide Depreciation
• Choose the method for dividing the annual depreciation amount over the periods in your
fiscal year for this book.
- Choose Evenly to divide depreciation evenly to each period
- Choose By Days to divide it proportionally based on the number of days in each
period
Depreciate if Retired in the First Year
• Choose whether to depreciate assets in this book that are retired in their first year of life.
Last Depreciation Run
• Initially defaults to the current date. Oracle Assets updates this date when you run
depreciation.
Asset Books
Chapter 3 - Page 12
Accounting Rules Region
Accounting Rules Region

Implementation considerations for the Accounting Rules region:
Capital Gain Threshold
• The minimum time you must hold an asset for Oracle Assets to report it as a capital gain
when you retire it. If you want Oracle Assets to report a capital gain for all assets when
you retire them, enter zero for the threshold.
Allow Amortized Changes, Allow Mass Changes
• If you want to allow amortized changes and mass changes in the asset book, make sure
these check boxes are enabled. The default when defining a new asset book has these
checkboxes disabled and it is often overlooked to enabled them when defining a new
asset book.
Create Intercompany Balancing Segments
• Check this check box if you want Oracle Assets to create intercompany journal entries
when you run the Create Accounting program.
Allow Cost Sign Changes
Asset Books
Chapter 3 - Page 13
• Check this check box if you want to allow the cost amount to change from a positive to a
negative amount, or from a negative to a positive amount.
Allow Revaluation
• Select Allow Revaluation, if necessary, and specify the applicable default revaluation
rules.
Allow Group Depreciation

• Select Allow Group Depreciation if you plan to use group depreciation for the book and
select the applicable group depreciation rules.
Asset Books
Chapter 3 - Page 14
Natural Accounts Region
Natural Accounts Region

These accounts represent values for the Natural Account segment from the accounting flexfield
associated with the ledger assigned to this Asset Book.
Implementation considerations for the Natural Accounts region:
Retirement Accounts
• You can set up your gain and loss accounts so that Oracle Assets creates individual
journal entries for each component of the gain/loss amount to separate accounts, or to a
single account for the net gain or loss. To use a single Gain or Loss account, enter the
same account value in each field. The net effect is a single journal entry.
Other Natural Account Defaults
• Enter Deferred Depreciation Reserve and Deferred Depreciation Expense accounts.
• Enter the general ledger account that you want to use as an offset account for the entry
against accumulated depreciation when you perform reserve adjustments.
Account Generator Defaults
• By default, Oracle Assets creates journal entries without cost center level detail for all
accounts except the depreciation expense account. Using the default assignments, it
Asset Books
Chapter 3 - Page 15
creates journal entries using the balancing segment from the expense account in the
Assignments window and the account segment from the asset category or book,
depending on the account type. The default Subledger Accounting rules use the other
segments from the default segment values you enter for the book in this field.
Subledger Accounting is discussed in more detail in the Asset Accounting module of
Release 12.x Oracle Asset Management Fundamentals.
Asset Books
Chapter 3 - Page 16
Security by Book
Security by Book
Prior to Security by Book, unless your Oracle Assets installation was Multi-Org enabled, there
was no way to restrict user access to query and update information pertaining only to those
users' asset books. Users could access any asset book on the system. Thus, the power and
flexibility of having each department in a large organization have its own asset books was
mitigated because each departments' staff could still query and update possibly sensitive data
in other departments.
Oracle Assets's Security by Book feature makes use of a Security Profile that is attached to a
responsibility to determine which records are available to holders of that responsibility. The
Security Profile acts as the 'glue' between an organization and a responsibility. To set up a
security profile that permits access to asset books of certain organizations only, you make use
of organizational hierarchies.
Organizations and Security by Book
Organizations and Security by Book

An organization hierarchy can have more levels than are represented in the example above.
Oracle UK could be a subordinate of another organization or other organizations could be
assigned as subordinate to either of the divisions.
Organization hierarchies show reporting lines and other hierarchical relationships among the
organizations in your business.
A security profile allows you to control access to Oracle Assets through responsibilities that
you create and assign to users of the system. Users can sign on to Oracle Assets only through
the responsibilities that you give them. Their responsibilities control what they can see and do
in the system. A responsibility always includes a security profile, which you associate with a
work structure such as an organization hierarchy.
How Security by Book Is Used within Process Flow
How Security by Book Is Used within Process Flow

• Users can view and update information based on the responsibility to which they are
assigned.
• You can have individual corporate books and their associated tax and budget books
accessible only by one responsibility or by several responsibilities.
• You can also construct a hierarchical structure in your security model, in which a given
responsibility can access all books belonging to one or more responsibilities.
Security by Book Setup Steps

From Oracle Assets, N > Setup > Security > Organization > Description
From HR, N > Work Structures > Organization > Description
Define your Organizations
If you are creating a fresh installation, you will need to define your organizations from the
beginning. However, if you are working on a migration to 11i or above, organizations may
already exist. Thus, the question is whether or not you want to use the existing organizations as
your asset organizations or create completely new and different organizational hierarchies.
Oracle Human Resources includes a predefined organization named Setup Business Group. We
recommend that you modify the definition of this predefined business group rather than
defining a new one. If you define a new business group instead of modifying the predefined
Setup Business Group, you need to set the HR: Security Profile profile option to point to the
security profile for the new business group. Oracle Human Resources automatically creates a
security profile with the business group name when you define a new business group. Oracle
Human Resources incorporates all other organizations you specify into the business group you
define.
Oracle Human Resources uses organization classifications to determine the type of
organizations being set up. To flag an organization for use in Oracle Assets, you enable the
Asset Organization classification. An asset organization is an organization that allows you to
perform asset–related activities for specific Oracle Assets books. Oracle Assets uses only
organizations designated as asset organizations. To set up these asset organizations (or modify
existing organizations and convert them into asset organizations), you will need to use the
Organization form. The organization form can be accessed via Oracle Assets or, if you are an
Oracle Human Resources customer as well, via the Oracle Human Resources responsibility.
Note: You cannot assign one book to two different organizations. For example, if you assign
Tax Book A to the Oracle Manchester organization, you cannot assign it to the Oracle London
organization as well. When you attempt to assign Tax Book A to Oracle London, the book will
be saved as expected, but the Oracle Manchester organization will no longer be able to access
Tax Book A!
Note: You can assign a corporate book and its associated tax book to two different
organizations. However, if you want to perform a Mass Copy, the user must access the
organization that is assigned to the tax book.
Specify the Hierarchy
The hierarchy specifies the relationships between each of the asset organizations. From the
Hierarchy form, you can create your organizational hierarchy. You need to define the top
organization in the hierarchy and at least one organization subordinate to it.
Set Up Security Profiles
Once the organizations have been created and assembled into a hierarchy, you are prepared to
set up the Security Profiles. The Security Profile is linked to the user's responsibility and
business group and determines which asset books are available to holders of the responsibility.
If you do not set up the Security Profiles correctly, Security by Book will not function. Why?
Because a Security Profile holds together the responsibilities and the organizations. Without
the security profile, all responsibilities can access all organizations.

Run the Security List Maintenance Program
Once you have defined all of the Security Profiles, you must run the Security List Maintenance
program. This program is not a report, so there should not be any output expected. The
Security List Maintenance program updates the List of Values with the appropriate books. This
is a critical step, as it completes the organization and security profile setup.
You should schedule it to run every night to take account of changes made during the day.
Create Responsibilities
Once you have created your organizations, assembled them into hierarchies and created their
appropriate Security Profiles, you are prepared to create the Responsibilities. A responsibility
determines if the user accesses certain Oracle Applications, which applications functions a user
can use, which reports and concurrent programs the user can run, and which data those reports
and concurrent programs have access to. Each application user is assigned at least one
responsibility. Since Responsibilities cannot be deleted, the Effective Date must be adjusted to
enable/disable them. This process is typically performed by the Oracle Systems Administrator
only.
Attach Security Profiles to Responsibilities
Asset Books
Chapter 3 - Page 22
Once you have created your responsibilities, you may then attach the security profiles to each
responsibility. This effectively links the organization and responsibility via the security
profiles. This process is typically performed by the Oracle Systems Administrator only.
Assign Responsibilities to Users
The final step in the Security by Book setup is to assign the various responsibilities to your
users. You can create a userid/password for each of your fixed assets users and assign them the
appropriate responsibilities through the System Administrator responsibility.
Asset Books
Chapter 3 - Page 23
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Troubleshooting Security by Book
Troubleshooting Security by Book

You have set up the Security by Book feature, yet for some reason… your security by book
setup does not seem to be working. This section lists some possible avenues that you may wish
to investigate:
• Functionality review. The Security by Book feature enables you to designate an
organizational hierarchy in which the assets of an organization can only be seen by (a)
the parent organization and (b) itself. For example, if you are in Headquarters, you should
be able to see all assets and select all books in the organization.
• An Orphan Organization. You may set up and define any number of organizations and
include as many of them as you wish in the hierarchy. If you set up the organizations but
accidentally leave a location out of the hierarchy, you will be able to see that location's
assets from everywhere in the hierarchy. Make sure that your hierarchy is set up as you
planned.
• Leaving out the Security List Maintenance program. This program populates the LOV's
with the appropriate information. If you miss this important step, your LOV's will not
show the correct books that are available for each organization to access.
Asset Books
Chapter 3 - Page 25
• Viewing additional books. If there is a book that already exists on the system and you
have not assigned that book to a particular organization, all organizations will be able to
see the book and its assets. For example, if you are able to view Oracle UK's corporate
book from Oracle Manchester, you may want to check the Organization form and query
up Oracle UK to ensure that the book was associated with the organization properly.
Asset Books
Chapter 3 - Page 26
Implementation Considerations for Security by Book
Implementation Considerations for Security by Book

Consider the following questions regarding use of the Oracle Assets Security by Book feature:
• Do you need to limit access to asset books?
• Do all your books need security?
• How do you want to organize security?
• Who will update security?
• Do Reporting Currencies reporting books need security?
Asset Books
Chapter 3 - Page 27
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All assets are required to have an asset category. Asset categories group assets that share
financial accounts and usually depreciate using the same rules. Oracle Assets uses this
information to provide default values at the time an asset is entered into the system.
You specify general ledger accounts and default depreciation rules for assets in a category and
an asset book. You set up different default depreciation rules depending on the date placed in
service. If an asset book is not attached to an asset category, you will not be able to add assets
assigned to that category to that asset book.
Example: Tax Book A is associated with corporate asset book US Corp Book. Even though the
US Corp Book is setup in an asset category named BUILDING-OFFICE, Tax Book A must
also be setup in the BUILDING-OFFICE category in order to add assets assigned to that
category to Tax Book A. This can be a real problem when copying assets from corporate asset
books to their related tax asset books.
You do not need to define categories for budget books. Oracle Assets uses the category
information from the associated corporate book.
Asset Categories
Chapter 4 - Page 6
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Asset Categories Regions
Asset Categories Regions

The Asset Categories form is comprised of three regions:
Header Region
• Contains general information about the category that remains the same regardless of the
asset book that is being attached to the category.
General Ledger Accounts Region
• Contains the default general ledger accounts and natural account segments that will be
used when assets are added that are assigned to this category. The default general ledger
accounts are set up for each asset book that is associated with this asset category
regardless of whether that asset book will create journal entries for the general ledger. For
example, a tax asset book that has been defined to not allow GL posting, will still need to
have GL accounts assigned when setup in the asset category form.
Default Depreciation Rules
• This region contains depreciation rules information that is setup for each asset book
associated with the asset category. These default rules are used to expedite the adding of
assets. If the default does not apply, you can override many of the defaults for an
individual asset in the Asset Details or Books windows in the Asset Workbench.
Asset Categories
Chapter 4 - Page 8
Asset Categories Setup

Prerequisites
• Set up your General Ledger Account segment values and combinations.
• Set up your asset books.
• Set up your QuickCode values.
• Set up your prorate conventions.
• Set up your depreciation methods.
Define Asset Category Key Flexfield
• Implementation considerations for defining the Asset Category key flexfield are
discussed in the Asset Controls Setup module of the Release 12.x Oracle Asset
Management Fundamentals Learning Path.
• Keep in mind that it is customary to use a major/minor segmentation in the category
setup. For example, computers and EDP equipment can be associated with a major
category while a minor category may be something more specific like "PC's", "Servers"
or "Network Components". The Minor Category can be dependent upon the major
category. This dependency can ensure illogical combinations such as a major category
like "Machinery & Equipment" and a minor category of "Software" are created and
assigned to an asset.
Define Segment Values
• Each segment of your category structure needs a value set. The terms you used to group
your assets are the values you enter for these value sets.
• To set up a subcategory segment for which the valid values are dependent on the value of
a previously entered segment, create a dependent value set. Create an independent value
set for the first segment using the Value Set windows. Then create a dependent value set
for the dependent segment. Enter the name of the independent value set, and specify the
value which must be entered for the dependent value set to be valid. For example, first
segment independent value "Computer" may have the second segment dependent values
"PC" and "Laptop" setup for it.

Implementation considerations for setting up the Asset Category Header region:
• Specify whether the category is for leased, nonleased, or leasehold improvement assets in
the Category Type field. You can enter lease information in the Asset Details window
only for assets assigned to a Lease category.
• Check the Capitalize checkbox if you want to charge items in this category to an asset
account and if you want to depreciate items in this category. If you are tracking items in
the Oracle Assets application that are expensed for financial purposes, you would leave
this box unchecked. All expensed items that you want to track in Oracle Assets, must be
added to an Asset Category that is not enabled for Capitalization.
• The In Physical Inventory check box is selected by default. Clear this checkbox if you do
not want assets in a particular category to be included in physical inventory. Use the
Assets Details window to override this check box for individual assets.
• Enter the Property Type and Class to which the assets in this category usually belong.
You set up your QuickCode values for Property Type. If you have assets in the United
States, enter 1245 for personal property and 1250 for real property.

Implementation considerations in setting up the General Ledger Accounts region:
• You may have to temporarily disable your cross–validation rules and allow dynamic
insertion for the Account structure to be able to enter these accounts, since they may not
be valid combinations.
• If you want to create journal entries using other segments in addition to the natural
account from the combination you enter in the Asset Categories window, you must
modify the default Account Generator values to fill in those segments from the category.
• Associate the category with an asset book, and specify the general ledger accounts for
that book. Repeat the category set-up for each book that you want to allow additions
using this category.
• The following fields require entry: Book, Asset Cost, Asset Clearing, Depreciation
Expense Segment and Accumulated Depreciation. Bonus Expense and Bonus Reserve
also require entry but will default to the Depreciation Expense Segment and Accumulated
Depreciation values if left blank.
• Once you define an Asset Category combination and attach an asset book to it, you can
delete the Asset Category combination up to the point that you enter an asset into the
attached asset book using that Asset Category.
• Be careful when you enter the account information. Once you define an Asset
Category combination and save the record, you cannot change any of the accounts in the
General Ledger Accounts region.
• I made an error in keying in one of the accounts for an asset book and I saved the record.
How can I fix it?
- If you have not entered an asset into the asset book associated with the Asset
Category with the error, you can query the Asset Category combination and the
associated book, delete the record, save and then reenter the combination.
- If you have added an asset into the asset book using the category with the error, you
will need to define a new category and associate it with the asset book. You then
can perform a Mass reclassification on all assets from the category with the error to
the new category. You then should disable the category with the error.
Asset Categories
Chapter 4 - Page 13

(N) Setup > Asset System > Asset Categories (B) Default Rules
Implementation considerations for setting up the Default Depreciation Rules region:
1. In the Default Depreciation Rules window, enter the date Placed in Service range for
which these category defaults are effective. When you add an asset, the depreciation rules
default according to the date placed in service of the asset, the category, and the book.
You can specify as many ranges of default depreciation rules as you wish. If you leave
the end date blank, Oracle Assets uses that set of depreciation rules indefinitely. To add a
new range of valid depreciation rules, terminate your current record by adding an end
date, then choose Edit, New Record from the menu to add the new record.
2. Check Depreciate if you normally depreciate assets in this book and category.
Note: Oracle Assets does not depreciate EXPENSED assets, regardless of the default value
you enter in this field.
3. Enter the depreciation Method that you normally use for assets in this book and category:
- If you enter a life–based method, you must enter the asset Life in Years and
Months. The method you enter must have the same number of periods as the prorate
calendar for this book.
Asset Categories
Chapter 4 - Page 14
- If you enter a flat–rate method, you must enter default values for the Basic Rate and
Adjusted Rate that you normally use to depreciate assets in this book and category.
If you are defining this category for a tax book, you also can enter a Bonus Rule.
- If you enter a units of production method, you must enter the unit of measure
(UOM) and production Capacity that you normally use to depreciate assets in this
book and category. If you are defining this category a tax book, enter the UOM and
capacity you entered for the corporate book.

4. Enter the bonus rule that you normally use for assets in this book and category. You can
use bonus rules for corporate books and tax books, using all depreciation methods except
UOM.
5. Enter the Prorate Convention and Retirement Convention that you normally assign to
assets in this book and category.
6. If you chose Use Default Percent from the Salvage Value poplist in the Book Controls
window for this book, you can enter a Default Salvage Value percentage for this
category, book, and range of dates placed in service.
7. If you are defining this category for a tax book, optionally enter either a depreciation
expense or cost ceiling.
8. Enter a Price Index if you want to run reports that use the revalued asset cost to calculate
gains and losses.
9. Enter a default subcomponent life Rule you want to use to determine the default life of
the subcomponent asset based on the life of the parent asset.
10. Select one of the following rules:
- None (Leave field blank): There is no connection between the life of the
subcomponent asset and the parent asset life. Oracle Assets defaults the
subcomponent asset life from the asset category.
- Same End Date (Without specifying a minimum life): The subcomponent asset
becomes fully depreciated on the same day as the parent asset or at the end of the
category default life, whichever is sooner. The default subcomponent asset life is
based on the end of the parent asset life and the category default life. If the parent
asset is fully reserved, Oracle Assets gives the subcomponent asset a default life of
one month.
- Same End Date (Specifying a minimum life): The subcomponent asset becomes
fully depreciated on the same day as the parent asset, unless the parent asset life is
shorter than the minimum life you specify. The subcomponent asset's life is
determined based on the end of the parent asset's life, the category default life, and
the minimum life. If the parent asset's remaining life and the category default life
are both less than the minimum life you enter, Oracle Assets uses the minimum life
for the subcomponent asset. Otherwise, it uses the lesser of the parent asset's
remaining life and the category default life.
- Same Life: The subcomponent asset uses the same life as the parent asset. It
depreciates for the same total number of periods. If the subcomponent asset is
acquired after the parent asset, it depreciates beyond the end date of the parent asset
life.
Asset Categories
Chapter 4 - Page 15
11. If you choose Same End Date for the subcomponent life rule, you also can specify a
minimum life for the subcomponent asset.
- If the parent asset's remaining life and the category default life are both less than the
minimum life you enter, Oracle Assets uses the minimum life for the subcomponent
asset. Otherwise, it uses the lesser of the parent asset's remaining life and the
category default life.
12. Check Straight Line for Retirements if you are setting up an asset category with a 1250
property class in a tax book. Oracle Assets uses a straight–line depreciation method in
determining the gain or loss resulting from the retirement of 1250 (real) property.
- If you check Straight Line For Retirements, enter the straight–line depreciation
Method and Life you want to use for the Gain From Disposition of 1250 Property
Report. This is the default method for your asset in the Retirements window and in
the tax book if you use mass copy.
13. Check the Use Depreciation Limit check box if you want to depreciate an asset beyond
the recoverable cost in the years following the useful life of the asset. You can enter the
default Depreciation Limit as a percentage or amount.
14. Enter the minimum time you must hold an asset for Oracle Assets to report it as a capital
gain when you retire it.
- If you want Oracle Assets to report a capital gain for all assets in this category when
you retire them, enter zero. If you want to report a capital gain for assets which you
have held for at least one year, such as for United States federal tax form 4797,
enter one in the Years field and zero in the Months field. If you need a different
capital gains threshold for different dates placed in service, such as for United
States federal tax form 4797, set up the asset category several times for the different
date placed in service ranges.
15. If you are defining this category for a tax book, indicate whether assets in this category
are eligible for Investment Tax Credit (ITC), and whether assets in this category Use ITC
Ceilings.
16. Check the Mass Property Eligible check box if you want to make assets added to this
category eligible for mass property treatment.
17. In the Group Asset field, you can enter the group asset to which all assets added to this
category will be assigned. If you enter a group asset number in this field, all capitalized
and CIP assets using this category will be automatically assigned to the group asset
entered.
18. Save your work.
Asset Categories
Chapter 4 - Page 16
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Asset Life Cycle
Asset Life Cycle

Assets are added to the Oracle Assets system either via manual additions or through
transactions that flow through the FA_MASS_ADDITIONS table. Assets added through the
FA_MASS_ADDITIONS table are discussed in the Release 12.x Oracle Asset Management
Fundamentals Mass Asset Additions module.
Manual Asset Additions

Chapter 5 - Page 7

You use QuickAdditions or Detail Additions to add assets manually. All assets added to the
primary asset book are automatically converted to the reporting currencies asset books when
you save the transaction. Based on the asset date placed in service, Oracle Assets retrieves an
exchange rate to convert the asset cost and depreciation reserve.
Using Quick Additions
Use the QuickAdditions process to quickly add ordinary assets. When you enter minimal
information in the QuickAdditions window, the remaining asset information defaults from the
asset category, asset corporate book, and the date placed in service.
Using Detail Additions
Use the Detail Additions process to manually add complex assets, which the QuickAdditions
process does not handle:
• Assets that have a salvage value
• Assets with more than one assignment
• Assets with more than one source line
• Assets to which the category default depreciation rules do not apply
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QuickAdditions
Quick Additions
(N) Assets > Asset Workbench (B) QuickAdditions
Implementer's considerations for QuickAdditons data fields:
Asset Number
• When you add an asset, you can enter the asset number or leave the field blank to use
automatic asset numbering. If you enter an asset number, it must be unique and not in the
range of numbers reserved for automatic asset numbering. You can enter any number that
is less than the number in the Starting Asset Number field in the System Controls
window or you can enter any non–numeric value.
Description
• Use list of values to choose a standard description you defined in the QuickCodes
window, or enter your own.
Category
• All assets are required to have an asset category. Asset categories group assets that share
financial accounts and usually depreciate using the same rules. Oracle Assets uses this
information to provide default values at the time an asset is entered into the system.

Chapter 5 - Page 12
Tag Number
• If you enter a tag number, it must be unique. A tag number provides an additional way to
uniquely identify an asset. Many organizations use this field to record barcoded asset
tags.
Asset Category Descriptive Flexfield
• For each asset category, you can set up a descriptive flexfield to prompt you for
additional information based on the asset category you enter. For example, you might
want to track the license number for automobiles or the square footage for buildings.
Asset Key
• The asset key allows you to group assets or identify groups of assets quickly. It does not
have financial impact; rather it can be used to track a group of assets in a different way
than the asset category. For example, use an asset key to group assets by project.
Asset Type
• Valid asset types are:
- Capitalized: Assets included on the company balance sheet. Capitalized assets
usually depreciate (spread the cost expense over time). Charged to an asset cost
clearing account.
- CIP (Construction–In–Process): Unfinished assets being built, not yet in use and not
yet depreciating. Once you capitalize a CIP asset, Oracle Assets begins depreciating
it. Charged to a construction–in–process clearing account.
- Expensed: Items that do NOT depreciate; the entire cost is charged in a single
period to an expense account. Oracle Assets tracks expensed items, but does not
create journal entries for them.
Units
• The number of units represents the number of components included as part of an asset.
Use units to group together identical assets. For example, you might add an asset that is
composed of ten separate but identical chairs. If you are adding an asset, accept the
default value of one or enter a different number of units.
Book
• An asset can belong to any number of depreciation books, but must belong to only one
corporate depreciation book. You must assign a new asset to a corporate depreciation
book before you can assign it to any tax books.
Cost
• The current cost can be positive, zero, or negative.
Date Placed in Service
• If the current date is in the current open period, the default date placed in service is the
calendar date you enter the asset. If the calendar date is before the current open period,
the default date is the first day of the open period. If the calendar date is after the current
open period, the default date is the last day of the open period.
• You cannot enter a date placed in service before the oldest date placed in service you
specified in the System Controls window.

Chapter 5 - Page 13
• You can change the date placed in service at any time. If you change the date placed in
service after depreciation has been processed for an asset, Oracle Assets treats it as a
financial adjustment, and the accumulated depreciation is recalculated accordingly.
Depreciation Expense Account
• Assign assets to depreciation expense accounts. Oracle Assets charges depreciation
expense to the asset using this expense account. Many Oracle Assets reports use the cost
center segment value from this account as their primary sort.

Even if you add an asset using QuickAdditions and accept most defaults, you can always
change the asset's information by going to the Asset Workbench and choosing the appropriate
form.

Chapter 5 - Page 14
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Detail Asset Additions
Detail Asset Additions

Use the Detail Additions process to add complex assets that the QuickAdditions process cannot
handle. Override default depreciation rules if necessary. Provide descriptive, financial, and
assignment information. Enter purchasing information as needed.
Using the Asset Details Window
• Enter descriptive information in the Asset Details window to query assets at a future
time. The following database tables are updated:
- FA_ADDITIONS
- FA_ASSET_HISTORY
Using the Books Window
• Enter financial information in the Books window. The following database table is
updated:
- FA_BOOKS
Using the Assignments Window
• Enter distribution information in the Assignments window. The following database table
is updated:

Chapter 5 - Page 16
- FA_DISTRIBUTION_HISTORY
Using the Source Lines Window (optional)
• Enter purchasing information as needed in the Source Lines window. The following
database table is updated:
- FA_INVOICE_DETAILS

Chapter 5 - Page 17
Detail Additions - Asset Details Window
Detail Additions - Asset Details Window Fields

(N) Assets > Asset Workbench (B) New
Implementer's considerations for optional data fields found in the Asset Details window:
Parent Asset
• You can separately track and manage detachable asset components, while still
automatically grouping them to their parent asset. For example, a monitor can be tracked
as a subcomponent of its parent asset, a computer.
• Enter the parent asset to which your asset belongs if you are adding a subcomponent
asset. The parent asset must be in the same corporate book.
• Oracle Assets does not automatically perform the same transaction on a subcomponent
asset when you perform it on the parent asset. Use the Parent Asset Transactions Report
to review the transactions that you have performed on parent assets during a period.
Warranty Number
• You can set up and track manufacturer and supplier warranties online. Each warranty has
a unique warranty number. Use the list of values or enter a previously defined warranty
number to assign the asset to the coinciding warranty.

Chapter 5 - Page 18
Lease Information
• You can enter lease information only for an asset assigned to a leased asset category.
• You must define the lessor as a valid supplier in the Suppliers window, and define leases
in the Lease Details window, before you can attach a lease to an asset you are adding in
the Asset Details window.
• If you are entering a leasehold improvement and you completed the Parent Asset field in
the Asset Details window, Oracle Assets displays the related lease information from the
parent asset. You cannot provide separate lease information for the leasehold
improvement.
In Use Checkbox
• The In Use check box is for your reference only. It indicates whether the asset is in use. It
has no effect on calculation of depreciation for the asset.
Physical Inventory Checkbox
• When you check the In Physical Inventory check box, it indicates that this asset will be
included when you run the Physical Inventory comparison.
Property Type/Class
• These fields are used primarily in the United States for special reporting required by the
U.S. Internal Revenue Code.

Chapter 5 - Page 19
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Detail Additions - Books Window
Detail Additions - Books Window

(N) Assets > Asset Workbench (B) New (B) Continue
Implementer's considerations for optional data fields found in the Books window:
Amortize Adjustment Checkbox
• You can choose to amortize certain asset adjustments by selecting this checkbox.
Typically, this checkbox is not utilized when first adding an asset but rather when
adjustments are made following the period the asset was added, such as a change in asset
cost.
• Select the Amortize Adjustment checkbox to amortize the expense adjustment over the
remaining life of the asset or leave it clear to expense the adjustment in the current
period.
• You cannot expense adjustments after amortizing an adjustment for that asset. You must
amortize all future adjustments.
Amortize NBV Over Remaining Life
• Oracle Assets supports straight-line depreciation over remaining useful life. This method
employs the net book value as the depreciable basis. Assets subjected to this method of

Chapter 5 - Page 21
depreciation in legacy systems can continue to use this method in Oracle Assets. This
feature eliminates the effort of changing the cost basis during legacy asset data
conversions. The checkbox is only available when adding a new asset record.
Salvage Value
• The salvage value cannot exceed the asset cost, and you cannot enter a salvage value for
credit (negative cost) assets.
Revaluation Options
• You can only enter revaluation amounts if you allow revaluation in the Book Controls
window. Revaluation options are discussed in detail in the Release 12.x Asset
Management Advanced learning path.
Depreciation Methods
• Defaults to method and life from the Asset Category assigned to this asset.
• Depending on the type of depreciation method you enter in the Books window, Oracle
Assets provides additional fields so you can enter related depreciation information. For
example, if you enter a Calculated or Table depreciation method, you must also enter a
life for the asset. In contrast, for a units of production depreciation method, you must
enter a unit of measure and capacity.
Amortization Start Date
• When you choose to amortize an adjustment, Oracle Assets uses the Amortization Start
Date to determine the amount of catchup depreciation to take in the current open period.
The remaining depreciation is spread over the remaining life of the asset.
Short Fiscal Year Options
• These fields are utilized when adding assets into a short fiscal year. Special depreciation
rules and methods usually apply to these short year assets. Short years options are
discussed in detail in the Release 12.x Oracle Asset Management Advanced learning
path.

Chapter 5 - Page 22
Asset Cost Terminology
Asset Cost Terminology

Current Cost
The current cost can be positive, zero, or negative. Oracle Assets defaults a cost of zero for
construction–in–process (CIP) assets and you cannot change it.
Original Cost
Oracle Assets displays the original cost of the asset and updates it if you make a cost
adjustment in the period you added the asset. After the first period, Oracle Assets does not
update the original cost.
Recoverable Cost
The recoverable cost is the portion of the current cost that can be depreciated. It is the current
cost less the salvage value less the Investment Tax Credit basis reduction amount. If you
specify a depreciation cost ceiling and if the recoverable cost is greater than that ceiling, Oracle
Assets uses the cost ceiling instead.
Accumulated Depreciation Considerations
Accumulated Depreciation Considerations

You normally enter zero accumulated depreciation for new capitalized assets. If you are adding
an asset that you have already depreciated, you can enter the accumulated depreciation as of
the last depreciation run date for this book, or let Oracle Assets calculate it for you.
If you enter a value other than zero, Oracle Assets uses that amount as the accumulated
depreciation as of the last depreciation run date.
• If you enter too little accumulated depreciation, Oracle Assets adjusts depreciation to the
correct amount for the current fiscal year. If you enter too much accumulated
depreciation, the asset becomes fully reserved before the end of its life.
• If you enter zero accumulated depreciation, Oracle Assets calculates the accumulated
depreciation for you based on the date placed in service. You can have a different
accumulated depreciation for each depreciation book.
• If the asset is placed in service in the current fiscal year, the accumulated depreciation
amount and the year–to–date depreciation amount must be the same.
• For Oracle Assets to recognize an asset as fully reserved when you add it, enter an
accumulated depreciation amount equal to the recoverable cost.
• You cannot change the accumulated depreciation after the period in which you
added the asset. You can, however, change the depreciation taken for prior fiscal years
in your tax books using the Tax Reserve Adjustments window.
• You cannot enter year–to–date or life–to–date depreciation when you add a units of
production asset. Instead, enter the asset with zero accumulated depreciation, and enter
the total life–to–date production as production for the current period to catch up
depreciation.
Depreciate Checkbox Actions
Depreciate Checkbox Actions

• If you decide not to depreciate an asset at the time you add it, do not select the Depreciate
check box. If you select the Depreciate check box later, Oracle Assets calculates the
depreciation from the date placed in service to the present and expenses any adjustment.
• If you select the Depreciate check box and later clear and reselect it, Oracle Assets takes
the skipped depreciation in the last period of the asset's life.
Detail Additions - Assignments Window
Detail Additions - Assignments Window

(N) Assets > Asset Workbench (B) Continue (B) Continue
Distribution Set
You can use the Distribution Set to choose a predefined distribution set for an asset. A
distribution set allows you to automatically assign a predefined set of one or more distributions
(employee name, depreciation expense account, location) to an asset. When you choose a
distribution set, Oracle Assets automatically enters the distributions for you.
Units to Assign
Oracle Assets displays the number of units you must assign. The Units to Assign value
automatically updates to reflect the assignment you enter or update. It must be equal to zero
before you can save your work.
Detail Additions - Source Lines Window
Detail Additions - Source Lines Window

(N) Assets > Asset Workbench (B) New (B) Source Lines
• You can track information about where assets came from, including sources such as
invoice lines from your accounts payable system and capital assets from Oracle Projects.
• You change invoice information for a line using the Source Lines window only if you
manually added the source line.
• You cannot change invoice information if the line came from another system through
Mass Additions.
• If the source of the line is Oracle Projects, choose the Project Details button to view
detail project information for the line in the Asset Line Details window.
Manual Asset Additions Journal Entries
Manual Asset Additions Journal Entries

Example:
An invoice for 50,000 was incorrectly charged to telephone expense. To correctly record the
expenditure as an asset, you decide to perform a manual addition. The journal entry to record
the manual addition would be:
DR Asset Cost 50,000
CR Asset Clearing 50,000
To clear the Asset Clearing account, a manual journal entry would have to be entered in the
General Ledger application as follows:
DR Asset Clearing 50,000
CR Telephone Expense 50,000
Group Depreciation
Group Assets Overview

The Group Depreciation feature lets you easily manage financial and tax accounting on groups
of assets and handle complex transactions for group assets and their member assets by:
• Setting up logical groupings of assets (group assets) based on regulatory requirements
and your own business needs.
• Reducing data entry requirements by defining depreciation parameters for group assets
rather than at the individual asset level.
Background
• Communications companies typically own and maintain a large network infrastructure
enabling them to offer communication services to their many customers.
• Networks are constructed of many thousands of individual pieces of equipment, such as
switches, routers, cables, transmitters, etc.
• These assets often require a large capital investment and must be depreciated over their
serviceable lives.
• Collections of similar assets are often pooled together into group assets for the ease of
financial reporting.
• A group may contain many individual assets that were placed into service in different
years, but only one depreciation account is maintained for the group.
• Depreciation is computed and stored at the group level, known as group depreciation.
Group Assets
• A group asset is a collection of member assets
• Member assets are individual assets that belong to a group asset

• You can add member assets to a group asset, or delete member assets from a group asset
• You can transfer member assets in or out of a group asset, as well as transfer member
assets between group assets
• The group asset cost is equal to the sum of all the member asset costs
• Assets are depreciated at the group level
Group Depreciation in the Global Market
Group Depreciation in the Global Market

Companies operating across various global markets are now subject to multiple accounting
rules and tax regulations across geographical boundaries.
In many countries, the local tax regulations require companies to depreciate assets in a
composite or aggregate form as group depreciation, rather than on an individual asset basis.
Group depreciation aids accommodating many of the composite or aggregate depreciation
requirements imposed by the following global regulatory requirements:
• United States Telecomm (FCC) and Utility (FERC) compliance reporting
• United Kingdom Writing Down Allowance (WDA) compliance reporting
• Canada Capital Cost Allowance (CCA) compliance reporting
• Japanese group asset financial and compliance reporting
• Indian group asset management and compliance reporting
Group and Member Asset Rules
Group and Member Asset Rules

In Oracle Assets, the predefined Group and Member asset rules help to simplify asset
management across your business. As such, these rules ensure tight control across capital
investments and provide real-time access to asset information, ensuring correctness of
information.
The following represent specific Asset Rules:
• A group asset and the associated member assets must belong to the same corporate book.
• The depreciation rules defined for the group asset generally supersede those of the
associated member assets. Depreciation is generally calculated and stored for the group
asset only.
• The addition of a member asset will be treated as an amortized cost adjustment to the
group asset.
• Member asset transactions, such as additions, adjustments and group reclassifications, are
treated as amortized adjustments. Expensed adjustments are not allowed for group assets.
• The group asset date placed in service is used to determine when depreciation starts for
the group asset. This date cannot be updated after depreciation has started for the group
asset.
• Member assets can be added with a date placed in service that is different than that of its
group asset, but a member asset date placed in service may not be older than the
date placed in service of the group asset.
• If a member asset is added with a prior period date placed in service, the system will treat
the member asset addition as an amortized cost adjustment to the group asset from the
date placed in service of the member asset. Also, Oracle Assets automatically submits
the Process Group Adjustments concurrent program to calculate the prior period
depreciation expense for the group asset. You must acknowledge the message containing
the request number of the program submission.
• When you add a CIP member asset to a group asset, the CIP member asset cost is not
added to the group asset until the CIP member asset is capitalized, with one important
exception. The exception occurs when you check the Allow CIP Depreciation in the
Group Assets check box on the Book Controls window. You may add the CIP member
asset cost to the group asset by setting the Depreciate in Group option on the Source
Lines window.
• Unplanned depreciation is only available for member assets with the Member Asset
Tracking option set up for the associated group asset.
• Cost is stored and tracked at the member asset level and summarized to the group asset.
• Accumulated depreciation is generally stored and tracked for the group asset only.
• The asset cost is posted to General Ledger in the period the member asset is added.
Depreciation expense is posted to General Ledger from the group asset only, even when
member asset tracking is enabled.
Set Up Group Assets
Set up Group Assets

To set up group assets in the Book Controls window:
1. Open the Book Controls window.
2. In the Class field, select Corporate. You can only create group assets in a corporate book.
3. Select the Accounting Rules tabbed region.
4. You must check the Allow Amortized Changes check box before creating group assets in
the book.
5. You must check the Allow Group Depreciation check box before creating group assets in
the book.
• If group assets are not allowed in the tax book, mass copy results in the following:
- If you allow group assets in the associated corporate book: The group asset will not
be copied to the tax book. All member assets will be copied to the tax book as
standalone assets.
- If you do not allow group assets in the associated corporate book: No group asset is
allowed in either the corporate or tax books.
• If group assets are allowed in a tax book, mass copy results in the following:

Chapter 5 - Page 35
- If you allow group assets in the associated corporate book: The group and member
assets will be copied to the tax book based on the mass copy options in the Tax
Rule tabbed region.
- If you do not allow group assets in the associated corporate book: No group asset is
allowed in either the corporate or tax books. In Oracle Assets, any asset must exist
in the corporate book before being added to the tax book. A group asset is no
exception to this rule. Therefore, a group asset must be allowed in the corporate
book in order to be copied to the tax book.
Note: Mass Copy does not copy group reclassification transactions that are performed when
changing member assets' group assignment. Mass Copy does not copy an type of group
adjustment, including group reserve transfer, group retirement adjustments, and group
unplanned depreciation.
6. Optionally check the Allow CIP Members in Group Assets check box to enable adding
CIP assets to group assets. If this check box is not checked, you will not be able to add a
CIP asset to a group asset, even if you have set the default group asset on the Default
Depreciation Rules window on the Categories form. If the Allow CIP Members in Group
Assets check box is unchecked, the Allow CIP Depreciation in Group Assets check box
is disabled. Once the Allow CIP Members in Group Assets check box is checked and
saved, you cannot uncheck it.
7. You must check the Allow CIP Depreciation in Group Assets check box to depreciate the
CIP asset cost for member assets.
8. Optionally check the Allow Member Asset Tracking check box to enable member asset
tracking for the depreciation book. Once the check box is checked and saved, you cannot
uncheck it.
9. You must check the Allow Intercompany Member Asset Assignments check box if you
want to allow member assets to have balancing segment values that are different than the
balancing segment value of the group asset. If the check box is unchecked for a particular
depreciation book, you cannot set up member asset tracking for that book.

Chapter 5 - Page 36
Assigning Member Assets to Group Assets
Assigning Member Assets to Group Assets

You can assign a member asset to a group asset using the following three options:
• The Asset Workbench to assign an asset to a group asset.
• An asset category that is assigned to a group asset.
• The Prepare Mass Additions process to assign an asset to a group asset.
Detail Additions:
(N) Assets > Asset Workbench
1. Query the member asset you want to assign to a group asset.
2. In the Books window, enter the book.
3. On the Group Asset tabbed region, enter the group asset number in the Group Asset field.
4. Save your work.
Note: The Reduction Rate field is enabled for the member asset whenever it is enabled for the
group asset, and it defaults to the reduction rate setup of the group asset. You can override
the default reduction rate for each transaction.
Mass Additions

Chapter 5 - Page 37
(N) Mass Additions > Prepare Mass Additions
1. Query the member asset you want to assign to a group asset.
2. In the Mass Additions window, enter the group asset number in the Group Asset field.
3. (B) Done.
Asset Category
You can also enter the group asset number in the category default rules when setting up a new
category. All new assets for this category will be member assets of the group asset entered in
the category.

Chapter 5 - Page 38
Group Asset Reserve Transfer
Group Asset Reserve Transfer

You can use a reserve transfer to transfer all or part of the reserve from one group asset to
another.
(N) Assets > Asset Workbench
1. Query the group asset from which you are transferring a reserve amount.
2. Choose the Transfer Reserve button.
3. Enter the transfer amount and the destination group asset number.

Chapter 5 - Page 39
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Energy Assets
Energy Assets
Oracle Energy Assets addresses the financial and reporting requirements of the oil and gas
industry. The oil and gas industry accounts and reports asset information based on a two-level
parent (field) and child (wells) structure.
Asset information is:
• Captured at the lower level.
• Summarized to a higher level at which operations, queries and reporting are done.
Operations include:
• Depreciation calculation
• Overriding Oracle Assets-calculated depreciation
• Calculating gain and loss on retirement
• Transfer of costs and reserve
• Impairment
Depreciation Methods
Oil and gas companies use unit-of-production and life-based methods based on a depreciation
basis defined as Net Book Value (NBV) over the net remaining reserves for the Energy Units

Chapter 5 - Page 41
of Production method, or the net remaining life for the Energy Straight-Line method. The
assets in a hierarchy are transferred along with its reserve to another hierarchy. When an asset
is transferred, the source asset hierarchy is decreased by the transferred amount(s), and the
target asset hierarchy is increased by the transferred amount(s).
Energy companies also recognize impairment expense at the parent level.
Energy Assets uses the following two methods to calculate energy depreciation:
• Energy units of production

• Energy straight line

Chapter 5 - Page 42
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The mass additions process lets you add new assets or cost adjustments from other systems to
your system automatically without reentering the data. For example, you can add new assets
from invoice lines brought over to Oracle Assets from Oracle Payables, or from CIP asset lines
sent from Oracle Projects. CIP Asset additions will be discussed in more detail in the 12.x
Asset Management Fundamentals module CIP Asset Additions.
Create Mass Additions Program
The Create Mass Additions program creates mass additions from invoice information in Oracle
Payables and places them in the FA_MASS_ADDITIONS table. This table is separate from the
main Oracle Assets tables so that you can review and approve the mass additions before they
become actual asset additions. You run this program often to transfer potential asset invoice
lines. The same line is never transferred twice.
To integrate Oracle Assets with another payables system, develop a program to load the
FA_MASS_ADDITIONS table, and then use the Prepare and Post functions to add assets to
Oracle Assets.
Legacy Asset Conversion
Mass Asset Additions

Chapter 6 - Page 7
You can also use the mass additions process to convert data from a previous asset system.
Instead of loading the asset information into multiple Oracle Assets tables, load it into the
FA_MASS_ADDITIONS table. The Post Mass Additions process can then be used to move
the asset information from the table to Oracle Assets. After placing your data in this table, you
run the Post Mass Additions program to perform the data import.
Web ADI Asset Features
You can also use the features of the Oracle Web Applications Desktop Integrator (Web ADI)
to add assets. The Create Assets feature of Web ADI provides a spreadsheet-based interface to
simplify asset creation. You can also map data files from legacy systems or third party
payables applications into the asset worksheet. When you are satisfied with the worksheet, the
Upload to Interface feature automatically uploads the data into Oracle Assets.

Chapter 6 - Page 8
Using the Mass Additions Interface Table
Using the Mass Additions Interface Table

Oracle Payables
When you run the Mass Additions Create process in Oracle Payables, the
FA_MASS_ADDITIONS interface table is automatically populated. A row is inserted into this
table for each selected invoice line from Oracle Payables.
Web ADI
After creating asset data in an asset worksheet, you must upload it to Oracle Assets. Uploading
is a two-step process. First, you must upload your asset data to the interface table. Second, you
must post the asset data from the interface table to Oracle Assets.
Oracle Projects
You can run the Interface Assets process to send asset lines from Oracle Projects into one mass
addition line for each asset in the FA_MASS_ADDITIONS interface table. Add data in the
Prepare Mass Additions form. Oracle Assets then creates the assets by deriving the asset cost
account and posting journal entries for capitalization to Oracle General Ledger.
Adding Assets from Invoice Distribution Lines
Adding Assets from Invoice Distribution Lines

You can automatically add assets and cost adjustments directly into Oracle Assets from
external sources by using the Mass Additions process, the most common method for entering
asset information. External sources may be invoice information in Oracle Payables or other
payables system. This decreases data entry and helps avoid errors and information loss that can
occur during manual reentry.
• You enter purchase orders in Oracle Purchasing, and receive invoices in Oracle Payables.
• You then use Mass Additions process to create assets from one or more invoice
distribution lines in Oracle Payables.
• Because Oracle Assets is already integrated with Oracle Payables, you can easily
integrate it with other payables systems.
• You use the same interface to convert data from a previous assets system.
• Many Oracle Assets sites will have Oracle Payables implemented. Oracle Purchasing
usually accompanies Oracle Manufacturing products.
Adding assets via Oracle Projects is discussed in more detail in the Release 12.x
Asset Management Fundamentals module CIP Asset Additions.
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The Mass Additions Process
The Mass Additions Process

Step 1 Create Mass Additions
• Run Mass Additions Create from Oracle Payables to copy invoice distribution lines
representing potential assets into the FA_MASS_ ADDITIONS interface table in Oracle
Assets.
Step 2 Prepare Mass Additions
• Use Prepare Mass Additions to enter additional information for a mass addition; add a
mass addition to an existing asset as a cost adjustment; split a multiple-unit mass
addition; or merge mass additions to combine several mass addition lines.
• Note: This step must be performed before you can post mass additions.
Step 3 Post Mass Additions
• Run Post Mass Additions to create assets and cost adjustments from mass additions lines.
This process imports asset information from the FA_MASS_ADDITIONS table into
several other Oracle Assets tables.
Step 4 Delete Mass Additions

Chapter 6 - Page 12
• Run Delete Mass Additions to remove mass addition lines from the
FA_MASS_ADDITIONS interface table.
• Run Mass Additions Purge to remove the audit trail of deleted mass addition lines from
Oracle Assets.

Chapter 6 - Page 13
Step 1 Mass Additions Create
Step 1 Mass Additions Create

Creating Mass Additions
The Oracle Assets Mass Additions Create process, sends valid invoice distributions and
associated discounts from Payables to the interface table called FA_MASS_ADDITIONS. Use
the Prepare Mass Additions form to review the information before creating assets from the
invoice lines.
Entering Units in Purchasing
If you enter a purchase order in Purchasing with multiple units and match it completely to an
invoice in Payables, the Mass Additions Create process uses the number of units specified by
the original purchase order for the mass addition line. If you enter an invoice directly into
Payables without matching it to a purchase order, the default will be one unit.
Entering Invoices in Payables
When you want to import invoice lines from a new invoice entered in Payables, you must
charge the distribution to a clearing account that is already assigned to an asset category. The
line amount can be either positive or negative.
Entering Information in the Description Field

Chapter 6 - Page 14
Any additional information entered in the Description field in the Invoices Summary form in
Payables appears in the Description field in the Mass Additions form in Oracle Assets. The
description Discount appears for any imported discount line distributions.
Run Create Mass Additions
In Payables, after you validate, account and transferred to General Ledger, run Mass Additions
Create to send valid invoice line distributions to Oracle Assets. Note that the Mass Additions
Create process is typically run from Oracle Payables.

Chapter 6 - Page 15
Requirements to Create Mass Addition Lines
Requirements to Create Mass Addition Lines

Each appropriate invoice distribution line from Oracle Payables becomes a single mass
addition line in the FA_MASS_ADDITIONS table, as well as a potential asset. The invoice
does not need to be paid to be selected as a mass addition.
For the Mass Additions Create process to import an invoice line distribution to Oracle Assets,
these conditions must be met:
• The line is charged to an account set up as an asset account.
• The asset account charged is set up in an existing asset category as a clearing account.
• The Track as Asset check box is selected. (It is selected automatically if the account is an
Asset account as defined in the Natural Account segment of the Accounting Flexfield
structure for the ledger being used.)
• The invoice is validated and accounted in Oracle Payables.
• The invoice line distribution is transferred to Oracle General Ledger from Payables.
• The general ledger date on the invoice line distribution is on or before the date that you
specify for the create program.

Chapter 6 - Page 16
• Your installation of Oracle Payables is tied to the same general ledger as the corporate
book for which you want to create mass additions.
• If you use the multi-org feature, your Payables operating unit must be tied to the same
general ledger as the corporate book for which you want to create mass additions.

Chapter 6 - Page 17
Tracking Expensed Items in Oracle Assets
Tracking Expensed Items in Oracle Assets

You can track items expensed in Oracle Payables with your assets:
• Charge invoice distribution line to an Expense account, not Asset Clearing account.
• Manually select the Track as Asset check box.
• Item must meet all other conditions for valid import lines.
• Oracle Assets does not depreciate or create journal entries for expensed items.
Other Mass Additions Considerations
Other Mass Additions Considerations

Using Multiple Ledgers
Payables must be tied to the same general ledger as the corporate book for which you want to
create mass additions in Oracle Assets. If you use the multi-org feature and have multiple
corporate books in Oracle Assets, ensure that you create mass additions for the correct Oracle
Assets corporate book. You cannot create mass additions for tax books.
Define Items with Asset Categories
You can define a default asset category for an item in Purchasing or Inventory. Then when you
purchase and pay for one of these items using Purchasing and Payables, the mass additions
process defaults in this asset category. This is the only time Oracle Assets defaults an asset
category for a new mass addition line.
Handle Returns
You can easily process and track returns using mass additions. For example, you receive an
invoice, post it, and create an asset using mass additions. You then discover that the asset is
defective and you must return it.
First you reverse the invoice in Payables, charging the credit invoice line distribution to the
same asset clearing account. Then you run mass additions to bring over the credit line. Add this
line to the existing asset to bring the asset cost to zero. Now you can retire the asset. The asset
addition/retirement audit trail remains intact.
Running the Mass Additions Create Process
You can run Mass Additions Create as many times as you like during a period. Each time, it
sends potential asset invoice line distributions and any associated discount lines to the
FA_MASS_ADDITIONS table. Payables ensures that it does not bring over the same line
twice.
Attention: Verify that you are creating mass additions for the correct corporate book, because
you cannot undo the process and resend them to a different book.
Payables sends line amounts entered in foreign currencies to Oracle Assets in the converted
functional currency. Since Oracle Assets creates journal entries for the functional currency
amount, you must clear any foreign currency invoices manually in your general ledger. Review
the Mass Additions Create Report to see both foreign and functional currency amounts.
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(N) Mass Additions > Prepare Mass Additions
Review newly created mass addition lines before posting them to Oracle Assets. Enter
additional mass addition source, description, and depreciation information in the Mass
Additions form. Assign the mass addition to one or more distributions, or change existing
distributions, in the Assignments form. If the mass addition line was created in error, you can
delete it.
You can also perform the following actions on mass addition lines:
• Adjust the cost of a mass addition.
• Merge mass addition lines into another mass addition.
• Split a multiple-unit mass addition into several single-unit mass additions.
• Add a mass addition line to an existing asset as a cost adjustment.
• Choose whether to change the category and description of the existing asset to those of
the mass addition.

Chapter 6 - Page 22
Required Fields and Mass Additions
Required Fields and Mass Additions

It is standard Oracle Assets functionality that when invoice lines are created as mass addition
lines, they do not have all the required fields to create an asset complete with data. The Prepare
Mass Additions step is used to complete the required fields needing data in order for the mass
addition line to be available to post to Oracle Assets.
Automatic Preparation of Mass Additions
Automatic Preparation of Mass Additions

• Most of the preparation of mass addition lines can be performed automatically to
minimize manual intervention in the mass additions process.
• The Prepare Mass Additions concurrent program uses the information provided for
specific mass addition lines to populate the Asset Category and Expense Account fields.
• Oracle Assets uses default rules for the Auto Prepare Mass Addition Lines process, but
also allows you to customize your specific preparation needs. The rules you set up in the
public API will be used by the Prepare Mass Additions program to derive the data for
additional fields.
Automatic Preparation of Mass Additions Process
Automatic Preparation of Mass Additions Process

Set up Auto Prepare Mass Addition Lines Rules
(N) Asset System > Quick Code
Set up auto prepare mass addition line rules as follows:
• Use Default: The asset category is derived by matching the cost clearing account of the
line with the cost clearing account defined for the asset category for that asset book.
There must be a one-to-one mapping for the cost clearing account and the asset category.
• Use Custom: The Prepare Mass Additions concurrent program uses the custom logic
coded in the Public API.
• Use Custom Energy: The energy industry-specific custom rule.
Interface Mass Additions Lines from Oracle Payables or any other system
You can interface mass addition lines from Oracle Payables or an external system (interfacing
mass additions lines will be addressed later in this course).
Run the Prepare Mass Additions Program
Once you have created your mass addition lines, run the Prepare Mass Additions concurrent
program from the Concurrent Manager. After the Prepare Mass Additions concurrent program
is run, you can verify the mass additions data, if needed, and then post the mass additions.
The Prepare Mass Additions concurrent program processes lines in FA_MASS_ADDITIONS
that have a queue status of NEW or ON HOLD.
The Prepare Mass Additions program derives the expense account by taking 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 category. If the program cannot
derive the required information, the Queue status is set to ON HOLD and you can review and
make the necessary changes to the asset line.
If you set the rule to Custom: the Prepare Mass Additions program uses the custom logic coded
in the Public API.
Verify Mass Additions Data
Optionally verify your mass additions data.
Post mass additions
Post mass additions (posting mass additions will be addressed later in this course).
Mass Addition Queues
Mass Addition Queues

Each mass addition belongs to a queue that describes its status, and the queue name changes
according to the transactions you perform on the mass addition. You can define your own mass
additions hold queues in the QuickCodes form. The following table describes each Oracle
Assets mass addition queue name:

Chapter 6 - Page 27
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Merging Mass Addition Lines
Merging Mass Addition Lines

• You can merge separate mass addition lines into a single mass addition line with a single
cost. The mass addition line becomes a single asset when you Post Mass Additions to
Oracle Assets. For example, merge tax lines into the main invoice line distribution;
merge a discount line with its appropriate mass addition line; or combine individual mass
additions from different invoices into a single line and amount.
• You can only merge mass additions in the NEW, ON HOLD, or user–defined hold
queues. Choose whether to sum the number of units.
• As an audit trail after the merge, the original cost of the invoice line distribution remains
on the line. The asset cost is the total merged cost.
• You can undo a merge before but not after posting the merged parent. The mass addition
lines will appear as they did before the merge.
- Attention: You cannot merge split mass addition lines. For example, if you split a
mass addition line with 5 units into five separate mass additions, you cannot merge
two of the new split lines together. You can, however, post one of the lines to create
a new asset, and then add the second mass addition line to the existing asset as a
cost adjustment.

Chapter 6 - Page 29
Splitting Mass Addition Lines
Splitting Mass Addition Lines

• You can split a mass addition line with multiple units into several single unit lines.
• You can split a previously merged mass addition line.
• If you split a mass addition, the original line is put in the SPLIT queue as an audit trail of
the split. The resulting split mass additions appear with one unit each, and with the same
existing information from the source system. Each split child is now in the ON HOLD
queue. You can review each line to become a separate asset.
• If you split a multi-distributed mass addition line, Oracle Assets proportionately divides
each split child's units between all of the parent's distributions.
• You can undo a split before posting the split children. Oracle Assets places the original
multiple unit mass addition line in the ON HOLD queue and deletes the single unit lines.
Merging Then Splitting Functionality
Merging Then Splitting Functionality

• You can split a mass addition into which you merged mass additions. Suppose you have
an invoice with one line for three delivery trucks at 90,000 and another line for tax of
6,000. You want to split the tax equally among the trucks and track the cost of the trucks
plus their proportionate share of the tax as three separate assets.
- Merge the tax line into the truck line for an invoice sum of 96,000. This amount
represents the merged parent.
- Split the merged parent line into three child lines, each at 32,000 (96,000/3).
• Remember, you cannot merge split mass addition lines.
Adding a Mass Addition Line to an Existing Asset
Adding a Mass Addition to an Existing Asset

• You can add a mass addition line to an existing asset as a cost adjustment. Choose
whether to change the category and description of the existing asset to those of the mass
addition. If you choose to do so, Oracle Assets reclassifies the destination asset to the
category and updates its description to that of the mass addition when you Post Mass
Additions. Also choose whether to amortize or expense the cost adjustment.
• When you change the queue name to POST for a mass addition line, you are adding to an
existing asset and save the record, Oracle Assets automatically changes the queue name
to COST ADJUSTMENT. This makes it easy to differentiate between adding a new asset
or adjusting an existing asset.
• Note that you do not need to prepare a mass addition line added to an existing asset. It
inherits the detail asset information from the existing asset you are adding it to. You
must, however, remember to change the queue to POST and save the record.
• You can undo a cost adjustment prior to posting mass additions for the line you are
adding to an asset. Once the mass addition line has been posted, you cannot undo the cost
adjustment within the mass additions functionality.
Accounting for Cost Adjustments Example
Accounting for Cost Adjustments Example

• A truck costs $ 120,000
• The depreciation method is straight-line and the life is 60 months
• At the beginning of month 31 of the truck's life, you add a mass addition of $ 6,000 to the
cost of the truck and elect to amortize the cost adjustment
To Record the Cost Adjustment invoice in Oracle Payables:
Asset Clearing DR 6,000
Accounts Payable 6,000 CR
To Record the Cost Adjustment and Depreciation Expense in Oracle Assets:
Asset Cost DR 6,000
Depreciation Expense * 2,200
Asset Clearing 6,000 CR
Accumulated Depreciation 2,200
* Net book value at end of month 30 = $60,000 plus cost adjustment of $ 6,000
New net book value of $ 66,000 / 30 months remaining life = $ 2,200 depr/month

(N) Mass Additions > Post Mass Additions
• Run the Post Mass Additions program to create assets from mass addition lines in the
POST queue using the data you entered in the Mass Additions form. The program also
adds mass additions in the COST ADJUSTMENT queue to existing assets. You can run
this program as often as you want during a period.
• If you post many mass additions, you can set up Oracle Assets to run more than one
process in parallel by changing the value for the FA: Number Mass Addition Parallel
Requests profile option.
• If a Mass Addition is not successfully posted, it is placed in the ON HOLD queue.
• Oracle Assets automatically runs the Mass Additions Posting Report at the end of the
Post Mass Additions program.
Note: When you run Post Mass Additions, all costs for MERGED lines will be transferred to
the Asset Books.
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(N) Mass Additions > Delete Mass Additions
• In the Mass Additions form, place lines that should not become assets in the DELETE
queue.
• Run the Delete Mass Additions program to remove unwanted mass addition lines.
• All lines in the DELETE, POSTED and SPLIT queues are removed from the
FA_MASS_ADDITIONS table. SPLIT parents are removed if the split children have
been posted or deleted.
• The program archives mass additions in the DELETE queue to an audit trail table,
FA_DELETED_MASS_ADDITIONS only. Lines assigned to the DELETE queue are
not journalized; clear these with a manual journal entry.

Chapter 6 - Page 36
Purge Mass Additions
Purge Mass Additions

From the Fixed Assets Administrator Responsibility
(N) Purge > Mass Additions
• Purge Mass Additions is only available under the Fixed Assets Administrator
responsibility
• Run the Purge Mass Additions program to remove mass additions from the archive table
FA_DELETED_MASS_ADDITIONS.
• Purging Effects:
- The program purges all mass additions you marked for deletion and removed from
the Mass Additions form using Delete Mass Additions.
- Purging the archive table frees hardware resources.
- You cannot restore information after purging.
Future Transactions
Future Transactions
Oracle Assets supports one open asset accounting period. However, Oracle Assets allows you
to enter transactions for future accounting periods. When you enter a future transaction, it is
temporarily stored in the FA_MASS_ADDITIONS interface table. This pending transaction
does not become effective until the transaction date for the transaction is within the current
open period in Oracle Assets. For example, if the current open period is May 2000, and you
enter an adjustment transaction with a transaction date of 01–Sep–2000, the transaction does
not become effective until Sep–2000 is the current open period.
When you open a new accounting period, the Process Pending Transactions concurrent
program runs and automatically processes all pending transactions with a transaction date that
falls within the open period. You do not need to enter any further transaction detail to complete
the transaction in the effective open period.
The Process Pending Transactions program looks up the transaction date of each pending
transaction. If the transaction date falls within the current open period of the corporate book,
the program processes that transaction. Any exceptions are written to the log file.
It is not necessary to enter future transactions in chronological order. The Process Pending
Transactions program automatically processes pending transactions in chronological order.
You can also add assets from invoice lines from Oracle Payables, and provide a future date
placed in service. These invoices must first be posted to future General Ledger periods from
Oracle Payables and satisfy all other mass addition criteria to be successfully interfaced from
Oracle Payables to Oracle Assets.
Entering Future Transactions
(N) Mass Additions > Prepare Mass Additions (B) New
1. Enter the corporate depreciation book to which the asset will be added.
2. Select a Queue Name from the list of values.
3. Enter the transaction date for this addition. The date must be a future date. In other
words, the date must be later than the last day of the current open period.
4. Enter the number of units.
Note: Before running the Process Pending Transaction process, you must set the queue name to
POST. Otherwise, the addition will not be processed in the appropriate period.
Process Pending Transactions
• When you open a new accounting period, the Process Pending Transactions concurrent
program runs and automatically processes all pending transactions with a transaction date
that falls within the open period. You do not need to enter any further transaction detail to
complete the transaction in the effective open period.
- The Process Pending Transactions program looks up the transaction date of each
pending transaction. If the transaction date falls within the current open period of
the corporate book, the program processes that transaction. Any exceptions are
written to the log file.
- It is not necessary to enter future transactions in chronological order. The Process
Pending Transactions program automatically processes pending transactions in
chronological order.
Creating Future Transactions in Oracle Payables
• Oracle Payables allows you to enter invoices with a future date placed in service.
However, you cannot post these invoices to General Ledger until the period is open.
Invoices that are not yet posted to Oracle General Ledger cannot be transferred to Oracle
Assets.
• Normally, the Mass Additions Create program in Oracle Payables forces the date placed
in service to be in the current open period, even if the General Ledger date and invoice
date are in the future. To use Oracle Assets to process future invoice additions, you must
set the FA: Default DPIS to Invoice Date profile option to Yes. This allows you to default
the date placed in service to the invoice date, even though the
• invoice date is in a future accounting period.
To review future mass additions lines:
Mass Additions > Prepare Mass Additions
1. Enter the selection criteria for the mass additions lines.
2. (B) Find
3. Highlight the desired invoice line and select Open.
4. Review the future mass addition.
5. When you are ready to run the Process Pending Transactions process, change the queue
name to POST for any future transactions that need to be processed. The date placed in
service, or transaction date, defaults to the invoice date. However, you can overwrite the
transaction date.

Chapter 6 - Page 40
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View Pending Transactions
View Pending Transactions

When you enter a future transaction, the system assigns a transaction type as an audit trail.
Available transaction types are:
• FUTURE ADD –– manual or invoice addition of asset
• FUTURE ADJUST – a manual or invoice adjustment
• FUTURE CAPITALIZE – capitalization of current or future CIP assets
You should view all pending transactions for an asset before performing adjustments and other
future transactions.

Chapter 6 - Page 42
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Creating Assets Using Web ADI
Create Assets Using Web ADI

Use Web ADI to create assets additions through the Additions Integrator. The Additions
Integrator provides a spreadsheet-based interface to simplify asset creation.
• Use the Additions Integrator to automatically build personalized asset entry spreadsheets
based on the information required by your organization's specific implementation of
Oracle Assets.
• You can enter your asset data manually, use the list of values, and take advantage of
Excel's data entry shortcuts.
• You can also map data files from legacy systems or third party payables applications into
the asset worksheet.
• When you are satisfied with the worksheet, the Upload feature automatically uploads the
data into Oracle Assets.
Web ADI comes seeded with five layouts, but you can also create your own custom layouts.
The seeded layouts are as follows:
• Add Assets – Default
• Add Assets – Detailed

Chapter 6 - Page 44
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Web ADI Upload to Oracle Assets
Web ADI Upload to Oracle Assets

After creating asset data in an asset spreadsheet, you must upload them to Oracle Assets.
Uploading is a two-step process. First, you must upload your asset data to the interface table.
Second, you must post the asset data from the interface table to Oracle Assets.
You can select from the following options to control uploading and importing:
• Rows to Upload: Controls which rows in the asset worksheet to upload. Select:
- All Rows > to upload all rows in your worksheet, regardless of whether changes
have been made.
- Flagged Rows > to upload only those rows that are marked with a flag character in
the upload column of your worksheet.
- Note: The Upload process validates all asset data, verifying field type and length.
Web ADI also performs flexfield validation, cross-validation and segment security
checking.
• Create Assets: Check this check box to start the Create Assets process and create assets
automatically after the upload completes.

Chapter 6 - Page 46
- If you choose to start the Create Assets process automatically, Web ADI will do the
following after the upload completes:
Submit your Create Assets request.
Display a form showing:
Number of errors in the upload to the interface table.
Post Mass Additions request ID.

A message indicating that a concurrent request has been submitted for the Post
Mass Additions Mass Additions Posting Report request IDs.

Chapter 6 - Page 47
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R12.x Oracle Asset Management Fundamentals (Sudent Guide) 1

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Unauthorized reproduction or distribution prohibitedฺ Copyright© 2010, Oracle and/or its affiliatesฺ

Restricted Rights Notice

U.S. GOVERNMENT RIGHTS

Gail D’Aloisio, Brent A. Bosin, Paul Scott, Assad Akhavan

Technical Contributors and Reviewers

Isner, Ivy Farren, Bruce Ingram

This book was published using: oracletutor

Overview of Oracle Asset Management.........................................................................................................1-1

Copyright © Oracle, 2010. All rights reserved.

R12.x Oracle Asset Management Fundamentals Table of Contents

Asset Additions Required Data......................................................................................................................5-11

Copyright © Oracle, 2010. All rights reserved.

R12.x Oracle Asset Management Fundamentals Table of Contents

Web ADI Upload to Oracle Assets.................................................................................................................6-46

Tax Book Upload Interface............................................................................................................................13-22

 Basic knowledge of business accounting concepts

 Familiarity with data processing concepts and techniques

 R12 Navigate Oracle Applications

 R12 eBusiness Suite Essentials for Implementers

How This Course Is Organized

Copyright © Oracle, 2010. All rights reserved.

R12.x Oracle Asset Management Fundamentals Table of Contents

Oracle Assets User Guide E13586-03

 System release bulletins

 Installation and user’s guides

 International Oracle User’s Group (IOUG) articles

Passwords DROP USER scott

Lowercase Syntax variables CREATE ROLE role

Typographic Conventions in Oracle Application Navigation Paths

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

(ST) = Sub Tab

The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

Overview of Oracle Assets

Copyright © Oracle, 2010. All rights reserved.

Overview of Oracle Asset Management

E-Business Suite Integration

Implementation Considerations for Oracle Financials

• Simplifies future upgrades.

The Best Team for the Job

Critical Implementation Issues

Oracle Assets Setup Steps

Oracle Assets Key Flexfields

 The Location Flexfield

Implementing Oracle Assets

• Setting Up Oracle Assets

Asset Books Positioning

• There are 3 types of asset books:

Adding Assets Manually

Copyright © Oracle, 2010. All rights reserved.

Overview of Oracle Asset Management

Copyright © Oracle, 2010. All rights reserved.

Overview of Oracle Asset Management

 Add a cip asset

Copyright © Oracle, 2010. All rights reserved.

Overview of Oracle Asset Management

Acquire and Build CIP Assets

Asset Adjustment Overview

 Adjusting Asset Units