Oracle Financials > Oracle Fixed Asset
Fixed Assets Basic Setup Steps - Oracle FA
This document will explain the major setups that are required
to configure Oracle Asset module.
Define Asset Key Flexfield
Define Asset Category Key Flexfield
Define Asset Location Key Flexfield
Add values to the Category, Location and Asset Key value Sets
System Controls
Define Asset Fiscal Year
Define Asset Calendars
Define Prorate Conventions
Define Asset book Control
Detail:
1- Define Asset Key Flexfield
Flexfield is used to group assets by non-financial
information. In my little experience there is no use for this flexfield.
Although we have to create at least on segment with a default value in its
value set because they asset key field on the asset addition window will become
mandatory.
Define one segment and assign a value set to it with one
default value.
Setup>Financials>Flexfields>Key>Segments
Define Asset Key Flexfield
Define Asset Key Flexfield Segment
This screen is used to define the Value Sets for each
segment used in the Asset key flexfield. There are seven possible segments and
Oracle recommends that no more than three segments be used. This is a Global
and site specific variable.
2- Define Asset Category Key Flexfield
This Flexfield is used to group assets by financial or
logical identification and usually depreciate using the same rules. Two
Segments are predefined in the oracle Application Major Category and Minor
category and frequently they are used.
For example the major category is automobiles under this
major category we can have many minors like cars, trucks and fork lifters
….etc. It is good to notice that when defining the value set for the minor
category it must be dependent on the major category.
Note: Assets flexfields are Global.
Define Asset Category Flexfield
Setup>Financials>Flexfields>Key>Segments
Use key Flexfields to customize your application to fit
unique business needs.
Define Asset Category Flexfield Segment
Use key Flexfields to customize your application to fit
unique business needs.
Define Asset Category Qualifiers
3- Define Asset Location Key Flexfield
Setup>Financials>Flexfields>Key>Segments
Define Asset Location Flexfield
Define Asset Category Flexfield Segments
4- Create Asset Category
Enter the required detail to create the asset category.
Complete the below requried details as per requirement.
5-System Controls
Setup> Asset system> System
controls.
It’s very important that you take a
notice when you enter the Oldest Date Placed In Service Field, as you will not
able to add any assets before this date.
6-Define Asset Fiscal Year
Setup> Asset System> Fiscal Year
Define fiscal year for the system from the Oldest date an
asset is placed in service
7-Define Asset Calendars
Setup> Asset System> Calendars
You can create as many calendars as
you want. You can create on calendar for calculating depreciation and another
for prorate convention –
. Usually we create one calendar and
use it for both purposes.
Note That: Periods’
Names entered for the calendar must be exactly like the periods’ names entered
in the calendar defined for your ledger.
8-Define Prorate Convention
Setup>Asset System >Prorate
Conventions
Prorate/Retirement Convention
when to start calculating asset depreciation based on when the asset is placed in service.
when to start calculating asset depreciation based on when the asset is placed in service.
For Example, assets will be depreciated added on the 1st half of the month to be depreciated in the same month; on the other hand assets added in 2nd half of the month depreciated on the next month of the month they are placed is service.
9-Define Asset book Control
There are 3 types of
asset books:
1- Corporate Book.
2- Tax Book.
3- Budget Book.
1- Corporate Book.
2- Tax Book.
3- Budget Book.
(N)> Setup> Asset System> Book Controls
Calendar :
Accounting Rules:
Capital Gain Threshold:
The period you want the system to wait before start calculating capital gains when you retire an Asset.Amortized Changes:
If You want to be able to change the amortization amount calculated by the system for patents or Good-well.Allow Mass Changes:
To allow changes to take effect on multiple assets when made.UK Local Authority Accounting:
Used by the UK Law.Allow cost sign changes:
To be able to change the sign of assets cost.
Allow
Revaluation:
To allow revaluation for assets.Revalue Accumulated Depreciation:
Used to revalue the accumulated depreciation when a revaluation is made on an
asset .If you do not revalue accumulated depreciation, the system transfers the
accumulated depreciation to the revaluation reserve account.
Revalue YTD Depreciation:
To revalue year-to-date depreciation.
Retire
Revaluation Reserve:
to close the revaluation reserve account –used if you don’t revalue
accumulated depreciation- when the asset is retired.
Amortize
revaluation reserve:
to allow the reserve account –used if you don’t revalue accumulated
depreciation- to be amortized.Revalue fully reserved assets:
When you have an asset that is fully
reserved for a reason or another, you will be to revalue this asset.
Life Extension Factor & Life Extension Ceiling:
If you used revaluating fully
reserved assets enter an life exterior factor, this will extend the asset life
by using the following equation: New asset life = Life exterior factor x Asset
Life.
Enter the maximum life of the asset after extension.
Enter the maximum life of the asset after extension.
Allow Group Assets Depreciation:
To add group assets to this Book.Allow CIP Members in Group Assets:
To allow CIP Assets to be added to a
Group asset.
Allow CIP Depreciation in Group Assets:
To allow depreciation of member CIP
asset cost.
Allow Member Assets Tracking:
To be able to track a single member
asset in Asset Group.
Allow Intercompany Member Asset Assignments:
To allow the group asset and member
assets to have a different balancing segment value. If the check box is not
checked, the group asset and each of its member assets must have the
same balancing segment value.
Natural Accounts:
Proceeds of Sale:
This Account is used to record the Gain or Loss resulting from sale of an asset.Cost of Removal:
This Account is used to record the cost of removing an asset when sold.Net Book value Retired:
This Account is used to record Gain/Loss when retiring an asset.Revaluation Reserve Retirement:
This Account is used to record Gain/Loss on the revaluation reserve if used when retiring an asset.Deferred Revaluation Reserve & Deferred Depreciation Expense & Depreciation Adjustments:
These 3 account are used to record the difference between the depreciation calculated by the corporate book and the tax book if you are using a Tax book. (US Tax Law)Account Generator Defaults:
An account generator can be used to alternate the way Oracle Fixed Assets standard Transaction.The Default Account combination for the Journal entries comes from different areas as described below
