Creating a Capital Asset in Oracle Projects

Create a capital project to collect construction-in-process (CIP)

costs you want to place in service and send to Oracle Assets to
become fixed assets.
You create an asset in Oracle Projects for each CIP asset you want
to place in service. You generate summarized asset lines for each
asset, which you can interface to Oracle Assets when the asset is
ready to be placed in service. You can copy a capital project and its
assets to create a new project.
Create a Capital Project
1. Enter the cost that you want to capitalize either in the Pre-
approved expenditure entry or through transaction import or from
Payables or other modules.
2. Run the distribute process for the type of cost that you are
dealing with. (i.e labor, usage, and miscellaneous cost. )
3. If the item is from Payables, you need to run the ‘PRC: Interface
Supplier Costs’ process.
4. Interface Raw Cost and Burden Cost to GL. You may need to run
the suitable process from the list below:
PRC: Interface Labor cost to GL
PRC: Interface Total Burdened Cost to GL
PRC: Interface Usage and Miscellaneous Cost to GL
PRC: Interface Supplier Invoice Adjustments to AP(if item is from
payables).
5. Define Assets under Projects
6. Assign Assets to a Task/Project in Oracle Projects.
7. Place the Assets in service.
8. Run the ‘PRC: Update Project Summary Amounts‘ to update the
Cost buckets.
9. Run the ‘PRC:Generate Asset Lines’ process to generate Asset
Lines in PA.
10. Run ‘PRC: Interface Assets’ process to interface Asset Lines to
FA.
11. In Fixed Assets post the Asset Lines you have interfaced from
PA to FA.
Things you may have to check before generating asset lines:
1. Check all the costs have been cost distributed( You need to run
the appropriate cost distribution process
labor, expense, miscellaneous etc depending upon your
expenditure type).

2. Check the project type for the project. In the capitalization

information, alternate region it indicates whether raw or burden
costs are being capitalized. If burden costs are used, then nothing
will get picked up unless Distribute total Burden costs has been
run.
3. Make sure that the assets have an in-service date and that the
report parameter Date Placed In Service Through includes this
date.
4. Check the PA Date Through parameter used. Note that this must
be at least the last day of the period which includes the PA Date of
the cost distribution lines of the expenditure.
If this date is not the last day of a period, the process will select the
first date which is a last day of a period prior to the date entered.
Lets say your PA periods are like below:
JAN-13 01-JAN-13 to 31-JAN-13 FEB-13 01-FEB-13 to 28-FEB-13
If you have CDL’s with a PA date of 15-FEB-13, and you enter a PA
date through 25-FEB-13, these CDL’s will not be picked up because
the process will not actually use the date 25-FEB-13, but rather the
first period ending date prior to that date, or 31-JAN-13.
5. Check the project status. In Setup-Projects-Status, make sure
that the project’s current status has the Capitalize Assets action
allowed.