Asset Adjustments and Maintenance

Release 12 Oracle Asset Management Fundamentals

Copyright 2007, Oracle. All rights reserved.

Objectives

After completing this module, you should be able to do

the following:
Discuss the various types of adjustments that can
be made to assets once they have been added to
the system
Discuss mass transaction capabilities for
reclassification, changes, and transfers
Discuss the implications of amortizing versus
expensing asset adjustments

Copyright 2007, Oracle. All rights reserved.

Objectives

After completing this module, you should be able to do

the following:
Discuss Mass Asset Revaluation
Discuss Asset Maintenance
Explain the physical inventory feature of Oracle
Assets

Copyright 2007, Oracle. All rights reserved.

Agenda

Types of Asset Adjustments

Amortizing Asset Adjustments
Physical Inventory

Copyright 2007, Oracle. All rights reserved.

Asset Adjustments

Unit
Change
Reclass

Transfer

Oracle Assets

Copyright 2007, Oracle. All rights reserved.

Change
Financial
Info

Changes
via APIs

Asset Adjustment Overview

Adjustment

Action Performed

Mass
Transaction
Available

Reclassification Change Asset Category

Yes

Unit Change

Change Number of Asset

Units

No

Financial
Information

Change Asset Cost and/or

Depreciation Information

Transfer

Change Asset Assignment

Information

Yes (Prorate
Convention,
Method, Life
only)
Yes

Copyright 2007, Oracle. All rights reserved.

Single Asset Reclassification

VEHICLE-LEASED
STANDARD

VEHICLE-OWNED
STANDARD

Reclassification Actions
Transfers the cost and accumulated depreciation to
the accounts associated with the new category
Depreciation expense already taken remains in the
account associated with the old category
Charges current depreciation expense according to
the new category
Reclassification Restrictions
Cannot reclassify fully retired assets
Does not redefault the depreciation rules to the
default rules from the new category

Copyright 2007, Oracle. All rights reserved.

Mass Reclassification

VEHICLE-LEASED
STANDARD

VEHICLE-OWNED
STANDARD

Additional Options Available:

Inherit Depreciation Rules
Amortize Depreciation Adjustments
Copy Descriptive Flexfield Information

Copyright 2007, Oracle. All rights reserved.

Inheriting Depreciation Rules

STL 30 Yrs

BUILDING-OFFICE

STL 25 Yrs

BUILDING-MANUFACTURING

Performed at the book level

Depreciation rules are inherited in both the
corporate and tax books
Must Allow Mass Changes in Accounting Rules
region of the asset book
You cannot choose to have assets inherit only
specified depreciation rules
If you do not check the Amortize adjustments check
box, adjustments will be expensed
Copyright 2007, Oracle. All rights reserved.

Copying Category Descriptive

Flexfield Information
Plate=HBU123
Insurer=A1 Co
VEHICLE-LEASED
STANDARD

Plate=HBU123
Insurer=A1 Co
VEHICLE-OWNED
STANDARD

Will be copied only if assets are being reclassified

within the same major category.
The descriptive flexfields should be set up with the
same segments in both the old and the new category.
If you do not choose to copy category descriptive
flexfield information to the new category, the
category descriptive flexfield information from the
old category will be deleted.

Copyright 2007, Oracle. All rights reserved.

Mass Transactions Process

Create a new
definition
Run Preview

Expected
Results?

Change definition

No

Yes
Run Final
Program

Complete

No

Review
Later?

Yes

Run Review
Finish review

Copyright 2007, Oracle. All rights reserved.

Recording a Reclassification
Cost $4,800
STL 4 Yr

Per 1

In Period 4 you reclass the

asset from COMPUTER-PC
to COMPUTER-NETWORK

Per 4

Per 48

Reclass journal entry:

Asset Cost - COMPUTER-NETWORK

Dr
4,800

Asset Cost - COMPUTER-PC

4,800

Depreciation journal entry:

Depr Exp (current) - COMPUTER-NETWORK

100

Acc Depr - COMPUTER-PC

300

Acc Depr - COMPUTER-NETWORK

Copyright 2007, Oracle. All rights reserved.

Cr

400

Adjusting Units

3 units

2 units

Assignments Window
Adjust Units -1

Copyright 2007, Oracle. All rights reserved.

Adjusting Financial Information

Cost
Depreciation
ceiling
Unit of
measure

Salvage value
Life

Following
month prorate
convention

Financial information
adjustment

Capacity

Depreciation
method
Rates

Bonus rule

Copyright 2007, Oracle. All rights reserved.

Choosing to Expense or Amortize Depreciation

Adjustments

Cost Adjustment
3,600
In Period 11

Original Cost
7,200
36 Period Life

Depreciation Adj
1,000

Depreciation Adjustment Expense Per 11

No

Amortize
Adjustment ?

Yes

1,000
Current Period

40
(1,000 / 25 periods)

Copyright 2007, Oracle. All rights reserved.

Amortizing Adjustments Using a Retroactive Start

Date
45 periods
OCT-01
(1)

JAN-02

APR-02

SEP-05

(2)
Amort
Start Date

End of Life

Asset Added

Cost Adj

$24,000

$7,200

(1) Depr Adj $7,200/48 * 3

periods = $450

APR-02 Depreciation:
Depreciation Expense

$660.00 New cost [$31,200 / 48 per]

+ [$450 / 45 per]

Depreciation Expense
Adjustment

$480.00

(2) [JAN-MAR $7,200 / 48

per * 3 per] + [JAN-MAR
$450 / 45 per * 3 per]

Copyright 2007, Oracle. All rights reserved.

Using Mass Changes

Before

After

Prorate
Convention

Prorate
Convention

Depreciation
Method

Depreciation
Method

Life

Life
Copyright 2007, Oracle. All rights reserved.

Single Asset Transfers

Before
General Ledger Number
Company
Cost Center
Account
Product
SubAcct

01
110
7320
0000
000

After
General Ledger Number

Depreciation
Expense
Accounts

Company
Cost Center
Account
Product
SubAcct

01
120
7320
0000
000

Locations
US-CA-SF-BLDG3
Charles Ackroyd
Employee 33

FR.GV.PA.BLDG3
Employees

Copyright 2007, Oracle. All rights reserved.

Sandy Chen
Employee 117

Mass Asset Transfers

From:
USA-VA-RICHMOND-H300
To:
USA-PA-PITTSBURGH-A450

You can change the transfer date to a prior period date

within the current fiscal year. You cannot change the date
to a future period date.

Copyright 2007, Oracle. All rights reserved.

Asset Revaluation

Revalue assets to adjust the value of your capitalized

assets in a highly inflationary economy.

Copyright 2007, Oracle. All rights reserved.

Scheduling Asset Maintenance

Oracle Assets allows you to schedule repair and

service events for your longterm capital assets, to
help ensure you maintain your longterm assets in
a timely manner.
You can plan for maintenance to occur at
appropriate times, such as seasonal downtime.
You can also schedule maintenance to occur at
specific intervals, for example, monthly.
Using Oracle Assets to schedule your asset
maintenance also allows you to record the
maintenance history of assets, in addition to
scheduling future maintenance events.
Copyright 2007, Oracle. All rights reserved.

Performing Physical Inventory

Enter physical
inventory

Run inventory
comparison

View
comparison

Reconcile
differences

Update assets
manually
Copyright 2007, Oracle. All rights reserved.

Entering Physical Inventory

Excel Spreadsheet
via Web ADI

Manual Entry

Enter physical
inventory

Copyright 2007, Oracle. All rights reserved.

SQL Loader

Physical Inventory Comparison

Run inventory comparison

View comparison - Status Codes

DIFFERENCE

NEW

NON-INVENTORIAL

NOT UNIQUE

RECONCILED

NO ASSET NUMBER

Copyright 2007, Oracle. All rights reserved.

TO RECONCILE

Physical Inventory Reconciliation

Physical
Inventory

Asset Mgmt
System

Copyright 2007, Oracle. All rights reserved.

Integrating Web ADI with Physical Inventory

Upload

Enter physical
inventory in
Web ADI

FA_INV_INTERFACE
table

Run Physical
Inventory
Comparison
Report

Copyright 2007, Oracle. All rights reserved.

Summary
After completion of this module, you should now be
able to:
Discuss the various types of adjustments that can
be made to assets once they have been added to
the system
Discuss mass transaction capabilities for
reclassification, changes, transfers, and
revaluations
Discuss the implications of amortizing versus
expensing asset adjustments
Discuss Asset Maintenance
Explain the physical inventory feature of Oracle
Assets
Copyright 2007, Oracle. All rights reserved.