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Ans) You can use one of the following processes to enter new assets:
QuickAdditions
Use the QuickAdditions process to quickly enter ordinary assets when you must enter them
manually. You can enter minimal information in the QuickAdditions window, and the remaining
asset information defaults from the asset category, book, and the date placed in service.
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
Subcomponent assets
Mass Additions
Use the Mass Additions process to add assets automatically from an external source. Create
assets from one or more invoice distribution lines in Oracle Payables, CIP asset lines in Oracle
Projects, asset information from another assets system, or information from any other feeder
system using the interface. You must prepare the mass additions to become assets before you
post them to Oracle Assets.
Ans) Run the depreciation program independently for each of your depreciation books. The
depreciation program calculates depreciation expense and adjustments, and updates the
accumulated depreciation and year-to-date depreciation.
To run depreciation:
1. Open the Run Depreciation window.
2. Choose the Book for which you want to run depreciation.
3. Choose Run to submit concurrent requests to run the calculate gains and losses, depreciation,
and reporting programs.
Attention: You cannot enter transactions for the book while depreciation is running.
Oracle Assets automatically runs the Journal Entry Reserve Ledger report when you run the
depreciation program for a corporate book, and the Tax Reserve Ledger report for a tax book, so
you can review the depreciation calculated.
4. Review the log files and report after the request completes.
5. What are the various Journal Entries generated through fixed assets?
Ans)
Addition Journal
Current and Prior Period Addition
You purchase and place the asset into service in Year 1, Quarter 1.
Payables System
The following examples illustrate the effect on your assets and your accounts when you
specify different revaluation rules.
Revalue Accumulated Depreciation
Example 1: You place an asset in service in Year 1, Quarter 1. The asset cost is $10,000,
the life is 5 years, and you are using straight-line depreciation.
In Year 2, Quarter 1 you revalue the asset using a revaluation rate of 5%. Then in Year 4,
Quarter 1 you revalue the asset again using a revaluation rate of -10%.
Revaluation Rules:
Revalue Accumulated Depreciation = Yes
Amortize Revaluation Reserve = No
Retire Revaluation Reserve = No
Oracle Assets bases the new depreciation expense on the revalued remaining net book
value.
In Year 5, Quarter 4, at the end of the asset's life, you retire the asset with no proceeds of
sale or cost of removal.
The effects of the revaluations are illustrated in the following table:
Period (Yr, Qtr.) Asset Cost Deprn. Expense Accum. Deprn. Reval. Reserve
Yr1,Q1 10,000.00 500.00 500.00 0.00
Yr1,Q2 10,000.00 500.00 1,000.00 0.00
Yr1,Q3 10,000.00 500.00 1,500.00 0.00
Yr1,Q4 10,000.00 500.00 2,000.00 0.00
Reval. 1 5% 10,500.00 0.00 *2,100.00 **400.00
Yr2,Q1 10,500.00 525.00 2,625.00 400.00
Yr2,Q2 10,500.00 525.00 3,150.00 400.00
Yr2,Q3 10,500.00 525.00 3,675.00 400.00
Yr2,Q4 10,500.00 525.00 4,200.00 400.00
Yr3,Q1 10,500.00 525.00 4,725.00 400.00
Yr3,Q2 10,500.00 525.00 5,250.00 400.00
Yr3,Q3 10,500.00 525.00 5,775.00 400.00
Yr3,Q4 10,500.00 525.00 6,300.00 400.00
Reval. 2 -10% 9,450.00 0.00 *5,670.00 **-20.00
Yr4,Q1 9,450.00 472.50 6,142.50 -20.00
Yr4,Q2 9,450.00 472.50 6,615.00 -20.00
Yr4,Q3 9,450.00 472.50 7,087.50 -20.00
Yr4,Q4 9,450.00 472.50 7,560.00 -20.00
Yr5,Q1 9,450.00 472.50 8,032.50 -20.00
Yr5,Q2 9,450.00 472.50 8,505.00 -20.00
Yr5,Q3 9,450.00 472.50 8,977.50 -20.00
Yr5,Q4 9,450.00 472.50 9,450.00 -20.00
Retire 0.00 0.00 0.00 -20.00
REVALUATION 1
Year 2, Quarter 1, 5% revaluation
Period (Yr, Qtr.) Asset Cost Deprn. Expense Accum. Deprn. Reval. Reserve
Yr1,Q1 10,000.00 500.00 500.00 0.00
Yr1,Q2 10,000.00 500.00 1,000.00 0.00
Yr1,Q3 10,000.00 500.00 1,500.00 0.00
Yr1,Q4 10,000.00 500.00 2,000.00 0.00
Reval. 1 5% 10,500.00 0.00 0.00 *2,500.00
Yr2,Q1 10,500.00 **656.25 6,56.25 2,500.00
Yr2,Q2 10,500.00 656.25 1,312.50 2,500.00
Yr2,Q3 10,500.00 656.25 1,968.75 2,500.00
Yr2,Q4 10,500.00 656.25 2,625.00 2,500.00
Yr3,Q1 10,500.00 656.25 3,281.25 2,500.00
Yr3,Q2 10,500.00 656.25 3,937.50 2,500.00
Yr3,Q3 10,500.00 656.25 4,593.75 2,500.00
Yr3,Q4 10,500.00 656.25 5,250.00 2,500.00
Reval. 2 -10% 9,450.00 0.00 0.00 *6,700.00
Yr4,Q1 9,450.00 **1,181.25 1,181.25 6,700.00
Yr4,Q2 9,450.00 1,181.25 2,362.50 6,700.00
Yr4,Q3 9,450.00 1,181.25 3,543.75 6,700.00
Yr4,Q4 9,450.00 1,181.25 4,725.00 6,700.00
Yr5,Q1 9,450.00 1,181.25 5,906.25 6,700.00
Yr5,Q2 9,450.00 1,181.25 7,087.50 6,700.00
Yr5,Q3 9,450.00 1,181.25 8,268.75 6,700.00
Yr5,Q4 9,450.00 1,181.25 9,450.00 6,700.00
REVALUATION 1
5% revaluation in Year 2, Quarter 1:
Accum.
Period (Yr,Qtr.) Asset Cost Deprn. Expense Reval. Amortize Reval. Reserve
Deprn.
Yr1,Q1 10,000.00 500.00 500.00 0.00 0.00
Yr1,Q2 10,000.00 500.00 1,000.00 0.00 0.00
Yr1,Q3 10,000.00 500.00 1,500.00 0.00 0.00
Yr1,Q4 10,000.00 500.00 2,000.00 0.00 0.00
Reval. 1 5% 10,500.00 0.00 0.00 0.00 *2,500.00
Yr2,Q1 10,500.00 **656.25 656.25 ***156.25 2,343.75
Yr2,Q2 10,500.00 656.25 1,312.50 156.25 2,187.50
Yr2,Q3 10,500.00 656.25 1,968.75 156.25 2,031.25
Yr2,Q4 10,500.00 656.25 2,625.00 156.25 1,875.00
Yr3,Q1 10,500.00 656.25 3,281.25 156.25 1,718.75
Yr3,Q2 10,500.00 656.25 3,937.50 156.25 1,562.50
Yr3,Q3 10,500.00 656.25 4,593.75 156.25 1,406.25
Yr3,Q4 10,500.00 656.25 5,250.00 156.25 1,250.00
Reval. 2 -10% 9,450.00 0.00 0.00 0.00 *5,450.00
Yr4,Q1 9,450.00 **1,181.25 1,181.25 ***681.25 4,768.75
Yr4,Q2 9,450.00 1,181.25 2,362.50 681.25 4,087.50
Yr4,Q3 9,450.00 1,181.25 3,543.75 681.25 3,406.25
Yr4,Q4 9,450.00 1,181.25 4,725.00 681.25 2,725.00
Yr5,Q1 9,450.00 1,181.25 5,906.25 681.25 2,043.75
Yr5,Q2 9,450.00 1,181.25 7,087.50 681.25 1,362.50
Yr5,Q3 9,450.00 1,181.25 8,268.75 681.25 681.25
Yr5,Q4 9,450.00 1,181.25 9,450.00 681.25 0.00
REVALUATION 1
Year 2, quarter 1, 5% revaluation
Period (Yr, Qtr.) Asset Cost Deprn. Expense Accum. Deprn. Reval. Reserve
Yr1 to Yr4
Yr5,Q1 10,000.00 500.00 8,500.00 0.00
Yr5,Q2 10,000.00 500.00 9,000.00 0.00
Yr5,Q3 10,000.00 500.00 9,500.00 0.00
Yr5,Q4 10,000.00 500.00 10,000.00 0.00
Reval. 5% 10,500.00 0.00 *8,400.00 **2,100.00
Yr9,Q1 10,500.00 ***262.50 8,662.50 2,100.00
Yr9,Q2 10,500.00 262.50 8,925.00 2,100.00
Yr9,Q3 10,500.00 262.50 9,187.50 2,100.00
Yr9,Q4 10,500.00 262.50 9,450.00 2,100.00
Yr10,Q1 10,500.00 262.50 9,712.50 2,100.00
Yr10,Q2 10,500.00 262.50 9,975.00 2,100.00
Yr10,Q3 10,500.00 262.50 10,237.50 2,100.00
Yr10,Q4 10,500.00 262.50 10,500.00 2,100.00
Period (Yr, Qtr.) Asset Cost Deprn. Expense Accum. Deprn. Reval. Reserve
Yr1 to Yr4
Yr5,Q1 10,000.00 500.00 8500.00 0.00
Yr5,Q2 10,000.00 500.00 9000.00 0.00
Yr5,Q3 10,000.00 500.00 9,500.00 0.00
Yr5,Q4 10,000.00 500.00 10,000.00 0.00
Reval. 5% 10,500.00 0.00 *8,400.00 **2,100.00
Yr9,Q1 10,500.00 ***75.00 8,475.00 2,100.00
Yr9,Q2 10,500.00 75.00 8,550.00 2,100.00
Yr9,Q3 10,500.00 75.00 8,625.00 2,100.00
Yr9,Q4 10,500.00 75.00 8,700.00 2,100.00
Yr10 to Yr15
Depreciation Adjustment (calculated using life extension ceiling)= 2,000
Ans) The fa is implemented at the business group level. Because for one business group there
will be one asset module. The Asset module for the entire operating unit is same. But the
Inventory org may different for the operating unit.
Ans)
1. Capitalised Asset.
2. Cip asset.
3.expenced asset.
Ans)
You can set up as many calendars as you need. Each book you set up requires a
depreciation calendar and a prorate calendar. The depreciation calendar determines the
number of accounting periods in a fiscal year, and the prorate calendar determines the
number of prorate periods in your fiscal year. You can use one calendar for multiple
depreciation books, and as both the depreciation and prorate calendar for a book.
Your corporate books can share the same calendar. A tax book can have a different
calendar than its associated corporate book. The calendar for a tax book must use the
same fiscal year name as the calendar for the associated tax book.
The depreciation program uses the prorate calendar to determine the prorate period which
is used to choose the depreciation rate. The depreciation program uses the depreciation
calendar and divide depreciation flag to determine what fraction of the annual depreciation
expense to take each period. For example, if you have a quarterly depreciation calendar,
Oracle Assets calculates one-fourth of the annual depreciation each time you run
depreciation.
You must initially set up all calendar periods from the period corresponding to the oldest
date placed in service to the current period. You must set up at least one period before the
current period. At the end of each fiscal year, Oracle Assets automatically sets up the
periods for the next fiscal year.
Attention: If you use this depreciation calendar in a depreciation book from which you create
journal entries for your general ledger, you must make the period names identical to the
periods you have set up in your general ledger.
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. To divide annual depreciation proportionately
according to the number of days in each period, enter By Days in the Divide Depreciation
field in the Book Controls window.
Prerequisites
Set up your Oldest Date Placed in Service. See: Specifying System Controls.
Set up your fiscal years. See: Creating Fiscal Years.
Suggestion: The name you enter appears in List of Values windows which allow no
more than 15 spaces. You may want to limit your name to 15 characters.
3. Choose Fiscal or Calendar to append either the fiscal or calendar year to get the
accounting period name. If you do not want the fiscal or calendar year automatically
appended, choose None.
For example, if your fiscal year runs from June 1 to May 31, and the current date is July
15, 1995, you are in calendar 1995 and fiscal 1996. If you specify FISCAL, your period
name is JUL-96. If you specify CALENDAR, your period name is JUL-95.
4. Enter the Fiscal Year Name you want to use for this calendar.
5. Enter the number of periods in the fiscal year for this calendar.
Note: You cannot enter more than 365 periods per year.
3. From the Main menu, select Edit/Delete Record. Delete all of the periods you plan to
rename.