Академический Документы
Профессиональный Документы
Культура Документы
Fundamentals Ed. 1
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D49290GC10
Edition 1.0
June 2007
D50605
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Authors
Gail DAloisio, Brent A. Bosin, and Paul Scott
Technical Contributors and Reviewers
Kathy Wohnoutka, Ruth Kukla, Jan Quist, JongSung Ahn, Chris Rudd, Som Viswapathy, and
Bruce Isner
This book was published using:
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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
Adding and Capitalizing a CIP Asset ............................................................................................................1-23
Acquire and Build CIP Assets .......................................................................................................................1-24
Asset Adjustments .........................................................................................................................................1-25
Asset Adjustment Overview ..........................................................................................................................1-26
Performing Physical Inventory ......................................................................................................................1-27
Elements of Depreciation ..............................................................................................................................1-29
Basic Depreciation Calculation .....................................................................................................................1-31
Tracking Asset Retirements...........................................................................................................................1-33
Assets Journal Entries Flow...........................................................................................................................1-34
Default Account Generator Process for Oracle Assets ..................................................................................1-36
Reconciling Data in Oracle Assets ................................................................................................................1-37
Viewing Asset Information Online................................................................................................................1-38
Oracle Assets Reporting ................................................................................................................................1-39
Assets Reports Groupings..............................................................................................................................1-40
Creating a Tax Book......................................................................................................................................1-41
Entering Information in Tax Books ...............................................................................................................1-42
Transaction APIs ...........................................................................................................................................1-44
Business Events .............................................................................................................................................1-46
Asset Business Event Triggers ......................................................................................................................1-47
Summary........................................................................................................................................................1-48
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Asset Books.......................................................................................................................................................3-1
Asset Books ...................................................................................................................................................3-3
Objectives ......................................................................................................................................................3-4
Agenda...........................................................................................................................................................3-5
Asset Books Positioning................................................................................................................................3-6
Asset Books Regions .....................................................................................................................................3-8
Calendar Region ............................................................................................................................................3-10
Accounting Rules Region ..............................................................................................................................3-12
Natural Accounts Region...............................................................................................................................3-14
Guided Demonstration - Define an Asset Book.........................................................................................3-16
Group Depreciation .......................................................................................................................................3-18
Group Depreciation in the Global Market .....................................................................................................3-20
Group and Member Asset Rules....................................................................................................................3-21
Set Up Group Assets......................................................................................................................................3-23
Assigning Member Assets to Group Assets ..................................................................................................3-25
Group Asset Reserve Transfer.......................................................................................................................3-27
Practice - Set Up Group Assets..................................................................................................................3-28
Solution Set Up Group Assets ................................................................................................................3-30
Energy Assets ................................................................................................................................................3-32
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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
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Agenda...........................................................................................................................................................13-6
Creating a Tax Book......................................................................................................................................13-7
Asset Books Regions .....................................................................................................................................13-8
Guided Demonstration - Create a Tax Asset Book....................................................................................13-10
Practice - Define a Tax Asset Book...........................................................................................................13-12
Solution Define a Tax Asset Book .........................................................................................................13-15
Prerequisites for Setting Up Tax Book Asset Categories ..............................................................................13-18
Guided Demonstration - Add Asset Categories to Tax Book ....................................................................13-19
Practice - Add Asset Categories to a Tax Book.........................................................................................13-21
Solution Add Asset Categories to a Tax Book .......................................................................................13-23
Entering Information in Tax Books ...............................................................................................................13-26
Populating the Tax Book by Initial Mass Copy.............................................................................................13-28
Populating the Tax Book ...............................................................................................................................13-30
Guided Demonstration - Perform an Initial Mass Copy ............................................................................13-31
Practice - Perform an Initial Mass Copy....................................................................................................13-32
Solution Perform an Initial Mass Copy ..................................................................................................13-33
Populating the Tax Book by Periodic Mass Copy ........................................................................................13-35
Updating a Tax Book Manually ....................................................................................................................13-37
Guided Demonstration - Manually Add an Asset to a Tax Book ..............................................................13-38
Practice - Manually Add an Asset to a Tax Book......................................................................................13-39
Solution Manually Add an Asset to a Tax Book ....................................................................................13-41
Tax Book Upload Interface ...........................................................................................................................13-44
Discussing Tax Rules ....................................................................................................................................13-46
Deferred Depreciation ...................................................................................................................................13-48
Calculating Deferred Depreciation ................................................................................................................13-49
Adjusting Accumulated Depreciation............................................................................................................13-50
Adjusting Depreciation Reserve for a Single Asset.......................................................................................13-51
Guided Demonstration -Adjust Depreciation Reserve...............................................................................13-53
Adjusting Depreciation Reserve for All Assets .............................................................................................13-54
Controlling Mass Depreciation Adjustment ..................................................................................................13-55
Calculating Mass Depreciation Adjustment ..................................................................................................13-56
Automatically Adding CIP Assets to Tax Books .........................................................................................13-57
General Tax Reports......................................................................................................................................13-59
Special Tax Reports.......................................................................................................................................13-60
Depreciation Adjustment Reports..................................................................................................................13-61
Summary........................................................................................................................................................13-62
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Preface
Profile
Before You Begin This Course
Prerequisites
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Related Publications
Oracle Publications
Title
Part Number
B31177
B31179
Additional Publications
Read-me files
Oracle Magazine
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Typographic Conventions
Typographic Conventions in Text
Convention
Bold italic
Caps and
lowercase
Courier new,
case sensitive
(default is
lowercase)
Initial cap
Element
Glossary term (if
there is a glossary)
Buttons,
check boxes,
triggers,
windows
Code output,
directory names,
filenames,
passwords,
pathnames,
URLs,
user input,
usernames
Arrow
Brackets
Commas
Graphics labels
(unless the term is a
proper noun)
Emphasized words
and phrases,
titles of books and
courses,
variables
Interface elements
with long names
that have only
initial caps;
lesson and chapter
titles in crossreferences
SQL column
names, commands,
functions, schemas,
table names
Menu paths
Key names
Key sequences
Plus signs
Key combinations
Italic
Quotation
marks
Uppercase
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Example
The algorithm inserts the new key.
Click the Executable button.
Select the Cant Delete Card check box.
Assign a When-Validate-Item trigger to the ORD block.
Open the Master Schedule window.
Code output: debug.set (I, 300);
Directory: bin (DOS), $FMHOME (UNIX)
Filename: Locate the init.ora file.
Password: User tiger as your password.
Pathname: Open c:\my_docs\projects
URL: Go to http://www.oracle.com
User input: Enter 300
Username: Log on as scott
Customer address (but Oracle Payables)
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Element
Oracle Forms
triggers
Column names,
table names
Example
When-Validate-Item
Passwords
SELECT last_name
FROM s_emp;
PL/SQL objects
Lowercase
italic
Uppercase
Syntax variables
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1.
(N) From the Navigator window, select Invoice then Entry then Invoice Batches
Summary.
2.
3.
Notations:
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(N) = Navigator
(M) = Menu
(T) = Tab
(B) = Button
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(I) = Icon
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(H) = Hyperlink
(ST) = Sub Tab
Copyright Oracle Corporation, 2007. All rights reserved.
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In the navigation frame of the help system window, expand the General Ledger entry.
2.
3.
4.
Review the Enter Journals topic that appears in the document frame of the help system
window.
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Depreciation
Chapter 9
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Depreciation
Chapter 9 - Page 1
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Depreciation
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Depreciation
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Depreciation
Chapter 9 - Page 3
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Objectives
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Depreciation
Chapter 9 - Page 4
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Agenda
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Depreciation
Chapter 9 - Page 5
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Elements of Depreciation
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Elements of Depreciation
Defining Books
Define corporate, tax, and budget asset books. Define the corporate book first to associate
it with multiple tax and budget books.
The setup of Asset Books is discussed in the Asset Books module of Release 12 Oracle Asset
Management Fundamentals.
Defining Depreciation Rules
Oracle Assets provides many standard depreciation methods. Set up additional methods if
required.
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.
Set up the depreciation expense and cost ceilings, as well as the investment tax credit
rates and ceilings, if needed.
Because prorate conventions depend on the calendar, Oracle Assets does not predefine
any conventions. Define prorate conventions from the oldest date placed in service to the
current fiscal year.
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Depreciation
Chapter 9 - Page 6
Define price indexes, if necessary, to report gains and losses for your retired assets by
using the revalued asset cost.
If not previously done when implementing other Oracle application products, create units
of measure for use with assets depreciating under a units-of-production depreciation
method.
Defining formula based depreciation methods, cost ceilings, price indexes and investment tax
credits are discussed in modules of the Release 12 Asset Management Advanced learning path.
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Depreciation
Chapter 9 - Page 7
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Depreciation
Chapter 9 - Page 8
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Depreciation
Chapter 9 - Page 9
For tablebased depreciation methods, Oracle Assets uses the depreciation method and
life to determine which rate table to use. Then, it uses the prorate period and year of life
to determine which of the rates in the table to use.
Flatrate depreciation methods determine the depreciation rate using fixed rates,
including the basic rate, adjusting rate, and bonus rate.
Calculate Annual Depreciation
Calculated and tablebased methods calculate annual depreciation by multiplying the
depreciation rate by the recoverable cost or net book value as of the beginning of the
fiscal year.
Flatrate methods calculate annual depreciation as the depreciation rate multiplied by the
recoverable cost or net book value, multiplied by the fraction of year the asset was held.
Allocate Annual Depreciation Across Periods
After calculating the annual depreciation amount, Oracle Assets uses your depreciation
calendar, the divide depreciation flag, and the depreciate when placed in service flag to
determine how much of the fiscal year depreciation to allocate to the period for which
you ran depreciation.
Spreading Depreciation Across Expense Accounts
Finally, Oracle Assets allocates the periodic depreciation to the assignments you made
for the asset. Oracle Assets does this according to the fraction of the asset units that is
assigned to each depreciation expense account in the Assignments window.
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Depreciation
Chapter 9 - Page 10
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Depreciation Methods
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Depreciation Methods
(N) Setup > Depreciation > Methods
You depreciate assets by using several types of depreciation methods that Oracle Assets
supports. You also create periodic journal entries for each book to the general ledger. As an
asset depreciates, its net book value approaches the salvage value. Oracle Assets is delivered
with many seeded depreciation methods.
Life-Based
Depreciates the asset cost using an annual depreciation rate.
For straight-line depreciation, the annual rate is calculated by dividing the life (in years)
into one.
For other life-based methods, Oracle Assets takes the annual depreciation rate from a rate
table.
Flat-Rate
Depreciates the asset cost or net book value over time using a fixed rate.
Units-of-Production
Depreciates the asset cost by actual use or production for each period.
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Depreciation
Chapter 9 - Page 11
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Depreciation
Chapter 9 - Page 12
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Depreciation
Chapter 9 - Page 14
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Depreciation
Chapter 9 - Page 15
When you add an asset, you can select a basic rate and an adjusting rate. Oracle Assets
increases the basic rate by the adjusting rate to give you the adjusted rate. This is your flatrate
for the fiscal year.
Depreciation Rate = Basic Rate x (1 + Adjusting Rate) + Bonus Rate
Bonus Depreciation
For reporting authorities that allow additional depreciation in the early fiscal years of an asset
life, you can assign an additional bonus rate on top of the flatrate. Oracle Assets adds the
bonus rate to the adjusted rate to give you the flatrate for the fiscal year.
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Depreciation
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Depreciation
Chapter 9 - Page 17
Perform the following queries in the Depreciation Methods form to demonstrate some of the
seeded methods. Select the (B) Rates where applicable to demonstrate the Depreciation
Rates form.
2.
(I) New
3.
Value
Method
XX_METHOD
Description
Life Years
4.
5.
(B) Rates
6.
Period
Annual
Rate
.5
.2
.2
.1
.5
.3
.2
1
2
3
4
1
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(I) Save
Copyright Oracle Corporation, 2007. All rights reserved.
Depreciation
Chapter 9 - Page 18
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Assumptions
Use the Oracle Assets seeded Responsibility > Assets, Vision Operations (USA)
Replace XX in the Practice with a unique identifier such as your initials or a number
(for Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.
Tasks
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Your Company wants to use a custom, three-year accelerated depreciation method for some of
its assets. The name of the method should be XXDEP with the description 3-YEAR
ACCELERATED VACRS. This depreciation method is a straight-line method with 3 Life Years and 12
Prorate Periods Per Year. The custom rates for this method are:
Year 1:
Year 2:
Year 3:
Year 4:
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All periods 30%
All periods 30%
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2.
Value
Method
XXDEP
Description
Check box
Life Years
12
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3.
4.
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Depreciation
Chapter 9 - Page 20
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Year
Per
1
Per
2
Per
3
Per
4
Per
5
Per
6
Per
7
Per
8
Per
9
Per
10
Per
11
Per
12
.4
.4
.4
.4
.3
.3
.3
.3
.2
.2
.2
.2
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.1
.1
.1
.1
.2
.2
.2
.2
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Depreciation
Chapter 9 - Page 21
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Depreciation
Chapter 9 - Page 22
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The capacity does not change when you partially retire a production asset or change the
unit of measure. Manually adjust the capacity in the Books window.
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Value
Book
OPS CORP
Periods
Leave blank
Asset Number
100447
2.
3.
In the Periodic Production form, select (I) New to add a new record.
4.
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From Date
First day of the current open period in the OPS CORP Book
To Date
Last day of the current open period in the OPS CORP Book
Production
5.
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Prorate Conventions
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Prorate Conventions
(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. You set up as many
prorate and retirement conventions as you need.
Prorate Conventions
- The prorate convention determines the annual depreciation for the first fiscal year.
- The prorate date and the prorate calendar determine the prorate period.
- Enter the prorate date for each date-placed-in-service range.
- Specify whether to spread annual depreciation from the date placed in service or
from the prorate date.
Retirement Conventions
- If you use a different prorate convention for retirements than for additions, set up
retirement conventions to determine how much depreciation to take in the last year
of life, based on the retirement date.
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Value
Convention
XX_DEMO
Description
ACCOUNTING (LOV)
From Date
To Date
Prorate Date
01-JAN-1993
(automatically fills in as
its the first day of the
defined Fiscal Year)
31-MAR-1993
01-JAN-1993
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2.
Tab through the next fields and notice that Oracle Assets completes the data automatically.
3.
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Assumptions
Use the Oracle Assets seeded Responsibility > Assets, Vision Operations (USA)
Replace XX in the Practice with a unique identifier such as your initials or a number
(for Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.
Tasks
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You need to create a new prorate convention named XX_PRORATE where assets added on any
date in a month have a prorate date of the first day of the month. Your prorate convention should
use the fiscal year named ACCOUNTING and be setup through December 1994.
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2.
3.
Value
Convention
XX_PRORATE
Description
ACCOUNTING (LOV)
From Date
To Date
Prorate Date
01-JAN-1993
(automatically fills in as
its the first day of the
defined Fiscal Year)
31-JAN-1993
01-JAN-1993
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Once depreciation has been processed for an asset in the current open period, you cannot
perform any transactions on those assets unless depreciation is rolled back or the current
period is closed.
Note: Ensure that you have entered all transactions for the period before you run
depreciation. Once the program closes the period, you cannot reopen it.
Reporting Currencies
If you are using Reporting Currencies, you must first run depreciation for each Reporting
Currencies reporting responsibility associated with an asset depreciation book, before
running depreciation for your standard Fixed Assets responsibility.
When you run depreciation in a Reporting Currencies reporting responsibility, the
Calculate Gains and Losses program does not run automatically, since you cannot run the
Calculate Gains and Losses program in a Reporting Currencies reporting responsibility.
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Rollback Depreciation
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Rollback Depreciation
(N) Depreciation > Rollback Depreciation
If you have run depreciation for a particular period, you can use the Rollback Depreciation
feature to restore assets to their state prior to running depreciation. For example, you may have
outstanding adjustments or transactions that you need to process for a period; however, you
have already run depreciation for that period. If the Close Period check box was not checked
when you ran depreciation, you can roll back depreciation to include these outstanding
transactions.
You must run depreciation with the Close Period check box checked to open the next period.
Handling Depreciation Processing Exceptions
When you run depreciation, Oracle Assets flags all exceptions and they appear in the Run
Depreciation log file.
You can review the log and make adjustments for all assets that did not depreciate
successfully.
You can close the period when all exceptions have been processed successfully.
Rolling Back Depreciation
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After running depreciation, you can roll back depreciation to restore assets to their state
at the beginning of the period before running depreciation.
You can continue to add assets, perform transactions, and make corrections and
adjustments.
You can roll back depreciation:
- For the current open period
- If you ran depreciation for the period and did not select the Close Period check box
You can roll back depreciation only for the current open period.
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Defining a Projection
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Defining a Projection
Not all transactions are included in a depreciation projection.
Transactions Included:
The depreciation projection is based on the financial information for your existing assets
at the start of the current period.
It includes additions, transfers, and reclassification transactions you perform in the
current period.
Transactions Excluded:
It ignores other asset transactions you make in the current period, such as the depreciation
adjustment for retroactive additions and transfers you enter in the current period. It also
ignores fully reserved and fully retired assets.
If you do not start your projection beyond the current period, the projection does not
include your most recent transactions (e.g. if the current period in your corporate book is
JUL92, and you request an annual projection starting with JAN92, Oracle Assets
projects depreciation expense based on the financial information for your existing assets
as of the start of January 1992.
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Value
Projection Calendar
Monthly
Number of Periods
12
Starting Period
Jan-YY
Books
OPS FEDERAL
2.
(B) Run
3.
4.
5.
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Assumptions
Use the Oracle Assets seeded Responsibility > Assets, Vision Operations (USA)
Replace XX in the Practice with a unique identifier such as your initials or a number
(for Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.
Replace any year references of YYYY and YY with the calendar year of your choice or
as directed by the Instructor (e.g. 2002 or Jan-02). Keep in mind that some transactions
require calendar dates and calendar periods be defined and enabled before hand in order
to be processed.
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Tasks
Run a Depreciation Projection
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You have been asked to project depreciation for the OPS BUDGET asset book on a quarterly
basis for 1 year starting with Qtr-1-YY. The projection should present results by cost center
detail.
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Chapter 9 - Page 43
2.
3.
4.
Value
Projection Calendar
Quarterly
Number of Periods
Starting Period
Qtr-1-YY
Books
OPS BUDGET
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5.
Select the FA Projections Report line and click (B) View Output
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Depreciation Forecasts
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Depreciation Forecasts
(N) Depreciation > What-If Analysis
Using What-If Depreciation Analysis on Existing Assets
Without changing Oracle Assets data, What-If Depreciation Analysis:
Forecasts depreciation for multiple scenarios using different depreciation criteria.
Allows you to select assets using various selection criteria, and analyze the effects of
expensing or amortizing changes to depreciation information.
Projects depreciation on existing assets before changing the depreciation rules.
Helps select the best depreciation strategy for assets not yet added in the system.
If you are satisfied with the results of your analysis, you can enter the new parameters in
the Mass Changes window to update your assets according to the parameters you
specified in the whatif analysis.
What-If Depreciation Analysis for Future Assets
Forecast different depreciation scenarios for assets not yet defined in Oracle Assets.
Compare results of what-if depreciation profiles for a new asset.
Select optimal depreciation strategy prior to adding the asset.
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Value
Book
OPS CORP
Start Period
Jul-YY (must be a period after the current open period and all
projection periods must be defined)
Number of Periods
Asset Number
100111
Method
STL
Life Years
15
Months
2.
(B) Run
3.
4.
5.
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Assumptions
Use the Oracle Assets seeded Responsibility > Assets, Vision Operations (USA)
Replace XX in the Practice with a unique identifier such as your initials or a number
(for Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.
Replace any year references of YYYY and YY with the calendar year of your choice or
as directed by the Instructor (e.g. 2002 or Jan-02). Keep in mind that some transactions
require calendar dates and calendar periods be defined and enabled before hand in order
to be processed.
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Perform a What-If Depreciation Analysis
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You have been asked what the depreciation effect would be if the depreciation method for all
assets in the COMPUTER-PC category in the OPS CORP asset book was changed to 150DB
with a 3 year life. The request asked for depreciation for 12 periods starting with period Jul-YY.
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2.
3.
Value
Book
OPS CORP
Start Period
Number of Periods
12
Category
COMPUTER-PC
Method
150DB
Life Years
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Select the What-If Depreciation Report line and click (B) View Output.
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Note: For Reporting Currenciesenabled books, you do not need to provide the override
amounts for the reporting currency books. The system will derive the reporting book values
based on the ratio of asset cost in the reporting book to asset cost in the primary book.
Depreciation Override Process
To override the system calculated depreciation amounts using the Depreciation Override
window:
(N) Depreciation > Override
1. Open the Depreciation Override window.
2. You can use the Find Assets window to find assets for which you want to change
depreciation.
3. If you did not use the Find Assets window, or query, to find the assets records you wish
to modify, enter the asset number, book, and period of the asset in the rows of
Depreciation Override window.
4. In the Depreciation field, you can enter the override depreciation amount.
5. In the Bonus Depreciation field you can enter the override bonus depreciation amount.
To override the system calculated depreciation amounts using the FA_DEPRN_OVERRIDE
table:
1. Define the override data in the FA_DEPRN_OVERRIDE table. In the
FA_DEPRN_OVERRIDE table, enter all basic override depreciation information:
BOOK_TYPE_CODE, ASSET_ID, PERIOD_NAME, DEPRN_AMOUNT,
BONUS_DEPRN_AMOUNT and USED_BY. You can provide depreciation amounts for
depreciation expense and bonus expense separately using the columns:
DEPRN_AMOUNT and BONUS_DEPRN_AMOUNT. Define either DEPRECIATION
or ADJUSTMENT in the USED_BY column depending on your requirement.
Note: You can assign multiple override data for each asset as long as PERIOD_NAME and
USED_BY do not overlap for records with a nonposted status.
2. Optionally run WhatIf Analysis or Projection to review the estimated depreciation
amounts for that period.
3. Run Depreciation or perform adjustments (single asset adjustment and mass change) to
incorporate the override data.
4. If the override fails, the system will roll back the depreciation for the asset. You first need
to correct the override information in the interface table, then rerun depreciation. For
example, if any assets became overreserved during the overriding process, the override
will fail and the system will return an error.
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Asset Retirements
Chapter 10
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Asset Retirements
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Objectives
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Agenda
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You can reinstate only the most recent partial retirement if you have performed several
partial retirements on the asset.
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Chapter 10 - Page 10
2.
(B) Retirements
3.
Value
Book
OPS CORP
Retire Date
Units Retired
Retirement Type
Sale (LOV)
Proceeds of Sale
10,000,000
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4.
(B) Done
5.
6.
(B) Retirements
7.
Query the retirement performed above by either going into query mode based on Reference
Number or performing a query all (CTRL + F11).
8.
9.
(B) Cancel
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Chapter 10 - Page 12
Oracle Assets calculates the cost retired as the fraction of total cost for the units retired
relative to the total number of units.
By Source Line
Select Source Lines to navigate to the Source Lines window.
Choose the source line or enter the amount you want to retire.
Select Retire to navigate to the Source Line Retirement window.
Modify the necessary fields.
Note: You cannot modify units retired or cost retired. You must cancel out of the retirement
window before changing the units or cost information. You can change this information in the
Source Lines window. Source Line window changes are propagated to the Retire window
when you navigate to it.
Select Done to save your work.
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Asset Retirements
Chapter 10 - Page 13
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2.
3.
Value
Book
OPS CORP
Retire Date
Units Retired
Retirement Type
THEFT (LOV)
4.
(B) Continue
5.
6.
(B) Done
7.
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8.
In the Parameters window, enter OPS CORP book and accept the default period.
9.
(B) OK
11. After the Calculate Gains and Losses program completes, navigate to:
(N) Asset > Asset Workbench
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14. Query the retirement performed above by either going into query mode based on Reference
Number or performing a query all (CTRL + F11).
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15. Use the down arrow to scroll down to the previous retirement.
Copyright Oracle Corporation, 2007. All rights reserved.
Asset Retirements
Chapter 10 - Page 14
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Oracle Assets does not retire the following types of assets, even if they are selected as part of a
mass retirements transaction:
Assets added in the current period
Assets with transactions dated after the retirement date you enter Assets that are
multiply distributed and one or more values do not meet the mass retirement selection
criteria
For reinstatements, assets retired during a prior fiscal year
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Value
Book
OPS CORP
Retire Date
Accept Default
Retirement Type
Sale
Proceeds of Sale
5,000,000
Cost of Removal
50,000
Location
USA-CA-SAN FRANCISCO-OFFICE1
2.
(B) Create
3.
4.
5.
6.
Close the View Output window and then close the Requests form.
7.
8.
9.
(B) Retire
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12. Back in the Mass Retirements form, query the mass retirement you just performed.
13. (B) Undo
14. (B) OK
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Asset Retirements
Chapter 10 - Page 18
External Retirements
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External Retirements
Mass External Retirements
(N) Mass Transactions > External Retirements
Oracle Assets allows you to perform mass retirements on a set of assets by populating an
external interface table with these assets and processing them in a batch.
Why Use Mass External Retirements
The Mass Retirements Oracle Assets form does not allow partial unit retirements. Partial unit
retirements can be done in mass for assets by using the Mass External Retirement feature.
Oracle Asset forms do allow for partial cost retirements.
Mass External Retirements Processing
First populate the FA_MASS_EXT_RETIREMENTS interface table with valid data.
The "Post Mass External Retirements" concurrent program that starts the retirement
processes for each asset is started from the Submit Requests form.
After the concurrent program has completed, view the output file from the request and
verify that no errors have been reported.
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Asset Retirements
Chapter 10 - Page 19
If any errors are reported, correct them and reset status from "Error" to "Post" for
those assets in the Mass External Retirements form.
After the Post Mass External Retirements concurrent program has finished, the gain/loss
program should be run.
Retirements and Reinstatements Application Program Interface (API)
Perform asset retirements, reinstatements, and their related undo transactions without going
thru the Asset Workbench. Use the Retirements API to submit your transactions using
PL/SQL.
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Asset Retirements
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Asset Retirements
Chapter 10 - Page 22
Assumptions
Use the Oracle Assets seeded Responsibility > Assets, Vision Operations (USA)
Replace XX in the Practice with a unique identifier such as your initials or a number
(for Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.
Replace any year references of YYYY and YY with the calendar year of your choice or
as directed by the Instructor (e.g. 2002 or Jan-02). Keep in mind that some transactions
require calendar dates and calendar periods be defined and enabled before hand in order
to be processed.
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Perform a Partial Asset Retirement
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Part of the asset with the tag number XXBLDG has been destroyed. You need to retire half of
the asset.
Process Asset Retirements
Run the appropriate program that will calculate gains and losses for the asset you retired.
Reinstate the Retirement
The XXBLDG asset has been rebuilt and the retirement needs to be cancelled.
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Asset Retirements
Chapter 10 - Page 23
2.
3.
4.
5.
6.
7.
OPS CORP
Retire Date
Cost Retired
2,500,000.00
Retirement Type
DESTROYED
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Asset Retirements
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Value
Chapter 10 - Page 24
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9.
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10. Navigate to the Calculate Gains and Losses program submission form.
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15. Navigate to the Asset Workbench and find the asset on which you performed the partial
retirement above.
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Asset Retirements
Chapter 10 - Page 25
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Asset Retirements
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Asset Retirements
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Recording Retirements
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Recording Retirements
Full Retirement with Multiple Retirement Accounts
Accumulated Depreciation
Proceeds of Sale Clearing
*Cost of Removal Gain
*Net Book Value Retired Gain
*Revaluation Reserve Retired Gain
Asset Cost
*Proceeds of Sale Gain
Cost of Removal Clearing
Full Retirement with a Single Gain or Loss Account
Accumulated Depreciation
Proceeds of Sale Clearing
Asset Cost
Cost of Removal Clearing
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Dr
2,750
2,000
500
1,000
250
Chapter 10 - Page 31
Cr
4,000
2,000
500
2,750
2,000
Asset Retirements
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4,000
500
*Gain or Loss
* Note the different components of the gain or loss amount.
250
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500
250
4,000
2,000
500
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Period
Year 1
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Q2
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Asset
Cost
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Accum
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YTD
Depreciation
$ 250
Depreciation
Expense
$ 250
$4,000
$ 500
$ 500
$ 250
$4,000
$ 750
$ 750
$ 250
$4,000
$1,000
$1,000
$ 250
$ 250
$ 250
$4,000
$1,750
$ 750
$ 500
$4,000
$2,000
$1,000
$ 250
Asset Retirements
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Retirement Reports
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Retirement Reports
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Asset Accounting
Chapter 11
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Chapter 11 - Page 8
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.
- If additional transactions occur during the open depreciation period, you need to
rerun Depreciation, then you can rerun the Create Accounting program.
See the 12 Asset Management Fundamentals lesson Asset Books for more detailed information
on Asset Books setup requirements.
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Accounting Events
Oracle Assets creates accounting events for every asset transaction that has accounting impact.
The Create Accounting process creates subledger accounting entries for these accounting events.
Note: You do not need to run depreciation to process accounting for additions.
Oracle Assets groups all the accounting events classes into the following four event entities:
Transactions: This event entity groups the following event classes: Additions,
Adjustment, Capitalization, Category Reclass, CIP Additions, CIP Adjustments, CIP
Category Reclass, CIP Retirements, CIP Revaluation, CIP Transfers, CIP Unit
Adjustments, Depreciation Adjustments, Retirements, Retirement Adjustments,
Revaluation, Terminal Gain and Loss, Transfers, Unit Adjustments, and Unplanned
Depreciation.
Depreciation: This event entity groups the following event classes: Depreciation and
Rollback Depreciation.
Inter Asset Transactions: This event entity groups the following event classes: Source
Line Transfers, CIP Source Line Transfers, and Reserve Transfers.
Deferred Depreciation: This event entity groups the following event classes: Deferred
Depreciation.
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Chapter 11 - Page 11
Some event classes are divided into event types. For example, the Retirements event class is
divided into the Retirements and Reinstatements event types. Event classes are associated with
process categories using the Event Class options. Process categories allow you to run Create
Accounting for a specific process. For example, if you want to run accounting for the
Revaluation transaction then you can specify the Revaluation process category while running
Create Accounting program.
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Chapter 11 - Page 13
2.
Value
OPS CORP
End Date
Accounting Mode
Draft
Errors Only
No
Report
Summary
No
Note: The Transfer to General Ledger and Post in General Ledger fields are disabled when
you run the process in the Draft accounting mode.
3.
(B) Okay.
4.
(B) Submit.
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Oracle Assets creates separate journal entries for adjustments to depreciation expense and
current period depreciation. You can review the effect of your adjustment transaction and your
current period depreciation expense separately in the general ledger.
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Additions column
Adjustments column
Retirements column
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Asset Accounting
Chapter 11 - Page 22
Depreciation column
Transfers column
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Objectives
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Agenda
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Chapter 12 - Page 9
Advanced Search
The Advanced Search page enables you to enter more specific information about assets than
does the Simple Search page. You can search on any of the fields listed on the page, as well as
add additional fields on which to conduct your search by choosing additional fields from the
Add Another list. You can also narrow your search for each field. For example, if you search
by asset number, you can search for a specific asset number, or an asset number that contains,
starts with, or ends with a particular set of numbers.
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Chapter 12 - Page 11
If you change any information such as the asset cost in the period that you added the
asset, Oracle Assets updates the original ADDITION transaction to ADDITION/VOID
transaction in the Cost History.
- Any unplanned depreciation amounts appear as ADJUSTMENT transactions.
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Chapter 12 - Page 15
In the Find Assets window, enter 100111 in the Asset Number field and OPS CORP in the
Book field, and select (B) Find.
2.
When the Find is complete, select (B) Assignments to view the assignment information for
the asset.
3.
Return to the Assets form and select (B) Source Lines. Review the Source Line information
for the asset.
4.
Return to the Assets form and select (B) Books. Review the Financial information for the
asset.
5.
Select (B) Transactions and click on the ADDITION transaction type line.
6.
Select (B) Details to review the detail information for the ADDITION.
7.
Close windows until you return to the View Financial Information form. Select (T)
Depreciation and view depreciation history for the asset.
8.
Return to the View Financial Information form and select (T) Cost History. Review the
information.
9.
Go back to (T) Depreciation and select (M) Tools > View Accounting. Click (B) View
Journal Entry. Select (B) T Accounts.
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10. In the Options form, select (B) T Accounts and note the T Account presentation. Select (B)
Activity Summary and review the information.
11. Return to the Navigator.
Asset Numbers
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Value
OPS CORP
101125 - 101125
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14. In the Transaction History form, select (M) Tools > View Accounting. Note the accounting
data also is available in this type of inquiry.
Copyright Oracle Corporation, 2007. All rights reserved.
Chapter 12 - Page 16
Value
01-Nov-2006
To Transaction Date
30-Apr-2007
Ledger
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Value
27. Click the Select check box next to the first two journal entries.
28. (B) Compare.
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Chapter 12 - Page 17
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Field Name
Value
Ledger (is)
01
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Chapter 12 - Page 18
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Assumptions
Use the Oracle Assets seeded Responsibility > Assets, Vision Operations (USA)
Replace XX in the Practice with a unique identifier such as your initials or a number
(for Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.
The segment separator for the accounting flexfield may not be a dash -. Substitute the
applicable segment separator if necessary.
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You have been asked to provide the following information for OPS CORP book asset # 100081:
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How much depreciation expense was recorded for the asset in the period JUL-96?
You have been asked to find out information for an asset transaction and have only been given
the Reference Number. Youve been informed the asset is in the OPS CORP book and the
Reference Number is 108.
What is the Asset Number and Description?
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Chapter 12 - Page 19
Journal Entries Find journal entries in the ledger Vision Operations (USA) The From
GL Date should be after December 31, 2006. Compare two journal entries from the list
of journal entries.
Journal Entry Lines Find journal entry lines in the Vision Operation (USA) ledger
with a balancing segment of 01. Select one of the journal entry lines and view the
transaction history and journal entry.
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Chapter 12 - Page 20
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2.
In the Find Assets window, enter 100081 in the Asset Number field and OPS CORP in the
Book field and select (B) Find.
3.
Select (B) Assignments and click in the Location field. Select (I) Edit Field. Note the
Location which is USA-CA-SAN FRANCISCO-NONE. Close the Assignments form.
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4.
5.
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Chapter 12 - Page 21
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6.
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Select (M) Tools > View Accounting and note the accounts used to record the original
addition:
DR 01-740-1530-0000-000
CR 01-000-1570-0000-000
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30,000.00
Chapter 12 - Page 22
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7.
Close windows until you return to the View Financial Information form. Select (B)
Depreciation.
8.
In the Depreciation tabbed region, scroll down until you see the period JUL-96. Note that
the depreciation expense for this period was 250.00.
9.
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11. In the Find Transactions form, enter the Book OPS CORP and the Reference Number 108.
Select (B) Find.
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12. Note that the asset number is 100071 and the description is LAND.
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Chapter 12 - Page 23
15. In the Transaction History window, click on the TRANSFER IN line and select (B) Details.
16. Click on the Location field in the Transaction Details form. Select (I) Edit Field and note the
Location is USA-CA-SAN FRANCISCO-NONE. Close all windows and return to the
Navigator.
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Field Name
Value
01-Nov-2006
To Transaction Date
30-Apr-2007
Copyright Oracle Corporation, 2007. All rights reserved.
Chapter 12 - Page 24
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Ledger
31-Dec-2006
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28. Click the Select check box next to the first two journal entries.
29. (B) Compare.
Value
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Chapter 12 - Page 25
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Chapter 12 - Page 26
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iAssets
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iAssets
Oracle iAssets is a web portal designed to help employees manage and access
information about a company's capital assets, such as equipment and machinery.
Oracle iAssets supports self-service transfer of assets, enabling employees to keep track
of equipment location and ownership.
- This enables companies to maintain an accurate account of their capital spending
necessary to support capital budgeting.
- Tracking movements of assets is also crucial for planning maintenance services and
reducing resources for physical inventory.
This self-service product automates approval and enforcement of business rules. Oracle
iAssets offers real-time inquiries of information pertaining to your fixed assets.
You can access financial and other supporting data about your assets for analysis and
decision support.
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Chapter 12 - Page 27
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Chapter 12 - Page 30
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2.
3.
4.
5.
Determine whether users will be able to use self service transfer functionality.
6.
The Enable SelfService Transfer Functionality check box must be checked to enable users
to create transfer requests.
If you do not check this check box, users will only be able to search and view assets.
7.
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Determine whether users will be able to enter a transfer effective date while requesting a
transfer.
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If you check the Allow userenterable transaction date check box, users will be able to enter
the current date or any date within the current fiscal year. Users will not be able to enter
future dates.
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If you do not check this check box, the transfer date is set to the date the transfer is
approved.
Approval Options
8.
Determine whether fixed asset manager (iAssets manager) approval is required before
applying any self service transfers.
9.
If you check the Require iAssets Manager approval before applying any selfservice
transfers check box, then Oracle iAssets will require approval from the fixed asset manager.
The fixed asset manager can review the transfer lines from the iAssets Manager
Responsibility and change the request status.
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If you do not check the check box, after management approval, all transfer lines will be
transferred to Oracle Assets with a status of Post.
Chapter 12 - Page 31
10. Determine the approval type that will be required for each transfer request.
Both Releasing and Destination approvals required: If you choose this option, an Approver
field appears for each asset selected for transfer on both the releasing and destination
information pages. Both of these fields are required. This option is the default approval type.
No approvals required: If you choose this option, all transfer requests will be automatically
approved.
Only Destination approvals required: If you choose this option, no Approver field will be
displayed on the releasing information page. The Approver field will appear on the
destination information page.
Only Releasing approvals required: If you choose this option, the Releasing Approver field
is required. No Approver field will be displayed on the destination information page.
11. Determine the approval method that will be required for each transfer request.
Cost Centerbased approvals: If you choose this option, the default approver will be the cost
center manager.
Management hierarchybased approvals: If you choose this option, the default approver will
be based on the employee hierarchy relationship. The employee is the person for whom the
transfer is requested. The approver defaults to the user who logs in. This option is the default
approval method.
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Security Options:
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12. Choose the accounting segments that will be displayed throughout Oracle iAssets.
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13. Check the Enforce Security by Cost Center check box to allow users to view and perform
transactions only on assets in their cost center.
If you do not check this check box, users will be able to view and perform transactions on
assets in all cost centers.
Search Options:
14. Determine whether users will be restricted to search only their own requests.
If you choose the Restrict users to only search for their saved requests check box, users will
be able to search only their saved requests. If this check box is not checked, users will be
able to query all requests on the system.
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Custom Options:
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15. Determine whether you want to add any companyspecific instructions that users need to
follow before submitting a transfer. To add these instructions, you need to check the Enable
custom text input check box, and enter the companyspecific information in the Custom
Copyright Oracle Corporation, 2007. All rights reserved.
Chapter 12 - Page 32
Text box. This text is visible in the content container on the Create Transfer Request:
Request Details page.
16. (B) Finish
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Chapter 12 - Page 40
Summary
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Chapter 12 - Page 41
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Chapter 12 - Page 42
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Tax Accounting
Chapter 13
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Tax Accounting
Chapter 13 - Page 1
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Tax Accounting
Chapter 13 - Page 2
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Tax Accounting
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Tax Accounting
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Objectives
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Tax Accounting
Chapter 13 - Page 4
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Objectives
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Tax Accounting
Chapter 13 - Page 5
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Agenda
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Tax Accounting
Chapter 13 - Page 6
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Tax Accounting
Chapter 13 - Page 7
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Tax Accounting
Chapter 13 - Page 8
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
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.
Accounting Rules Region
Check Allow Reserve Adjustments if you want to allow changes to the accumulated
depreciation in your tax book.
You can Allow Cost/Expense Ceilings in a depreciation book; however, you cannot apply
a cost ceiling and an expense ceiling to the same asset in a depreciation book.
Check Allow CIP Assets if you want to be able to automatically add CIP assets to your
tax book when you add them to your corporate book.
If you choose to Allow Mass Copy into this tax book, choose whether to copy additions,
adjustments, retirements, and/or salvage value.
- Corporate book periods must map exactly into tax periods for Mass Copy. For
example, three corporate months must fit into each tax quarter.
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Chapter 13 - Page 9
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2.
3.
4.
5.
6.
For both the Depreciation and Prorate Calendar choose Monthly from the LOV.
7.
Current Period should be DEC-YY (use you own preferred year but it should be a closed
year in the OPS CORP Book in order to later perform an Initial Mass Copy).
8.
Leave the Divide Depreciation field as is and let the Last Run Date for depreciation be the
default of today's date.
9.
Tab through the remaining fields in the Calendar region or click on the Accounting Rules
tab.
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10. Click the Allow Amortized Changes and Allow Mass Changes checkbox. Note that the
default for these checkboxes is unchecked.
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12. In the Tax Rules section, check the Allow Reserve Adjustments and the Allow Expense
Ceilings checkboxes.
13. Check the Allow Mass Copy checkbox and accept the default values displayed.
14. Tab through the remaining fields of the Accounting Rules region or click on the Natural
Accounts tab.
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Loss
Clearing
Proceeds of Sale
7850
7851
1247
Cost of Removal
7852
7853
2240
7854
7855
7854
7855
Intercompany Receivables
1810
Intercompany Payables
2370
2540
7860
Depreciation Adjustment
1690
01-000-9999-0000-000
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18. For the Journal Categories fields, choose from the LOV or enter the following values:
Field Name
Value
Field Name
Value
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Additions
Addition
CIP Additions
CIP Addition
Adjustments
Adjustment
CIP Adjustments
CIP Adjustment
Retirement
CIP Retirements
CIP Retirement
Reclass
CIP Reclass
CIP Reclassification
Transfer
CIP Transfers
CIP Transfer
Deferred Depreciation
Deferred Depreciation
Depreciation Adjustment
Depreciation Adjustment
Retirements
Reclass
Transfers
Revaluation
Depreciation
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Assumptions
Use the Oracle Assets seeded Responsibility > Assets, Vision Operations (USA).
Replace XX in the Practice with a unique identifier such as your initials or a number.
(For Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.
Replace the year references of YYYY and YY with the calendar year of your choice or
as directed by the Instructor (e.g. 2002 or Jan-02). Keep in mind though, that some
transactions require calendar dates and calendar periods be defined and enabled in order
to be processed.
The segment separator for the accounting flexfield may not be a dash -. Substitute the
applicable segment separator if necessary.
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Go to the Book Controls form and enter the following Asset Book header and Calendar region
data:
Field Name
Name
Class
Description
Value
XX_TAX BOOK
Tax
XX_TAX BOOK
OPS CORP
Ledger
Vision Operations
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Allow GL Posting
No (unchecked)
Depreciation Calendar
Monthly
Prorate Calendar
Monthly
Current Period
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Field Name
Value
provide or use your own
preferred year)
Divide Depreciation
(accept default)
(accept default)
(accept default)
Value
Yes (check)
Yes (check)
Yes (check)
Allow Revaluations
(accept default)
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Loss
Clearing
Proceeds of Sale
7850
7851
1247
Cost of Removal
7852
7853
2240
7854
7855
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7855
2540
7860
Depreciation Adjustment
1690
01-000-9999-0000-000
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Value
Yes (check)
Yes (check)
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2.
Enter the Book Controls Header and Calendar Region data per Task instruction.
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Tab through all the fields of the Calendar region or click on the Accounting Rules tab.
4.
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5.
Tab through all the fields of the Accounting Rules region or click on the Natural Accounts
tab.
6.
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In the Asset Categories form, go into query the existing BUILDING-OFFICE asset
category.
2.
3.
(I) New
4.
From the LOV, select DEMO TAX BOOK for the Book field.
5.
01-000-1520-0000-000
Asset Clearing
01-000-1570-0000-000
7320
Accumulated Depreciation
01-000-1620-0000-000
Bonus Expense
7320
Bonus Reserve
01-000-1620-0000-000
6.
7.
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30
0
Prorate Convention
MONTH
Retirement Convention
MONTH
8.
(I) Save
9.
10. Back in the Asset Categories form, click in the Category field, enter query mode , and
retrieve the VEHICLE-OWNED STANDARD category.
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13. From the LOV, select DEMO TAX BOOK for the Book field.
14. Enter the following GL Accounts data:
Asset Cost
01-000-1550-0000-000
Asset Clearing
01-000-1570-0000-000
7350
Accumulated Depreciation
01-000-1650-0000-000
Bonus Expense
7350
Bonus Reserve
01-000-1650-0000-000
STL
Life Years
Life Months
Prorate Convention
FOL-MONTH
Retirement Convention
FOL-MONTH
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Assumptions
Use the Oracle Assets seeded Responsibility > Assets, Vision Operations (USA)
Replace XX in the Practice with a unique identifier such as your initials or a number
(for Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.
Replace any year references of YYYY and YY with the calendar year of your choice or
as directed by the Instructor (e.g. 2002 or Jan-02). Keep in mind that some transactions
require calendar dates and calendar periods be defined and enabled before hand in order
to be processed.
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The segment separator for the accounting flexfield may not be a dash -. Substitute the
applicable segment separator if necessary.
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In order to later perform a mass copy from the OPS CORP asset book to the XX_TAX BOOK,
you need to add the following existing asset categories to the XX_TAX BOOK. The asset
categories and their applicable data are as follows:
Field Name
Asset Category 2
Asset Category 3
Category Name
COMPUTER-PC
VEHICLE-OWNED
HEAVY
BUILDING-OFFICE
Asset Cost
01-000-1560-0000-000
01-000-1550-0000-000
01-000-1520-0000-000
Asset Clearing
01-000-1570-0000-000
01-000-1570-0000-000
01-000-1570-0000-000
Depreciation Expense
Segment
01-000-7360-0000-000
01-000-7350-0000-000
01-000-7320-0000-000
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Asset Category 1
Tax Accounting
Chapter 13 - Page 21
Accumulated
Depreciation
01-000-1660-0000-000
01-000-1650-0000-000
01-000-1620-0000-000
Bonus Expense
01-000-7360-0000-000
01-000-7350-0000-000
01-000-7320-0000-000
Bonus Reserve
01-000-1660-0000-000
01-000-1650-0000-000
01-000-1620-0000-000
Method
MACRS HY
MACRS HY
MACRS STL HY
Life Years
10
40
Life Months
Prorate Convention
HALF-YEAR
HALF-YEAR
HALF-YEAR
Retirement
Convention
HALF-YEAR
HALF-YEAR
HALF-YEAR
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2.
In the Asset Categories form, start query mode (F11) and enter COMPUTER-PC in the
Category field. Execute the query (CTRL+F11).
3.
Place the cursor in the Book field and select (B) New from the Toolbar.
4.
From the List of Values for the Book field, choose XX_TAX BOOK.
5.
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6.
7.
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8.
Save your work and close out of the Default Depreciation Rules form.
9.
Back in the Asset Categories form, click in the Category field, enter query mode (F11) , and
retrieve the VEHICLE-OWNED HEAVY category.
10. After the record is retrieved, click in the Book field and select (B) New.
11. From the List of Values, choose XX_TAX BOOK for the Book field.
12. Enter the GL Account and Default Rules information as requested.
13. When finished, save your work and close out of the Default Depreciation Rules form.
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14. Back in the Asset Categories form, click in the Category field, enter query mode (F11) , and
retrieve the BUILDING-OFFICE category.
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15. After the record is retrieved, click in the Book field and select (B) New.
Copyright Oracle Corporation, 2007. All rights reserved.
Tax Accounting
Chapter 13 - Page 24
16. From the List of Values, choose XX_TAX BOOK for the Book field.
17. Enter the GL Account and Default Rules information as requested.
18. When finished, save your work and close out of the Default Depreciation Rules form.
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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.
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Only run Initial Mass Copy for the first period of your tax book. For following
periods in your tax book, run Periodic Mass Copy.
Initial Mass Copy does not copy assets retired before the end of that year or assets added
after the end of that year.
You do not need to copy any adjustments or partial retirements you performed before the
end of the fiscal year.
When you close this initial period, Oracle Assets calculates the net book value of your
assets that have zero accumulated depreciation in the tax book, and opens the next period.
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In the Submit Request form, enter DEMO TAX BOOK as the lone parameter.
2.
(B) Submit
3.
Navigate to the View Requests form and select (B) View Output.
4.
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Assumptions
Use the Oracle Assets seeded Responsibility > Assets, Vision Operations (USA)
Replace XX in the Practice with a unique identifier such as your initials or a number
(for Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.
Replace any year references of YYYY and YY with the calendar year of your choice or
as directed by the Instructor (e.g. 2002 or Jan-02). Keep in mind that some transactions
require calendar dates and calendar periods be defined and enabled before hand in order
to be processed.
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The segment separator for the accounting flexfield may not be a dash "-". Substitute the
applicable segment separator if necessary.
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You need to copy assets from the OPS CORP book to the XX_TAX Book for the categories you
assigned to this tax book in a previous Practice.
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2.
Enter XX_TAX BOOK as the parameter for the request. Select (B) Submit.
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For the Initial Mass Copy request line, select (B) View Output.
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5.
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"This asset's category is not set up for this tax book" on the report. This is due to you only
assigning a few asset categories to the XX_TAX BOOK and the assets in the OPS CORP
book in categories other than what we set up for the XX_TAX BOOK will not be copied and
therefore display this message.
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Because tax books share category and distribution information with the corporate book,
Periodic Mass Copy does not copy reclassifications or transfers.
- If two transactions in separate corporate periods fall into the same tax period,
Oracle Assets may copy them differently. For example, if you adjust an asset in the
period after you added it to the corporate book but the adjustment falls in the same
tax period as the addition, the tax addition becomes an Addition/Void, and the tax
adjustment is a new Addition transaction.
- If the second transaction is not allowed in the same period, such as a retirement in
the period of the addition, it is not copied.
Oracle Assets prints all skipped transactions in the Periodic Mass Copy log file.
In using Periodic Mass Copy, specify whether to copy retirements, adjustments, and
salvage value for the tax book in the Book Controls window.
If a retirement is skipped, consider adjusting the cost to zero in the open period and
performing a prior-period retirement in the next period.
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2.
(B) Books
3.
4.
5.
6.
(B) Done
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Assumptions
Use the Oracle Assets seeded Responsibility > Assets, Vision Operations (USA)
Replace XX in the Practice with a unique identifier such as your initials or a number
(for Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.
Replace any year references of YYYY and YY with the calendar year of your choice or
as directed by the Instructor (e.g. 2002 or Jan-02). Keep in mind that some transactions
require calendar dates and calendar periods be defined and enabled before hand in order
to be processed.
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applicable segment separator if necessary.
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You need to add a new asset using QuickAdditions to the OPS CORP book with the following
data:
Field Name
Description
Tag Number
Category
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Value
VEHICLE-OWNED LUXURY
OPS CORP
Cost
32,000
Expense Account
01-120-7350-0000-000
Tax Accounting
Chapter 13 - Page 39
Location
USA-NY-NEW YORK-NONE
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3.
Value
Description
Tag Number
XX_BMW
Category
VEHICLE-OWNED LUXURY
Book
OPS CORP
Cost
32,000
Expense Account
01-120-7350-0000-000
Location
USA-NY-NEW YORK-NONE
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4.
5.
In the Find Assets form, enter either the asset number or tag number (XX_BMW).
6.
Enter OPS CORP in the Book field and select (B) Find.
7.
Back in the Assets form with the BMW now displayed, select (B) Books.
8.
Choose OPS FEDERAL from the list of values for the Book field.
9.
Tab to or click in the Current Cost field. The asset information should now be displayed.
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10. Change the depreciation method to MACRS HY with a life of 5 Years 0 Months.
11. Select (B) Done.
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Chapter 13 - Page 44
2. After running mass copy, the asset now appears in your tax book with an original cost of
$100.
3. You want to change the original cost amount in the tax book to $80, so you execute the
following SQL script:
- insert into fa_tax_interface
- (asset_number, book_type_code, cost, posting_status)
- values (12345,ABCTAX,80, POST);
4. You run the Upload Tax Book Interface program so that the asset in the tax book now has
an original cost of $80.
5. Next, you adjust the asset cost in the corporate book from $100 to $200.
6. You run the Mass Copy program to the tax book with the profile option FA: Copy All
Cost Adjustments set to Yes.
7. This adjustment is reflected in the tax book with a new cost of $180.
Note: If you have two different cost values for your corporate and tax books, and you want the
Periodic Mass Copy program to copy all cost adjustments to your tax books, you must set the
FA: Copy All Cost Adjustments profile option to Yes. If you do not set the FA: Copy All Cost
Adjustments profile option to Yes, you will not be able to take advantage of the Periodic Mass
Copy functionality that allows subsequent cost adjustments to be copied to the tax books.
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Deferred Depreciation
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Deferred Depreciation
Defining Deferred Depreciation
Deferred depreciation is the temporary difference in depreciation expense between the
corporate book and the tax book. FAS 109 determines how to account this difference between
the corporate and tax books in the United States.
Estimating Deferred Depreciation Tax Liability
Project depreciation expense for the corporate and tax book. Determine permanent differences,
such as salvage value in the corporate book or an investment tax credit, by running the
Recoverable Cost Report. Adjust depreciation expense for permanent differences.
Adjusted tax depreciation expense = Tax depreciation expense (Corporate recoverable
cost/Tax recoverable cost)
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Oracle Assets automatically adjusts the life-to-date depreciation for all subsequent years to
reflect the adjustment.
Updating a reserve in tax books does not change the depreciation expense taken.
It creates journal entries to the accumulated depreciation and depreciation adjustment
accounts.
Use this feature only when a reporting authority specifies a different accumulated
depreciation.
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2.
3.
4.
Value
Book
OPS FEDERAL
Comments
Audit Results
Fiscal Year
2000
2,000,000
(B) Done
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These transactions are copied automatically to the related tax book. Cost
adjustments are copied as actual adjustment amounts, not as a percentage of the
cost.
- Example: The cost of Asset A in the corporate book is $1000. In the tax book, the
cost of Asset A is $1500 due to inflationary revaluation. If the cost of Asset A in the
corporate book changes by 30% to $1300, the actual adjustment is $300. In the tax
book, the cost adjustment amount of $300 will be copied, not the rate of the
adjustment (30% of $1500). The adjusted cost for Asset A in the tax book will be
$1800, not $1950.
You cannot view CIP assets in tax books from the Asset Workbench. You can view this
information in the View Financial Information window.
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Summary
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Summary
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