1A) Asset Addition through Purchase Order:-
Purchase Order to be created for purchasing an asset as it has been described in the PO Creation Manual, but following points should be taken into consideration.
1) Put the “Item Category” as Asset and write its description.(in Lines Tab)
2) Put the “PO Charge A/c” as the corresponding Capital WIP A/c without entering any department.
3) Make receipt of the asset.
4) Create an AP Invoice by PO Matching.
5) Validate and Accounted the Invoice.
6) After Validating the Invoice transfer the Invoice Distribution to the GL through the “Payable Accounting Process”.
7) Run the “Mass Addition Create” report in Payable, it will transfer the Invoice Distribution Lines to the Oracle Asset. You can view what lines has transfer to the Asset though the output of the “Mass Addition Create Report”.
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Oracle Payable ---- View --- Request ---- “Mass Addition Create” or “Mass Addition Create Report”
8) Now go to the “Prepare Mass Addition” in Oracle Asset.
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Oracle Fixed Assets ---- Mass Addition ---- Prepare Mass Additions.
9) Select the Asset Book and select the Queue as “New” as all the Invoice Distribution lines that have been transferred from the Payable will be in a “New” state.
10) Click on the “Find” button. It will show all the Asset Invoice Distribution Lines.
11) Select the line and open it.
12) Change the Queue status as “Post”
13) Fill up the “Asset Category”, “Expense A/c”, “Location” of the Asset, date places in service, “Asset Key” as Active for that particular asset and click on the “Done” button.
14) Now go to the “Post Mass Addition” window.
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Oracle Fixed Assets ---- Mass Addition ---- Post Mass Additions
15) Select the Asset Book in the parameters and run the process. The successful completion of the process will add the Asset in the System.
16) The Asset can be seen in the “Asset Workbench” window.
1B) Asset Addition without making any Purchase Order:-
1) Create an AP Invoice manually as it is used to be entered for any other manual AP Invoice.
2) Put the “Distribution Charge A/c” as the corresponding Capital WIP A/c without entering any department.
The next process will be same as it has been described in point no 5 to 16 above in case of asset purchase through a purchase order.
2) Retirement of Fixed Assets:-
Whenever we went to retire/sale an Asset the following procedures have to be followed.
1) Go to the “Asset Workbench”. And select the particular asset that will to be retired / sold.
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Oracle Fixed Assets ---- Asset Transaction --- Asset Workbench --- Query the Asset to be retired / sold
2) Click on the “Retirement” button.
3) Select the “Book” and put the “Retirement date” as the system calculates depreciation up to this date.
4) Put the units to be retired. And put its original cost.
5) Put the “Proceeds of Sale” i.e how much you will receive selling the Asset.
6) And save the work done.
Note:- 1) Asset can not be retired on the same period of its installation.
2) All Accounting Entries related to the retirement will be done at the time of running depreciation and running journal entries at the period end.
3) Running Depreciation for one period:-
After checking up the completion of all entries for the Fixed Assets for one period Depreciation needs to be run.
To run the Depreciation, go to the “Depreciation” window select the “Asset Book” and select the period of depreciation.
At the time of running depreciation if the “Close Period” box is checked then no adjustment is possible for that period. So depreciation should be run only after checking all the adjustment and entries in the system for one period.
Navigation: Oracle Asset---- Depreciation ------- Run Depreciation
After successful completion of the Depreciation running process “Journal Entry” program to be run for creation of all the Accounting Entries related to the Fixed Assets.
Navigation: Oracle Asset---- Journal Entries ------ Standard.
