Important in Fixed Assets... Set Up
Shrikant Karnik
Dear All,
During last week we have discussed about important aspects to be remembered within Accounts Receivable. Now I will try to explain within Fixed Assets.
A) Set Up Part
We have seen in GL there is only one Key Flexfield. However in FA, there are Three FF as Location , Category and Key. In Accounts Payable there in no KFF, however in AR , there are two KFF as Sales Tax Location Flexfield and Territory Flexfield ( which we have not covered in Training ). During the class we have talked about KFF within GL and FA.
KFF in FA : Before we start FA set up we need to configure KFF as Category , Location and Key. This is one time set up at Instance level. Once configured other using the particular instance should follow the same structure of KFF in FA.
System Control : This is a one time activity , where you need to attach your KFF structure for Category, Location and Asset Key.
Setting the Oldest Placed in Service date is very important. Once you set this date you cannot add any asset which is placed in service before this date.
Asset Numbering will decide the first Asset Number. In case you want to have your own Asset Number you can use any number ( Alpha numeric number also accepted in FA )
Fiscal Year : Use the Fiscal Years window to define the beginning and end of each fiscal year since the start of your company. Your fiscal year groups your accounting periods. You must define the start and end date of each fiscal year since the oldest date placed in service. If you are using a 4-4-5 calendar, your start and end dates change every year. When you run the depreciation program for the last period in your fiscal year, Oracle Assets automatically generates the dates for your next fiscal year.
Define Calendars : Use the Calendars window to set up as many depreciation and prorate calendars as you need. Calendars break down your fiscal year into accounting periods. Define your calendars with as many periods as you need.
Depreciation Calendar Determines, with the divide depreciation flag, what fraction of the annual depreciation amount to take each period.
Prorate Calendar Determines, with the date placed in service, which depreciation rate to select from the rate table.
Depreciation Methods and Rates : Depreciation methods specify how to spread the asset cost. Oracle Assets includes many standard depreciation methods. Standard methods are Straight Line Method ( STL) and Flat Rate. (I will try to send you the example and working for both the methods. Even you can search on google also.)
Prorate Conventions: Oracle Assets uses the prorate convention to determine how much depreciation to take in the first and last year of an asset's life based on when you place the asset in service.
If you retire an asset before it is fully reserved, Oracle Assets uses the retirement convention to determine how much depreciation to take in the last year of life based on the retirement date.
Oracle Assets determines the prorate period in your prorate calendar by using the prorate date. If you retire the asset before it is fully reserved, then Oracle Assets uses the prorate date from the retirement convention to determine how much depreciation to take in the asset's last year of life.
Book Controls: Use the Book Controls window to set up your depreciation books. You can set up an unlimited number of independent depreciation books. Each book has its own set of accounting rules and accounts so you can organize and implement your fixed assets accounting policies.
1. Open the Book Controls window.2. Enter the name of the book you want to define.3. Enter a brief, unique description of the book. 4. Choose a Corporate, Tax, or Budget book class. 5. Enter calendar information for your book.6. Enter accounting rules for your book.7. Enter natural accounts for your book.8. Enter journal categories for your book.
Asset Categories: Category information is common for a group of assets. Oracle Assets defaults these depreciation rules when you add an asset, to help you add assets quickly. If the default does not apply, you can override many of the defaults for an individual asset in the Asset Details or Books windows. You set up default values for each category in each book. The default depreciation rules that you set up for a category also depend upon the date placed in service ranges you specify.
While defining Assets Categories we need to assign various accounts as Asset Cost, Clearing, Depreciation, Accumulated Depreciation, CIP Cost, CIP Clearing etc. Try to remember these accounts since they all defaulted when you create Asset using this particular Category. This is a very very important set Up in FA.
Depreciation Methods and Rates : Depreciation methods specify how to spread the asset cost. Oracle Assets includes many standard depreciation methods. Standard methods are Straight Line Method ( STL) and Flat Rate. (In couple of days I will try to send you the example and working for both the methods. Even you can search on google also.)
Defining the combinations for Location and Key ( KFF in FA ) is depending upon the option which you selected for Dynamic Insertion during setting up KFF segment structure for Assets.
There are many more set ups in FA which are optional and not covered during training.
As regards to the Transactions and Reports I will share the knowledge in NEXT mail.