Oracle Fixed Assets Configuration

Oracle Fixed Assets

(Source: Oracle User & Implementation guides) 

Oracle Assets workbenches let us find critical information in a flexible way, see the results in defined format, and selectively take appropriate action. In the Assets Workbench, we can find our assets based on asset detail, assignment, invoice or lease information. Then, for that asset, we can review financial, assignment and other detailed asset information. We can perform transfers, review the purchasing or retire the asset. All the windows we need are accessible from just one form.  We can query an asset then perform several transactions without having to find it again.

We can perform most of our transactions in Oracle Assets using just three windows:

  • Assets Workbench
  • Mass Additions Workbench
  • Tax Workbench

Configuration Steps

1. Define Asset Category Flexfield

Category flexfield structure is defined to fit the specific needs of an organization. A major category segment is defined and up to six subcategory segments are defined. This key flexfield supports only one structure.

WARNING: The combination of segment values plus segment value separators must be 30 characters or less, since the combination is used as a context field value for the Asset Category descriptive flexfield. An example of a valid combination is VEHICLE.DELIVERY, which contains 16 characters including the segment separator.

Most companies prefer to set up categories which match their chart of accounts. Each chart of account defines a major category. Usually the first segment, or major category, corresponds to the asset accounts in the company’s chart of accounts. Define at least one subcategory segment to allow for distinctions within a major category. We can define up to seven segments if necessary. We probably want to set up no more than 3 category segments due to maintenance issues, and limited reporting space on Oracle Assets reports. Potential uses for a subcategory segment include such information as personal/real, capitalized/expensed, owned/leased, project numbers, foreign, and luxury items.

As this is a Key Flexfield so we have to follow these 6 steps:
i. Create Key Flexfield Structure
ii. Assign qualifiers if required
iii. Create Value Set for each segment of Flexfield
iv. Assign Value Set to each segment
v. Add Values in each Value Set
vi. Create combinations for all segments in each structure

Here we are creating Job Flexfield structure.

Navigation path: Fixed Assets>Setup>Flexfields>Key>Segments

2. Define Asset Location Flexfield

Oracle Assets uses the location flexfield to group assets by physical location. We design our location flexfield to record the information we want. Then we can report on our assets by location. We can also transfer assets that share location information as a group, such as when we move an office to a new location.

Warning: Plan flexfield carefully. Once started entering assets using the flexfield, it cannot be changed.

Define the location flexfield to fit the way we track our asset locations. Use the location flexfield to track the physical location of our assets. For example, if we do business internationally (or plan to do so in the future), we may want to track the country an asset is in. Other segments we may want include are state, city, and site. If we track asset location to more detail, such as for barcoding, we can also add segments for building and room number.

We define our location flexfield structure to fit the specific needs of our organization. We choose the number of segments, the length of each segment, the name and order of each segment in our location flexfield. We must define a state segment and we can also define up to six other location segments.

Use the Locations form to enter the location name using the segments we defined. We do not need to use this form to define locations if we checked Allow Dynamic Inserts.

As this is a Key Flexfield so we have to follow these 6 steps:

i. Create Key Flexfield Structure
ii. Assign qualifiers if required
iii. Create Value Set for each segment of Flexfield
iv. Assign Value Set to each segment
v. Add Values in each Value Set
vi. Create combinations for all segments in each structure

Here we are creating Location Flexfield structure.

Navigation path: Fixed Assets>Setup>Flexfields>Key>Segments

3. Define Asset Key Flexfield

Oracle Assets uses the asset key flexfield to group assets by non-financial information. We design our asset key flexfield to record the information we want. Then we group our assets by asset key so we can find them without an asset number.

Warning: Plan flexfield carefully. Once started entering assets using the flexfield, we cannot change it.

We can assign the same asset key to many assets to easily find similar assets.

We define our asset key flexfield structure to fit the specific needs of our organization. We have to choose the number of segments, the length of each segment, the name and order of each segment in asset key flexfield. We can define up to ten asset key segments. This key flexfield supports only one structure.

If we choose not to track assets using the asset key, we must define at least one segment.

As this is a Key Flexfield so we have to follow these 6 steps:
i. Create Key Flexfield Structure
ii. Assign qualifiers if required
iii. Create Value Set for each segment of Flexfield
iv. Assign Value Set to each segment
v. Add Values in each Value Set
vi. Create combinations for all segments in each structure

Here we are creating Asset Key Flexfield structure.

Navigation path: Fixed Assets>Setup>Flexfields>Key>Segments

4. Open Asset Category Flexfield Values

When we have created the value sets for each segment then the next step is to open values for each segment.

Navigation path: Fixed Assets>Setup>Flexfields>Key>Values

5. Open Asset Location Flexfield Values

When we have created the value sets for each segment then the next step is to open values for each segment.

Navigation path: Fixed Assets>Setup>Flexfields>Key>Values

6. Open Asset Key Flexfield Values

When we have created the value sets for each segment then the next step is to open values for each segment.

Navigation path: Fixed Assets>Setup>Flexfields>Key>Values

7. Define Asset Organization

Oracle Human Resources uses organization classifications to determine the type of organizations being set up. To flag an organization for use in Oracle Assets, enable the Asset Organization classification.

An asset organization is an organization that allows us to perform asset-related activities for specific Oracle Assets corporate depreciation books. Oracle Assets uses only organizations designated as asset organizations.

Note: Non mandatory step unless we have to create security between different books under the same Ledger. This can be done by creating multiple Asset Organizations and Multi-Org Access Control (MOAC). First we have to define lookup value of Asset Organization. Then we can define multiple Asset Organization from Define Organization form. For each Asset organization book control are defined for which access can be restricted through MOAC.

Navigation path: Global HRMS Manager>Other Definitions>Application Utilities Lookups

8. Define System Controls

We specify our enterprise name, asset numbering scheme and key flexfield structures in the System Controls window. We also specify the oldest date placed in service of assets.

Navigation path: Fixed Assets>Setup>Asset System>System Controls

9. Define Fiscal Years

Specify the start and end dates of each fiscal year for a fiscal year name. Define fiscal years from the oldest date placed in service through the current fiscal year. At the end of each fiscal year, the depreciation program automatically generates the dates for the following fiscal year and calendars.

Navigation path: Fixed Assets>Setup>Asset System>Fiscal Years

10. Define Asset Calendar

Use the Calendars window to set up as many Depreciation/Asset calendars as needed. Calendars break down fiscal year into accounting periods. Define calendars with as many periods as needed.

Define a Depreciation/Asset calendar for each depreciation book. Depreciation books can share a calendar and same calendar can be used for depreciation calendar and prorate calendar, if appropriate.

Navigation path: Fixed Assets>Setup>Asset System>Calendars

11. Define Prorate Calendar

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 we place the asset in service.

If we 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 our prorate calendar by using the prorate date. If we 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.

Navigation path: Fixed Assets>Setup>Asset System>Calendars

12. Define Books (Book Control)

An asset can belong to any number of depreciation books but must belong to only one corporate depreciation book. We must assign a new asset to a corporate depreciation book before we can assign it to any tax books. We can only assign the asset to a book for which we defined the asset category. Oracle Assets defaults financial information from the asset category, book and date placed in service.

Each book can have independent accounts, an independent calendar and independent depreciation rules. We can specify for which ledger a depreciation book creates journal entries.

The asset can also have different financial information in each book. For example, We can make the asset cost in our tax book different from the cost in our financial reporting book. The depreciation books are independent, so we can run depreciation for each book on a different schedule.

We can change financial and depreciation information for an asset in a book.

Navigation path: Fixed Assets>Setup>Asset System>Book Controls

13. Define Additional depreciation method and rates

Depreciation methods specify how to spread the asset cost. Oracle Assets includes many standard depreciation methods like:

Sr. # Method Description
1

Life-Based Depreciation Method

Oracle Assets includes standard life-based depreciation methods and rates. However, we can define additional life-based methods.
2 Flat-Rate Depreciation Method We can define additional flat-rate methods, such as Diminishing Value. We can define methods to calculate depreciation using either the net book value or the cost of the asset.
3 Bonus Depreciation Rules Use the Bonus Depreciation Rules window to enter bonus rates for flat-rate depreciation methods. Bonus rules allow taking additional depreciation in the early years of an asset’s life.
4 Units Of Production We can define units of production method so we can calculate depreciation for an asset based on actual production or use for the period.

We can define additional methods in the Methods window, if necessary.

Navigation path: Fixed Assets>Setup>Asset System>Methods

14. Define Locations combinations

Oracle Assets uses the location flexfield to group assets by physical location. We design our location flexfield to record the information we want. Then we can report on our assets by location. We can also transfer assets that share location information as a group, such as when we move an office to a new location.

Warning: Plan flexfield carefully. Once started entering assets using the flexfield, it cannot be changed.

Define the location flexfield to fit the way we track our asset locations. Use the location flexfield to track the physical location of our assets. For example, if we do business internationally (or plan to do so in the future), we may want to track the country an asset is in. Other segments we may want include are state, city, and site. If we track asset location to more detail, such as for barcoding, we can also add segments for building and room number.

We define our location flexfield structure to fit the specific needs of our organization. We choose the number of segments, the length of each segment, the name and order of each segment in our location flexfield. We must define a state segment and we can also define up to six other location segments.

Use the Locations form to enter the location name using the segments we defined. We do not need to use this form to define locations if we checked Allow Dynamic Inserts.

This is flexfield for which we have to create combinations.

Navigation path: Fixed Assets>Setup>Asset System>Locations

15. Define Keys (Combinations)

Oracle Assets uses the asset key flexfield to group assets by non-financial information. We design our asset key flexfield to record the information we want. Then we group our assets by asset key so we can find them without an asset number.

Warning: Plan flexfield carefully. Once started entering assets using the flexfield, we cannot change it.

We can assign the same asset key to many assets to easily find similar assets.

We define our asset key flexfield structure to fit the specific needs of our organization. We have to choose the number of segments, the length of each segment, the name and order of each segment in asset key flexfield. We can define up to ten asset key segments. This key flexfield supports only one structure.

If we choose not to track assets using the asset key, we must define at least one segment.

This is flexfield for which we have to create combinations.

Navigation path: Fixed Assets>Setup>Asset System>Asset Keys

16. Define Asset categories

Oracle Assets uses the asset key flexfield to group assets by non-financial information. We design our asset key flexfield to record the information we want. Then we group our assets by asset key so we can find them without an asset number.

Warning: Plan flexfield carefully. Once started entering assets using the flexfield, we cannot change it.

We can assign the same asset key to many assets to easily find similar assets.

We define our asset key flexfield structure to fit the specific needs of our organization. We have to choose the number of segments, the length of each segment, the name and order of each segment in asset key flexfield. We can define up to ten asset key segments. This key flexfield supports only one structure.

If we choose not to track assets using the asset key, we must define at least one segment.

Navigation path: Fixed Assets>Setup>Asset Categories

After the configuration of these steps  we are able to make entries in Oracle Fixed Assets.

Please contact me for any kind of detail and screeshots related to the understanding of Oracle Fixed Assets Configuration at:
Email: raheelirshadkhan@gmail; Facebook: Raheel Irshad Khan or raheel.i.khan.14@facebook.com
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Phone: +92-302-4381795
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