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Integrating Oracle Fixed Assets with other modules in Oracle E

The document outlines the integration of Oracle Fixed Assets with Oracle E-Business Suite modules such as Payables, General Ledger, and Purchasing. It details processes like invoice entry, journal entries, and mass additions for asset capitalization, ensuring accurate financial reporting and asset management. Additionally, it highlights the setup of asset categories, depreciation rules, and optional integrations with projects and inventory.

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emmanuelkbr100
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5 views

Integrating Oracle Fixed Assets with other modules in Oracle E

The document outlines the integration of Oracle Fixed Assets with Oracle E-Business Suite modules such as Payables, General Ledger, and Purchasing. It details processes like invoice entry, journal entries, and mass additions for asset capitalization, ensuring accurate financial reporting and asset management. Additionally, it highlights the setup of asset categories, depreciation rules, and optional integrations with projects and inventory.

Uploaded by

emmanuelkbr100
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Integrating Oracle Fixed Assets with other modules in Oracle E-Business Suite (EBS) R12 requires a

clear understanding of how Fixed Assets interacts with the core modules such as Payables (AP),
General Ledger (GL), and Purchasing (PO). Below is a high-level overview of how these integrations
work:

### 1. **Integration with Oracle Payables (AP)**

- **Invoice Entry and Capitalization**: When a supplier invoice for an asset purchase is created in
Oracle Payables, it can be flagged for capitalization, meaning that the item will be transferred to
Fixed Assets.

- **Asset Clearing Account**: Once the invoice is validated and posted, the cost is transferred to an
asset clearing account. At this point, it is ready for the creation of an asset in Oracle Fixed Assets.

- **Create Mass Additions Process**: Oracle provides a program to automate the transfer of
invoice lines from Payables to Fixed Assets via the "Create Mass Additions" process. This process
creates a record in the FA Mass Additions table, where you can review and post the asset into Fixed
Assets.

### 2. **Integration with General Ledger (GL)**

- **Journal Entries**: Oracle Fixed Assets generates depreciation, revaluation, and asset addition
journal entries that are posted to Oracle General Ledger. These journals ensure that the financial
statements reflect accurate asset values and depreciation.

- **Automatic Journal Entries**: Depreciation expense, gains/losses on asset sales, and other
adjustments can be automatically posted to GL accounts, ensuring financial alignment between the
asset register and the accounting system.

### 3. **Integration with Oracle Purchasing (PO)**

- **Capital Asset Purchase**: When an asset is procured through Oracle Purchasing, the system
tracks this through the purchasing cycle.

- **Receipt of Asset**: Upon receipt of the asset, details such as asset cost and other information
flow from the purchase order to the Fixed Assets module through AP integration.

- **Link to Payables**: After the asset is invoiced and paid through Oracle Payables, it can be
capitalized as part of the asset in Oracle Fixed Assets.

### 4. **Key Integration Processes**

- **Mass Additions**: This is the primary process for transferring capital expenditure details from
Oracle Payables or other sources to Oracle Fixed Assets. You can use the "Mass Additions Create"
process to identify, review, and prepare invoices for asset capitalization.

- **Journal Import**: Oracle GL handles the import of journals generated from Oracle Fixed Assets
for transactions like depreciation, retirements, revaluations, and additions.
- **Depreciation Run**: Once assets are placed in service, Oracle Fixed Assets calculates
depreciation and posts it to Oracle GL at the end of each period.

### 5. **Setup and Configuration**

- **Asset Categories**: Asset categories are predefined and are critical for asset management.
Each category can have unique accounting rules and depreciation methods.

- **Book Controls**: Fixed Assets are managed within specific "books" (e.g., corporate, tax) that
define how assets are accounted for, including their depreciation and revaluation methods.

- **Depreciation Rules**: Depreciation methods (e.g., straight-line, reducing balance) are


configured in the Fixed Assets module and applied based on the asset's category and book.

### 6. **Optional Integrations**

- **Projects (Oracle Project Accounting)**: If your organization uses Oracle Projects, assets can be
created and tracked directly from projects, with costs allocated from project expenses into Fixed
Assets.

- **Inventory**: When using Oracle Inventory, assets can be tracked and capitalized based on
inventory transactions, especially for internal asset transfers.

### Common Use Cases in Integration

- **Capital Expenditure Tracking**: Oracle Fixed Assets integrates with AP and PO to ensure capital
expenses related to assets are accurately recorded.

- **Depreciation Posting**: Fixed Assets integrates with Oracle GL to post depreciation and ensure
accurate financial reporting.

- **Asset Reconciliation**: Regular reconciliation between Fixed Assets and General Ledger ensures
that the book value of assets aligns with the financial records.

Would you like to dive deeper into a specific aspect of this integration or need help with the
configuration steps?

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