Oracle document on Fixed asset (implementation document)

Oracler Assets
User Guide
Release 11i
Part No. A81359–07
August 2004

Oracle Assets User Guide, Release 11i
Part No. A81359–07
Copyright E 1988, 2004, Oracle. All rights reserved.
Authors: Gail D’Aloisio, John Hays
Major Contributing Authors: Elaine Chen, Gary Chen, Winifer Cheng, Gladys Leung, Julianna Litwin, Steve
Paradisis, Brad Ridgway, Usha Thothathri, Somasundar Viswapathy, Eileen Wexler
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iii
Contents
Contents
Preface xvii
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Chapter 1 Overview of Oracle Assets 1 – 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Graphical User Interface 1 – 2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Oracle Assets Workbenches 1 – 2
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Chapter 2 Asset Setup 2 – 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Setup Information 2 – 2
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Asset Descriptive Details 2 – 2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation Rules (Books) 2 – 6
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Assignments 2 – 12
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Source Lines 2 – 15
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction–in–Process (CIP) Assets 2 – 16
. . . . . . . . . . . . . . . . . . .
Asset Setup Processes (Additions) 2 – 19
. . . . . . . . . . . . . . . . . . . . . . . . . .
Adding an Asset Accepting Defaults (QuickAdditions) 2 – 20
. . . . . . .
Adding an Asset Specifying Details (Detail Additions) 2 – 22
. . . . . . . .
Entering Financial Information (Detail Additions
Continued) 2 – 24
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assigning an Asset (Detail Additions Continued) 2 – 28
. . . . . . . . .
Correcting Current Period Addition Errors 2 – 31
. . . . . . . . . . . . . . . . . .
Overview of the Mass Additions Process 2 – 32
. . . . . . . . . . . . . . . . . . . .
Review Mass Additions 2 – 33
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Post Mass Additions to Oracle Assets 2 – 38
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Clean Up Mass Additions 2 – 38
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iv Oracle Assets User Guide
Create Mass Additions from Invoice Distributions in
Payables 2 – 40
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Create Mass Additions from Capital Assets in Oracle
Projects 2 – 45
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adding an Asset Automatically from an External Source
(Mass Additions) 2 – 48
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reviewing Mass Addition Lines 2 – 48
. . . . . . . . . . . . . . . . . . . . . . . .
Posting Mass Addition Lines to Oracle Assets 2 – 57
. . . . . . . . . . . .
Deleting Mass Additions from Oracle Assets 2 – 58
. . . . . . . . . . . . .
About the Mass Additions Interface 2 – 61
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Planning Your Import 2 – 62
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Defining Oracle Assets for Mass Additions 2 – 63
. . . . . . . . . . . . . .
Loading Your Asset Data 2 – 68
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FA_MASS_ADDITIONS Interface Table 2 – 70
. . . . . . . . . . . . . . . . .
Importing Your Asset Information 2 – 83
. . . . . . . . . . . . . . . . . . . . . .
Finishing Your Import 2 – 88
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Future Transactions 2 – 90
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adding a Future Transaction Manually 2 – 90
. . . . . . . . . . . . . . . . . .
Invoice Additions 2 – 92
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Merge Mass Additions 2 – 92
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Split Mass Additions 2 – 93
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Performing Adjustments with Future Effective Dates 2 – 93
. . . . . .
Capitalize CIP Assets in Advance 2 – 94
. . . . . . . . . . . . . . . . . . . . . .
View Pending Transactions 2 – 95
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adding Assets in Short Tax Years 2 – 97
. . . . . . . . . . . . . . . . . . . . . . . . . .
Adding a Single Asset in a Short Tax Year 2 – 97
. . . . . . . . . . . . . . .
Adding Multiple Assets in a Short Tax Year 2 – 97
. . . . . . . . . . . . . .
Uploading Tax Book Depreciation Information 2 – 99
. . . . . . . . . . .
How Oracle Assets Calculates Depreciation in a Short
Tax Year 2 – 99
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short Tax Year Example 2 – 101
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Chapter 3 Asset Maintenance 3 – 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changing Asset Details 3 – 2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reclassifying Assets 3 – 2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusting Units for an Asset 3 – 7
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusting Accounting Information 3 – 8
. . . . . . . . . . . . . . . . . . . . . . . . .
Changing Financial and Depreciation Information 3 – 8
. . . . . . . .
Transferring Assets 3 – 15
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changing Invoice Information for an Asset 3 – 20
. . . . . . . . . . . . . .
Mass External Transfers of Assets and Source Lines 3 – 22
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v
Contents
Placing Construction–In–Process (CIP) Assets in Service 3 – 27
. . . . . .
Revaluing Assets 3 – 29
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Management in a Highly Inflationary Economy
(Revaluation) 3 – 32
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Control Your Revaluation 3 – 34
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Physical Inventory 3 – 38
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
About Physical Inventory 3 – 38
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Setting Up Oracle Assets Data to be Included in
Physical Inventory 3 – 40
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loading Physical Inventory Data 3 – 41
. . . . . . . . . . . . . . . . . . . . . . .
Physical Inventory Comparison Program 3 – 49
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Viewing Comparison Results 3 – 51
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Reconciliation 3 – 52
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Missing Assets 3 – 53
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Purging Physical Inventory Data 3 – 53
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Scheduling Asset Maintenance 3 – 54
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Schedule Maintenance Events Window Reference 3 – 55
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Maintenance Details Window Reference 3 – 56
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Purge Maintenance Schedules Window Reference 3 – 58
. . . . . . . .
Chapter 4 Asset Retirements 4 – 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
About Retirements 4 – 2
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Retiring Assets 4 – 6
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Correcting Retirement Errors (Reinstatements) 4 – 11
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Mass External Retirements 4 – 13
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Rules for Mass External Retirements 4 – 13
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Entering Mass External Retirements 4 – 14
. . . . . . . . . . . . . . . . . . . .
Mass External Retirements Interface Table 4 – 15
. . . . . . . . . . . . . . .
Calculating Gains and Losses for Retirements 4 – 19
. . . . . . . . . . . . . . . .
Retirement Requests 4 – 21
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Creating Retirement Requests in Oracle Projects – Field
Employees 4 – 21
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Processing Retirement Requests – Fixed Asset Accountant 4 – 22
.
Processing Imported Retirement Requests 4 – 23
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Chapter 5 Depreciation 5 – 1
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Running Depreciation 5 – 2
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Rolling Back Depreciation 5 – 4
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Depreciation Override 5 – 5
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About the Depreciation Override Interface 5 – 13
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vi Oracle Assets User Guide
Loading Depreciation Override Data 5 – 14
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Basic Depreciation Calculation 5 – 18
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Depreciation Calculation 5 – 21
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Depreciation Calculation for Flat–Rate Methods 5 – 26
. . . . . . . . . . . . . .
Depreciation Calculation for Table and Calculated Methods 5 – 33
. . .
Depreciation Calculation for the Units of Production Method 5 – 39
. .
Assets Depreciating Under Units of Production 5 – 42
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Using the Production Interface 5 – 46
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Assigning Values to Required Columns in the
FA_PRODUCTION_INTERFACE Table 5 – 46
. . . . . . . . . . . . . . . . .
Customize the Production Interface SQL*Loader Script 5 – 47
. . . .
Uploading Production into Oracle Assets 5 – 48
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Entering Production Amounts 5 – 49
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Projecting Depreciation Expense 5 – 50
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Forecasting Depreciation 5 – 52
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Parameters 5 – 54
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Process 5 – 57
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Data Archive and Purge 5 – 59
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Resizing the Archive Tables 5 – 60
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Archive, Purge, and Restore Process 5 – 61
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Archiving and Purging Transaction and Depreciation Data 5 – 65
. . . .
Unplanned Depreciation 5 – 67
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Entering Unplanned Depreciation for an Asset 5 – 74
. . . . . . . . . . .
Bonus Depreciation 5 – 76
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Bonus Rule Accounts 5 – 76
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Bonus Rule Examples 5 – 77
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Defaulting Asset Salvage Value as a Percentage of Cost 5 – 83
. . . . . . .
Depreciating Assets Beyond the Useful Life 5 – 88
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Chapter 6 Accounting 6 – 1
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Creating Journal Entries for the General Ledger 6 – 2
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Generating Account Combinations 6 – 5
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Account Generator 6 – 5
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FA_CUSTOM_GEN_CCID_PKG Stub Package 6 – 5
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Asset Accounting 6 – 7
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Journal Entries 6 – 7
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Reviewing Journal Entries 6 – 9
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Journal Entry Examples 6 – 9
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Journal Entries for Depreciation 6 – 11
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Journal Entries for Additions and Capitalizations 6 – 12
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vii
Contents
Journal Entries for Adjustments 6 – 16
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Amortized and Expensed Adjustments 6 – 16
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Recoverable Cost Adjustments 6 – 18
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Cost Adjustments to Assets Using a Life–Based
Depreciation Method 6 – 19
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Cost Adjustments to Assets Using a Flat–Rate
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost Adjustments to Assets Using a Diminishing Value
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost Adjustments to Assets Depreciating Under a Units of
Production Method 6 – 22
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost Adjustments to Capitalized and CIP Source Lines 6 – 23
. . . .
Cost Adjustment by Adding a Mass Addition to an
Existing Asset 6 – 25
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortized Adjustments Using a Retroactive Start Date 6 – 26
. . . .
Depreciation Method Adjustments 6 – 27
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Life Adjustments 6 – 28
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Rate Adjustments 6 – 29
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Rate Adjustments – Flat–Rate Depreciation Method 6 – 29
. . . . . . .
Rate Adjustments – Diminishing Value Depreciation
Method 6 – 29
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capacity Adjustments 6 – 31
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Journal Entries for Transfers and Reclassifications 6 – 32
. . . . . . . . . . . .
Journal Entries for Retirements and Reinstatements 6 – 39
. . . . . . . . . .
Journal Entries for Revaluations 6 – 47
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Journal Entries for Tax Accumulated Depreciation Adjustments 6 – 63
Chapter 7 Tax Accounting 7 – 1
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Tax Book Maintenance 7 – 2
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How Initial Mass Copy Works 7 – 2
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Initial Mass Copy Example 7 – 5
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How Periodic Mass Copy Works 7 – 6
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Periodic Mass Copy Example 7 – 10
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Tax Book Upload Interface 7 – 13
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Populating the FA_TAX_INTERFACE Table 7 – 13
. . . . . . . . . . . . . .
Upload Tax Book Interface 7 – 18
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Book Upload Example 7 – 18
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Updating a Tax Book with Assets and Transactions 7 – 20
. . . . . . . . . . .
Deferred Income Tax Liability 7 – 22
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Determining Deferred Income Tax Liability 7 – 26
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Tax Credits 7 – 28
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viii Oracle Assets User Guide
Assigning Tax Credits 7 – 30
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Adjusted Current Earnings 7 – 32
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Updating an ACE Book with Accumulated Depreciation 7 – 36
. . . . . .
About the ACE Interface 7 – 39
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ACE Conversion Table 7 – 40
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Automatically Populate the ACE Conversion Table 7 – 41
. . . . . . .
Manually Load the ACE Conversion Table 7 – 43
. . . . . . . . . . . . . . .
Handle Tax Audits 7 – 45
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Determine Adjusted Accumulated Depreciation 7 – 48
. . . . . . . . . .
Mass Depreciation Adjustment Examples 7 – 49
. . . . . . . . . . . . . . . .
Adjusting Tax Book Accumulated Depreciation 7 – 64
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Chapter 8 Capital Budgeting 8 – 1
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Capital Budgeting 8 – 2
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Budgeting for Asset Acquisition 8 – 4
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Budget Open Interface 8 – 6
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Upload Budget Process 8 – 8
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Budget Interface Table 8 – 8
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customize the SQL*Loader Script 8 – 10
. . . . . . . . . . . . . . . . . . . . . .
Chapter 9 System Setup 9 – 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overview of Setting Up 9 – 2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Related Product Setup Steps 9 – 2
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Setup Flowchart 9 – 6
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Setup Checklist 9 – 7
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Setup Steps 9 – 9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Oracle Assets With Multiple Sets of Books 9 – 24
. . . . . . . . . . . . . . . . . . .
Defining the Asset Category Descriptive Flexfield 9 – 26
. . . . . . . . . . . .
Using the Account Generator in Oracle Assets 9 – 27
. . . . . . . . . . . . . . .
Decide How to Use the Account Generator 9 – 28
. . . . . . . . . . . . . .
The Default Account Generator Processes for Oracle Assets 9 – 29
Exceptions 9 – 35
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customizing the Account Generator for Oracle Assets 9 – 36
. . . . .
Asset Key Flexfield 9 – 41
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Category Flexfield 9 – 44
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Location Flexfield 9 – 50
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Specifying System Controls 9 – 54
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Defining Locations 9 – 56
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Defining Asset Keys 9 – 57
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Entering QuickCodes 9 – 58
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Creating Fiscal Years 9 – 61
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Specifying Dates for Calendar Periods 9 – 62
. . . . . . . . . . . . . . . . . . . . . .
Setting Up Security by Book 9 – 65
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Organization Overview 9 – 65
. . . . . . . . . . . . . . . . . . . . . . . . . .
Organization Hierarchies in Oracle Assets 9 – 67
. . . . . . . . . . . . . . .
Security Profiles 9 – 68
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Security List Maintenance Process 9 – 68
. . . . . . . . . . . . . . . . . . . . . .
Defining Responsibilities 9 – 68
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assigning Responsibilities to Users 9 – 69
. . . . . . . . . . . . . . . . . . . . .
Setting Up FA: Security Profile 9 – 69
. . . . . . . . . . . . . . . . . . . . . . . . .
Restrictions 9 – 70
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Defining Depreciation Books 9 – 71
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Entering Calendar Information for a Book 9 – 72
. . . . . . . . . . . . . . .
Entering Accounting Rules for a Book 9 – 73
. . . . . . . . . . . . . . . . . . .
Entering Natural Accounts for a Book 9 – 74
. . . . . . . . . . . . . . . . . . .
Entering Journal Entry Categories for a Book 9 – 75
. . . . . . . . . . . . .
Entering Tax Rules for a Book 9 – 76
. . . . . . . . . . . . . . . . . . . . . . . . . .
Defining Additional Depreciation Methods 9 – 78
. . . . . . . . . . . . . . . . . .
Defining Formula–Based Depreciation Methods 9 – 81
. . . . . . . . . . . . .
Defining Bonus Depreciation Rules 9 – 86
. . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation Methods for the Job Creation and Worker
Assistance Act of 2002 9 – 88
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table–Based Depreciation Methods for the Job Creation and
Worker Assistance Act of 2002 9 – 88
. . . . . . . . . . . . . . . . . . . . . . . . .
Changing the Depreciation Method 9 – 90
. . . . . . . . . . . . . . . . . . . . .
Adjusting Accumulated Depreciation for the Prior Fiscal
Year 9 – 91
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Defining Depreciable Basis Rules 9 – 92
. . . . . . . . . . . . . . . . . . . . . . . . . .
Polish Tax Depreciation 9 – 115
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Polish Tax Depreciable Basis Rules 9 – 117
. . . . . . . . . . . . . . . . . . . . . . . . .
Polish 30% with a Switch to Declining Classic and Flat Rate 9 – 117
Polish 30% with a Switch to Flat Rate 9 – 119
. . . . . . . . . . . . . . . . . . .
Polish Declining Modified with a Switch to Declining
Classic and Flat Rate 9 – 120
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Polish Declining Modified with a Switch to Flat Rate 9 – 123
. . . . . .
Polish Standard Declining with a Switch to Flat Rate 9 – 124
. . . . . .
Adjusting Polish Tax Depreciation Transactions 9 – 126
. . . . . . . . . . . . . .
Negative Cost Adjustments 9 – 126
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Positive Cost Adjustments 9 – 136
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Partial Retirements 9 – 141
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Setting Up Depreciation Ceilings 9 – 147
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x Oracle Assets User Guide
Defining Investment Tax Credit Rates 9 – 148
. . . . . . . . . . . . . . . . . . . . . . .
Specifying Dates for Prorate Conventions 9 – 150
. . . . . . . . . . . . . . . . . . .
About Prorate and Retirement Conventions 9 – 151
. . . . . . . . . . . . . .
Prorate Convention Setup Examples 9 – 153
. . . . . . . . . . . . . . . . . . . .
Defining Price Indexes 9 – 157
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Setting Up Asset Categories 9 – 158
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Entering General Ledger Accounts for the Category 9 – 159
. . . . . .
Entering Default Depreciation Rules for a Category 9 – 161
. . . . . . .
Defining Distribution Sets 9 – 166
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lease Analysis 9 – 168
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Entering Leases 9 – 175
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exporting Lease Payments to Oracle Payables 9 – 179
. . . . . . . . . . . . . . .
Defining Asset Warranties 9 – 181
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overview of Asset Insurance 9 – 182
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Entering Asset Insurance Information 9 – 183
. . . . . . . . . . . . . . . . . . .
Fixed Asset Insurance Window Reference 9 – 185
. . . . . . . . . . . . . . .
Fixed Asset Insurance Policy Lines Window Reference 9 – 188
. . . .
Fixed Asset Insurance Policy Maintenance Window
Reference 9 – 188
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calculating Asset Insurance 9 – 189
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Reviewing Asset Insurance Information 9 – 190
. . . . . . . . . . . . . . . . .
Chapter 10 Online Inquiries 10 – 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Viewing Assets 10 – 2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Viewing MRC Details for a Transaction 10 – 7
. . . . . . . . . . . . . . . . . . . . .
Performing a Transaction History Inquiry 10 – 8
. . . . . . . . . . . . . . . . . . .
Viewing Accounting Lines 10 – 9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Drilling Down to Oracle Assets from Oracle General Ledger 10 – 11
. . .
Chapter 11 Standard Reports and Listings 11 – 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Running Standard Reports and Listings 11 – 2
. . . . . . . . . . . . . . . . . . . . .
Variable Format Reports 11 – 4
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Comparing Variable Format and Fixed Format Reports 11 – 6
. . . .
Using Reports to Reconcile to the General Ledger 11 – 9
. . . . . . . . . . . .
Reconciling Journal Entries to General Ledger Accounts 11 – 9
. . .
Reconciling Asset Cost Accounts 11 – 11
. . . . . . . . . . . . . . . . . . . . . . .
Reconciling CIP Cost Accounts 11 – 14
. . . . . . . . . . . . . . . . . . . . . . . . .
Reconciling Reserve Accounts 11 – 17
. . . . . . . . . . . . . . . . . . . . . . . . . .
Reconciling Depreciation Expense Accounts 11 – 19
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Tracking and Reconciling Mass Additions 11 – 20
. . . . . . . . . . . . . . .
Common Report Parameters 11 – 23
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common Report Headings 11 – 25
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Budget Reports 11 – 27
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Budget Report 11 – 27
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Budget–To–Actual Report 11 – 27
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital Spending Report 11 – 28
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CIP Reports 11 – 31
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capitalizations Report 11 – 31
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CIP Assets Report 11 – 31
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CIP Capitalization Report 11 – 32
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Listings 11 – 34
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fixed Assets Book Report 11 – 34
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Description Listing 11 – 34
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Inventory Report 11 – 35
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Asset Listing by Period 11 – 35
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Register Report 11 – 36
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Asset Tag Listing 11 – 38
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets by Category Report 11 – 38
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets Not Assigned To Any Books Listing and Assets Not
Assigned To Any Cost Centers Listing 11 – 38
. . . . . . . . . . . . . . . . . .
Diminishing Value Report 11 – 39
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expensed Property Report 11 – 40
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fully Reserved Assets Report 11 – 40
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Leased Assets Report 11 – 41
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non–Depreciating Property Report 11 – 41
. . . . . . . . . . . . . . . . . . . . .
Parent Asset Report 11 – 42
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Physical Inventory Comparison Report 11 – 42
. . . . . . . . . . . . . . . . . .
Physical Inventory Missing Assets Report 11 – 43
. . . . . . . . . . . . . . .
Maintenance Reports 11 – 44
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Maintenance Report 11 – 44
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Maintenance Report (Variable Format) 11 – 44
. . . . . . . . . . . . .
Setup Data Listings 11 – 45
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Category Listing 11 – 45
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bonus Depreciation Rule Listing 11 – 45
. . . . . . . . . . . . . . . . . . . . . . .
Calendar Listing 11 – 46
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ceiling Listing 11 – 46
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Database Index Listing 11 – 47
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation Rate Listing 11 – 47
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Insurance Data Report 11 – 48
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Insurance Value Detail Report 11 – 49
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xii Oracle Assets User Guide
ITC Rates Listing 11 – 49
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Price Index Listing 11 – 50
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prorate Convention Listing 11 – 51
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation Reports 11 – 52
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation Projection Report 11 – 52
. . . . . . . . . . . . . . . . . . . . . . . . .
Hypothetical What–if Report 11 – 52
. . . . . . . . . . . . . . . . . . . . . . . . . .
Hypothetical What–if Report (Variable Format) 11 – 53
. . . . . . . . . .
Unplanned Depreciation Report 11 – 53
. . . . . . . . . . . . . . . . . . . . . . . .
What–if Depreciation Report 11 – 54
. . . . . . . . . . . . . . . . . . . . . . . . . . .
What–if Depreciation Report (Variable Format) 11 – 55
. . . . . . . . . . .
Accounting Reports 11 – 56
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Account Reconciliation Reserve Ledger Report 11 – 56
. . . . . . . . . . .
Accumulated Depreciation Balance Report 11 – 57
. . . . . . . . . . . . . .
Asset Cost Balance Report 11 – 57
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CIP Cost Balance Report 11 – 58
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost and CIP Detail and Summary Reports 11 – 58
. . . . . . . . . . . . . .
Cost Clearing Reconciliation Report 11 – 60
. . . . . . . . . . . . . . . . . . . .
Cost Clearing Reconciliation Report (Variable Format) 11 – 61
. . . .
Drill Down and Account Drill Down Reports 11 – 61
. . . . . . . . . . . .
Group Asset Report (Variable Format) 11 – 62
. . . . . . . . . . . . . . . . . .
Journal Entry Reserve Ledger Report 11 – 63
. . . . . . . . . . . . . . . . . . .
Production History Report 11 – 64
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserve Detail and Summary Reports 11 – 65
. . . . . . . . . . . . . . . . . . .
Reserve Ledger Report 11 – 67
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Revaluation Reserve Balance Report 11 – 67
. . . . . . . . . . . . . . . . . . . .
Revaluation Reserve Detail and Summary Reports 11 – 67
. . . . . . . .
Responsibility Reports 11 – 69
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Responsibility Reserve Ledger Report 11 – 69
. . . . . . . . . . . . . . . . . . .
Tax Reports 11 – 71
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets Update Report 11 – 71
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ACE Depreciation Comparison Report 11 – 71
. . . . . . . . . . . . . . . . . .
ACE Non–Depreciating Assets Exception Report 11 – 72
. . . . . . . . .
ACE Unrecognized Depreciation Method Code Exception
Report 11 – 72
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form and Adjusted Form 4562 – Depreciation and
Amortization Report 11 – 73
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form and Adjusted Form 4626 – AMT Detail and Summary
Reports 11 – 74
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form 4684 – Casualties and Thefts Report 11 – 75
. . . . . . . . . . . . . . .
Form 4797 Reports 11 – 76
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment Tax Credit Report 11 – 78
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Mass Depreciation Adjustment Preview and Review
Reports 11 – 78
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property Tax Report 11 – 79
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property Tax Report (Variable Format) 11 – 80
. . . . . . . . . . . . . . . . . .
Recoverable Cost Report 11 – 81
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserve Adjustments Report 11 – 81
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Retired Assets Without Property Classes Report and Retired
Assets Without Retirement Types Report 11 – 82
. . . . . . . . . . . . . . . .
Revalued Asset Retirements Report 11 – 82
. . . . . . . . . . . . . . . . . . . . .
Tax Additions Report 11 – 84
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Preference Report 11 – 84
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Reserve Ledger Report 11 – 85
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Retirements Report 11 – 85
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japanese Depreciable Assets Tax Reports 11 – 86
. . . . . . . . . . . . . . . .
Transaction History Report 11 – 87
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction Types 11 – 87
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additions Reports 11 – 92
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additions by Date Placed in Service Report 11 – 92
. . . . . . . . . . . . . .
Additions by Period Report 11 – 92
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additions by Responsibility Report 11 – 92
. . . . . . . . . . . . . . . . . . . . .
Additions by Source Report 11 – 93
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Annual Additions Report 11 – 94
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Additions by Cost Center Report 11 – 94
. . . . . . . . . . . . . . . . . .
Asset Additions Report 11 – 95
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Additions Responsibility Report 11 – 96
. . . . . . . . . . . . . . . . . .
Conversion Assets Report 11 – 96
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mass Additions Reports 11 – 98
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Delete Mass Additions Preview Report 11 – 98
. . . . . . . . . . . . . . . . . .
Mass Additions Delete Report 11 – 98
. . . . . . . . . . . . . . . . . . . . . . . . .
Mass Additions Create Report 11 – 99
. . . . . . . . . . . . . . . . . . . . . . . . .
Mass Additions Invoice Merge and Split Reports 11 – 100
. . . . . . . . .
Mass Additions Posting Report 11 – 101
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Mass Additions Purge Report 11 – 101
. . . . . . . . . . . . . . . . . . . . . . . . . .
Mass Additions Report 11 – 102
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mass Additions Status Report 11 – 102
. . . . . . . . . . . . . . . . . . . . . . . . . .
Unposted Mass Additions Report 11 – 102
. . . . . . . . . . . . . . . . . . . . . .
Adjustments Reports 11 – 104
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost Adjustments by Source Report 11 – 104
. . . . . . . . . . . . . . . . . . . . .
Cost Adjustments Report 11 – 105
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost Adjustments Report (Variable Format) 11 – 105
. . . . . . . . . . . . . .
Financial Adjustments Report 11 – 106
. . . . . . . . . . . . . . . . . . . . . . . . . .
Parent Asset Transactions Report 11 – 106
. . . . . . . . . . . . . . . . . . . . . . .

xiv Oracle Assets User Guide
Transfers Reports 11 – 108
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Transfers Report 11 – 108
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Transfer Reconciliation Report 11 – 108
. . . . . . . . . . . . . . . . . . . .
Asset Disposals Responsibility Report 11 – 109
. . . . . . . . . . . . . . . . . . .
Transfers Report 11 – 110
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reclassification Reports 11 – 111
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Reclassification Report 11 – 111
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Reclassification Reconciliation Report 11 – 112
. . . . . . . . . . . . . .
Reclassifications Report 11 – 113
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retirements Reports 11 – 114
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Retirements by Cost Center Report 11 – 114
. . . . . . . . . . . . . . . .
Asset Retirements Report 11 – 114
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reinstated Assets Report 11 – 115
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retirements Report 11 – 116
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mass Transaction Reports 11 – 117
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mass Change Preview and Review Reports 11 – 117
. . . . . . . . . . . . . .
Mass Change Preview and Review Reports
(Variable Format) 11 – 117
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mass Transfers Preview Report 11 – 118
. . . . . . . . . . . . . . . . . . . . . . . . .
Mass Retirements Report and Mass Retirements Exception
Report 11 – 118
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mass Revaluation Preview and Review Reports 11 – 119
. . . . . . . . . .
Mass Reclassification Preview and Review Reports 11 – 120
. . . . . . .
Chapter 12 Group Depreciation 12 – 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Group Depreciation 12 – 2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Group Asset 12 – 2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Create Group and Member Assets 12 – 4
. . . . . . . . . . . . . . . . . . . . . . . . . .
Set Up Group Assets in Book Controls 12 – 4
. . . . . . . . . . . . . . . . . .
Create Group Assets Using Detail Additions 12 – 5
. . . . . . . . . . . . .
Create Group Assets Using QuickAdditions 12 – 12
. . . . . . . . . . . . .
Find a Group Asset in the Asset Workbench 12 – 13
. . . . . . . . . . . . .
Group and Member Asset Rules 12 – 14
. . . . . . . . . . . . . . . . . . . . . . . .
Disabling Group Assets 12 – 15
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assigning Member Assets to a Group Asset 12 – 18
. . . . . . . . . . . . . . . . .
Transactions: Adding Member Asset Cost 12 – 20
. . . . . . . . . . . . . . . . . . .
Current Period Member Asset Addition 12 – 20
. . . . . . . . . . . . . . . . .
Prior Period Member Asset Addition 12 – 23
. . . . . . . . . . . . . . . . . . .
CIP Member Asset 12 – 28
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CIP Member Asset Depreciation 12 – 30
. . . . . . . . . . . . . . . . . . . . . . . .
Transactions: Member Asset Cost Adjustment 12 – 33
. . . . . . . . . . . . . . .

xv
Contents
Current Period Member Asset Cost Adjustment 12 – 34
. . . . . . . . . .
Prior Period Member Asset Cost Adjustment 12 – 37
. . . . . . . . . . . .
Prior Period Member Asset Cost Adjustment – Flat Rate
Method 12 – 38
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transactions: Group Adjustment 12 – 40
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustment for Changing Group Asset Depreciation Rules 12 – 40
Change Group Asset Depreciation Method 12 – 40
. . . . . . . . . . . . . .
Life Changed with Straight Line Method 12 – 42
. . . . . . . . . . . . . . . .
Method Changed From Flat Rate to Straight Line 12 – 44
. . . . . . . . .
Changing Group Asset Salvage Value 12 – 47
. . . . . . . . . . . . . . . . . . .
Group Assets Adjustment 12 – 50
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Super Groups 12 – 51
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Set Up Super Groups 12 – 51
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transactions: Group Reclassification 12 – 53
. . . . . . . . . . . . . . . . . . . . . . . .
Transfer Types – Calculate and Enter 12 – 53
. . . . . . . . . . . . . . . . . . . .
Transfer Type – Enter 12 – 69
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transactions: Retirements 12 – 77
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Do Not Recognize Gain and Loss 12 – 77
. . . . . . . . . . . . . . . . . . . . . . .
Recognize Gain and Loss Immediately When Retired 12 – 86
. . . . .
Terminal Gain and Loss: Retiring the Last Asset in
Group Asset 12 – 92
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Member Asset Tracking 12 – 100
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tracking Depreciation of Member Assets 12 – 100
. . . . . . . . . . . . . . . .
Group Depreciation Enabled Reports 12 – 108
. . . . . . . . . . . . . . . . . . .
Group Depreciation Restrictions 12 – 109
. . . . . . . . . . . . . . . . . . . . . . . .
Mass Property 12 – 111
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Creating Mass Property Assets 12 – 111
. . . . . . . . . . . . . . . . . . . . . . . . .
Appendix A Oracle Assets Menu Paths A – 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Oracle Assets Navigator Paths A – 2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Appendix B Comparing Character Mode Forms and GUI Forms B – 1
. . . . . . . . .
Oracle Assets Character Mode Forms and Corresponding
GUI Windows B – 2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Appendix C Oracle Assets Profile Options C – 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Profile Options in Oracle Assets C – 2
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Setup Profile Options Summary C – 2
. . . . . . . . . . . . . . . . . . . . . . . .
Profile Options C – 4
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

xvi Oracle Assets User Guide
Appendix D Oracle Assets Function Security D – 1
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Function Security in Oracle Assets D – 2
. . . . . . . . . . . . . . . . . . . . . . . . .
Appendix E Setting Up Business Events in Oracle Assets E – 1
. . . . . . . . . . . . . . .
Business Event System Seed Data for Oracle Assets E – 2
. . . . . . . . . . .
Glossary
Index

xvii
Preface
Preface
Welcome to Release 11i of the Oracle Assets User Guide.
This guide contains the information you need to understand and use
Oracle Assets.
• Chapter 1 provides a brief introduction to the graphical user
interface (GUI) available with this release of Oracle Assets. It
also explains the Assets, Mass Additions, and Tax workbenches
and how you use them to add assets, review, merge, split, and
remove mass additions, assign investment tax credits, and
perform reserve adjustments.
• Chapter 2 describes key information Oracle Assets stores about
each asset, and explains how to add them to the system.
• Chapters 3 and 4 explain the concepts and tasks related to
maintaining and retiring assets in the system.
• Chapter 5 provides information about depreciation, depreciation
projections, what–if depreciation, and depreciation and
transaction data archive and purge feature.
• Chapters 6 and 7 contain detailed information about asset
accounting, including journal entry examples for each type of
asset transaction, and explains the tax accounting features
available in Oracle Assets.
• Chapter 8 includes information about capital budgeting and the
budget interface.

xviii Oracle Assets User Guide
• Chapter 9 tells you how to set up your Oracle Assets system.
• Chapter 10 explains how you can view assets and transactions
online.
• Chapter 11 explains how to submit a report request, and briefly
describes each report and listing.
• Chapter 12 explains how to set up logical groupings of assets
based on regulatory requirements and your own business needs.
• Finally, appendices A, B, C, and D include information about
menu paths, comparing character mode and GUI forms, profile
options, and function security in Oracle Assets.
Documentation Accessibility
Our goal is to make Oracle products, services, and supporting
documentation accessible, with good usability, to the disabled
community. To that end, our documentation includes features that
make information available to users of assistive technology. This
documentation is available in HTML format, and contains markup to
facilitate access by the disabled community. Standards will continue to
evolve over time, and Oracle is actively engaged with other
market–leading technology vendors to address technical obstacles so
that our documentation can be accessible to all of our customers. For
additional information, visit the Oracle Accessibility Program Web site
at
http://www.oracle.com/accessibility/
Accessibility of Code Examples in Documentation
JAWS, a Windows screen reader, may not always correctly read the
code examples in this document. The conventions for writing code
require that closing braces should appear on an otherwise empty line;
however, JAWS may not always read a line of text that consists solely
of a bracket or brace.
Accessibility of Links to External Web Sites in Documentation
This documentation may contain links to Web sites of other companies
or organizations that Oracle does not own or control. Oracle neither
evaluates nor makes any representations regarding the accessibility of
these Web sites.

xix
Preface
Other Information Sources
You can choose from many sources of information, including online
documentation, training, and support services, to increase your
knowledge and understanding of Oracle Assets.
If this guide refers you to other Oracle Applications documentation,
use only the Release 11i versions of those guides.
Online Documentation
All Oracle Applications documentation is available online (HTML or
PDF).
• Online Help – Online help patches (HTML) are available on
OracleMetaLink.
• About Documents – Refer to the About Document for the
mini–pack or family pack that you have installed to learn about
new documentation or documentation patches that you can
download. About Documents are available on OracleMetaLink.
Guides Related to All Products
Oracle Applications User’s Guide
This guide explains how to enter data, query, run reports, and navigate
using the graphical user interface (GUI) available with this release of
Oracle Assets (and any other Oracle Applications products). This
guide also includes information on setting user profiles, as well as
running and reviewing reports and concurrent processes.
You can access this user’s guide online by choosing ”Getting Started
with Oracle Applications” from any Oracle Applications help file.
Oracle Projects Documentation Set
Oracle Projects Implementation Guide
Use this manual as a guide for implementing Oracle Projects. This
manual also includes appendixes covering function security, menus
and responsibilities, and profile options.

xx Oracle Assets User Guide
Oracle Projects Fundamentals
Oracle Projects Fundamentals provides the common foundation shared
across the Oracle Projects products. Use this guide to learn
fundamental information about the Oracle Projects solution. This guide
includes a Navigation Paths appendix. Use this appendix to find out
how to access each window in the Oracle Projects solution.
Oracle Project Costing User Guide
Use this guide to learn detailed information about Oracle Project
Costing. Oracle Project Costing provides the tools for processing
project expenditures, including calculating their cost to each project
and determining the General Ledger accounts to which the costs are
posted.
Oracle Project Billing User Guide
Use this guide to learn how to use Oracle Project Billing to process
client invoicing and measure the profitability of your contract projects.
Oracle Project Management User Guide
This guide shows you how to use Oracle Project Management to
manage projects through their lifecycles – from planning, through
execution, to completion.
Oracle Project Resource Management User Guide
This guide provides you with information on how to use Oracle Project
Resource Management. It includes information about staffing,
scheduling, and reporting on project resources.
Oracle Projects APIs, Client Extensions, and Open Interfaces
Reference
This manual gives detailed information about all public application
programming interfaces (APIs) that you can use to extend Oracle
Projects functionality.

xxi
Preface
User Guides Related to This Product
Oracle General Ledger User Guide
Use this manual when you plan and define your chart of accounts,
accounting period types and accounting calendar, functional currency,
and set of books. The manual also describes how to define journal
entry sources and categories so you can create journal entries for your
general ledger. If you use multiple currencies, use this manual when
you define additional rate types, and enter daily rates. This manual
also includes complete information on implementing Budgetary
Control.
Oracle HRMS Documentation Set
This set of guides explains how to define your employees, so you can
give them operating unit and job assignments. It also explains how to
set up an organization (operating unit). Even if you do not install
Oracle HRMS, you can set up employees and organizations using
Oracle HRMS windows. Specifically, the following manuals will help
you set up employees and operating units:
• Using Oracle HRMS – The Fundamentals
This user guide explains how to set up and use enterprise
modeling, organization management, and cost analysis.
• Managing People Using Oracle HRMS
Use this guide to find out about entering employees.
Oracle Payables User Guide
Refer to this manual to learn how to use Invoice Import to create
invoices in Oracle Payables from Oracle Assets expense reports data in
the Oracle Payables interface tables. This manual also explains how to
define suppliers, and how to specify supplier and employee numbering
schemes for invoices created using Oracle Assets.
Oracle Business Intelligence System Implementation Guide
This guide provides information about implementing Oracle Business
Intelligence (BIS) in your environment.

xxii Oracle Assets User Guide
BIS 11i User Guide Online Help
This guide is provided as online help only from the BIS application and
includes information about intelligence reports, Discoverer workbooks,
and the Performance Management Framework.
Installation and System Administration
Oracle Applications Concepts
This guide provides an introduction to the concepts, features,
technology stack, architecture, and terminology for Oracle Applications
Release 11i. It provides a useful first book to read before installing
Oracle Applications.
Installing Oracle Applications
This guide provides instructions for managing the installation of Oracle
Applications products. In Release 11i, much of the installation process
is handled using Oracle Rapid Install, which minimizes the time to
install Oracle Applications and the technology stack by automating
many of the required steps. This guide contains instructions for using
Oracle Rapid Install and lists the tasks you need to perform to finish
your installation. You should use this guide in conjunction with
individual product user’s guides and implementation guides.
Upgrading Oracle Applications
Refer to this guide if you are upgrading your Oracle Applications
Release 10.7 or Release 11.0 products to Release 11i. This guide
describes the upgrade process and lists database and product–specific
upgrade tasks. You must be either at Release 10.7 (NCA, SmartClient,
or character mode) or Release 11.0, to upgrade to Release 11i. You
cannot upgrade to Release 11i directly from releases prior to 10.7.
Maintaining Oracle Applications
Use this guide to help you run the various AD utilities, such as
AutoUpgrade, AutoPatch, AD Administration, AD Controller, AD
Relink, License Manager, and others. It contains how–to steps,
screenshots, and other information that you need to run the AD
utilities. This guide also provides information on maintaining the
Oracle Applications file system and database.

xxiii
Preface
Oracle Applications System Administrator’s Guide
This guide provides planning and reference information for the Oracle
Applications System Administrator. It contains information on how to
define security, customize menus and online help, and manage
concurrent processing.
Oracle Alert User’s Guide
This guide explains how to define periodic and event alerts to monitor
the status of your Oracle Applications data.
Oracle Applications Developer’s Guide
This guide contains the coding standards followed by the Oracle
Applications development staff. It describes the Oracle Application
Object Library components needed to implement the Oracle
Applications user interface described in the Oracle Applications User
Interface Standards for Forms–Based Products. It also provides
information to help you build your custom Oracle Forms Developer
forms so that they integrate with Oracle Applications.
Other Implementation Documentation
Oracle Applications Product Update Notes
Use this guide as a reference for upgrading an installation of Oracle
Applications. It provides a history of the changes to individual Oracle
Applications products between Release 11.0 and Release 11i. It
includes new features, enhancements, and changes made to database
objects, profile options, and seed data for this interval.
Multiple Reporting Currencies in Oracle Applications
If you use the Multiple Reporting Currencies feature to record
transactions in more than one currency, use this manual before you
implement Oracle Assets. This manual details additional steps and
setup considerations for implementing Oracle Assets with Multiple
Reporting Currencies.
Multiple Organizations in Oracle Applications
This guide describes how to set up and use Oracle Assets with Oracle
Applications’ Multiple Organization support feature, so you can define

xxiv Oracle Assets User Guide
and support different organization structures when running a single
installation of Oracle Assets.
Oracle Workflow Administrator’s Guide
This guide explains how to complete the setup steps necessary for any
Oracle Applications product that includes workflow–enabled
processes, as well as how to monitor the progress of runtime workflow
processes.
Oracle Workflow Developer’s Guide
This guide explains how to define new workflow business processes
and customize existing Oracle Applications–embedded workflow
processes. It also describes how to define and customize business
events and event subscriptions.
Oracle Workflow User’s Guide
This guide describes how Oracle Applications users can view and
respond to workflow notifications and monitor the progress of their
workflow processes.
Oracle Workflow API Reference
This guide describes the APIs provided for developers and
administrators to access Oracle Workflow.
Oracle Applications Flexfields Guide
This guide provides flexfields planning, setup and reference
information for the Oracle Assets implementation team, as well as for
users responsible for the ongoing maintenance of Oracle Applications
product data. This manual also provides information on creating
custom reports on flexfields data.
Oracle eTechnical Reference Manuals
Each eTechnical Reference Manual (eTRM) contains database diagrams
and a detailed description of database tables, forms, reports, and
programs for a specific Oracle Applications product. This information
helps you convert data from your existing applications and integrate
Oracle Applications data with non–Oracle applications, and write
custom reports for Oracle Applications products. Oracle eTRM is
available on OracleMetaLink.

xxv
Preface
Oracle Applications User Interface Standards
for Forms–Based Products
This guide contains the user interface (UI) standards followed by the
Oracle Applications development staff. It describes the UI for the
Oracle Applications products and tells you how to apply this UI to the
design of an application built by using Oracle Forms.
Oracle Manufacturing APIs and Open Interfaces Manual
This manual contains up–to–date information about integrating with
other Oracle Manufacturing applications and with your other systems.
This documentation includes APIs and open interfaces found in Oracle
Manufacturing.
Oracle Order Management Suite APIs and Open Interfaces Manual
This manual contains up–to–date information about integrating with
other Oracle Manufacturing applications and with your other systems.
This documentation includes APIs and open interfaces found in Oracle
Order Management Suite.
Oracle Applications Message Reference Manual
This manual describes all Oracle Applications messages. This manual
is available in HTML format on the documentation CD–ROM for
Release 11i.
Training and Support
Training
Oracle offers a complete set of training courses to help you and your
staff master Oracle Assets and reach full productivity quickly. These
courses are organized into functional learning paths, so you take only
those courses appropriate to your job or area of responsibility.
You have a choice of educational environments. You can attend
courses offered by Oracle University at any of our many Education
Centers, you can arrange for our trainers to teach at your facility, or
you can use Oracle Learning Network (OLN), Oracle University’s
online education utility. In addition, Oracle training professionals can
tailor standard courses or develop custom courses to meet your needs.
For example, you may want to use your organization structure,

xxvi Oracle Assets User Guide
terminology, and data as examples in a customized training session
delivered at your own facility.
Support
From on–site support to central support, our team of experienced
professionals provides the help and information you need to keep
Oracle Assets working for you. This team includes your Technical
Representative, Account Manager, and Oracle’s large staff of
consultants and support specialists with expertise in your business
area, managing an Oracle Database, and your hardware and software
environment.
Do Not Use Database Tools to Modify Oracle Applications Data
Oracle STRONGLY RECOMMENDS that you never use SQL*Plus,
database triggers, or any other tool to modify Oracle Applications
data unless otherwise instructed.
Oracle provides powerful tools you can use to create, store, change,
retrieve, and maintain information in an Oracle database. But if you
use Oracle tools such as SQL*Plus to modify Oracle Applications data,
you risk destroying the integrity of your data and you lose the ability to
audit changes to your data.
Because Oracle Applications tables are interrelated, any change you
make using Oracle Applications can update many tables at once. But
when you modify Oracle Applications data using anything other than
Oracle Applications, you may change a row in one table without
making corresponding changes in related tables. If your tables get out
of synchronization with each other, you risk retrieving erroneous
information and you risk unpredictable results throughout Oracle
Applications.
When you use Oracle Applications to modify your data, Oracle
Applications automatically checks that your changes are valid. Oracle
Applications also keeps track of who changes information. If you enter
information into database tables using database tools, you may store
invalid information. You also lose the ability to track who has changed
your information because SQL*Plus and other database tools do not
keep a record of changes.

xxvii
Preface
About Oracle
Oracle provides an integrated line of software products for database
management, applications development, decision support, and office
automation, as well as Oracle Applications, an integrated suite of
software modules for financial management, supply chain
management, manufacturing, project systems, human resources
management and customer relationship management.
Oracle products are available for mainframes, minicomputers, personal
computers, network computers and personal digital assistants,
allowing organizations to integrate different computers, different
operating systems, different networks, and even different database
management systems, into a single, unified computing and information
resource.
Oracle is the world’s leading supplier of software for information
management, and the world’s second largest software company. Oracle
offers its database, tools, and applications products, along with related
consulting, education, and support services, in over 145 countries
around the world.
Your Feedback
Thank you for using Oracle Assets and this implementation guide.
Oracle values your comments and feedback. At the end of this guide is
a Reader’s Comment Form you can use to explain what you like or
dislike about Oracle Assets or this implementation guide. Mail your
comments to the following address or contact your Support
representative.
Oracle Applications Documentation Manager
Oracle Corporation
500 Oracle Parkway
Redwood Shores, CA 94065
U.S.A.

xxviii Oracle Assets User Guide

C H A P T E R
1
T
1 – 1
Overview of Oracle Assets
Overview of Oracle
Assets
his chapter provides a short introduction to the graphical user
interface (GUI) available with Oracle Assets, and describes the three
Oracle Assets workbenches, multi–window forms that let you find
critical information in a flexible way, see the results in your defined
format, and selectively take appropriate action.

1 – 2 Oracle Assets User Guide
Graphical User Interface
Oracle Assets has a highly responsive, multi–window graphical user
interface (GUI) with full point–and–click capability. You can use your
mouse or keyboard to operate graphical controls such as pull–down
menus, buttons, poplists, check boxes, or tabbed regions.
You can read more about the basic characteristics of the user interface in
the Oracle Applications User’s Guide.
Oracle Assets Workbenches
Oracle Assets workbenches let you find critical information in a flexible
way, see the results in your defined format, and selectively take
appropriate action. For example, in the Assets Workbench, you can find
your assets based on asset detail, assignment, invoice, or lease
information. Then, for that asset, you can review financial, assignment,
and other detailed asset information, perform transfers, review the
purchasing or other source information, or retire the asset. All the
windows you need are accessible from just one form; you can query an
asset then perform several transactions without having to find it again.
You can perform most of your transactions in Oracle Assets using just
three windows: the Assets Workbench, Mass Additions Workbench,
and Tax Workbench.

1 – 3

Assets Workbench
Use the Assets Workbench windows to add new assets to the system,
and to perform transactions, such as retirements, adjustments, source
line adjustments, and transfers. You can also review asset detail,
financial, and assignment information using this workbench.
The Assets Workbench graphic is a graphical representation of the
windows in the Assets Workbench and their relationship to each other.
The following table describes these relationships:
From the Assets
Workbench window...
You can navigate to the following windows...
Find Assets QuickAdditions, View Financial Information, Retire-
ments, Books, Source Lines, Assignments, Asset Details.
Buttons include Additions and Open, which access Asset
Details.
Table 1 – 1 (Page 1 of 1)

1 – 5
For example, to transfer an asset using the Assets Workbench:
• Choose Assets:Assets Workbench from the Navigator window

• Find the asset you want to transfer using the Find Assets window
• Choose the asset in the Assets window
• Choose the Assignments button to open the Assignments
window
Mass Additions Workbench
Use the Mass Additions workbench windows to review, merge, split,
and remove mass additions.
The Mass Additions Workbench graphic is a graphical representation of
the windows in the Mass Additions Workbench and their relationship to
each other. The following table describes these relationships:
From the Mass Additions
Workbench window...
Find Mass Additions Mass Additions Summary
Mass Additions Summary Add to Assets, Merge Mass Additions, Mass Additions
Buttons include Split, Add to Assets, Merge and Open
Mass Additions Project Details, Assignments

1 – 7

Tax Workbench
Use the Tax Workbench to assign investment tax credits and to perform
reserve adjustments.
The Tax Workbench graphic is a graphical representation of the
windows in the Tax Workbench and their relationship to each other. The
following table describes these relationships:
From the Tax Workbench
window...
Find Assets Assets
Assets Investment Tax Credits, Tax Reserve Adjustments
Mass Depreciation
Adjustments
Project Details, Assignments

C H A P T E R
2
T
2 – 1
Asset Setup
Asset Setup
his chapter describes the basic information Oracle Assets stores
about each asset, such as descriptive details, depreciation rules,
assignments, and source lines. It also includes information about
building construction–in–process (CIP) assets. In addition, this chapter
explains the three asset setup processes, including the Mass Additions
interface, and how to manually and automatically add assets to the
system.

Asset Setup Information
This section includes everything you need to know about asset setup:
• Asset Descriptive Details
• Depreciation Rules (Books)
• Assignments
• Source Lines
• Construction–In–Process (CIP) Assets
Asset Descriptive Details
This section describes selected fields on the Asset Details window.
Asset Number
An asset number uniquely identifies each asset. When you add an
asset, you can enter the asset number, or leave the field blank to use
automatic asset numbering. If you enter an asset number, it must be
unique and not in the range of numbers reserved for automatic asset
numbering. You can enter any number that is less than the number in
the Starting Asset Number field in the System Controls window, or you
can enter any non–numeric value.
Description
Use list of values to choose a standard description you defined in the
QuickCodes window, or enter your own.
Tag Number
If you enter a tag number, it must be unique. A tag number uniquely
identifies each asset. For example, use the tag number to track asset
barcodes, if you use them.
Category
Oracle Assets defaults depreciation rules based on the category, book,
and date placed in service. All assets in a category share the same asset
cost accounts and depreciation accounts for each depreciation book.

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Asset Setup
Category Descriptive Flexfield
Descriptive flexfields allow you to collect and store additional
information about your assets. For each asset category, you can set up
a descriptive flexfield to prompt you for additional information based
on the asset category you enter. For example, you might want to track
the license number for automobiles, but the square footage for
buildings. When you specify a category for a new asset, you can enter
your information in a descriptive flexfield.
Asset Key
The asset key allows you to group assets or identify groups of assets
quickly. It does not have financial impact; rather it can be used to track
a group of assets in a different way than the asset category. For
example, use an asset key to group assets by project.
Asset Type
Valid asset types are:
• Capitalized: Assets included on the company balance sheet.
Capitalized assets usually depreciate. Charged to an asset cost
clearing account.
• CIP (Construction–In–Process): Unfinished assets being built,
not yet in use and not yet depreciating. Once you capitalize a
CIP asset, Oracle Assets begins depreciating it. Charged to a
construction–in–process clearing account.
• Expensed: Items that do NOT depreciate; the entire cost is
charged in a single period to an expense account. Oracle Assets
tracks expensed items, but does not create journal entries for
them. Oracle Assets does not depreciate expensed assets, even if
the Depreciate check box in the Books and Mass Additions
Prepare windows is checked for that asset.
• Group: A group asset is a collection of member assets. You can
add member assets to a group asset, transfer assets out, or
between groups assets. Group asset cost is the sum of all the
associated member assets costs. A group may contain many
individual assets that were placed into service in different years,
but share one depreciation account maintained for the group.
Group asset depreciation, known as group depreciation, is
computed and stored at the group level.

Units
The number of units represents the number of components included as
part of an asset. Use units to group together identical assets. For
example, you might add an asset that is composed of ten separate but
identical chairs. If you are adding an asset, accept the default value of
one, or enter a different number of units.
Parent Asset
You can separately track and manage detachable asset components,
while still automatically grouping them to their parent asset. For
example, a monitor can be tracked as a subcomponent of its parent
asset, a computer. You can specify a rule in the Asset Categories
window by which Oracle Assets defaults the life for a subcomponent
asset based on the category and the parent asset life.
Enter the parent asset to which your asset belongs if you are adding a
subcomponent asset. The parent asset must be in the same corporate
book. If you are adding a leasehold improvement, enter the asset
number of the leased asset. To properly default the subcomponent life,
add the parent asset before the subcomponent.
You must set up the depreciation method for the subcomponent asset
life before you can use the method for that life. If your subcomponent
asset uses a depreciation method of type Calculated, Oracle Assets sets
up the depreciation method for you. If the depreciation method is not
Calculated and if it is not already set up for the subcomponent life rule
default, Oracle Assets uses the asset category default life.
Oracle Assets does not automatically perform the same transaction on
a subcomponent asset when you perform it on the parent asset. Use
the Parent Asset Transactions Report to review the transactions that
you have performed on parent assets during a period.
Warranty Number
You can set up and track manufacturer and supplier warranties online.
Each warranty has a unique warranty number. Use the list of values or
enter a previously defined warranty number to assign the asset to the
coinciding warranty.
Lease Number
You can enter lease information only for an asset assigned to an asset
category in which the Ownership field is set to Leased. You must

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Asset Setup
define the lessor as a valid supplier in the Suppliers window, and
define leases in the Lease Details window, before you can attach a lease
to an asset you are adding in the Asset Details window.
If you are entering a leasehold improvement and you completed the
Parent Asset field in the Asset Details window, Oracle Assets displays
the related lease information from the parent asset. You cannot provide
separate lease information for the leasehold improvement.
Ownership
You can track Owned and Leased assets. Choosing the value Leased
from the Ownership list does not automatically allow you to enter lease
information. You can enter lease information only if you assign the
asset to a leased asset category.
If the lease has a Transfer of Ownership option, you can change the
value of the Ownership field from Leased to Owned, even when the
lease is attached to an asset. Changing the ownership of the lease does
not affect the lease or any other financial attributes of the asset.
In Use
The In Use check box is for your reference only. It indicates whether
the asset is in use. For example, a computer in storage still depreciates
because it becomes obsolete over time whether or not it is in use. Use
this check box to track that it is not in use.
In Physical Inventory
When you check the In Physical Inventory check box, it indicates that
this asset will be included when you run the Physical Inventory
comparison. When you set up categories, you define whether assets in
a particular category should be included in physical inventory. You can
use the In Physical Inventory check box in the Asset Details window to
override the default.
See Also
Asset Setup Processes (Additions): page 2 – 19
Changing Asset Details: page 3 – 2

Entering Leases: page 9 – 175
Depreciation Rules (Books)
This section describes selected fields on the Books window.
Book
An asset can belong to any number of depreciation books, but must
belong to only one corporate depreciation book. You must assign a
new asset to a corporate depreciation book before you can assign it to
any tax books. You can only assign the asset to a book for which you
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. You can specify for which general
ledger set of books a depreciation book creates journal entries.
The asset can also have different financial information in each book.
For example, you can make the asset cost in your tax book different
from the cost in your financial reporting book. The depreciation books
are independent, so you can run depreciation for each book on a
different schedule.
You can change financial and depreciation information for an asset in a
book. You can choose whether to amortize or expense the adjustment.
See: Amortized and Expensed Adjustments: page 6 – 16.
You can add an asset to a tax book using the Books window. To copy a
group of assets to a tax book, use Mass Copy. See: Tax Book
Maintenance: page 7 – 2.
Current Cost
The current cost can be positive, zero, or negative. Oracle Assets
defaults a cost of zero for construction–in–process (CIP) assets and you
cannot change it. Oracle Assets automatically updates the cost to the
sum of the invoice line costs after you add invoice lines to a CIP asset
using the Mass Additions process. You can also change the cost of a
CIP asset manually by entering non–invoiced items or transferring
invoice lines between assets in the Source Lines window.
If this is a capitalized leased asset, and you previously calculated the
cost to capitalize for the lease in the Lease Payments window and you

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Asset Setup
have not override the result of the capitalization test, Oracle Assets
automatically enters the Cost to Capitalize amount in the Current Cost
field, and you can change it.
Original Cost
Oracle Assets displays the original cost of the asset and updates it if
you make a cost adjustment in the period you added the asset. After
the first period, Oracle Assets does not update the original cost.
Salvage Value
The salvage value cannot exceed the asset cost, and you cannot enter a
salvage value for credit (negative cost) assets.
You can specify a salvage value as a percentage of an asset’s acquisition
cost or as an amount. The percentage salvage value will be defaulted
from the category default rules if you have defaulted the salvage value
percentage at the category level in the Asset Categories window. The
salvage value is calculated by multiplying the acquisition cost by the
default salvage value percentage. Then you can define a default
percentage salvage value at the category level in the Asset Categories
window. Oracle Assets calculates the salvage value by multiplying the
acquisition cost by the default salvage value percentage for the
category, book, and date placed in service. If you specify the salvage
value as an amount, you simply enter the amount.
You can also select Sum of Member Assets if you are using the Group
Depreciation feature. For more information, see: Create Group Assets
Using Detail Additions: page 12 – 5.
You can perform salvage value adjustments if necessary. You also can
override the default salvage value when adding an asset during the
Detail Additions process.
Recoverable Cost
The recoverable cost is the portion of the current cost that can be
depreciated. It is the current cost less the salvage value less the
Investment Tax Credit basis reduction amount. If you specify a
depreciation cost ceiling, and if the recoverable cost is greater than that
ceiling, Oracle Assets uses the cost ceiling instead.

Accumulated Depreciation
You normally enter zero accumulated depreciation for new capitalized
assets. If you are adding an asset that you have already depreciated,
you can enter the accumulated depreciation as of the last depreciation
run date for this book, or let Oracle Assets calculate it for you. If you
enter a value other than zero, Oracle Assets uses that amount as the
accumulated depreciation as of the last depreciation run date. If you
have bonus reserve, the amount should be added to the accumulated
depreciation and is no longer tracked as bonus reserve.
If you enter too little accumulated depreciation, Oracle Assets adjusts
depreciation to the correct amount for the current fiscal year. If you
enter too much accumulated depreciation, the asset becomes fully
reserved before the end of its life.
If you enter zero accumulated depreciation, Oracle Assets calculates
the accumulated depreciation and the bonus reserve, if any, based on
the date placed in service. You can have a different accumulated
depreciation for each depreciation book.
Enter the amount of depreciation taken in the current fiscal year, if any,
for the year–to–date depreciation. If the asset is placed in service in the
current fiscal year, the accumulated depreciation amount and the
year–to–date depreciation amount must be the same.
For Oracle Assets to recognize an asset as fully reserved when you add
it, enter an accumulated depreciation amount equal to the recoverable
cost.
You cannot change the accumulated depreciation after the period in
which you added the asset. You can, however, change the depreciation
taken for prior fiscal years in your tax books using the Tax Reserve
Adjustments window.
You cannot enter year–to–date or life–to–date depreciation when you
add a units of production asset. Instead, enter the asset with zero
accumulated depreciation, and enter the total life–to–date production
as production for the current period to catch up depreciation.
Limit Amount
Limit the annual depreciation expense that Oracle Assets calculates for
an asset. You can enter a depreciation limit based on an amount or a
percentage of the asset cost. You can enter a depreciation limit only for
assets in books that allow depreciation limits. You enable depreciation
limits for a book in the Book Controls window.

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Asset Setup
Ceiling
Limit the recoverable cost used to calculate annual depreciation
expense. You can enter a ceiling only for assets in tax depreciation
books.
Investment Tax Credit
The Investment Tax Credit (ITC) check box displays whether you
claimed an ITC on an asset. You cannot claim an Investment Tax Credit
on an asset unless it is using a life–based depreciation method. Allow
ITC for a tax book in the Book Controls window and the category in the
Asset Categories window. Assign ITC to an asset in a tax book in the
Investment Tax Credits window.
Note: This field appears only when you are setting up a tax
book.
Net Book Value
The net book value is defined as:
Net Book Value = Current Cost – Total Reserve (Accumulated
Depreciation + Bonus Reserve)
Revaluation Reserve
If you are adding an asset, enter the revaluation reserve, if any. You
cannot update the revaluation reserve after the period you added the
asset. After that, Oracle Assets updates the revaluation reserve when
you perform revaluations.
Revaluation Reserve = Existing Revaluation Reserve + Change in Net
Book Value due to current revaluation
Note: You can only enter revaluation amounts if you allow
revaluation in the Book Controls window.
Revaluation Ceiling
If you try to revalue the asset cost above the ceiling, Oracle Assets uses
the revaluation ceiling instead.
Note: You can only enter revaluation amounts if you allow
revaluation in the Book Controls window.

Method
The depreciation method you choose determines the way in which
Oracle Assets spreads the cost of the asset over the time it is in use.
You specify default depreciation rules for a category and book in the
Asset Categories window. You can use predefined Calculated, Table,
Units of Production, Flat–Rate, or Formula type methods, or define
your own in the Methods window.
Depending on the type of depreciation method you enter in the Books
window, Oracle Assets provides additional fields so you can enter
related depreciation information. For example, if you enter a
Calculated or Table depreciation method, you must also enter a life for
the asset. In contrast, for a units of production depreciation method,
you must enter a unit of measure and capacity. The table below
illustrates information related to the depreciation types:
Method Type Related Fields
Calculated or Table Life in Years and Months
Calculated or Table Bonus Rule
Flat–Rate Basic Rate
Flat–Rate Adjusted Rate
Flat–Rate Bonus Rule
Units of Production Unit of Measure
Units of Production Capacity
Units of Production Year–to–Date Production – display only
Units of Production Life–to–Date Production – display only
Formula–Based Life in Years and Months
Formula–Based Bonus Rule
Calculated and table methods must be set up with the same number of
prorate periods per year as the prorate calendar for the book. The
depreciation method must already be defined for the life you enter.
You cannot choose a units of production depreciation method in a tax
book if the asset does not use a units of production method in the
associated corporate book.

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Asset Setup
Date in Service
If the current date is in the current open period, the default date placed
in service is the calendar date you enter the asset. If the calendar date
is before the current open period, the default date is the first day of the
open period. If the calendar date is after the current open period, the
default date is the last day of the open period. Accept this date, or
enter a different date placed in service in the current accounting period
or any prior period. You cannot enter a date placed in service before
the oldest date placed in service you specified in the System Controls
window.
You can change the date placed in service at any time. If you change
the date placed in service after depreciation has been processed for an
asset, Oracle Assets treats it as a financial adjustment, and the
accumulated depreciation is recalculated accordingly.
The asset category, book, and date placed in service determine which
default depreciation rules Oracle Assets uses. If the asset category you
entered is set up for more than one date placed in service range for this
book, the date placed in service determines which rules to use.
If you enter a date placed in service in a prior period and zero
accumulated depreciation, Oracle Assets automatically calculates
catchup depreciation when you run depreciation, and expenses the
catchup depreciation in the current period.
The date placed in service for CIP assets is for your reference only.
Oracle Assets automatically updates this field to the date you specify
when you capitalize the asset using the Capitalize CIP Assets window.
Prorate Convention and Prorate Date
Oracle Assets uses the prorate convention to determine how much
depreciation to take in the first and last years of asset life.
Oracle Assets determines the prorate date from the date placed in
service and the prorate convention. It uses this date to determine how
much depreciation to take during the first and last years of asset life.
Amortization Start Date
When you choose to amortize an adjustment, Oracle Assets uses the
Amortization Start Date to determine the amount of catchup
depreciation to take in the current open period. The remaining
depreciation is spread over the remaining life of the asset.

The amortization start date defaults according to the rules described
for the Date Placed in Service. You can change the default date to
another date in the current period or a previous period.
When adding assets with depreciation reserve, you can choose to
amortize the net book value over the remaining life of the asset. Oracle
Assets uses the Amortization Start Date to spread the remaining
recoverable cost over the remaining useful life of the asset. This can
only be performed in the period of addition.
See Also
Entering Financial Information: page 2 – 24
Defining Depreciation Books: page 9 – 71
Defining Additional Depreciation Methods: page 9 – 78
Setting Up Asset Categories: page 9 – 158
Adjusting Accounting Information: page 3 – 8
Amortized and Expensed Adjustments: page 6 – 16
Updating a Tax Book with Assets and Transactions: page 7 – 20
Assigning Tax Credits: page 7 – 30
Adjusting Tax Book Accumulated Depreciation: page 7 – 64
Depreciation Calculation: page 5 – 21
Assignments
Assign assets to employees, general ledger depreciation expense
accounts, and locations. You can share your assets among several
assignment lines. You can automatically assign distributions to an asset
by choosing a predefined Distribution Set.
You can transfer an asset between employees, expense accounts, and
locations. Changing the expense account has a financial impact, since
Oracle Assets creates journal entries for depreciation expense to the

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Asset Setup
general ledger using the account. Changing the location or employee
information, however, has no financial impact because Oracle Assets
uses them solely for property tax and responsibility reporting.
When you run a transaction report or create journal entries for a tax
book, Oracle Assets uses the current assignment information from the
associated corporate book.
The following are some of the fields that appear on the Assignments
window:
Transfer Date
You can enter a date in the current or a prior accounting period. You
cannot back–date transfers before the start of your current fiscal year,
or before the date of the last transaction you performed on the asset.
You also cannot enter a date that is after the last day of the current
accounting period.
When you back–date a transfer, the depreciation program
automatically adjusts the accumulated depreciation and year–to–date
depreciation amounts for the affected general ledger accounts.
Distribution Set
You can use the Distribution Set poplist to choose a predefined
distribution set for an asset. A distribution set allows you to
automatically assign a predefined set of one or more distributions to an
asset. When you choose a distribution set, Oracle Assets automatically
enters the distributions for you.
Show Merged Distributions (Mass Additions only)
The Show Merged Distributions check box appears in the Assignments
window for a mass addition line only. You can only view the
distribution for a merged parent or a merged child one at a time, unless
you check the Show Merged Distributions check box.
Total Units
Oracle Assets displays the total of the number of units for the asset.

Units to Assign
Oracle Assets displays the number of units you must assign. For a
two–sided transfer, the Units to Assign starts at zero. For one–sided
transfers (additions, partial unit retirements, and unit adjustments) the
Units to Assign starts at the number of units added, retired, or
adjusted. The Units to Assign value automatically updates to reflect
the assignment you enter or update. It must be equal to zero before
you can save your work.
Unit Change
The Units field displays the number of units assigned to that
assignment. You can transfer units between existing assignment lines
or to a new assignment line. You can enter whole or fractional units.
The number of units that you enter tells the depreciation program what
fraction of depreciation expense to charge to that account.
You can transfer units out of only one assignment line in a single
transaction, but you can transfer units into as many lines as you want.
To transfer units out of a assignment, enter a negative number. To
transfer units into a assignment, on a new line, enter a positive number.
Employee
Assign assets to the owner or person responsible for that asset. You
must enter a valid, current employee number and name that you
created in the Enter Person window.
Expense Account
Assign assets to depreciation expense accounts.
Oracle Assets charges depreciation expense to the asset using the
expense account and runs Responsibility Reports using the cost center
information.
Location
Enter the physical location of the asset. Oracle Assets uses location
information for Property Tax reports.

2 – 15
Asset Setup
See Also
Transferring Assets between Depreciation Expense Accounts: page
3 – 15
Moving Assets Between Employees and Locations: page 3 – 15
Defining Locations: page 9 – 56
Defining Distribution Sets: page 9 – 166
Entering a New Person (Oracle HRMS Documentation Set)
Source Lines
You can track information about where assets came from, including
sources such as invoice lines from your accounts payable system and
capital assets from Oracle Projects.
Each source line that came from another system through Mass
Additions may include the following information:
• Cost
• Invoice Number
• Line
• Description
• Supplier
• Purchase Order Number
• Source Batch
• Project Number
• Task Number
You change invoice information for a line using the Source Lines
window only if you manually added the source line. For example, you
can manually add a line, adjust the cost of an existing line, or delete a
line for a CIP asset. You also can transfer lines between assets.
You cannot change invoice information if the line came from another
system through Mass Additions.

If the source of the line is Oracle Projects, choose the Project Details
button to view detail project information for the line in the Asset Line
Details window.
See Also
Changing Invoice Information for an Asset: page 3 – 20
Construction–in–Process (CIP) Assets
A construction–in–process (CIP) asset is an asset you construct over a
period of time. You create and maintain your CIP assets as you spend
money for raw materials and labor to construct them. Since a CIP asset
is not yet in use, it does not depreciate. When you finish building the
CIP asset, you can place it in service and begin depreciating it.
You can track CIP assets in Oracle Assets, or you can track detailed
information about your CIP assets in Oracle Projects. If you use Oracle
Projects to track CIP assets, you do not need to track them in Oracle
Assets.
See: Create Mass Additions from Capital Assets in Oracle Projects:
page 2 – 45.
Use the Asset Key to Track CIP Projects
The asset key is a set of key identifying information, such as project
name and project number, that you define for each CIP asset. Use the
asset key to group and track your CIP assets with common key words
so you can find them easily for inquiry or transactions.
Acquire and Build CIP Assets
Create CIP assets using Mass Additions or manual additions.
Oracle Assets identifies invoices with distributions to CIP clearing
accounts in Oracle Payables, and creates mass additions from them.
You can create new CIP assets from your mass additions, or add them
to existing assets. You can also add non–invoiced expenses, such as
labor cost, to your CIP assets. You can perform transfers or
adjustments on your CIP assets if necessary.

☞
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Asset Setup
Automatically Adding CIP Assets to Tax Books
You can can set up Oracle Assets to automatically copy CIP assets to a
tax book when a CIP asset is added to the corporate book.
" To enable CIP assets to be automatically added to a tax book:
1. Navigate to the Book Controls window.
2. Query the tax book to which you want CIP assets copied.
3. Choose Accounting Rules from the poplist in the Book Controls
window.
4. In the Tax Rules region, check the Allow CIP Assets check box.
5. Save your work.
Conditions When CIP Assets are Copied to Tax Books
After you set up Oracle Assets to automatically add CIP assets to your
tax book, all CIP assets you add to your corporate book will
automatically be added to your tax book at the same time. When you
capitalize these CIP assets in your corporate book, the same assets will
automatically be capitalized in your tax book, even if the corporate and
tax books are in different accounting periods.
Attention: If your corporate and tax books’ accounting
periods are not in the same fiscal year, and you add and
capitalize a CIP asset in the corporate book, the same CIP asset
may be added and capitalized in a different fiscal year in the
tax book.
If you checked Allow CIP Assets and later you uncheck it, you may
have CIP assets that were automatically added to the tax book while
Allow CIP Assets was checked. Although Allow CIP Assets is no
longer checked, those CIP assets in the tax book will be automatically
capitalized when the same assets are capitalized in the corporate book.
Performing Transactions on CIP Assets
Although CIP assets can now appear in your tax books, you cannot
perform any transactions directly to CIP assets in tax books. You can
only perform transactions on CIP assets in your corporate book, and
these transactions will automatically be replicated to the tax book.
Note: You cannot view CIP assets in tax books from the Asset
Workbench. You can view this information in the View
Financial Information window.

Place Finished Assets in Service
You capitalize CIP assets when you are ready to place them in service.
You can capitalize or reverse capitalize a single asset or a group of
assets.
When you capitalize an asset, Oracle Assets changes the asset type
from CIP to Capitalized, changes the date placed in service to the date
you enter, sets the cost to the sum of all source lines for the asset, and
re–defaults the depreciation rules from the asset category. Oracle
Assets creates an Addition transaction for an asset you added in a prior
period or changes the CIP Addition transaction to an Addition for an
asset you added in the current period.
When you reverse a capitalization, Oracle Assets changes the asset type
from Capitalized back to CIP and leaves the date placed in service
unchanged. It changes the Addition transaction to an Addition/Void
for an asset you added in a prior period or changes the Addition
transaction to a CIP Addition for an asset you added in the current
period. It also creates a CIP Reverse transaction for assets you
capitalized in a prior period.
See Also
Placing CIP Assets in Service (Capitalizing a CIP Asset): page 3 – 27

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Asset Setup
Asset Setup Processes (Additions)
You can use one of the following processes to enter new assets:
QuickAdditions
Use the QuickAdditions process to quickly enter ordinary assets when
you must enter them manually. You can enter minimal information in
the QuickAdditions window, and the remaining asset information
defaults from the asset category, book, and the date placed in service.
Detail Additions
Use the Detail Additions process to manually add complex assets which
the QuickAdditions process does not handle:
• Assets that have a salvage value
• Assets with more than one assignment
• Assets with more than one source line
• Assets to which the category default depreciation rules do not
apply
• Subcomponent assets
• Leased assets and leasehold improvements
Mass Additions
Use the Mass Additions process to add assets automatically from an
external source. Create assets from one or more invoice distribution
lines in Oracle Payables, CIP asset lines in Oracle Projects, asset
information from another assets system, or information from any other
feeder system using the interface. You must prepare the mass additions
to become assets before you post them to Oracle Assets.
See Also
Adding an Asset Accepting Defaults (QuickAdditions): page 2 – 20
Adding an Asset Specifying Detail (Detail Additions): page 2 – 22
Adding an Asset Automatically from an External Source (Mass
Additions): page 2 – 48
Overview of the Mass Additions Process: page 2 – 32

Adding an Asset Accepting Defaults (QuickAdditions)
" To add an asset quickly accepting default information:
1. Choose Assets > Asset Workbench from the Navigator window.
2. Choose QuickAdditions from the Find Assets window.
3. Enter a Description of the asset.
4. Enter the asset Category.
5. Select the Asset Type of the asset. For a description of the assets
types, see: Asset Descriptive Details: page 2 – 2.
6. Assign your asset to a corporate depreciation Book.
7. Enter the current Cost.
8. Optionally update the Date Placed In Service.
9. If you are entering a member asset, enter the number of the
associated group asset in the Group Asset field. See: Assigning
Member Assets to a Group Asset: page 12 – 18.

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Asset Setup
10. Update the depreciation method and prorate convention, if
necessary. The depreciation method and prorate convention are
defaulted from the category default rules. However, you can update
them here.
11. Assign the asset to an Employee Name (optional), a general ledger
depreciation Expense Account, and a Location.
12. Save your work.
Note: When you create a new member asset and add it to a
group asset as a prior period addition, Oracle Assets
automatically submits the Process Group Adjustments
concurrent program to calculate the prior period depreciation
expense for the group asset. You must acknowledge the
message containing the request number of the program
submission.
See Also
Asset Descriptive Details: page 2 – 2
Depreciation Rules (Books): page 2 – 6
Correcting Current Period Addition Errors: page 2 – 31
Create Group Assets Using QuickAdditions: page 12 – 12

Adding an Asset Specifying Details (Detail Additions)
Use the Detail Additions process to manually add complex assets that
the QuickAdditions process does not handle.
Override default depreciation rules if necessary.
" To add an asset specifying detail information:
2. Choose Additions.
3. In the Asset Details window, enter a Description of the asset.
4. Enter the asset Category.
5. Select the Asset Type of the asset. For a description of the assets
types, see: Asset Descriptive Details: page 2 – 2.
6. Enter the number of Units.

☞
2 – 23
Asset Setup
7. If you are adding a subcomponent asset, enter the Parent Asset
number. If you are adding a leasehold improvement, enter the
leased asset number.
8. Optionally enter the Manufacturer and Model of your asset.
9. Enter the Warranty Number if you want to assign a pre–defined
warranty to an asset.
10. Use the list of values to choose a lease number if you are adding a
leased asset in a leased asset category.
11. Choose whether to include the asset in physical inventory
comparisons. By default, the In Physical Inventory check box is set
according to the asset category you specified, but you can override
that value here.
12. Enter additional information, such as Property Type and Class, and
whether the asset is Owned or Leased and New or Used.
13. Optionally choose Source Lines to enter purchasing information
such as the Supplier Name and Purchase Order Number for the
asset.
14. Choose Continue to continue adding your asset. See: Entering
Financial Information (Detail Additions Continued): page 2 – 24.
Attention: The Detail Additions process requires you to provide
descriptive, financial, and assignment information in the Asset
Details, Books, and Assignments windows.
See Also
Source Lines: page 2 – 15
Correcting Current Period Addition Errors: page 2 – 31

Entering Financial Information (Detail Additions Continued)
To continue adding your asset using the Detail Additions process, you
must enter financial information in the Books window.
You can also use this window to add an asset to a tax book.
Suggestion: You can use Mass Copy to copy groups of assets
to a tax book. See: Tax Book Maintenance: page 7 – 2.
Prerequisites
❑ Enter descriptive information for a new asset in the Asset Details
window. See: Adding an Asset Specifying Details (Detail
❑ Optionally enter the purchasing information for the new asset in the
Source Lines window.

2 – 25
Asset Setup
Continue Adding your Asset
" To enter financial information for a new asset:
1. Assign your asset to a corporate depreciation Book.
2. Enter the current Cost.
Note: If this is a leased asset, and you previously calculated the
cost to capitalize for the lease in the Lease Payments window
and you have not overridden the result of the capitalization test,
Oracle Assets automatically enters the Cost to Capitalize
amount in the Current Cost field, and you can change it. If this
is a group asset, you cannot update the Cost field. Group asset
cost is derived from the sum of all member asset costs.
3. Enter the Salvage Value.
If you wish to enter a salvage value, select either Percent, Amount, or
Sum of Member Assets in the Salvage Value Type field.
If you selected the Percent value type, enter the percentage in the
Salvage Value Percent field. This is the percentage of the asset cost to
use as the salvage value. When you subsequently adjust the cost of this
asset, the salvage value amount is changed proportionally.
If you selected the Amount value type, enter the salvage amount in the
Salvage Value Amount field. This is the salvage amount of the asset.
When you perform a partial retirement by cost, the salvage value is
reduced proportionately.
Select Sum of Member Assets only if you are using the Group
Depreciation feature. For more information, see: Create Group Assets
Using Detail Additions: page 12 – 5.
Note: If you plan to use mass copy, you must use the same
salvage value type for both the corporate and tax books.
must do one of the following:
• Choose Continue to continue adding your asset. See: Assigning
an Asset (Detail Additions Continued): page 2 – 28.
• Optionally, enter or override depreciation information using the
tabs in the Books window. Instructions for adding this
information are included in the following tasks.

" To optionally enter or override the depreciation information for a new
asset:
4. Indicate whether you want to Depreciate the asset.
5. If you are adding a group asset, indicate whether the group asset
should be disabled.
Note: The Disable check box is displayed only if you are
adding a group asset.
6. Specify the date placed in service of the asset.
7. If necessary, override the Depreciation Method and associated
depreciation information defaulted from the category. See:
Changing Financial and Depreciation Information: page 3 – 8.
8. Optionally specify the Bonus Rule.
9. Override the prorate convention defaulted from the category if
necessary.
10. Check the Amortize NBV Over Remaining Life check box to
amortize an adjustment in the period in which the asset is entered.
This check box is available only in the period in which the asset was
entered.
Note: Once you save the asset, you cannot change the asset
type. If you want to capitalize a CIP asset, use the Capitalize
CIP asset window.
11. Optionally select the depreciation limit Type of your asset. Choices
include Amount and Percent. Sum of Member Assets is only
available for group assets.
12. Enter the Limit Amount if you selected a depreciation limit Type of
Amount.
13. Enter the Percent if you selected a depreciation limit Type of
Percent.
14. Enter the Ceiling if you want to limit the recoverable cost used to
calculate annual depreciation expense. You can enter a ceiling only
for assets in tax depreciation books.
Note: You cannot enter a ceiling if the asset is a group asset or a
member asset.
" If the asset is a member of a group asset, enter advanced depreciation
rules information:
1. Select the Group Asset tab.

☞
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Asset Setup
2. Enter the group asset number in the Group Asset field. The
description defaults automatically when you enter the group asset
number.
3. Optionally enter the percentage to use as the reduction rate.
See: Set Up Group Assets in Book Controls: page 12 – 4 and Create
Group Assets Using Detail Additions: page 12 – 5 for more information
on setting up group assets.
" Optionally, enter short fiscal year information:
1. Select the Short Fiscal Year tab.
2. Check the Short Fiscal Year check box if this asset is a short fiscal
year asset.
3. Enter the Conversion Date of the asset.
4. Enter the Original Depreciation Start Date of the asset. This is the
depreciation start date of the asset prior to conversion.
" To enter asset assignment information for a new asset:
1. Choose Continue to continue adding your asset. See: Assigning an
Asset (Detail Additions Continued): page 2 – 28.
Attention: The Detail Additions process requires you to provide
descriptive, financial, and assignment information in the Asset
Details, Books, and Assignments windows.
Add an Individual Asset to Your Tax Book
" To add an asset to a tax book:
1. Choose Assets:Asset Workbench from the Navigator window.
2. Find the asset you want to add to a tax book.
3. Choose the Books button.
4. Enter the tax Book to which you want to assign the asset and tab to
the Current Cost field.
Oracle Assets automatically copies the date placed in service from
the corporate book; however, if the date placed in service in the
corporate book falls in a future period in the tax book, Oracle Assets
defaults the date placed in service for the asset in the tax book to the
last day of the current tax period.

5. You can change the financial information defaulted from the
corporate book, such as cost, date placed in service, depreciation
method, life, rate, prorate convention, ceiling, and bonus rule.
6. Save your work.
See Also
Changing Financial and Depreciation Information: page 3 – 8
Assigning an Asset (Detail Additions Continued)
must assign your new asset to an employee, depreciation expense
account, and location in the Assignments window. You can manually

2 – 29
Asset Setup
enter the distribution(s), or choose a predefined distribution set to
automatically assign the appropriate distribution(s) to the asset.
Prerequisites
❑ Enter descriptive information for a new asset in the Asset Details
window. See: Adding an Asset Specifying Details (Detail
Additions): page 2 – 22.
❑ Optionally enter purchasing information for the new asset in the
Source Lines window.
❑ Enter financial information in the Books window. See: Entering
Financial Information (Detail Additions Continued): page 2 – 24.
Continue Adding your Asset
" To assign your asset to an employee, depreciation expense account,
and location:
Suggestion: Choose a predefined distribution set from the
Distribution Set poplist to automatically assign the appropriate
distribution(s) to your new asset.
1. Optionally enter the Employee Name or Number of the person
responsible for the asset.
2. Enter the default Expense Account to which you want to charge
depreciation.
Oracle Assets defaults the natural account segment from the
category and the book.
3. Enter the physical Location of the asset.
4. Choose Done to save your work.
Note: When you create a new member asset and add it to a
group asset as a prior period addition, Oracle Assets
automatically submits the Process Group Adjustments
message containing the request number of the program
submission.

See Also
Assignments: page 2 – 12
Transferring Assets: page 3 – 15

2 – 31
Asset Setup
Correcting Current Period Addition Errors
If you incorrectly added an asset, you can delete it from the system.
You can only delete assets added in the current period.
" To delete an asset you added in the current period:
2. Find the asset you want to delete.
Note: For best performance, query by asset number or tag
number since they are unique values.
3. Choose Open.
4. From the menu, select Edit, Delete Record.
5. Save your change to delete the asset from the system.
" To change descriptive, financial, or assignment information for an
asset you added in the current period:
H Correct any information for an asset added in the current period in
any of the following windows: Asset Details, Source Lines, Books,
and Assignments.

Overview of the Mass Additions Process
The mass additions process lets you add new assets or cost
adjustments from other systems to your system automatically without
reentering the data. For example, you can add new assets from invoice
lines brought over to Oracle Assets from Oracle Payables, or from CIP
asset lines sent from Oracle Projects. The steps in the mass additions
process are described below:
" Steps in the Mass Addition Process
1. Create – Enter invoices in Oracle Payables, or source information in
any other feeder system. Run Create Mass Additions for Oracle
Assets in Oracle Payables, the Interface Assets process in Oracle
Projects, or use the interface to convert data from other systems.
2. Review – Review mass additions to become assets. Add mass
addition lines to existing assets. Split, merge, or adjust mass
additions.
3. Post – Post your mass additions to Oracle Assets.
4. Clean up – Delete unnecessary and posted mass additions. Purge
deleted mass addition lines from Oracle Assets.
Mass Addition Queues
Each mass addition belongs to a queue that describes its status, and the
queue name changes according to the transactions you perform on the
mass addition. You can define your own mass additions hold queues
in the QuickCodes window. The following table describes each Oracle
Assets mass addition queue name:
Queue
Name Definition Set by
NEW New mass addition line
created but not yet
reviewed
Set by Oracle Assets after
line is brought over from
an external source
ON HOLD, or
user–defined
hold queue
Mass addition line
updated or put on hold by
you, or a new single unit
line created by a SPLIT
Set by you. Also set by
Oracle Assets after any
update to a NEW mass
addition line

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Asset Setup
Set by
Definition
Queue
Name
SPLIT Mass addition line already
split into multiple lines
Set by Oracle Assets when
splitting a multi–unit mass
addition line
MERGED Mass addition line already
merged into another line
Set by Oracle Assets when
merging a line into
another line
COST
ADJUSTMENT
Mass addition line to be
added to an existing asset;
ready for posting
Set by Oracle Assets after
you have put line in the
POST queue
POST Mass addition line ready
to become an asset
Set by you
POSTED Mass addition line already
posted
Set by Post Mass
Additions to Oracle
Assets
DELETE Mass addition line to be
deleted
Set by you
CAPITALIZE CIP asset you want to
capitalize in the future
Set by you
Review Mass Additions
Review newly created mass addition lines before posting them to
Oracle Assets. Enter additional mass addition source, descriptive, and
depreciation information in the Mass Additions window. Assign the
mass addition to one or more distributions, or change existing
distributions, in the Assignments window. If the mass addition is not
an asset, or if it was created in error, you can delete it.
Once you have verified that the mass addition is ready to become an
asset, change the queue to POST. The next time you Post Mass
Additions to Oracle Assets this mass addition becomes an asset. The
Mass Additions post program defaults depreciation rules from the

☞
asset category, book, and date placed in service. You can override the
depreciation rules in the Books window if necessary.
Add to Existing Asset
You can add a mass addition line to an existing asset as a cost
adjustment. These mass additions lines can include future assets that
have not yet been capitalized. Choose whether to change the category
and description of the existing asset to those of the mass addition.
Oracle Assets reclassifies the destination asset to the category and
updates its description to that of the mass addition when you Post
Mass Additions to Oracle Assets. Also choose whether to amortize or
expense the cost adjustment.
When you change the queue name to POST for a mass addition line
you are adding to an existing asset, Oracle Assets automatically
changes the queue name to COST ADJUSTMENT. This makes it easy
to differentiate between adding a new asset or adjusting an existing
asset.
Merge Mass Additions
You can merge separate mass addition lines into a single mass addition
line with a single cost. The mass addition line becomes a single asset
when you Post Mass Additions to Oracle Assets.
For example, merge tax lines into the main invoice line distribution to
maintain proper asset descriptions; merge a discount line with its
appropriate mass addition line; or combine individual mass additions
from different invoices into a single line and amount.
You can only merge mass additions in the NEW, ON HOLD, or
user–defined hold queues. Choose whether to sum the number of
units.
As an audit trail after the merge, the original cost of the invoice line
distribution remains on the line. When you post the merged line, the
asset cost is the total merged cost.
If you undo a merge, the mass addition lines appear as they did before
the merge.
Attention: You cannot merge split mass addition lines. For
example, if you split a mass addition line with 5 units into five
separate mass additions, you cannot merge two of the new
lines together. You can, however, post one of the lines to create

2 – 35
Asset Setup
a new asset, and then add the second mass addition line to the
existing asset as a cost adjustment.
Example
For example, you are asked to merge the mass additions line for
invoice #220 into the line for invoice #100. Prior to the merge, both
have a queue name of NEW. Details for the two lines are as follows:
• Invoice #100, Line 1, $5000, 2 units, Queue = NEW, Description
= Personal Computer
• Invoice #220, Line 2, $67, 1 unit, Queue = NEW, Description =
Tax on PC
After the merge, the line for invoice #100 has a queue name of
MERGED and cannot become an asset. The line for invoice #220 has a
queue name of ON HOLD and can become an asset. Details for the two
lines are as follows:
• Invoice #100, Line 1, $5000, 2 units, Queue = ON HOLD,
Description = Personal Computer
• Invoice #220, Line 2, $67, 1 unit, Queue = MERGED, Description
= Tax on PC
The following graphic illustrates the example:

Split Mass Additions
You can split a mass addition line with multiple units into several
single unit lines. You can split a previously merged mass addition line.
If you split a mass addition, the original line is put in the SPLIT queue
as an audit trail of the split. The resulting split mass additions appear
with one unit each, and with the same existing information from the
source system. Each split child is now in the ON HOLD queue. You
can review each line to become a separate asset.
If you undo a split, Oracle Assets places the original multiple unit mass
addition line in the ON HOLD queue and deletes the single unit lines.
Example
For example, you are asked to split a single mass addition line into
three new lines. Prior to the split, the mass addition line has a queue
name of NEW. Details for the line are as follows:
• Invoice #2000, Line 1, $3000, 3 units, Queue = NEW

2 – 37
Asset Setup
After the split, you have four mass additions lines. The original line
now has a queue name of SPLIT and cannot be made into an asset. The
three new lines have a queue name of ON HOLD and can become an
asset. Details for the mass addition lines are now as follows:
• Invoice #2000, Line 1, $3000, 3 units, Queue = SPLIT
• Invoice #2000, Line 1, $1000, 1 unit, Queue = ON HOLD
The following graphic illustrates the example:

Post Mass Additions to Oracle Assets
Use the Post Mass Additions to Oracle Assets program to create assets
from mass addition lines in the POST queue using the data you entered
in the Mass Additions window. It also adds mass additions in the
COST ADJUSTMENT queue to existing assets. You can run this
program as often as you want during a period.
If you post many mass additions, you can set up Oracle Assets to run
more than one process in parallel. For information on the FA: Number
Mass Addition Parallel Requests profile option, see: Overview of User
Profile Options: page C – 4. The following table describes the effect of
posting on each Oracle Assets mass addition queue name.
Queue Name
Before Post Effect of Post Mass Additions
Queue Name After
Post
POST Creates new asset from mass
addition line
POSTED
COST
ADJUSTMENT
Adds mass addition line to
existing asset
POSTED
MERGED Mass Addition line already
merged
POSTED
SPLIT Mass Addition line already split;
post does not affect
SPLIT
NEW New mass addition line; post
does not affect
NEW
ON HOLD or
user–defined
queue name
Mass addition line on hold; post
does not affect
ON HOLD
DELETE Mass Addition line awaiting
deletion; post does not affect
DELETE
Clean Up Mass Additions
Delete unwanted mass addition lines

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Asset Setup
The Delete Mass Additions program removes mass addition lines in
the following queues:
• Mass additions in the SPLIT queue for which you have already
posted the child mass addition lines created by the split
• Mass additions in the POSTED queue that have already become
assets
• Mass additions in the DELETE queue. Note that Oracle Assets
does not create a journal entry to clear the clearing account, since
the line does not become an asset
Oracle Assets maintains an audit trail by moving lines in the DELETE
queue to the interim table FA_DELETED_MASS_ADDITIONS. After
you run Delete Mass Additions, these lines no longer appear in the
Mass Additions window.
Removing The Audit Trail For Deleted Mass Additions
The Purge Mass Additions from Oracle Assets program removes mass
additions from the interim table FA_DELETED_MASS_ADDITIONS.
The items in the interim table are the audit trail from the mass addition
lines you marked DELETE and removed using Delete Mass Additions.
When you purge the interim table, you lose your audit trail. For
security, the Purge Mass Additions from Oracle Assets program can
only be accessed through the Fixed Assets Administrator standard
responsibility.
See Also
Create Mass Additions for Oracle Assets Program (Oracle Payables User
Guide)
Reviewing Mass Addition Lines: page 2 – 48
Posting Mass Additions to Oracle Assets: page 2 – 57
Deleting Mass Additions from Oracle Assets: page 2 – 58
About the Mass Additions Interface: page 2 – 61

Create Mass Additions from Invoice Distributions in Payables
Mass Additions lets you add assets and cost adjustments directly into
Oracle Assets from invoice information in Payables. The Create Mass
Additions for Oracle Assets process sends valid invoice line
distributions and associated discounts from Payables to an interface
table in Oracle Assets. Then you review them in Oracle Assets and
determine whether to create assets from the lines.

2 – 41
Asset Setup
Register your Accounts
Account Type Must Be Asset
You must register the clearing accounts you want to use as Asset
accounts in the Segment Values window. The create mass additions
process selects Payables invoice line distributions charged to clearing
accounts with the type of Asset.
Define Valid Clearing Accounts in Oracle Assets
For each asset category in Oracle Assets for which you want to import
invoice line distributions from Payables, define valid asset clearing and
construction–in–process clearing accounts. These accounts must be of
type Asset. The create mass additions process only imports lines
charged to accounts that are already set up in your asset categories.
Using Multiple Sets Of Books
Payables must be tied to the same general ledger set of books as the
corporate book for which you want to create mass additions in Oracle
Assets. If you use the multiple organization feature and have multiple
corporate books in Oracle Assets, ensure that you create mass
additions for the correct Oracle Assets corporate book. You cannot
create mass additions for tax books.
Define Items with Asset Categories
You can define a default asset category for an item in Purchasing or
Inventory. Then when you purchase and pay for one of these items
using Purchasing and Payables, the mass additions process defaults
this asset category. This is the only time Oracle Assets defaults an asset
category for a new mass addition line.
If you want mass addition lines for an item to appear in Oracle Assets
with an asset category, you must:
• Define a default asset category for an item in the Item window in
Purchasing or Inventory
• Create a purchase order for that item
• Receive the item in either Purchasing or Inventory
• Enter an invoice in Payables and match it to the outstanding
purchase order
• Approve the invoice
• Post the invoice to General Ledger

After you run create mass additions, the mass addition line appears
with the asset category you specified for the item.
Enter Invoices in Payables
When you enter a new invoice in Payables, if you want the invoice line
to be imported to Oracle Assets, you must charge the distribution to a
clearing account that is already assigned to an asset category. The line
amount can be either positive or negative.
Invoice Description Field
Any additional information you enter in the Description field in the
Invoices Summary window in Payables appears in the Description field
in the Mass Additions window in Oracle Assets.
Discount line distributions brought over to Oracle Assets automatically
have a description of DISCOUNT.
Units
If you enter a purchase order in Purchasing with multiple units and
match it completely to an invoice in Payables, the Create Mass
Additions process uses the number of units specified by the original
purchase order for the mass addition line. Mass addition lines created
from invoices entered directly into Payables without matching to a
purchase order default to one unit. You can update the number of
units in the Mass Additions window.
After you approve and post the invoice in Payables, run the Create
Mass Additions for Oracle Assets process to send valid invoice line
distributions to Oracle Assets.
Handle Returns
You can easily process and track returns using mass additions. For
example, you receive an invoice, post it, and create an asset using mass
additions. You then discover that the asset is defective and you must
return it.
First you reverse the invoice in Payables, charging the credit invoice
line distribution to the same asset clearing account. Then you run mass
additions to bring over the credit line. Add this line to the existing
asset to bring the asset cost to zero. Now you can retire the asset. The
asset does not affect your balance sheet, but its audit trail remains
intact.

2 – 43
Asset Setup
Conditions For Asset Invoice Line Distributions To Be Imported
For the mass additions create process to import an invoice line
distribution to Oracle Assets, these specific conditions must be met:
• The line is charged to an account set up as an Asset account
• The account is set up for an existing asset category as either the
asset clearing account or the CIP clearing account
• The Track As Asset check box is checked. (It is automatically
checked if the account is an Asset account)
• The invoice is approved
• The invoice line distribution is posted to Oracle General Ledger
from Payables
• The general ledger date on the invoice line distribution is on or
before the date you specify for the create program
• If you use the multiple organization feature, your Payables
operating unit must be tied to the same general ledger set of
books as the corporate book for which you want to create mass
additions.
Conditions For Expensed Invoice Line Distributions To Be Imported
You can create expensed items from expensed invoice line distributions
in Oracle Payables. Oracle Assets does not depreciate or create journal
entries for expensed items. You cannot change an expensed item to a
capitalized or CIP asset.
The create mass additions process imports an expensed line only if:
• The invoice line distribution is charged to an Expense account
• Track as Asset is checked
• The invoice is approved
• The invoice line distribution is posted to Oracle General Ledger
from Payables
• The general ledger date on the invoice line distribution is on or
before the date you specify for the create program
• Your installation of Payables must be tied to the same general
ledger set of books as the corporate book for which you want to
create mass additions

☞
Running the Create Mass Additions For Oracle Assets Program in Payables
You can run Create Mass Additions for Oracle Assets as many times as
you like during a period. Each time it sends potential asset invoice line
distributions and any associated discount lines to Oracle Assets.
Payables ensures that it does not bring over the same line twice. If you
want to include nonrecoverable tax as part of the assets value, you can
set up Oracle Assets to include this value after running the Mass
Additions Create program. For information on the FA: Include
Nonrecoverable Tax in Mass Addition profile option, see: Overview of
User Profile Options: page C–7.
Attention: Verify that you are creating mass additions for the
correct corporate book in Oracle Assets, because you cannot
undo the process and resend them to a different book.
Payables sends line amounts entered in foreign currencies to Oracle
Assets in the converted functional currency. Since Oracle Assets
creates journal entries for the functional currency amount, you must
clear any foreign currency invoices manually in your general ledger.
Review the Mass Additions Create Report to see both foreign and
functional currency amounts.
Example
For example, you purchase an asset in euros, and place the asset into
service. Oracle Payables creates a journal entry for the purchase in
euros, and sends it to Oracle General Ledger. The conversion rate and
journal entry created are included below:
Conversion Rate: 1 EUR = 1.25 USD
Oracle Payables
Dr Asset Clearing EUR 4,000
Cr Accounts Payable Liability EUR 4,000
Conversion Rate: 1 EUR = 1.25 USD
Oracle Assets
Dr Asset Cost USD 5,000.00
Dr Depreciation Expense USD 312.50
Cr Asset Clearing USD 5,000.00
Cr Accumulated Depreciation USD 312.50

2 – 45
Asset Setup
In Oracle General Ledger, the Asset Clearing account becomes
unbalanced after posting the debit amount in euros and the credit
amount in dollars for the asset purchase. The asset purchase journal
entry amounts in the Asset Clearing account are included below:
Oracle General Ledger
Dr Asset Clearing EUR 4,000.00
Cr Asset Clearing USD 5,000.00
You must manually clear the unbalanced amounts entered in the Asset
Clearing account. You can clear these amounts by creating a journal
entry to reverse the unbalanced amounts, and bring the Asset Clearing
account into balance. The journal entry required to balance the Asset
Clearing account is included below:
Dr Asset Clearing USD 5,000.00
Cr Asset Clearing EUR 4,000.00
See Also
Entering Standard Invoices (Oracle Payables User Guide)
Guide)
Create Mass Additions from Capital Assets in Oracle Projects
You can collect CIP costs for capital assets you are building in Oracle
Projects. When you finish building your CIP asset, you can capitalize
the associated costs as asset lines in Oracle Projects and send them to
Oracle Assets as mass addition lines. When you run the Interface
Assets process, Oracle Projects sends valid capital asset lines to the
Mass Additions interface table in Oracle Assets. You review these

mass addition lines in Oracle Assets and determine whether to create
assets from them.
If you use Oracle Projects to build CIP assets, you do not need to create
CIP assets in Oracle Assets. For costs that originate in Oracle Payables,
you should send CIP costs to Oracle Projects, and capitalized costs to
Oracle Assets.
Build Capital Assets in Oracle Projects
You define and build capital assets in Oracle Projects using information
specified in the project work breakdown structure (WBS). You define
and assign the grouping method and levels for CIP costs to summarize
them for capitalization. You can review and adjust the summarized
CIP costs if necessary. You also can adjust capital project costs before
and after capitalization.
When your CIP asset is built and ready to be placed in service, you can
capitalize and send the associated costs as asset lines to Oracle Assets.
Oracle Assets places these imported mass addition lines in a holding
area, where you can post the capitalized costs to become assets. Now
you can begin using and depreciating your assets. You can review
detail project transactions associated with the asset lines in both Oracle
Projects and Oracle Assets.
Conditions for Project Information to Be Imported
For Oracle Projects to send asset lines to Oracle Assets, the asset line
must meet these specific conditions:
• The actual date in service must fall in the current or a prior
Oracle Assets accounting period
• The CIP costs for summarized asset lines must be interfaced to
• The CIP costs for supplier invoice adjustments must be
interfaced to Oracle Payables
• A CIP asset must be associated with the asset line
Interface Assets Process
You run the Interface Assets process in Oracle Projects to send asset
lines to Oracle Assets. This process creates a mass addition line for
each asset line in Oracle Projects. It then merges all mass additions for
one asset into a single parent mass addition line. All of the mass

2 – 47
Asset Setup
additions appear in the Prepare Mass Additions window. The merged
children have a status of MERGED.
Oracle Assets places the parent mass addition in the POST queue if you
completely defined the asset in Oracle Projects, and it is ready for
posting. Oracle Assets places the parent mass addition in the NEW
queue if the asset definition is not complete; you must enter additional
information for the mass addition in the Prepare Mass Additions
window, and then update the queue status to POST. You do not need
to change the queue status for lines with a status of MERGED.
You can query mass additions by source, project number, and task
number in the Mass Additions Summary window. Choose the Project
Details button from the Mass Additions window to view detail project
information for the mass addition. You can view detail information
only for mass additions or assets that have a project number assigned
to them. You also can query by source and view project information
for the assets created from these mass additions in the Assets, View
Assets, Source Lines, View Source Lines, and Tax Workbench windows.
You can query by source in the Add to Asset window as well.
See Also
Overview of Capital Projects (Oracle Project Costing User Guide)
Creating and Preparing Asset Lines for Oracle Assets (Oracle Project
Costing User Guide)
Creating a Capital Asset in Oracle Projects (Oracle Project Costing User
Guide)
Sending Asset Lines to Oracle Assets (Oracle Project Costing User Guide)
Adjusting Assets After Interface (Oracle Project Costing User Guide)
Accounting for CIP and Asset Costs in Oracle Projects and Oracle
Assets (Oracle Project Costing User Guide)

Adding an Asset Automatically from an External Source (Mass
Additions)
Use the Mass Additions process to add an asset automatically from an
external source. Review new mass addition lines created from external
sources before posting them to Oracle Assets. You can also delete
unwanted mass addition lines to clean up the system. See: Overview
of the Mass Additions Process: page 2 – 32.
You can also load data into Oracle Assets using the Create Assets
Feature in the Applications Desktop Integrator (ADI), which allows
you to import data from an Excel spreadsheet.
Reviewing Mass Addition Lines
You must review newly created mass addition lines before you can post
them to Oracle Assets to become assets. You can place a group of mass
additions in the POST, ON HOLD, or DELETE queues all at once. You
can also perform a split, merge, or cost adjustment on mass additions
before you post them. You can continue to review a mass addition
until you post it. To review mass additions that have not yet been
posted, run the Unposted Mass Additions or Mass Additions Status
Report.
Note: If you want to find mass additions by Invoice Number,
PO Number, or Supplier Number in the Find Mass Additions
window, your search criteria must match exactly, including
capitalization.
Prerequisite
❑ Create mass additions from external sources. See: Create Mass
Additions for Oracle Assets Program (Oracle Payables User Guide),
Sending Asset Lines to Oracle Assets (Oracle Project Costing User
Guide), and About the Mass Additions Interface: page 2 – 61.

2 – 49
Asset Setup
" To review a mass addition line:
1. Choose Mass Additions > Prepare Mass Additions from the
Navigator window.
2. Find mass additions with the queue name NEW, ON HOLD, or
user–defined hold queue in the Find Mass Additions window.
Note: If you want to find mass additions by Invoice Number,
PO Number, or Supplier Number, your search criteria must
match exactly, including capitalization.
3. Choose the mass addition line you want to review, and choose
Open.
4. Optionally enter additional mass addition source, descriptive, and
depreciation information.
5. If this mass addition was created from Oracle Projects, you can
choose the Project Details button to review associated project
information.

6. If you want to assign this mass addition to multiple distributions,
or you want to review or change existing distributions, choose the
Assignments button.
Note: You can only view the distribution for a merged parent
or a merged child one at a time in the Assignments window;
however, if you check Show Merged Distributions, Oracle
Assets displays all the distributions of both the parent and
children.
In the Assignments window, manually enter or change the
distribution(s) for the mass addition line. To automatically assign a
predefined distribution set to your mass addition line, use the
Distribution Set poplist. See: Assignments: page 2 – 12.
Choose Done to save your work and return to the Mass Additions
window.
7. Change the queue name.
If you are ready to turn a mass addition line into an asset, change
the queue name to POST. While you are processing, you can put a

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Asset Setup
mass addition line in the ON HOLD or a user–defined queue. If
you want to delete an unwanted line, assign it to the DELETE
queue.
8. Save your work.

" To place a group of mass additions in the POST, ON HOLD, or
DELETE queue:
Navigator window.
2. Use the Find Mass Additions window to query the group of mass
additions you want to place in the POST, ON HOLD, or DELETE
queue. Oracle Assets displays the mass additions that meet your
search criteria in the Mass Additions Summary window.
3. From the menu, choose Special, Post All, Hold All, or Delete All.
Caution: Oracle Assets places EACH mass addition that
meets your search criteria into the queue you specify.
Post All: Oracle Assets checks each mass addition, ensures that it
is prepared for posting, and places it in the POST queue. If it
encounters a problem with a mass addition, Oracle Assets alerts
you with an error message and terminates the Post All process.
Note that this mass addition and all other subsequent mass
additions are not yet in the POST queue.
For example, if you choose to Post All, and Oracle Assets alerts you
that a mass addition is incomplete, you can supply the missing
information for it in the Mass Additions window, save your work,
return to the Mass Additions Summary window, and choose
Special, Post All from the menu to resume the process.
If you receive an error message and you want to omit a mass
addition from the Post All process, you can use Edit, Clear Record
from the menu to clear the mass addition from the Mass Additions
Summary window. Choose Special, Post All from the menu to
resume the process.
Delete All: You may want to review the mass additions you query
in the Mass Additions Summary window before you choose Delete
All, since this process automatically places each mass addition that
meets your search criteria in the DELETE queue.

☞
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Asset Setup
" To add a mass addition line to an existing asset:
Attention: You can only perform cost adjustments for mass
additions in the NEW, ON HOLD, or user–defined hold queues.
Navigator window.
2. Find the mass addition(s) for this transaction in the Find Mass
Additions window.
3. Choose the mass addition line you want to add to an existing asset
as a cost adjustment.
4. Choose Add to Asset.
5. Query and choose the asset to which to add the line. You can find
assets by Asset Detail, Assignment, Source, and Lease.
6. Choose whether to amortize or expense the adjustment to the
existing asset.
7. Check New Category and Description to change the category and
description of the existing asset to those of the mass addition you
are adding as a cost adjustment.
8. Save your work.
9. Choose Open and change the queue name to POST.
10. Save your work.

☞
" To undo an addition to an existing asset:
Navigator window.
Additions window.
3. Choose the cost adjustment you want to undo in the Mass
Additions window.
4. Choose Remove from Asset.
5. Save your work.
" To merge mass addition lines:
Attention: You can only merge mass additions in the NEW, ON
HOLD, or POST queues.
Navigator window.

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Asset Setup
Additions window.
3. Choose the mass addition line into which you want to merge other
lines (the merged parent).
4. Choose Merge.
5. Choose whether to sum the number of units or keep the original
number of units for the line. The Units field shows the total units
for the new merged mass addition, depending on the value of the
Sum Units check box. The Merged Units field displays the sum of
children’s units only.
If you are merging a multi–distributed mass addition, and you do
not check the Sum Units check box, Oracle Assets uses the
distribution of the merged parent for the new merged mass
addition line. If you check the Sum Units check box, Oracle Assets
uses BOTH the merged parent and child distributions for the new
merged mass addition line.
If you are adjusting the cost of a parent mass addition, and Sum
Units is checked, you are cost adjusting the SUM. Otherwise, the
adjustment difference is applied to the parent line only.
6. In the Merged Lines block, choose the line(s) you want to merge
into the merged parent. If you want to merge all the lines, choose
Special, Merge All from the menu.
Oracle Assets assigns the line(s) to the MERGED queue.
Note: If you use the default query or blind query, only the
other lines in the same invoice are shown. Use Query – Run
with a % in any field to bring up all potential invoice lines for
the same book.
7. Save your work.
" To undo a merge:
Navigator window.
Additions window.
3. Choose the merged parent(s) you want to undo.
4. Choose Merge.

5. Uncheck the line(s) for which you want to undo the merge. If you
want to unmerge all the lines, choose Special, Unmerge All from
the menu.
6. Save your work. Oracle Assets changes the queue name for the
unmerged lines to the original queue name before the merge.
" To split a mass addition line:
Navigator window.
Additions window.
3. Choose the mass addition line that you want to split.
4. Choose Split. Oracle Assets splits the line into multiple single–unit
mass addition lines. Review the new lines in the Mass Additions
window.
Note: This also splits any merged children on the line, and
keeps them merged into the split child.
Note: If you split a multi–distributed mass addition line,
Oracle Assets proportionately divides each split child’s unit
between all of the parent’s distributions.
" To undo a previously split mass addition line:
H Choose the split mass addition line you want to undo in the Mass
Additions window. Choose Undo Split. You can undo a split only
before posting the split children.
See Also
Financial Information (Books): page 2 – 6

2 – 57
Asset Setup
Recoverable Cost Adjustments (Journal Entry Examples): page 6 – 18
Create Mass Additions from Invoice Distribution Lines in Oracle
Payables: page 2 – 40
Create Mass Additions from Capital Assets in Oracle Projects: page
2 – 45
Sending Asset Lines to Oracle Assets (from Oracle Projects) Oracle
Project Costing User Guide
Guide)
Posting Mass Addition Lines to Oracle Assets
When you post mass additions, Oracle Assets creates assets from your
mass additions in the POST queue and adds mass additions in the
COST ADJUSTMENT queue to existing assets.
Prerequisites
❑ Create mass additions from external sources. See: Mass Additions
Create Program (Oracle Payables User Guide), Sending Asset Lines to
Oracle Assets (Oracle Project Costing User Guide), and About the
Mass Additions Interface: page 2 – 61.
❑ Review mass additions. See: Reviewing Mass Addition Lines:
page 2 – 48.
" To post mass addition lines to Oracle Assets:
1. Choose Mass Additions > Post Mass Additions from the Navigator.
2. In the Parameters window, specify the corporate book for which
you want to post your mass additions.
If you corporate book is not listed in the list of values, on of the
errors shown in the following table may have occurred:

Error Solution
No mass additions lines in
the post queue.
Navigate to the Mass Additions window and change the
queue to POST for the mass additions that are ready to be
posted.
The corporate book is not
effective for these mass
additions lines
Check the effective date range of the corporate book in the
Book Controls window.
Depreciation has been run
with errors.
Fix the errors and resubmit Depreciation. When Depreci-
ation has been run successfully, re–submit Post Mass
Additions.
Depreciation is currently
running for the corporate
book you specified.
Wait until Depreciation completes successfully, then re–
submit Post Mass Additions.
3. Choose Submit to submit a concurrent process to post your mass
additions to Oracle Assets.
When the program completes successfully, Oracle Assets
automatically runs the Mass Additions Posting Report, which gives
you an audit trail of the processed mass additions.
4. Review the log file and report after the request completes.
See Also
Mass Additions Posting Report: page 11 – 101
Unposted Mass Additions Report: page 11 – 102
Deleting Mass Additions from Oracle Assets
The Delete Mass Additions program removes mass additions in the
DELETE and POSTED queues. It also removes SPLIT parents if the
split children have been posted or deleted. The program archives mass
additions in the DELETE queue only to an audit trail table,
FA_DELETED_MASS_ADDITIONS.
Note: Lines assigned to the DELETE queue do not get journal
entries; you must clear them manually.

2 – 59
Asset Setup
Prerequisites
❑ Change queue name to DELETE for unwanted or erroneous mass
addition lines in the Mass Additions window. See: Reviewing
Mass Addition Lines: page 2 – 48.
❑ Run the Delete Mass Additions Preview Report.
" To delete mass additions from Oracle Assets:
1. Choose Mass Additions > Delete Mass Additions from the
Navigator.
2. In the Parameters window, specify the corporate book for which
you want to clean up mass additions.
3. Choose Submit to submit a concurrent process to remove the lines.
automatically runs the Mass Additions Delete Report, which gives
you an audit trail of the processed mass addition lines.
" To purge the audit trail for deleted mass additions:
1. Change Responsibilities to Fixed Assets Administrator.
2. Choose Purge > Mass Additions from the Navigator.
3. Enter the Batch Number of the Create Mass Additions batch
associated with the deleted mass additions for which you want to
purge the audit trail from Oracle Assets. The create batch number
is on the Mass Additions window and the Create Mass Additions
Report.
4. Choose Submit to submit a concurrent process that removes
archived lines from the audit trail table for deleted mass additions.
automatically runs the Mass Additions Purge Report, which lists
the mass addition lines you purged.
See Also
Mass Additions Queues: page 2 – 32

Delete Mass Additions Preview Report: page 11 – 98
Mass Additions Delete Report: page 11 – 98

☞
2 – 61
Asset Setup
About the Mass Additions Interface
You can create assets automatically from information in any other
system using Mass Additions. Oracle Assets is already integrated with
Oracle Payables; you can easily integrate it with other payables
systems. You can also use the mass additions process to convert your
assets from an outside system to Oracle Assets.
Attention: Plan your conversion carefully and thoroughly,
since you cannot undo it.
Create Assets From Oracle Payables
The Create Mass Additions program creates mass additions from
invoice information in Oracle Payables. The concurrent process places
the new mass additions in a holding area (the table
FA_MASS_ADDITIONS) that is separate from the main Oracle Assets
tables, so that you can review and approve the mass additions before
they become asset additions.
Create Asset Additions From Another Payables System
To integrate Oracle Assets with another system, develop your own
program to add mass additions to the FA_MASS_ADDITIONS table.
Also, you may want to add another window to the Oracle Assets menu
to run your concurrent process. A description of the columns in the
FA_MASS_ADDITIONS table is included later in this essay.
Convert From Other Systems
Oracle Assets lets you convert from your previous asset system using
mass additions. Instead of loading your asset information into
multiple Oracle Assets tables, load your information into the
FA_MASS_ADDITIONS table and use the mass additions process to
simplify your work.
Use Mass Additions to Import Your Asset Data
The Mass Additions feature of Oracle Assets is normally used to
import asset information from Oracle Payables. Mass Additions
automatically populates the many Oracle Assets tables from the
relatively simple FA_MASS_ADDITIONS table. By placing your data
in this table, you can use the power of the Post Mass Additions to
Oracle Assets program to perform the bulk of your import.

Mass Additions has three main components:
• Create: finds potential new assets in Oracle Payables and brings
them into the FA_MASS_ADDITIONS table
• Prepare: allows you to review potential new assets and enter
additional information
• Post: creates assets by importing asset information from the
FA_MASS_ADDITIONS table into several Oracle Assets tables
To import asset information from another payables system, load the
FA_MASS_ADDITIONS table and then use Prepare and Post to add
your assets to Oracle Assets.
To convert assets from another assets system, use only the Post
component to move the asset information you store in the
FA_MASS_ADDITIONS table into Oracle Assets.
Data Import Checklist
Complete these steps to import your asset data into Oracle Assets.
1. Plan your import. See: Planning Your Import: page 2 – 62.
2. Define your Oracle Assets setup information and perform the
Oracle Assets setup process. See: Defining Oracle Assets for Mass
Additions: page 2 – 63.
3. Load your asset data into an interim table or file you define. See:
Loading Your Asset Data: page 2 – 68.
4. Import or load your asset data from the interim table or file into
FA_MASS_ADDITIONS. See: Importing Your Asset Information:
page 2 – 83.
5. Reconcile your Oracle Assets data with your old asset information.
See: Finishing Your Import: page 2 – 88.
Planning Your Import
You must plan each step of the import process. Prepare a complete
step–by–step procedure to follow, with distinct checkpoints.
1. Decide when to begin your import project. Schedule it when you
are able to devote enough time to complete the entire import
process.

2 – 63
Asset Setup
2. Determine who, if not you, can make the decisions required to
complete the definition phase found in the next section. Ensure
that you have the correct person available to make these decisions.
3. Schedule and confirm the computer resources you need, well in
advance. Specifically, ensure that you have:
• Disk space sufficient to handle multiple copies of your asset data
• Access to a terminal
• Access to a media drive (if required)
• Sufficient CPU and memory to handle the database operations
you perform as part of the import
• Access to operating system documentation
4. Know the status of your Oracle Assets installation.
Oracle Assets must be installed and confirmed before your import.
If you plan an install, consult your Oracle Applications Installation
Manual for complete installation instructions. Determine if you are
using Oracle General Ledger and if it is installed and set up.
5. Know in what form the other system stores its data, and what tools
are available to convert that data, so you can plan the conversion of
the existing asset data into a form that SQL*Loader can read.
6. Know the number of assets, categories, locations, and exceptions in
your data. You need these numbers to estimate the amount of time
required for the import.
7. Define an import schedule and procedure.
Estimate how long it will take you to complete your import. Base
your schedule on the information you gained in the preceding
steps. Try to include a buffer in your schedule in case you have
difficulty during the import.
8. Ensure that all parties agree on the schedule.
9. Complete your schedule documentation. It should clearly state the
start and end dates for each major step, and the amount of time for
each detail step.
Defining Oracle Assets for Mass Additions
Defining Oracle Assets is the most important phase of a conversion, so
take sufficient care to make decisions that you can live with in the long

term. Complete the following steps to define Oracle Assets before you
begin importing your asset data:
During this phase, make important business decisions about how to
define Oracle Assets and then actually perform the setup process.
1. Define your Account structure.
Most sites do not run Oracle Assets as a stand–alone system, so an
account flexfield may already exist for your Oracle General Ledger.
If you plan to run Oracle Assets as a stand–alone system, you need
to define the account.
2. Define your location flexfield.
Most companies plan to do business internationally, if they do not
already, so the location flexfield must begin with the country. State,
possibly county, city, and site are the typical segments of a location
flexfield. Many companies find it useful to pinpoint the exact
building and room for some assets, for example, for barcoding.
Add these segments if needed.
3. Define your category flexfield.
Most companies prefer to set up categories which match their chart
of accounts. Each chart 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. You can define up to seven segments if necessary.
You 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.
4. Define your asset key flexfield.
A company may have a system for grouping similar assets. Many
companies find it useful to group assets associated with a specific
project, department, or location. For example, you can use the
asset key flexfield to track your construction–in–process assets.
Define an asset key flexfield that describes asset groups in your
organization.
If you do not choose to track assets using the asset key, define a one
segment asset key flexfield without validation. Then, when you
navigate to the asset key flexfield on a window, the flexfield

2 – 65
Asset Setup
window does not open and you can return through the field. You
can define up to ten segments for the asset key flexfield if required.
5. Define default locations, cost centers, asset key flexfield
combinations and suppliers.
If you track this information electronically, set up each location,
expense code combination, asset key flexfield combination, and
supplier before import. If you do not already track this
information, define default values. The defaults you define are
used in place of actual values until the actual value is known.
• Default Location
Many companies do not currently track asset location. If you do
not, then set up a default location to be used in the import. Once
the assets are imported, you can locate the assets by performing
an asset inventory and then transfer the assets from the default
location to the actual location. If you already track location, then
set up each location before import.
• Default Cost Center
Some companies do not track assets on a cost center level. If you
do not, then set up a default cost center for your incoming assets.
To define the default cost center, create a code combination in
each depreciation expense account for the default cost center.
When you start tracking assets by cost center, you can transfer
each asset from the default cost center the actual one. If you
already track assets by cost center, create each expense account
code combination.
• Default Asset Key Flexfield Combination
Some companies do not use the asset key flexfield. If you do not,
then define a default combination to be used for incoming assets.
Give the default combination an ’inactive date’ so you do not use
the combination accidentally at a future time. If you start using
the asset key flexfield, you can change the combination from the
default combination to the actual one. If you already use the
asset key flexfield, create each asset key flexfield combination.
• Default Suppliers
Many companies do not track suppliers on an asset level. If you
do not, then define a default supplier to be used for incoming
assets. Give the default supplier an ’inactive date’ so you do not
use the supplier name accidentally at a future time. When you
start tracking asset suppliers, you can change the supplier from
the default supplier to the actual one. If you already track asset

suppliers, then enter all suppliers for all incoming assets. If you
use Oracle Payables or Oracle Purchasing, your suppliers are
already defined there and Oracle Assets shares the information.
6. Define when to perform the initial depreciation run.
Typically, the best time for the initial depreciation run after a
conversion is the end of the fiscal year just before the current one.
This year provides accumulated depreciation numbers that you can
reconcile with your company’s financial statements. It also ensures
that the year–to–date numbers on your reports are correct during
the current fiscal year.
Decide whether to enter assets with accumulated depreciation, or
enter them without accumulated depreciation and let Oracle Assets
calculate it for you. If you do not enter accumulated depreciation,
Oracle Assets calculates the accumulated depreciation and
revaluation reserve if necessary the first time you run depreciation.
If you enter your assets with accumulated depreciation, Oracle
Assets does not recalculate it, unless you make an adjustment to
that asset. You must enter the correct accumulated depreciation.
Year–to–date numbers are important because the Depreciation
program expenses all the catchup depreciation to the period in
which it is run. If you enter your assets without accumulated
depreciation, the first time you run depreciation, the depreciation
expense is equal to the accumulated depreciation. The first period
absorbs that one–time expense and, since the result from that
period is not be posted to the general ledger, the general ledger is
not affected and your year–to–date numbers in the next year are
correct in Oracle Assets.
When you want to use the values for accumulated depreciation
from the old assets system, you should start with the first period of
the current fiscal year. Otherwise, your year–to–date values will
not include the year–to–date depreciation you specify in the
FA_MASS_ADDITIONS table.
You determine the initial depreciation period when you set up your
books using the Book Controls window. Enter the period of your
initial depreciation period in the Current Period Name field.
7. Define your asset numbering scheme.
Determine if you want to use your own asset numbering system, or
if you want to use Oracle Assets automatic numbering system. In
either case you must choose a starting value for automatic
numbering in the System Controls window. Even if you do not use
automatic numbering for the conversion, Oracle Assets uses the

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Asset Setup
value internally as the ASSET_ID, so you must still choose the
starting value carefully. You must use a value that is large enough
to leave sufficient asset numbers unclaimed by automatic
numbering. However, you cannot use asset numbers larger than
2,000,000,000.
If you do use automatic numbering, enter a value on the System
Controls window that is the starting value you want to use plus the
number of assets you are converting. By entering a value larger
than you use for any conversion asset, you ensure that Oracle
Assets does not try to assign an existing asset ASSET_ID to a newly
added asset after the conversion. Using specific ranges of numbers
for groups of assets makes it easier to keep track of related items.
8. Define your depreciation methods for all assets in all books.
Determine the depreciation methods for all assets in all books.
Oracle Assets seeds most depreciation methods, but you must
enter any customized method. Decide what depreciation method,
prorate convention, and other depreciation rules will be used for
each asset in each book. You must set up the depreciation methods
and rates, depreciation ceilings, investment tax credit rates, prorate
conventions, and price indexes you will need before you can define
your categories.
9. Define your asset categories.
Use category names that match the corresponding chart asset
account. Define subcategories so that all the assets in a
subcategory have the same depreciation method, prorate
convention, and other depreciation rules. For assets in your tax
books that you acquired under different, past tax laws, you can set
up the asset category with different depreciation rule defaults for
different date placed in service ranges. The asset category and date
placed in service determine the depreciation rule defaults for an
asset.
You need to set up categories because the Mass Additions Posting
program gets depreciation method information for each asset from
the defaults defined in the Asset Categories window.
If you have only a few assets that use a particular depreciation
method, you do not necessarily need to define a separate category
for them. Instead, you can place them in another category and then
manually change the depreciation information using the Books
window before you run depreciation for the first time. Note that
you should place these assets in a compatible category because the
asset and reserve accounts are determined by your category choice,

and the capitalize flag and the category type cannot be changed on
the Books window.
For each book, create a plan to give all assets the correct
depreciation information. Most assets should receive the correct
information from the category books values. You can change the
depreciation information for individual exceptions. Create your
categories to minimize the number of individual transactions.
Try to keep the major category names short, ideally less than 20
characters, since Oracle Assets reports print only a limited number
of characters for the category.
10. Define your Oracle Assets installation.
Complete the standard setup procedure with the information you
obtained in the previous steps.
11. Define your asset key values.
Define values for your Asset Key flexfield that describe the
different groups of assets within the company. Many companies
find it useful to group assets associated with a specific project,
department, or location. You can use the asset key flexfield to track
your construction–in–process assets.
Loading Your Asset Data
This section describes how to define, load, and confirm your interim
asset table. In many cases you have to load asset information into the
Oracle7 tables from a non–Oracle file system. This section shows you
how to use SQL*Loader to import your information. Complete the
following steps to load your asset data:
1. Define your interim table in the Oracle database.
Use a single interim table if possible. You can use multiple tables if
the data exists in multiple tables or files in the old asset system. In
either case, you must eventually place the data in a single table, the
If you wish, you may load data directly into
FA_MASS_ADDITIONS, but it is more difficult due to the
complexity of the table.
2. Load your interim table (Using SQL*Loader if asset data is
external).

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Asset Setup
Use SQL*Loader to import information from outside your Oracle
database. SQL*Loader accepts a number of input file formats and
loads your old asset data into your interim table.
If the data already resides within an Oracle database, there is no
need to use SQL*Loader. Simply consolidate the asset information
in your interim table using SQL*Plus or import, and go directly to
Step 3.
Follow these steps if you plan to use SQL*Loader:
• Get the asset information in text form
Most database or file systems can output data in text form.
Usually you can generate a variable or fixed format data file
containing comma or space delimiters from the existing system.
If you can’t find a way to produce clean text data, try generating
a report to disk, using a text editor to format your data. Another
option is to have SQL*Loader eliminate unnecessary information
during its run. If there is a large volume of information, or if the
information is difficult to get in a loadable format, you can write
your own import program. Construct your program to generate
a SQL*Loader readable text file.
• Create the SQL*Loader control file
In addition to the actual data text file, you must write a
SQL*Loader control file. The control file tells SQL*Loader how
to import the data into your interim table. Be sure to specify a
discard file if you are planning to use SQL*Loader to filter your
data.
• Run SQL*Loader to import your asset data
Once you have created your asset data file and SQL*Loader
control file, run SQL*Loader to import your data. SQL*Loader
produces a log file with statistics about the import, a bad file
containing records that could not be imported due to errors, and
a discard file containing all the records which were filtered out of
the import by commands placed in the control file.
3. Compare record counts and check the SQL*Loader files.
Check the number of rows in the interim table against the number
of records in your original asset data file or table to ensure that all
asset records are imported.
The log file shows if records were rejected during the load, and the
bad file shows which records were rejected. Fix and re–import the
records in the bad file.

4. Spot check interim table.
Check several records throughout the interim table and compare
them to the corresponding records in the original asset data file or
table. Look for missing or invalid data. This step ensures that your
data was imported into the correct columns and that all columns
were imported.
FA_MASS_ADDITIONS Interface Table
The database definition of the FA_MASS_ADDITIONS table does not
require that you provide values for any columns, but in order for the
Mass Additions Posting program to work properly, you must follow
the rules in the following list of column descriptions. The Mass
Additions Posting program uses some of the columns in the
FA_MASS_ADDITIONS table, so these columns are marked NULL.
Do not import your data into columns marked NULL. You must fill
columns marked REQUIRED before you run Mass Additions Post.
You can either load the column directly from your other system, or you
can fill in some values in the Mass Additions window before you post.
Columns marked OPTIONAL are for optional asset information that
you can track if you want. VARCHAR2 columns are case sensitive.
ACCOUNTING_DATE DATE REQUIRED
Use this column for the accounting date of the invoice. The Unposted
Mass Additions Report reports on this date.
ADD_TO_ASSET_ID NUMBER(15) NULL
Do not use this column.
AMORTIZATION_START_
DATE DATE OPTIONAL
This column indicates the date to start amortizing the net book value
for the asset, if the AMORTIZE_NBV_FLAG column is set to Yes.
AMORTIZE_FLAG VARCHAR2(3) OPTIONAL
Use this column to determine whether an asset should be amortized.
This column should be set to yes if either the

2 – 71
Asset Setup
AMORTIZATION_START_DATE or the AMORTIZE_NBV_FLAG
columns contain values.
AMORTIZE_NBV_FLAG VARCHAR2(1) OPTIONAL
Use this column to determine whether to enable the asset to amortize
the net book value over the remaining useful life.
AP_DISTRIBUTION_
LINE_NUMBER NUMBER(15) OPTIONAL
Use this column for the distribution line number. The value must be a
valid in the AP_DISTRIBUTION_LINE_NUMBER column on the table
AP_INVOICE_DISTRIBUTIONS, and tied to the INVOICE_ID given
above.
ASSET_CATEGORY_ID NUMBER(15) REQUIRED
Use this column for the category id that corresponds with the asset
category of the asset. See: Importing Your Asset Information Step 3:
page 2 – 85.
ASSET_ID NUMBER(15) NULL
ASSET_KEY_CCID NUMBER(15) OPTIONAL
Use this column for the code combination id that corresponds to the
asset key. Use an enabled value from the CODE_COMBINATION_ID
column of the FA_ASSET_KEYWORDS table.
ASSET_NUMBER VARCHAR2(15) OPTIONAL
This column is a unique external identifier for assets. If you enter a
value in this column it is used for asset numbering. The numbers you
supply must be unique. It identifies the asset in Oracle Assets
windows and reports. If you leave this column blank Oracle Assets
assigns an asset number using automatic numbering, in which case the
asset number is the same as the asset id.
ASSET_TYPE VARCHAR2(11) REQUIRED
Use this column for the asset type of the asset. Enter one of the
following values:

For your capitalized assets
For your construction–in–process (CIP) assets.
For your expensed assets.
For your group assets.
ASSIGNED_TO NUMBER(15) OPTIONAL
Use this column for the employee id of the employee responsible for
this asset. Use a value from the EMPLOYEE_ID column in
FA_EMPLOYEES. Note that EMPLOYEE_ID is the unique internal
identifier, and not the same as the external identifier
EMPLOYEE_NUMBER.
ATTRIBUTE_
CATEGORY_CODE VARCHAR2(30) NULL
ATTRIBUTE1
through ATTRIBUTE30 VARCHAR2(150) NULL
Use these columns to copy the Asset Workbench descriptive flexfield
segments setup on the Asset Workbench. To access these values in the
Asset Workbench, you need to define the descriptive flexfield on the
Asset Workbench. The values stored in ATTRIBUTE1 through
ATTRIBUTE30 are copied to the columns in FA_ADDITIONS.
BEGINNING_NBV NUMBER OPTIONAL
BONUS_DEPRN_RESERVE NUMBER OPTIONAL
This column contains the bonus depreciation reserve for the asset. This
amount should also be included in the DEPRN_RESERVE column.
BONUS_YTD_DEPRN NUMBER OPTIONAL
This column contains the year–to–date bonus depreciation expense for
the asset. This amount should also be included in the YTD_DEPRN
column.
CAPITALIZED
CIP
EXPENSED
GROUP

2 – 73
Asset Setup
BOOK_TYPE_CODE VARCHAR2(15) REQUIRED
Use this column for the book to which you want to assign the asset.
You must choose a book that you have set up in the Book Controls
window, and the book class must be CORPORATE. Values in this
column must be in upper case.
CONTEXT VARCHAR2(210) NULL
Use this column for the date you load this asset into the
CONVERSION_DATE DATE OPTIONAL
This column indicates the date the short fiscal year asset was added to
the acquiring company.
CREATE_BATCH_DATE DATE OPTIONAL
CREATE_BATCH_ID NUMBER(15) OPTIONAL
Use the value 1 for this column to distinguish it from subsequent Mass
Additions for a conversion, or use the same number for all mass
additions from your payables system that you load at once.
CREATED_BY NUMBER(15) REQUIRED
Use the value 1 in this column, or the specific user id of the person
working on the import.
CREATION_DATE DATE REQUIRED
CUA_PARENT_
HIERARCHY_ID NUMBER OPTIONAL
CRL users should use this column to assign the asset to a hierarchy
parent node.

DATE_
PLACED_IN_SERVICE DATE REQUIRED
Use this column for the date you placed the asset in service.
DEPRECIATE_FLAG VARCHAR2(3) REQUIRED
Use this column to indicate if you want Oracle Assets to depreciate this
asset. If you want to calculate depreciation on this asset, enter YES in
this column. If you do not want to calculate depreciation, enter NO.
DEPRN_RESERVE NUMBER OPTIONAL
Use this column for the accumulated depreciation of the asset as it
currently appears in your general ledger. You can enter a value, or
have Oracle Assets calculate it. For CIP, expensed and group assets,
you must enter zero or leave it blank.
DESCRIPTION VARCHAR2(80) REQUIRED
Use this column for a description of the asset.
DIST_NAME VARCHAR2(25) OPTIONAL
Use this column to indicate the name of the distribution set.
EXPENSE_CODE_
COMBINATION_ID NUMBER(15) REQUIRED
Use this column for the code combination id of the general ledger
account to which depreciation expense should be charged. See:
Importing Your Asset Information Step 2: page 2 – 84.
FEEDER_
SYSTEM_NAME VARCHAR2(40) OPTIONAL
Use this column to note that this asset came from a import process.
Use a word like CONVERSION or PAYABLES to denote the nature of
the import.
FIXED_ASSETS_COST NUMBER REQUIRED
Use this column for the cost of the asset as it currently appears in your
general ledger. For group assets, you must enter zero or leave it blank.

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Asset Setup
The cost of a group asset is derived from the sum of all member assets
when the member assets are assigned to the group.
For group assets, you must enter zero or null. The cost of a group asset
is the sum of the assigned member asset costs.
FIXED_ASSETS_UNITS NUMBER(15) REQUIRED
Use this column for the number of units that make up the asset. You
must use a positive integer value.
FULLY_RSVD_
REVALS_COUNTER NUMBER OPTIONAL
Use this column for the number of times you have revalued this asset
as fully reserved. If you do not revalue your assets, do not use this
column.
GLOBAL_ATTRIBUTE_
CATEGORY VARCHAR2(30) NULL
GLOBAL_
ATTRIBUTE1–20 VARCHAR2(150) NULL
Use these columns to copy the Asset Workbench global descriptive
flexfield segments setup on the Asset Workbench. To access these
values in the Asset Workbench, you need to define the global
descriptive flexfield on the Asset Workbench. The values stored in
GLOBAL_ATTRIBUTE1 through GLOBAL_ATTRIBUTE20 are copied
to the columns in FA_ADDITIONS.
GROUP_ASSET_ID NUMBER(15) OPTIONAL
Use this column for member assets only. Group_Asset_ID is the
Asset_ID of the group asset to which the member asset is assigned.
Note that if you leave this field null, any applicable default from the
category default will be applied. If a group association exists in the
category, and you wish to enforce no group association, you should
populate this field with FND_API.G_MISS_NUM.
IN_USE_FLAG VARCHAR2(3) OPTIONAL
Use this column to indicate whether the asset is in use.

INVENTORIAL VARCHAR2(3) OPTIONAL
Use this column to indicate whether an asset should be included in
physical inventory. The value is defaulted from the category but can be
overridden. The valid values for this column are YES or NO.
INVOICE_CREATED_BY NUMBER(15) NULL
INVOICE_DATE DATE NULL
INVOICE_ID NUMBER(15) OPTIONAL
Use this column for the invoice id, if available. Use the appropriate
value from the INVOICE_ID column of the AP_INVOICES table. Note
that INVOICE_ID is the unique internal identifier, and not the same as
the external identifier INVOICE_NUMBER.
INVOICE_NUMBER VARCHAR2(15) OPTIONAL
Use this column for the invoice number for this asset, if available.
INVOICE_UPDATED_BY NUMBER(15) NULL
LAST_UPDATE_DATE DATE REQUIRED
LAST_UPDATE_LOGIN NUMBER(15) REQUIRED
LAST_UPDATED_BY NUMBER REQUIRED

2 – 77
Asset Setup
LEASE_ID NUMBER(15) OPTIONAL
This column identifies the lease number.
LESSOR_ID NUMBER(15) OPTIONAL
This column identifies the lessor number.
LOCATION_ID NUMBER(15) REQUIRED
Use this column for the location id that corresponds with the location
of the asset. See: Importing Your Asset Information Step 4: page
2 – 86.
MASS_ADDITION_ID NUMBER(15) REQUIRED
Oracle Assets uses this column as a unique identifier for mass
additions. The values in MASS_ADDITION_ID are generally
sequential. You can use a sequence generator to populate this column.
Note: The value of this column must be less than
2,000,000,000.
MANUFACTURER_
NAME VARCHAR2(30) OPTIONAL
Use this column for the name of the manufacturer of the asset.
MERGE_
INVOICE_NUMBER VARCHAR2(50) OPTIONAL
Optionally set this column to INVOICE_NUMBER for unmerged lines.
MERGE_PARENT
MASS_ADDITIONS_ID NUMBER(15) NULL
MERGE_
VENDOR_NUMBER VARCHAR2(30) OPTIONAL
Optionally set this column to VENDOR_NUMBER for unmerged lines.
MERGED_CODE VARCHAR2(3) NULL

MODEL_NUMBER VARCHAR2(40) OPTIONAL
Use this column for the model number of the asset.
NEW_MASTER_FLAG VARCHAR2(3) NULL
NEW_USED VARCHAR2(4) OPTIONAL
Use this column to indicate whether the asset is new or used.
ORIGINAL_DEPRN_START_
DATE DATE OPTIONAL
This column indicates the date the short fiscal year asset began
depreciating in the acquired company’s books.
OWNED_LEASED VARCHAR2(15) OPTIONAL
Use this column to indicate whether the asset is owned or leased.
PARENT_ASSET_ID NUMBER(15) OPTIONAL
If you are importing asset information from another payables system,
use this column for the asset id of the parent asset if this asset is a
subcomponent of another asset. The parent asset must be an existing
asset. Note that ASSET_ID is the unique internal identifier, and not the
same as the external identifier ASSET_NUMBER.
For a conversion, do not use this column. If an asset is a
subcomponent, you can enter this relationship in the Subcomponents
window after you post.
PARENT_
MASS_ADDITION_ID NUMBER(15) NULL
PAYABLES_
BATCH_NAME VARCHAR2(50) NULL

2 – 79
Asset Setup
PAYABLES_CODE_
COMBINATION_ID NUMBER(15) REQUIRED
Use this column for the code combination id of the asset clearing
account you assigned to the asset category. See: Importing Your Asset
Information Step 2: page 2 – 84.
PAYABLES_COST NUMBER REQUIRED
Use this column for the original cost of the asset. If you do not have
the original cost of the asset, use the asset cost as it appears in the
general ledger.
PAYABLES_UNITS NUMBER REQUIRED
Use this column for the number of units that make up the asset. You
must use a positive integer value. Use the same value in this column
that you use in the FIXED_ASSETS_UNITS column.
PO_NUMBER VARCHAR2(15) OPTIONAL
Use this column for the purchase order number for this asset, if
available.
PO_VENDOR_ID NUMBER(15) OPTIONAL
Use this column for the supplier id. See: Importing Your Asset
Information Step 5: page 2 – 86.
POST_BATCH_ID NUMBER(15) NULL
POSTING_STATUS VARCHAR2(15) REQUIRED
To import asset information from another payables system, use the
value NEW or ON HOLD for this column if you want to review this
asset in the Mass Additions window.
Use the value POST for this column if you are entering all required
information and want to post the asset immediately, such as for a
conversion.

PRODUCTION_CAPACITY NUMBER OPTIONAL
Use this column for the capacity of a units of production asset. If you
do not enter a capacity, Oracle Assets uses the capacity from the asset
category. If this asset is not a units of production asset, do not use this
column.
PROJECT_ASSET_LINE_IDNUMBER(15) NULL
PROJECT_ID NUMBER(15) NULL
PROPERTY_1245_1250_
CODE VARCHAR2(4) OPTIONAL
Use this column to indicate that the property type class is 1245
(personal) or 1250 (real).
PROPERTY_TYPE_CODE VARCHAR2(10) OPTIONAL
Use this column to indicate the property type.
QUEUE_NAME VARCHAR2(15) REQUIRED
Use the same value you entered into the POSTING_STATUS column
(e.g. NEW, ON HOLD, POST).
REVAL_
AMORTIZATION_BASIS NUMBER OPTIONAL
Use this column for the basis for amortization of revaluation reserve for
a revalued asset, usually the current revaluation reserve. If you do not
revalue your assets, do not use this column.
REVAL_RESERVE NUMBER OPTIONAL
Use this column for the revaluation reserve of a revalued asset. If you
do not revalue your assets, do not use this column.

2 – 81
Asset Setup
REVIEWER_
COMMENTS VARCHAR2(60) OPTIONAL
Use this column to note that this asset came from a import process and
any other details about this asset.
SALVAGE_VALUE NUMBER OPTIONAL
Use this column for the salvage value of the asset, if available.
SERIAL_NUMBER VARCHAR2(35) OPTIONAL
Use this column for the serial number of the asset.
SHORT_FISCAL_YEAR
FLAG VARCHAR2(3) OPTIONAL
Use this column to indicate if the asset was added in a short fiscal year.
SPLIT_CODE VARCHAR2(3) NULL
SPLIT_MERGED_CODE VARCHAR2(3) NULL
SPLIT_PARENT_
MASS_ADDITIONS_ID NUMBER(15) NULL
SUM_UNITS VARCHAR2(3) NULL
TAG_NUMBER VARCHAR2(15) OPTIONAL
Use this column for the asset tag number if required. You can use this
column for barcode values if you track assets by barcodes. Oracle
Assets allows no duplicate values except null.

TASK_ID NUMBER(15) OPTIONAL
This column identifies the task from which costs were collected,
summarized, and transferred from Oracle Projects. This column is only
populated if the costs were summarized by task.
TRANSACTION_DATE DATE OPTIONAL
This column indicates the date on which the transaction is processed.
TRANSACTION_TYPE_
CODE VARCHAR2(20) OPTIONAL
Use this column to identify the type of future transaction. Possible
values are: FUTURE ADD, FUTURE ADJ, and FUTURE CAP.
UNIT_OF_MEASURE VARCHAR2(25) OPTIONAL
Use this column for the unit of measure for a units of production asset.
If you do not enter a unit of measure, Oracle Assets uses the unit of
measure from the asset category. If this asset is not a units of
production asset, do not use this column.
UNITS_TO_ADJUST NUMBER(15) OPTIONAL
UNREVALUED_COST NUMBER OPTIONAL
Use this column for the cost without regard to any revaluations of a
revalued asset. If you do not revalue your assets, do not use this
column.
VENDOR_NUMBER VARCHAR2(15) NULL
WARRANTY_ID NUMBER(15) OPTIONAL
Use this column to identify the warranty number.
YTD_DEPRN NUMBER OPTIONAL
Use this column for the year–to–date depreciation of the asset as it
currently appears in your general ledger. You can enter a value, or

2 – 83
Asset Setup
have Oracle Assets calculate it for an asset with a date placed in service
in a prior period. For CIP, expensed and group assets, you must enter
zero or leave it blank.
Note: If you enter the YTD_DEPRN manually, make sure you
are aware of how this affects depreciation calculation in
subsequent periods. For more information, see: Journal Entries
for Additions and Capitalizations: page 6 – 12. If you are using
the FA: Annual Rounding profile option, see: Profile Options:
page C – 4.
YTD_REVAL_
DEPRN_EXPENSE NUMBER OPTIONAL
Use this column for the year–to–date depreciation expense due to
revaluation of a revalued asset. If you do not revalue your assets, do
not use this column.
Some columns do not apply to group, CIP, or expensed assets. These
columns include the following:
• YTD_REVAL_DEPRN_EXPENSE
• UNREVALUED_COST
• SHORT_FISCAL_YEAR_FLAG
• REVAL_RESERVE
• REVAL_AMORTIZATION_BASIS
• ORIGINAL_DEPRN_START_DATE
• FULLY_RSVD_REVALS_COUNTER
• YTD_DEPRN
Importing Your Asset Information
During this phase, use SQL*Plus to move your asset data into the
FA_MASS_ADDITIONS table. Run the Mass Additions Status Report
and the Unposted Mass Additions Report to check your data. Then
prepare the assets using Prepare Mass Additions if necessary and post
them using Mass Additions Post.
Once you have set up Oracle Assets, you are ready to import your asset
information.

If you are importing asset information from another payables system,
load the FA_MASS_ADDITIONS table directly. Then use Prepare Mass
Additions and Mass Additions Post to add your assets to Oracle
Assets.
If you are converting asset information from another assets system, use
SQL*Plus to move the asset information from the interim table into the
FA_MASS_ADDITIONS table. After you load and confirm the
FA_MASS_ADDITIONS table, run Mass Additions Post to post your
assets to Oracle Assets.
1. Load you asset data into the FA_MASS_ADDITIONS table.
You use SQL*Plus to load your asset information into the
FA_MASS_ADDITIONS table from the interim table. Be sure to
check the table after each SQL*Plus script to ensure that the script
updated the table correctly. Also load the LAST_UPDATE_DATE
column and all the other columns that are the same for all your
assets.
Suggestion: Load your data into the FA_MASS_ADDITIONS
table in stages, posting and cleaning the table, to avoid
exceeding tablespace allocations.
2. Load expense code combination IDs.
Use SQL*Plus to match expense account information in your
interim table with the correct segments of the
GL_CODE_COMBINATIONS table. To do this, you must first
determine the mapping between segment numbers and segment
names. Find the name of your chart of accounts using the Define
Set of Books window to query on the set of books that you entered
for the depreciation book in the Book Controls window. When you
know the chart of accounts, perform the following SQL*Plus script:
Example:
select segment_name, application_column_name
from fnd_id_flex_segments
where id_flex_code = ’GL#’
and enabled_flag = ’Y’
and id_flex_num in (
select id_flex_num
from fnd_id_flex_structures
where id_flex_structure_name =
Your Chart of Accounts Name
and id_flex_code = ’GL#’)

2 – 85
Asset Setup
Match the information you have in the interim table with the
appropriate segments to determine the correct code combination id
for each asset. You might have only an account in your interim
table, or you might have a company, division, and cost center that
you need to match with segments in the
GL_CODE_COMBINATIONS table. Make certain that your
SQL*Plus script selects only one code combination id for each asset.
You can create the combinations you need using the Account
Flexfield Combinations window.
3. Load category IDs.
The asset category determines many of the accounts to which each
asset belongs. The category and date placed in service also
determine the depreciation method, prorate convention, and other
depreciation rules for the asset based on default values you defined
for each category. Unless the interim table contains explicit
information about the category to which each asset belongs, you
must use all the information you have about each asset to
determine its category. Asset account and reserve account are
often useful in determining an asset’s major category.
You need to determine the name of the category flexfield structure
using the System Controls window. When you know the name of
the category flexfield, perform the following SQL*Plus script:
Example:
where id_flex_code = ’CAT#’
select id_flex_num
Your Category Flexfield Name
and id_flex_code = ’CAT#’)
Match the information you have with the corresponding columns
in the FA_CATEGORIES table, the FA_CATEGORY_BOOKS table,
and the FA_CATEGORY_BOOK_DEFAULTS table. These tables
join using the CATEGORY_ID column in each. The
FA_CATEGORY_BOOKS table contains information about a
category that is specific to a book, e.g. accounts. The
FA_CATEGORY_BOOK_DEFAULTS table contains information
about a category that is specific to a book and date placed in
service range, e.g. depreciation method. The FA_CATEGORIES

table contains information about a category that is common for all
books, including the category flexfield segment values. You can
match on segments the same way you do for the Expense Code
Combination ID if you have enough information in the interim
table.
You can set up categories using the Asset Categories window.
4. Load location IDs.
Use SQL*Plus to match location information in your interim table
with the location segments in the FA_LOCATIONS table. To do
this, you need to determine the mapping between segment names
and segment numbers. Determine the name of the location
flexfield structure you defined on the System Controls window and
then perform the following SQL*Plus script:
Example:
where id_flex_code = ’LOC#’
select id_flex_num
Your Location Flexfield Name
and id_flex_code = ’LOC#’)
Match the location information in your interim table with the
location segments in the FA_LOCATIONS table. Load the
LOCATION_ID of the matching location record into the
FA_MASS_ADDITIONS table. Be certain you select only one
location id for each asset.
You can set up locations using the Locations window.
5. Load supplier information.
If you have supplier information for your assets, use SQL*Plus to
match the supplier name in the interim table with the
PO_VENDOR_NAME column in the PO_VENDORS table. Load
the PO_VENDOR_ID of the matching record into the
You need to set up suppliers in the Suppliers window if you are not
using Oracle Payables or Oracle Purchasing. Note that
PO_VENDOR_ID is the unique internal identifier, and not the same
as the external identifier supplier number.

2 – 87
Asset Setup
6. Prepare mass additions for posting.
Once the FA_MASS_ADDITIONS table is loaded, you must change
the POSTING_STATUS column to HOLD for any assets that have a
date placed in service after the end of the conversion period. For
most conversions, the conversion period is the last period of the
previous fiscal year.
When you are ready to post the FA_MASS_ADDITIONS table, use
the Send Mass Additions to Oracle Asset program to run Mass
Additions Post. This program moves your assets into Oracle
Assets.
Run the Mass Additions Status Report to see the results. Compare
this report with the expected results, and investigate missing or
incomplete items. Check the PERIOD_FULLY_RESERVED column
in FA_BOOKS for fully reserved assets.
For assets that you placed in service after the conversion period,
you can run Mass Additions Post after you have opened the
appropriate period. For example, if your fiscal year ends
December 31, December is your conversion period. If you have
some assets that you placed in service in January, set the posting
status to ON HOLD for the January assets while you post the first
time. After you run depreciation for December, then you set the
posting status of the January assets to POST and run Mass
Additions Post again.
7. Fix exceptions.
During this step you fix all the exceptions which were not properly
imported using Mass Additions. You only need to perform these
steps if they apply to your import:
• Assets With Multiple Distributions:
If you want some of your assets to have multiple distribution
lines, then you need to use the Assignments window to correct
the distribution information for each of these assets.
• Assets With Investment Tax Credits:
After you have posted your assets with Mass Additions, use the
Assign Investment Tax Credit window to add ITC information.
• Leased Assets And Leasehold Improvements:
After you have posted your assets with Mass Additions Post, use
the Asset Details window to add leasing information for your
leased assets and your leasehold improvements. Verify that the

life of your leasehold improvements is correct when you run
depreciation.
• Assets With Parent Or Child Assets:
After you have posted your assets using Mass Additions Post,
use the Asset Details to add parent asset information to each
child asset.
• Units of Production Assets:
You cannot load units of production assets with accumulated
depreciation. For more information about this restriction, see
Assets Depreciating Under Units of Production: page 5 – 42.
If you want to load a large number of units of production assets,
please use the production interface instead of the mass additions
interface. See: Using the Production Interface: page 5 – 46
Finishing Your Import
When you have all your asset information moved into Oracle Assets,
you need to verify that the financial information matches your records.
Once you are satisfied that the value of your assets is correct, you can
run depreciation and then verify that the accumulated depreciation
matches your records. When you are satisfied that your corporate
book is correct, you can copy the assets into your tax books. You
reconcile each tax book using a similar procedure.
If some of the assets in the FA_MASS_ADDITIONS table have dates
placed in service after the import, you need to bring these assets into
Oracle Assets in the correct period.
Complete the following steps to finish your import:
1. Verify your assets.
Before you run depreciation you should run the Asset Additions
Report. Use this report to verify that each asset has the correct
depreciation method, life, and date placed in service. Also verify
that each asset has the correct cost and accumulated depreciation
and that the totals for each asset account are correct. If you find
any errors, make adjustments using the Books window and
reclassifications using the Asset Details window.
For additional verification, project depreciation to the asset and
cost center level to see that the expense projections agree with your
estimates, and that the assets appear properly.

2 – 89
Asset Setup
2. Run Depreciation.
When you are satisfied that your assets are correct, run
depreciation for the conversion period. After depreciation
completes, Oracle Assets automatically runs the Journal Entry
Reserve Ledger report.
3. Reconcile depreciation amounts.
Use the Journal Entry Reserve Ledger Report from Step 2 to verify
that the depreciation amounts are correct. If Oracle Assets
calculated depreciation for you, verify that the calculated amount is
correct. If you find any errors, make adjustments using the Books
window and reclassifications using the Asset Details window.
4. Run Mass Additions for post–dated assets.
If necessary, run Mass Additions to add assets into the periods
following your import period. Add any other new assets and
perform any transactions that you made during the period. Verify
all these transactions and run depreciation again. Repeat this
procedure until you have caught up to the current period.
5. Copy assets to your tax books using Mass Copy.
When you are satisfied that your corporate book is correct, use
Mass Copy to copy your assets into your tax books. You should set
up your tax books so that the first period starts at the same time as
the associated corporate book. If your import period is the last
period of the previous fiscal year, use Initial Mass Copy. If your
import is the first period of the current fiscal year, use Periodic
Mass Copy since there is no historical data in Oracle Assets.
6. Reconcile your tax books.
Reconcile your tax books the same way you did your corporate
book, but use the Tax Reserve Ledger Report in place of the Journal
Entry Reserve Ledger Report.
Run Periodic Mass Copy each period to bring over any new assets,
cost adjustments, retirements, and reinstatements from the
corporate book.
7. Clean up the Mass Additions holding area.
After you have successfully imported a group of assets, you should
remove them from the mass additions holding area. First, run the
Unposted Mass Additions Report and verify the status of any
unposted mass additions. Afterward, use the Delete Mass
Additions window, and the Purge Mass Additions window if
necessary.

Future Transactions
Oracle Assets supports one open asset accounting period. However,
Oracle Assets allows you to enter transactions for future accounting
periods. When you enter a future transaction, it is temporarily stored
in the FA_MASS_ADDITIONS interface table. This pending
transaction does not become effective until the transaction date for the
transaction is within the current open period in Oracle Assets. For
example, if the current open period is May 2000, and you enter an
adjustment transaction with a transaction date of 01–Sep–2000, the
transaction does not become effective until Sep–2000 is the current
open period.
When you open a new accounting period, the Process Pending
Transactions concurrent program runs and automatically processes all
pending transactions with a transaction date that falls within the open
period. You do not need to enter any further transaction detail to
complete the transaction in the effective open period.
The Process Pending Transactions program looks up the transaction
date of each pending transaction. If the transaction date falls within
the current open period of the corporate book, the program processes
that transaction. Any exceptions are written to the log file.
It is not necessary to enter future transactions in chronological order.
The Process Pending Transactions program automatically processes
pending transactions in chronological order.
You can also add assets from invoice lines from Oracle Payables, and
provide a future date placed in service. These invoices must first be
posted to future General Ledger periods from Oracle Payables and
satisfy all other mass addition criteria to be successfully interfaced
from Oracle Payables to Oracle Assets.
Adding a Future Transaction Manually
Oracle Assets allows you to add an asset with a future date placed in
service using the Prepare Mass Additions Workbench.
You can enter future transactions only in your corporate depreciation
book. You cannot enter future assets directly into tax books or budget
books. Once a future asset becomes effective in the corporate book in
the designated accounting period, you can use Mass Copy to copy the
asset into associated tax books.

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Asset Setup
You can update distribution information (location, employee,
depreciation, and expense account information) in the Assignment
window for a future asset with a future date placed in service.
However, this will be considered an update, and not a transfer, such
that when the future period becomes the effective open period, the
asset will be assigned to the updated distribution without any history
of previous distributions.
Oracle Assets defaults depreciation parameters when you enter the
addition transaction via the Prepare Mass Additions window. When an
asset is placed in service using a future date placed in service, it does
not re–inherit category defaults.
For example, you enter a future asset in the VEHICLE–OWNED
LUXURY category during the current open period, Dec–1999, and enter
the date placed in service as Feb–2000. The VEHICLE–OWNED
LUXURY category defaults the salvage value to be 15 percent of the
cost for assets having a date placed in service from Jun–1999 to
Dec–1999. In Jan–2000, you changed the default salvage value to 10
percent, applicable to assets with a date placed in service of Jan–2000
onward. When the system places the vehicle in service in Feb–2000, the
asset inherits a salvage value of 15 percent instead of 10 percent.
" To enter a future transaction manually:
Navigator window.
2. Choose the New button on the Find Assets window to bring up the
Mass Additions Detail window
3. Enter the corporate depreciation book to which the asset will be
added.
4. Enter the transaction date for this addition. The date must be a
future date. In other words, the date must be later than the last day
of the current open period.
5. Refer to Overview of the Mass Additions Process on page: 2 – 32
for information on entering remaining fields.
Note: Before running the Process Pending Transaction process,
you must set the queue name to POST. Otherwise, the addition
will not be processed in the appropriate period.

Invoice Additions
Oracle Payables allows you to enter invoices with a future date placed
in service. However, you cannot post these invoices to General Ledger
until the period is open. Invoices that are not yet posted to Oracle
General Ledger cannot be transferred to Oracle Assets.
Normally, the Mass Additions Create program in Oracle Payables
forces the date placed in service to be in the current open period, even
if the General Ledger date and invoice date are in the future. To use
Oracle Assets to process future invoice additions, you must set the FA:
Default DPIS to Invoice Date profile option to Yes. This allows you to
default the date placed in service to the invoice date, even though the
invoice date is in a future accounting period.
" To review future mass additions lines:
Navigator window.
2. Enter the selection criteria for the mass additions lines and choose
Find.
3. Highlight the desired invoice line and choose Open.
4. Review the future mass addition.
5. When you are ready to run the Process Pending Transactions
process, change the queue name to POST for any future
transactions that need to be processed. The date placed in service,
or transaction date, defaults to the invoice date. However, you can
overwrite the transaction date.
You can post merged mass addition lines to a future period. To do this,
you must enter a future transaction date and change the queue name to
POST. The merged children inherit the date placed in service from
their merged parent.
Note: You can merge and split mass additions as much as you
like until you set the status to POST. Once you set the status to
POST, Oracle Assets creates an asset ID, and you can no longer
split or merge the mass addition line.

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Asset Setup
Split Mass Additions
After you split mass additions, each split child will be in the ON HOLD
queue. You can review each line to become a separate asset. If you
intend to post the split mass additions line to a future period, you must
set the line to the POST queue for it to be processed.
Note: You can split and merge mass additions as much as you
like until you set the status to POST. Once you set the status to
POST, Oracle Assets creates an asset ID, and you can no longer
split or merge the mass addition line.
Performing Adjustments with Future Effective Dates
Oracle Assets allows you to adjust both current and future assets,
including CIP assets. Oracle Assets does not process these future
transactions until the system opens the period in which the effective
date falls. Future adjustments are limited to cost adjustments only.
These adjustments can be made to capitalized assets, including fully
reserved ones, that have already been placed in service. You cannot,
however, adjust retired assets.
Adjust Asset Costs in Advance Manually
You can make non–invoiced or manual cost adjustments in advance to
a current capitalized or CIP asset, or a capitalized or CIP asset that is
pending to be placed in service in future periods. To perform such cost
adjustments, you must first create a cost adjustment record and attach
it to an asset using the Add to Asset feature.
" To adjust asset cost in advance manually:
Navigator window.
2. Choose Adjust.
3. At the Mass Additions window, enter the cost adjustment amount
in the Cost field. Note that you must enter the net change in cost,
not the new cost.
4. Enter the Transaction Date.
6. In the Add to Asset window, query the asset you want to adjust.

7. Highlight the asset.
8. Check Amortize Adjustment if you want to amortize the
adjustment over the remaining useful life of the assets. Otherwise,
leave the check box blank to expense the adjustment.
" To adjust asset costs in advance by invoice additions:
1. In the Find Mass Additions window, enter the selection criteria for
the invoice lines you are about to add to an asset.
2. Choose Find.
3. In the Mass Additions Summary window, highlight the desired
invoice line and choose Open.
4. Optionally change the Date Place in Service and Transaction Date,
and choose Save.
6. Highlight an asset.
7. Check Amortize Adjustment if you want to amortize the
adjustment or leave it blank to expense the adjustment.
8. Check New Category and Description to change the category and
description of the existing asset to those of the mass addition you
are adding as a cost adjustment.
9. Choose Done.
Capitalize CIP Assets in Advance
You can capitalize current and future CIP assets in advance using the
Mass Additions workbench.
Note: Oracle Assets does not support reverse capitalization for
future transactions.
" To capitalize CIP assets in advance:
Navigator window.
2. Choose Capitalize.
3. In the Add to Asset window, query the CIP assets to be capitalized.
4. Check the check boxes for the assets you want to capitalize.

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Asset Setup
5. Enter the transaction date. This date must be a in future period.
6. Choose Done.
View Pending Transactions
When you enter a future transaction, the system assigns a transaction
type to that transaction for audit trail. Available transaction types are:
• FUTURE ADD –– manual or invoice addition of asset
• FUTURE ADJUST – a manual or invoice adjustment
• FUTURE CAPITALIZE – capitalization of current or future CIP
assets
You are encouraged to view all pending transactions of an asset before
performing adjustments and other future transactions.
" To view pending transactions:
Navigator window.
2. Enter selection criteria and click Find.
3. Click Open to drill down to further details of the transaction.
You can update pending ADJUSTMENT and ADDITION transactions.
However, this will be considered an update, and not a transfer, such
that when the future period becomes the effective open period, the
asset will be assigned to the updated distribution without any history
of previous distributions.

See Also
Create Mass Additions from Invoice Distributions in Oracle Payables:
page 2 – 40
Mass Additions Open Interface: page 2 – 61
Review Mass Additions: page 2 – 33
Post Mass Additions to Oracle Assets: page 2 – 38
Clean Up Mass Additions: page 2 – 38
Guide)

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Asset Setup
Adding Assets in Short Tax Years
When assets are acquired as a result of a merger, in the first year during
which the assets are acquired, these assets are usually depreciated
during a shorter than normal tax year. It is essential that the acquiring
company is able to depreciate the acquired assets correctly during the
short tax year.
When you add assets in a short tax year, you identify the asset as a
short tax year asset. When you add short tax year assets, you must use
either the detail additions process or the mass additions process. You
cannot use the quick additions process to add short tax year assets.
You can define custom depreciation formulas to help you to properly
depreciate newly acquired assets in a short tax year. See: Defining
Formula–Based Depreciation Methods: page 9 – 81.
Adding a Single Asset in a Short Tax Year
" To add an asset to the corporate book in a short tax year:
1. Follow the steps to add an asset using the detail additions process.
See: Adding an Asset Specifying Details: page 2 – 22.
2. While in the Books window, check the Short Fiscal Year check box
to indicate the current year is a short tax year.
3. Enter the conversion date. This is the date the short tax year asset
begins depreciating in Oracle Assets in the acquiring company.
4. Enter the original depreciation start date of the acquired assets.
This is the date when the assets began depreciating in the acquired
company.
5. Continue adding the asset.
Adding Multiple Assets in a Short Tax Year
" To add multiple assets in a short tax year:
1. Add assets using the mass additions process. See: Overview of the
Mass Additions Process: page 2 – 32.

Note: In the period you added short tax year assets, we
recommend that you run depreciation without closing the
period, verify the depreciation amounts, then close the period.
See: Rolling Back Depreciation: page 5 – 4.
2. Use the mass copy process to copy the asset information into your
tax books. See: Tax Book Maintenance: page 7 – 2.
3. Upload depreciation information for tax books to the
FA_TAX_INTERFACE table. See: Uploading Tax Book
Depreciation Information: page 2 – 99.
4. Run the Upload Short Tax Year Reserves concurrent program to
update reserve in your tax book.
Note: You should run this program after running mass copy.

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Asset Setup
Uploading Tax Book Depreciation Information
When you use the mass copy process to copy asset information into
your tax books, no depreciation or depreciation reserve amounts are
copied into the tax books. After running mass copy, you use the
FA_TAX_INTERFACE table and Upload Short Tax Year Reserves
program to update depreciation information for the short tax year
assets in your tax books.
You use SQL*Loader to load the FA_TAX_INTERFACE table, using the
same procedure you used to load the FA_MASS_ADDITIONS table
when you created mass additions. See: Loading Your Asset Data: page
2 – 68. For detailed information on the FA_TAX_INTERFACE table,
see: Populating the FA_TAX_INTERFACE table: page 7 – 13.
How Oracle Assets Calculates Depreciation in a Short Tax Year
To depreciate assets properly in a short tax year, Oracle Assets needs to
account for the acquired assets up to the date on which the assets are
converted to the acquiring company’s Oracle Assets system. When
adding assets that will depreciate in a short tax year, you must enter a
conversion date and original depreciation start date, and check the
Short Fiscal Year check box on the Books window.
Note: The prorate date is determined by the date placed in
service and the prorate convention. If the original prorate
convention is different from that in the acquiring company, you
may need to set up a new prorate convention for the converted
assets to map the prorate date correctly.
The conversion date is the date an asset begins depreciating under the
acquiring company’s Oracle Assets system. Therefore, the
year–to–date depreciation is zero at that time. The conversion date
enables Oracle Assets to calculate the remaining life of the asset. You
must choose a conversion date in the current open period of the
corporate and tax books. Otherwise, the depreciation calculations may
be incorrect. You cannot enter a conversion date in a past fiscal year or
in future periods.
Note: Oracle Assets does not calculate any depreciation before
the conversion date. You must enter the total depreciation
taken (depreciation reserve) up to the conversion date.
Depreciation in a short tax year is calculated as follows:

Depreciable Basis * Annual Rate * No. of Months in Short Tax Year /
No. of Months in the Full Tax Year
If the depreciation method has a calculation basis of NBV, the value of
the depreciable basis is the net book value (NBV) as of the conversion
date. The NBV is derived from the depreciation reserve.
MACRS Deductions in a Short Tax Year
You can define a formula–based MACRS depreciation method to
calculate depreciation in a short tax year. For example, you could
define a MACRS method with a straight–line switch as follows:
Greatest (2/Life, Decode (Short Year, 1, 1/Remaining Life 1, 0, 1/
Remaining Life 2))
In this example, Decode means the following: if the current year is a
short tax year, then use Remaining Life 1. Otherwise, use Remaining
Life 2.
• Remaining Life 1
Oracle Assets calculates the remaining life of the asset as of the
conversion date or prorate date, which ever is later. If the
prorate date is later than the conversion date, Oracle Assets
calculates the remaining life based on the prorate date to avoid
over–depreciating the asset.
• Remaining Life 2
Oracle Assets calculates the remaining life of the asset as of the
first day of the fiscal year of the acquiring company, after the
conversion date.
Note: Oracle Assets finds the number of months between the
beginning of the fiscal year of the acquiring company and the
end of the asset life. It then converts the value to years.
Adjustments and Revaluation
You cannot revalue short tax year assets or perform financial
adjustments on short tax year assets.
Retiring Assets
Oracle Assets may take additional depreciation or reverse depreciation
expense when you retire an asset. These amounts are controlled by the
asset’s retirement convention, date retired, and depreciation method.

2 – 101
Asset Setup
You may need to retire a short tax year asset during the short tax year
in which it was acquired. You may want to set up special retirement
conventions specifically for this scenario.
For example, your company has a short tax year that starts in May 1998
and ends in December 1998. You set up a half–year retirement
convention with a prorate date in the mid–point of the short tax year
(September 1). If you retire a short tax year asset in November 1998
using that half–year retirement convention, Oracle Assets backs out
depreciation expense taken in September and October.
Short Tax Year Example
XYZ has a fiscal year that begins on August 1 and ends on July 31.
XYZ has assets that were placed in service during XYZ’s fiscal year
1996, using a half–year prorate convention. The prorate date is
February 1, 1996.
At Work has a fiscal year that begins January 1 and ends December 31.
In 1997, ABC acquired XYZ and decided to begin depreciating the
acquired assets in Oracle Assets on April 1, 1997.
Defining a MACRS Depreciation Formula
Because ABC acquired XYZ and its assets in the middle of ABC’s fiscal
year, the asset manager at ABC needs to add assets as short tax year
assets. For assets depreciating under MACRS with a 5–year life, the
asset manager defines a formula–based depreciation method:
Depreciation method 5YRMACRS – STY
Calculation basis rule NBV
Depreciate in year retired Yes
The asset manager defines the following depreciation formula:
Greatest (2/Life, Decode (Short Year, 1, 1/Remaining Life 1, 0,
1/Remaining Life 2))
The acquired assets depreciate under a 5–year MACRS depreciation
method, with a half–year prorate convention. The depreciation basis is
net book value.

Adding Acquired Assets
ABC adds the acquired assets to its books on April 1, 1997. The asset
manager specifies a conversion date of 4/1/97 and enters the cost
($10,000) and accumulated depreciation ($4133.30) for the assets. In the
Books window, the asset manager checks the Short Fiscal Year check
box. The original depreciation start date is 2/1/96. The asset manager
uses the mass copy feature to copy the assets to the tax book, and
uploads the reserves accordingly.
Calculating Depreciation
When the asset manager runs depreciation for the acquired assets,
Oracle Assets uses the defined formula to derive the rates during the
short tax year and in the following years.
The following table illustrates how depreciation is taken throughout the
remaining life of the acquired assets, which were placed in service in
XYZ’s fiscal year 1996 with a half–year prorate convention. The rates
in boldface indicate which rate is used for each fiscal year. Note that
the rate switches from declining balance to straight–line in fiscal year
1999:
Company Declining
Balance Rate
(2/Life)
Straight–Line Rate
(1/ Remaining Life 1 or
1/ Remaining Life 2)
Depreciation Year End Net
Book Value
ABC Short Tax Year
1997
(4/1/97–12/31/98)
0.40000 Rate
used for the
fiscal year.
0.26000 1760.01 4106.69
ABC FYR 1998 0.40000 Rate
used for the
fiscal year.
0.32000 1642.68 2464.01
ABC FYR 1999 0.40000 0.48000 Rate used for the
fiscal year.
1182.73 1281.29
fiscal year.
1182.73 98.56
fiscal year.
98.56 0.00
Table 2 – 5
The following figure graphically illustrates information discussed in the
preceding text. It shows the acquisition of XYZ Company by ABC

2 – 103
Asset Setup
Corporation, and how Oracle Assets determines the short tax year and
the Remaining Life 1.

C H A P T E R
3
T
3 – 1
Asset Maintenance
Asset Maintenance
his chapter explains how to change asset details, adjust
accounting information, place construction–in–process (CIP) assets in
service, and revalue assets.

☞
Changing Asset Details
You can change descriptive information for an asset at any time.
Changing asset descriptive information other than category and units
has no financial impact on the asset.
Reclassifying Assets
Reclassify assets to update information, correct data entry errors, or
when consolidating categories. You cannot reclassify fully retired
assets.
Note: When you reclassify an asset in a period after the period
you entered it, Oracle Assets creates journal entries to transfer
the cost and accumulated depreciation to the asset cost and
accumulated depreciation accounts of the new asset category.
This occurs when you create journal entries for your general
ledger. Oracle Assets also changes the depreciation expense
account to the default depreciation expense account for the
new category, but does not adjust for prior period expenses.
Reclassifying an Asset to Another Category
" To reclassify an asset to another category:
1. Choose Asset > Asset Workbench from the Navigator window.
2. Find the asset you want to reclassify.
Suggestion: For best performance, find by asset number or
tag number since they are unique values.
3. Choose Open.
4. Enter the new category.
5. Save your changes.
Attention: Reclassification does not redefault the depreciation
rules to the default rules from the new category. Manually change
the depreciation rules in the Books or Mass Change windows if
necessary.

3 – 3
Asset Maintenance
See Also
Journal Entries for Transfers and Reclassifications: page 6 – 32
Reclassifying a Group of Assets
You can reclassify a group of assets using the Mass Reclassifications
window. In addition to reclassifying assets to a new category, when
you run the Mass Reclassification process, you have the option to have
assets inherit the depreciation rules of the new category. If you choose
to have the reclassified assets inherit depreciation rules, you can also
choose to either amortize or expense the resulting depreciation
adjustments. See: Depreciation Rules (Books): page 2 – 6.
When you run the Mass Reclassification process, Oracle Assets first
reclassifies the assets (changes the assets from one category to another),
then changes the depreciation rules, if you have chosen to have the
reclassified assets inherit the depreciation rules of the new category.
Oracle Assets reclassifies assets to a new category, even if inheriting
depreciation rules fails. However, if reclassification fails (assets are not
changed to the new category), assets will not inherit the depreciation
rules of the new category.
Reclassification
Reclassification is done at the asset level. If an asset cannot be
reclassified in one book, the asset will not be reclassified in any of the
books to which it belongs.
If you attempt to reclassify assets to the same category (for example,
you have a group of assets assigned to category PC, and you run the
Mass Reclassification process to reclassify the assets to category PC),
the assets will not be reclassified and will not inherit depreciation rules.
You cannot reclassify an asset in a prior period.
Inheriting Depreciation Rules
Inheriting depreciation rules is performed at the book level, meaning
that if assets do not inherit depreciation rules in one book to which the
assets belong, it will not prevent assets from successfully inheriting
depreciation rules in other books to which they belong.
When you choose to have assets inherit the depreciation rules of the
new category, you can choose to have all rules inherited by checking
the Inherit Depreciation Rules of New Category check box on the Mass

Reclassifications window, or no rules by ensuring the check box is not
checked. You cannot choose to have assets inherit only specified
depreciation rules.
When you choose to have assets inherit depreciation rules, you can also
choose to amortize the resulting adjustments by checking the Amortize
Adjustments check box on the Mass Reclassifications window. If you
do not check the Amortize Adjustments check box, adjustments will be
expensed. Note that if you choose to expense adjustments on the Mass
Reclassifications window (the Amortize Adjustments check box is not
checked), reclassification will fail for any assets for which you have
previously amortized an adjustment.
Note: Depreciation rules are inherited in both the corporate
and tax books. The rules set up for the category in the
corporate book are inherited in the corporate book and the
rules set up for the category in the tax book are inherited in the
tax book. Depreciation rules are not copied from the corporate
book to the tax book. Therefore, you do not need to check the
Allow Mass Copy – Copy Adjustments check box in the
Accounting Rules tabbed region of the Books Controls window.
Setting Up Assets to Depreciate
If the Depreciate check box on the Books window is checked for an
asset before the asset is reclassified, the check box will remain checked
after reclassification. If the Depreciate check box is not checked for an
asset before the asset is reclassified, that asset will inherit the
depreciation rules of the new category, but the Depreciate check box
will remain unchecked.
See: Entering Financial Information: page 2 – 24
Allowing Mass Changes
If you check the Inherit Depreciation Rules of New Category check box,
you must also ensure you have checked the Allow Mass Changes check
box in the Accounting Rules region of the Book Controls window, for
any assets that you want to inherit depreciation rules. If the Allow
Mass Changes check box is not checked, reclassified assets will not
inherit depreciation rules, even though you checked the Inherit
Depreciation Rules of New Category check box on the Mass
Reclassifications window.
See: Entering Accounting Rules for a Book: page 9 – 73
Copying Descriptive Flexfield Information
You can choose to copy descriptive flexfield information to the new
category by checking the Copy Category Descriptive Flexfield to New

3 – 5
Asset Maintenance
Category check box on the Mass Reclassifications window. Descriptive
flexfield information will be copied only if assets are being reclassified
within the same major category. The descriptive flexfields should be
set up with the same segments in both the old and the new category.
Otherwise, descriptive flexfield information in the old category may be
copied incorrectly into an incorrect segment in the new category. If a
segment in the old category and a corresponding segment in the new
category have different formats (for example, segment 1 in the old
category is alphanumeric and segment 1 in the new category is in date
format), the information will be copied, but you will need to correct the
descriptive information in that segment.
Note: If you do not choose to copy category descriptive
flexfield information to the new category, the category
descriptive flexfield information from the old category will be
deleted.
Previewing Your Mass Reclassifications
You can run the Mass Reclassification Preview Report before
submitting the Mass Reclassifications process. The report allows you
to preview the changes before actually submitting them. The report
lists all the assets that the mass reclassification process will reclassify.
See: Mass Reclassification Preview and Review Reports: page 11 – 120
Running the Mass Reclassification Process
After reviewing the Mass Reclassification Preview Report, run the mass
reclassification process. If reclassification fails for any of the assets, the
mass reclassification process completes with a warning. You need to
review the log file to determine the reasons the assets were not
reclassified.
To review the changes to category and depreciation rules, run the Mass
Reclassification Review Report.
See: Mass Reclassification Preview and Review Reports: page 11 – 120
Note: You can run the Mass Reclassification Review Report
from either Oracle Assets or the ADI Request Center.
" To reclassify a group of assets:
1. Choose Mass Transactions > Reclassifications from the Navigator
window.
2. Find the assets you want to reclassify.
3. Specify the corporate book on which you want to run
reclassification.

4. Optionally specify other asset selection criteria in the following
fields:
• Asset Type
• Expense Accounts
• Location
• Group Asset
• Employee Name
• Employee Number
• Category
• Asset Key
• Cost Range
• Asset Numbers
• Dates In Service
5. Enter the new category.
6. Specify if you want the current category descriptive flexfield
information copied to the new category.
If you do not choose to copy the flexfield information, the current
category descriptive flexfield information will be deleted.
7. Specify whether to inherit the depreciation rules of the new
category.
8. Specify whether to inherit the group asset of the new category.
9. If you choose to inherit the depreciation rules of the new category,
specify whether to amortize the changes.
10. Choose Preview to run the Mass Reclassification Preview report.
11. Query the Mass Transaction number and choose Run to submit the
Mass Reclassification concurrent process.
If you wish to simultaneously run this program in more than one
process to reduce processing time, Oracle Assets can be set up to
run this program in parallel. For more information on setting up
parallel processing and the FA: Number of Parallel Requests profile
option, see: Overview of User Profile Options: page C – 4.
Note: If Oracle Assets encounters assets with invalid employee
names and numbers during the Mass Reclassification
concurrent process, it will set the employee name and number
to null (blank) and will process the reclassification for those

3 – 7
Asset Maintenance
assets. The process completes with a warning status, and the
log file displays the affected asset numbers and the invalid
employee names and numbers assigned at the time of the
reclassification.
Adjusting Units for an Asset
" To adjust the number of units for an asset:
2. Find the asset whose units you want to adjust.
3. Choose Open.
4. Change the number of Units.
5. Update assignment information to reflect the new number of units
in the Assignments window. See: Assigning an Asset (Detail
Additions Continued): page 2 – 28.
6. Save your work.
See Also
Unit Adjustment Journal Entry: page 6 – 36

Adjusting Accounting Information
You can adjust financial, depreciation, distribution, and invoice
information for an asset.
Changing Financial and Depreciation Information
You can correct an error or update financial and depreciation
information for a single asset or for multiple assets. You can also
override depreciation information for an asset while adding it using the
Detail Additions process. See: Asset Setup Processes (Additions): page
2 – 19.
Before running depreciation (in the period in which you added the
asset), you can change any field.
After you have run depreciation (in any period after the one in which
you added the asset), you can change asset cost, salvage value, prorate
convention, depreciation method, life, capacity and unit of measure (in
the corporate book), rate, bonus rule, depreciation ceiling, and
revaluation ceiling.
If the asset is fully reserved, you can adjust the same fields as for an
asset for which you have run depreciation. If the asset is fully retired,
you cannot change any fields.
You can choose whether to amortize or expense the adjustment. See:
Amortized and Expensed Adjustments: page 6 – 16.
Changing Financial Information for a Single Asset
" To change financial information for a single asset:
2. Find the asset for which you want to change financial information.
3. Choose Books.
4. Choose the Book to which the asset belongs.
5. Choose whether to Amortize Adjustment or expense it in the
current period.

☞
☞
3 – 9
Asset Maintenance
Note: When you adjust a group or member asset using a prior
period amortization start date, Oracle Assets automatically
submits the Process Group Adjustments concurrent program to
calculate the prior period depreciation expense for the group
asset. You must acknowledge the message containing the
request number of the program submission.
6. Enter the new financial information for the asset.
Attention: You can change the depreciation method from units of
production to a flat–rate or life–based method if the asset is not
depreciating by units of production in any associated tax book.
Attention: You can only change the depreciation method from
life–based or flat–rate to units of production in the period you
added the asset.
7. Save your work.
Changing Financial Information for Multiple Assets (Mass Change)
When you change financial information for multiple assets using the
Mass Changes window, the mass change transaction will exclude the
following assets from the mass change transaction:
• CIP assets.
• Retired assets.
" To change financial information for multiple assets
1. Choose Mass Transactions > Changes from the Navigator window.
2. Enter the Book to which the assets belong.
3. Select Amortize Adjustments if you wish to amortize your
adjustments. If Amortize Adjustments is not selected, the
adjustments will be expensed in the current period. When
Amortize Adjustments is selected, enter the Amortization Start
Date in the Change Date field. This allows you to select the date
the amortization begins. The new date selected defaults to the
current period date.
Note: When you adjust a group or member asset using a prior
period amortization start date, Oracle Assets automatically
submits the Process Group Adjustments concurrent program to
calculate the prior period depreciation expense for the group
asset. You must acknowledge the message containing the
request number of the program submission.

4. In the Change Date field, enter the date of the mass change.
You can perform a prior period depreciation rule change by entering a
prior period date in the Change Date field and checking the Amortize
Adjustment check box. The date in the Change Date field defaults to
the current period date.
5. Select the assets you wish to change. Specify the asset numbers,
dates placed in service, and category for which the mass change
applies.
6. Select the asset type of the assets you wish to change in the Asset
Type field, you can select one of the following values:
• Capitalized
• Group
The system will automatically include assets with an asset type of
Capitalized or Group if you do not select an Asset Type.
7. Choose whether to Change Fully Reserved Assets.
8. You can use the Before and After fields as either information to
change or as a selection criterion without changing the information.
When you enter the same value for the Before and After fields, the
mass change affects only assets that match that information.
9. Specify the new financial information for these assets in the After
column.
10. Select the group asset association of the assets you wish to change.
In the Group Association field, you can select one of the following
values:
• Member: The system will select only member assets belonging to
a group asset for the mass change transaction.
• Standalone: The system will select only standalone assets for the
mass change transaction. All the member assets are excluded
from the mass change transaction.
• No Selection: The system will include all assets, regardless of the
group association of the assets. For example, the system will
include group, member, and standalone assets for the mass
change transaction. If you do not select the group asset
association in a Before field, you cannot select the Member or
Standalone values in the corresponding After field. The default
value of the Before and After fields is No Selection.

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Asset Maintenance
11. If you selected the Member value for the Group Association field,
you must enter a valid group asset number in the Group Asset
field.
12. Choose Preview to run the Mass Change Preview report. Use this
report to preview what effects to expect from the Mass Change
before you perform it. If necessary, update the definition and run
the preview report again.
The mass change status determines what action to perform next.
The following table defines each mass change status and their next
actions available.
Status Definition Possible Action
New Newly created mass change definition Preview
Preview Preview report currently running None
Previewed Preview report completed successfully Run
Updated Mass change definition updated after previewing Preview
Running Mass change currently running None
Completed Mass Change completed successfully Review
Copy
Error Preview report or mass change completed in error Preview or Run,
whichever failed
13. To perform the mass change, query the definition and choose Run.
Oracle Assets submits a concurrent process to perform the change.
14. To review a completed mass change, query the definition and
choose Review. Oracle Assets runs the Mass Change Review
report.

Performing Group Reclassifications using Mass Change
You can also use the Mass Changes window to perform a group
reclassification by changing the group asset assignment of a range of
assets. However, you cannot change both the depreciation rules and
the group asset assignment of the capitalized assets in the same mass
change transaction. You must perform the mass group reclassification
as a separate mass change transaction.
When you use the Mass Changes window to change the group asset
assignment of capitalized assets, the system will always use the
Calculate transfer type to process the reclassification. The date placed
in service of the asset changed is used as the group amortization start
date. The date in the Change Date field has no affect on the group
amortization start date. For more information about the group
amortization start date and group reclassifications, see: Transfer Type –
Calculate: page 12 – 53
Note: If the mass change will change the group asset
membership, the following restrictions apply:
– You cannot change other asset attributes, such as prorate
convention, depreciation method, life, and bonus rule, in the
same mass change transaction.
– Oracle Assets will only process the change using the
Calculated transfer type. For more information about
reassigning group asset membership, see: Transactions:
Group Reclassification: page 12 – 53
You can change the group membership of an asset by performing the
following reclassification transactions:
• Transfer a member asset from a source group asset to a target
group asset
• Remove a member asset from a group asset
• Add a standalone asset to a group asset
The following examples describe the ways in which you can change the
group membership of an asset.
Transferring Member Assets Between Group Assets
The table below describes the group assignment of a member asset
before and after it is reassigned from a source group asset to a target
group asset.

3 – 13
Asset Maintenance
Asset Attribute Before After
Group Association Member Member
Group Asset Assignment Group Asset 1 Group Asset 2
Removing Member Assets from a Group Asset
The table below describes the group assignment of an asset before and
after it is reassigned from a member asset to a standalone asset.
Group Association Member Standalone
Group Asset Assignment Group Asset 1 Null
Adding Standalone Assets to a Group Asset
The table below describes the group assignment of an asset before and
after it is reassigned from a standalone asset to a member asset.
Group Association Standalone Member
Group Asset Assignment Null Group Asset 1
If you select Standalone in the Group Association field, you cannot
enter a group asset number in the Group Asset field. However, if you
select Member in the Group Association field, you must enter a valid
group asset number in the Group Asset field.
See Also
Journal Entries for Adjustments: page 6 – 16

Mass Change Preview and Review Reports: page 11 – 117

3 – 15
Asset Maintenance
Transferring Assets
You can transfer assets between employees, depreciation expense
accounts, and locations. When transferring assets, you should consider
the following:
• You can change the transfer date to a date in a prior period for a
particular transfer, but the transfer must occur within the current
fiscal year
• You can change the transfer date of an asset to a prior period
only once per asset.
• You cannot transfer an asset to a future period.
Transferring a Single Asset
" To transfer an asset between employees, expense accounts, and
locations:
2. Find the asset you want to transfer between employees, expense
accounts, and/or locations.
3. Choose Assignments.
4. Optionally update the Transfer Date.
Note: If you transfer an asset during the period in which it
was added, the Transfer Date automatically defaults to the
asset’s date placed in service and you cannot change it.
5. In the Units Change field, enter a negative number for the
assignment line from which you want to transfer the asset.
6. Create one or more new lines, entering a positive number in the
Units Change field for the assignment lines to which you want to
transfer the asset.
7. Enter the new Employee Name, Expense Account, and/or Location
for the new distribution.

Transferring Multiple Assets in One Transaction
Oracle Assets allows you to transfer multiple assets in one transaction.
You use the Transfer From and Transfer To fields to identify the assets
to be transferred.
You can transfer between expense accounts, locations, and employees
and employee numbers. By selecting any combination of these criteria,
you can further restrict the range of assets to be transferred.
Transferring Between Expense Accounts
For the From account, you can enter a single expense account or a
range of expense accounts. When entering a single account number,
you need to enter the account number in both the low and high fields
for the From account. You can enter the entire account combination or
only a partial combination.
For the To account, you can enter the entire account combination or
only a partial combination. Note that when specifying partial
combinations for both From and To accounts, you do not need to
specify the same segment in both. For example, you can specify the
first segment for the From account, and the second segment for the To
account.
The following table shows an example of transferring between expense
accounts:
In the following example, both the From and To fields contain complete
account combinations. Assets with expense accounts in the From range
will be transferred to the 02–300–5000–600 expense account.
From To
Complete Complete
01–100–2000–500
01–110–2000–500
02–300–5000–600
In the following example, the From field contains a partial account
combination, and the To field contains a complete account combination.
Regardless of the value of the other segments, assets with a second
segment between 200 and 400 are transferred to the 02–300–5000–600
expense account.

3 – 17
Asset Maintenance
From To
Partial Complete
XX–200–XXXX–XXX
02–300–5000–600
In the following example, the From field contains a complete account
combination, and the To field contains a partial account combination.
Assets with the expense account 01–100–2000–500 will be transferred to
the expense account 01–300–2000–600.
From To
Complete Partial
01–100–2000–500
01–100–2000–500
XX–300–XXXX–600
In the following example, both the From and To fields contain partial
account combinations. Assets with expense accounts in which the
second segment is between 200 and 400 will be transferred to an
expense account in which the second segment is 600. The other
segments will remain unchanged.
From To
Partial Partial
In the following example, both the From and To fields contain partial
account combinations. However, the second segment is specified in the
From fields, and the fourth segment is specified in the To field. Assets
with expense accounts in which the second segment is between 200 and
400 will be transferred to an expense account in which the fourth
segment is 600. The second segment will remain unchanged.

From To
Partial Partial
XX–XXX–XXXX–600
Transferring Between Locations and Employees
You can transfer an asset between two locations, for example from the
New York office to the Dallas office. You can also transfer assets
between employee name and number. For example, you can transfer
and asset from Robert Smith (employee 103) to Janet Jones (employee
214).
The following is an example of an asset transfer:
From To
Expense Accounts: 1 – 100 Expense Account: 10000
Location: New York Location: Dallas
Employee Name: Robert Smith Employee Name: Janet Jones
The above transfer affects all assets that are assigned to Robert Smith in
New York with an expense account in the range of 1 through 100. An
asset must satisfy all three criteria to be transferred to Janet Jones in
Dallas with an expense account of 10000.
" To transfer multiple assets between employees, expense accounts,
and locations:
1. Choose Mass Transactions > Transfers from the Navigator window.
2. Choose the corporate depreciation Book for the assets you want to
transfer.
3. Optionally select a Category to use as a selection criterion for the
mass transfer.
4. Optionally update the Transfer Date.

3 – 19
Asset Maintenance
You can change the transfer date to a a prior period date. You
cannot change the date to a future period date.
5. Enter one or more selection criteria for the mass transfer in the
Transfer From and Transfer To fields.
6. Choose Preview to run the Mass Transfers Preview report. Use this
report to preview the expected effects of the Mass Transfer before
you perform it. If necessary, update the definition and run the
preview report again.
7. To perform the Mass Transfer, query the mass transfer and choose
Run. Oracle Assets submits a concurrent process to perform the
transfer.
8. Review the log file after the request completes.
Transferring Invoice Lines Between Assets
2. Find the asset whose invoice information you want to change.
3. Choose Source Lines.
4. Choose the line(s) you want to transfer.
To transfer the entire amount, check the check box to the left of the
source line. Otherwise, enter a partial amount.
Note: When you perform a source line transfer on a member
asset using a prior period amortization start date, Oracle
Assets automatically submits the Process Group Adjustments
message displaying the request number of the program
submission.
5. Choose Transfer To.
6. In the Transfer To window, query the destination asset to which
you want to transfer the line.

7. Save your work.
See Also
Journal Entries for Transfers and Reclassifications: page 6 – 32
Changing Invoice Information for an Asset
If you brought over mass addition lines from invoices or discounts in
your payables system, use the Source Lines window to change invoice
information for an asset. You can:
• Add a new invoice line to an asset
• Change the cost of a invoice line
• Delete an invoice line from an asset
• Transfer invoice lines between assets: page 3 – 19
" To change invoice information for an asset
3. Choose Source Lines.
• Enter a description and cost to manually add a new invoice line
to the asset.
• Change the cost of a line for a CIP asset if necessary.
• To delete an invoice line, uncheck Active.
Note: When you adjust a source line or add a new source line
to an existing member asset using a prior period amortization
start date, Oracle Assets automatically submits the Process
Group Adjustments concurrent program to calculate the prior

3 – 21
Asset Maintenance
period depreciation expense for the group asset. You must
acknowledge the message containing the request number of the
program submission.

Mass External Transfers of Assets and Source Lines
The Mass External Transfers features provides a mechanism for
accepting data about asset transfers and source line transfers from
external systems. The system includes an interface table that allows
other systems to pass details of assets and source lines to be
transferred. A preview screen lets you view, accept, or reject the
transfers from external systems. A new process, similar to the existing
Post Mass Additions program, processes the transfer detail information
from the new table directly to Oracle Assets.
Phase Description
Create Enter mass external transfer information into the
FA_MASS_EXTERNAL_TRANSFERS interface table.
Make note of the system–generated transfer number so
you can use it to locate the batch if you must modify the
batch information.
Post Submit the Post Mass External Transfers request to post
the external asset transfer information to Oracle Assets.
Similarly, submit the Post Mass Source Line Transfers
request to post the external source line transfer
information to Oracle Assets.
Review Query on the mass external transfer batch to check for
errors.
Clean up Set the status of posted transfers to Delete. Submit the
Purge Mass External Transfers program to delete these
rows from the interface table.
" To process asset and source line transfers from external systems:
1. After populating the interface table, from the Navigator, select
Other > Requests > Run.
2. In the Submit Request window, select Post Mass External Transfers
in the Request Name field to process asset transfers. To process
source line transfers, select Post Mass Source Line Transfers.
3. Choose Submit Request to post the mass external transfer
information to Oracle Assets.
If the system finds errors in the batch information, the mass external
transfer process is aborted. You can view the errors to determine what
transactions caused the process to abort. After you have submitted the

3 – 23
Asset Maintenance
mass external transfer batch for posting, use the following process to
look for possible errors.
" To check a mass external transfer batch for errors:
1. From the Navigator, choose Mass Transactions > External
Transfers.
2. In the Find External Transfers window, enter the Transfer Number
or other information in the window and click Find.
3. In the External Transfers Summary window, scroll down to view
the Transaction Status for each transaction.
4. If you locate a transaction with a status of Error, highlight that row
and click Open to view and correct the transaction details in the
Modify External Transfer window.
After you determine what corrections need to be made, use the
following process to make those corrections.
" To correct mass external transfer transaction errors:
1. From the Navigator, select Mass Transactions > External Transfers.
2. In the Find External Transfers window, enter the Transfer Number
or other information in the window and choose Find.
3. In the External Transfers Summary window, select the transaction
you want to modify and click Open.
4. In the Modify External Transfer window, modify specific
information as appropriate and click Done. Repeat this process to
make all the necessary corrections before you resubmit the batch.
5. From the Navigator, select Other > Requests > Run to submit a
request to run the Post Mass External Transfer process again. This
process resubmits the batch for processing.
After the mass external transfer batch has completed successfully, you
can delete the mass transfer information from the interface table using
the following process:
" To delete the mass external transfer information from the interface
table:
1. Open the batch that you want to purge in the Modify External
Transfer window.
2. Change the Transaction Status to Delete.

3. From the Navigator, select Other > Requests > Run.
4. In the Submit Request window, select Purge Mass External
Transfers in the Request Name field.
5. Click Submit Request to delete the mass external transfer
information from the interface table.
For details on the accounting for Asset Transfers and Source Line
Transfers, see: Transferring Assets: page 3 – 15.
Column Name Null? Type Remarks Apply to Asset
Transfer (A),
Source Line
Transfer (S), or
Both (B)
BATCH_NAME Not
Null
VARCHAR2(15) Name of Batch. B
MASS_EXTERNAL_TRANSFER _ID Not
Null
NUMBER(15) System–generated identifier
of the external transfer.
B
EXTERNAL_REFERENCE_NUM VARCHAR2(15) Reference number used by
external system.
B
TRANSACTION_REFERENCE _NUM NUMBER(15 Indicates the order of
transactions for the same as-
set ID.
B
TRANSACTION_TYPE Not
Null
VARCHAR2(15) Type of transaction for this
record: Adjustment or
Transfer. Use Adjustment
for source line transfers and
Transfer for asset transfers.
B
BOOK_TYPE_CODE VARCHAR2(15) Corporate Book Type Code. B
TRANSACTION_STATUS Not
Null
VARCHAR2(20) Status of Transaction: New,
Post, Posted, On Hold,
Delete or Error.
B
TRANSACTION_DATE_ENTERED DATE Date when this transaction
is entered into Oracle As-
sets.
B
DESCRIPTION VARCHAR2(200) Description of transaction. B
CREATED_BY Not
Null
NUMBER(15) Person who created the re-
cord.
B
CREATION_DATE Not
Null
DATE Record creation date. B

3 – 25
Asset Maintenance
Apply to Asset
Transfer (A),
Source Line
Transfer (S), or
Both (B)
Remarks
Type
Null?
Column Name
LAST_UPDATED_BY Not
Null
NUMBER(15) Last updated by person. B
LAST_UPDATE_DATE Not
Null
DATE Last updated date. B
LAST_UPDATE_LOGIN NUMBER(15) Last update login user. B
ATTRIBUTE columns 1 to 15 VARCHAR2(150) Descriptive flexfield seg-
ments.
B
ATTRIBUTE_CATEGORY_CODE VARCHAR2(30) Descriptive flexfield
structure defining column.
B
WORKER_ID NUMBER(15) When the program is run in
parallel, this is the worker
that is processing the asset.
The worker number
corresponds to the sequence
number assigned by the
program, which is used to
match assets with available
processors.
B
POST_BATCH_ID NUMBER(15) Unique identifier for a Post
Mass External Transfer or
Post Source Line Transfer
request.
B
FROM_DISTRIBUTION_ID NUMBER(15) Originating Distribution ID.
Applicable to Transfer
transactions only.
A
FROM_LOCATION_ID NUMBER(15) Originating Location ID.
transactions only.
A
FROM_GL_CCID NUMBER(15) Originating GL Code
Combination ID.
transactions only.
A
FROM_EMPLOYEE_ID NUMBER(15) Originating Employee ID.
transactions only.
A

Apply to Asset
Transfer (A),
Source Line
Transfer (S), or
Both (B)
Remarks
Type
Null?
Column Name
TO_DISTRIBUTION_ID NUMBER(15) Destination Distribution ID.
transactions only.
A
TO_LOCATION_ID NUMBER(15) Destination Location ID.
transactions only.
A
TO_GL_CCID NUMBER(15) Destination GL Code
Combination ID.
transactions only.
A
TO_EMPLOYEE_ID NUMBER(15) Destination Employee ID.
transactions only.
A
TRANSFER_UNITS NUMBER Number of asset units to
transfer. Applicable to
Transfer transactions only.
A
FROM_ASSET_ID NUMBER(15) Source asset for source line
transfer. Applicable to Ad-
justment transactions only.
S
TO_ASSET_ID NUMBER(15) Destination asset for source
line transfer. Applicable to
Adjustment transactions
only.
S
TRANSFER_AMOUNT NUMBER Amount of cost to transfer.
Applicable to Adjustment
transactions only.
S
SOURCE_LINE_ID NUMBER(15) Source line identifier.
Applicable to Adjustment
transactions only.
S
See Also

3 – 27
Asset Maintenance
Placing Construction–In–Process (CIP) Assets in Service
Capitalize finished assets that are ready to be placed in service. You
can capitalize a single asset or a group of assets in a transaction. If you
erroneously capitalize a CIP asset, you can reverse the capitalization.
Note: If you have CIP assets in both your corporate book and
your tax book, you capitalize the CIP assets in your corporate
book, and they are automatically capitalized in the tax book.
See: Automatically Adding CIP Assets to Tax Books: page
2 – 17.
Prerequisites
❑ Create CIP assets using Mass Additions or manual additions. See:
Asset Setup Processes (Additions): page 2 – 19.
❑ Build CIP assets as you spend money for raw materials and labor
to construct them.
" To capitalize a CIP asset:
1. Navigate to the Capitalize CIP Assets window.
2. Find assets with asset type CIP.
3. Enter the date you placed the asset in service. Oracle Assets uses
this date to begin calculating depreciation for the assets you are
placing in service.
4. Choose the CIP asset(s) you want to capitalize. Choose Special,
Check All if you want to capitalize all the assets in the Capitalize
CIP Assets window.
5. Choose Capitalize.
6. Override the depreciation rules re–defaulted from the asset
category if necessary. See: Changing Financial and Depreciation
Information: page 3 – 8.
" To reverse capitalize an asset:
1. Navigate to the Capitalize CIP Assets window.
2. Query assets with type Capitalized.
3. Choose the asset(s) you want to reverse capitalize. Choose Special,
Check All to reverse capitalize all the assets in the Capitalize CIP
Assets window.

☞
Attention: You can reverse capitalize an asset only in the period
you capitalized it, and only if you did not perform any transactions
on it.
4. Choose Reverse.
See Also
Construction–In–Process (CIP) Assets: page 2 – 16
Capitalization Journal Entry Example: page 6 – 14

3 – 29
Asset Maintenance
Revaluing Assets
Revalue assets to adjust the value of your capitalized assets in a highly
inflationary economy. You can revalue all categories in a book, all
assets in a category, or individual assets.
You can revalue all assets using the Mass Revaluation process. The
Mass Revaluation process does not use price indexes to revalue assets.
The Mass Revaluation process includes the following steps:
• Create Mass Revaluation Definition
• Preview Revaluation
• Run Revaluation
• Optionally Review Revaluation
Suggestion: To obtain a value for replacement cost for
insurance purposes, run the Mass Revaluation Preview Report
without performing the revaluation.
Prerequisites
❑ Set up your Revaluation Rules and Accounts. See: Defining
Depreciation Books: page 9 – 71.
" To revalue all assets in a category:
1. Navigate to the Mass Revaluation window.
2. Enter the Book for which you want to revalue assets.
3. Enter a Description of the revaluation definition.
4. Specify revaluation rules. See: Asset Management In a Highly
Inflationary Economy (Revaluation): page 3 – 32.
5. Enter the category you want to revalue.
6. Enter the revaluation percentage rate to revalue your assets. Enter
either a positive or negative number.
7. Override revaluation rules if necessary.
8. Choose Preview.
Oracle Assets runs the Mass Revaluation Preview Report so you
can preview what effect this revaluation will have when you
perform it. If necessary, update the definition and run the preview
report again.

☞
Attention: You must preview the revaluation definition before
you perform it.
9. Find the revaluation definition using the Mass Transaction
Number.
10. Choose Run. Oracle Assets begins a concurrent process to perform
the revaluation.
Note: You cannot run Mass Revaluation more than once per
period. Once you run Mass Revaluation, values are changed in
the Oracle Assets system. If you re–run Mass Revaluation in
the same period, the Mass Revaluation calculation will be
based on the previous Mass Revaluation calculation. You can
run the Mass Revaluation Preview report as many times as you
like, without affecting actual values in the system.
" To revalue an individual asset:
H Enter the asset number you want to revalue instead of a category.
If you revalue a single asset in a category which is also being
revalued, the rate you enter for the asset overrides the category
rate.
" To review the effects of a revaluation:
1. Navigate to the Mass Revaluations window.
2. Find the revaluation definition you want to review.
3. Choose Review to run the Mass Revaluation Review Report.
" To copy an existing revaluation definition:
1. Navigate to the Mass Revaluations window.
2. Query the revaluation definition you want to copy.
3. Choose Special, Copy Definition from the menu.
4. Specify your rates and override any of the copied information in
your new definition.
5. Save your work.

3 – 31
Asset Maintenance
See Also
Asset Management in a Highly Inflationary Economy (Revaluation):
page 3 – 32
Journal Entries for Revaluations: page 6 – 47
Mass Revaluation Preview and Review Reports: page 11 – 119
Revaluation Reserve Detail and Summary Reports: page 11 – 67
Revaluation Reserve Balance Report: page 11 – 67

Asset Management in a Highly Inflationary Economy (Revaluation)
Oracle Assets allows you to periodically adjust the value of your
capitalized assets due to inflation or deflation, according to rates you
enter. This process is known as revaluation. The rules for revaluation
often differ from country to country. Oracle Assets has the flexibility to
handle your specific requirements.
Oracle Assets multiplies the asset cost by the revaluation rate you enter
in the Mass Revaluations window to determine the adjustment to the
asset cost.
A revaluation only affects assets added in a prior period. It does not
process:
• Assets added in the current open period
• Fully retired assets
• Assets with pending retirements
Suggestion: Since Oracle Assets does not Mass Copy
revaluations, when you perform a revaluation in your corporate
book, also perform it in each tax book associated with that
corporate book.
Set Up Revaluation Accounts
You must set up the following revaluation accounts before you can
perform a revaluation:
• Revaluation reserve account and revaluation amortization
account for each category in the Asset Categories window
• Revaluation reserve retired gain and loss accounts in the Book
Controls window
Specify Default Revaluation Rules
Allow revaluation and specify default revaluation rules for a book in the
Book Controls window. If necessary, you can override these rules when
creating a revaluation definition in the Mass Revaluations window.

3 – 33
Asset Maintenance
Revalue Accumulated Depreciation
If you decide to revalue accumulated depreciation, Oracle Assets
revalues the accumulated depreciation by the same rate by which you
revalue your asset cost. Then it determines the change in net book value
and transfers the difference to the revaluation reserve account. Oracle
Assets calculates current depreciation expense based on the net book
value after revaluation, salvage value, and the remaining life.
Revalue YTD Depreciation
If you need to revalue depreciation expense, Oracle Assets creates a
journal entry including a line crediting or debiting the depreciation
expense account. The amount credited or debited results from applying
the revaluation rate to the year–to–date depreciation. Assets that are
fully reserved will be adjusted for inflation without extending the life of
the asset.
Change In Net Book Value = Change In Asset Cost – Change In
If you decide not to revalue accumulated depreciation, Oracle Assets
transfers the current accumulated depreciation to revaluation reserve.
In this case, Oracle Assets calculates current depreciation expense based
on the recoverable cost after revaluation and the remaining life.
If you do not amortize the revaluation reserve, the amount remains in
the revaluation reserve account until you retire the asset.
Retire Revaluation Reserve
If you want to retire revaluation reserve, Oracle Assets creates journal
entries for the remaining reserve to the revaluation reserve retired gain
or loss accounts when you retire assets.
Revalue Fully Reserved Assets
You can revalue fully reserved assets that are depreciating under a
life–based method. If you choose to revalue fully reserved assets, Oracle
Assets also requires you to enter a life extension factor to extend the
asset life.
Oracle Assets does not revalue fully retired assets. So if you retire an
asset, revalue its category, and reinstate it, the asset is reinstated without
being revalued. You can revalue it individually if necessary.
Maximum Fully Reserved Revaluations
You can limit the number of times an asset can be revalued as fully
reserved. If you allow revaluation of fully reserved assets, Oracle Assets

does not revalue a fully reserved asset if the revaluation exceeds the
maximum number of times you can revalue an asset as fully reserved.
Life Extension Factor
When you revalue a fully reserved asset, you must extend the asset life
so its revalued cost can be depreciated over one or more periods. To
determine the new asset life, Oracle Assets multiplies the original asset
life by the life extension factor.
Revalue CIP Assets
If you want to include CIP assets in the revaluation of a tax book, Oracle
Assets includes all the tax book CIP assets in the revaluation calculation.
This rule is only available for tax books. By default, this rule is selected
if the tax book allows CIP assets.
Life Extension Ceiling
The life extension ceiling limits the amount of depreciation you can back
out when you revalue fully reserved assets. If your life extension factor
is greater than the life extension ceiling, Oracle Assets uses the life
extension ceiling to calculate the new accumulated depreciation and the
depreciation adjustment. It uses the life extension factor to calculate the
new asset life regardless of whether a life extension ceiling exists.
Revaluation Ceiling
Use the ceiling to prevent revaluation above the fair market value. Enter
the revaluation ceiling in the Books window.
Control Your Revaluation
Use the status to track your revaluation. The revaluation status
determines what action to perform next. The following table defines
each revaluation status and their next action available.
New Newly created mass depreciation definition Preview

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Asset Maintenance
Possible Action
Definition
Status
Updated Revaluation definition updated after preview-
ing
Preview
Running Revaluation currently running None
Completed Revaluation completed successfully Review
Copy
Error Preview report or revaluation completed in er-
ror
Preview or Run, whichever
failed
Use Mass Transaction Number to Track Your Revaluation Definition
When you save a new definition, Oracle Assets gives it a unique Mass
Transaction Number. Use this number to find your revaluation
definition when you want to perform the next stage in the transaction
cycle.
Mass Revaluation Process
The following figure graphically illustrates the Mass Revaluation
process. A detail description of the process was provided in the
preceding text.

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Asset Maintenance
See Also
Revaluing Assets: page 3 – 29
Mass Revaluation Preview and Review Reports: page 11 – 119
Revaluation Reserve Detail and Summary Reports: page 11 – 67
Revaluation Reserve Balance Report: page 11 – 67

Physical Inventory
Physical inventory is the process of ensuring that the assets a company
has listed in its production system match the assets it actually has in
inventory. A company takes physical inventory by manually looking at
all assets to ensure they exist as recorded, are in the appropriate
locations, and consist of the recorded number of units.
A person taking physical inventory can collect physical inventory data
in a number of ways, such as by writing down information about the
asset manually, or by using a barcode scanner to automatically scan
asset information into a file such as an Excel spreadsheet. After this
information is collected, any discrepancies need to be reconciled. For
example, if a computer is located in Room 549 according to your
production data, but is actually in Room 346, you need to either change
the record to reflect the true location of the computer, or move it to
Room 549.
About Physical Inventory
The Physical Inventory feature in Oracle Assets assists you in
comparing and reconciling your physical inventory data. To use the
Physical Inventory feature, you must first take physical inventory of
your assets. You need to include the following information about your
assets:
• A unique identifier, which can be either the asset number, tag
number, or serial number
• The location
• The number of units
You can include other information that may make it easier for you to
keep track of the assets you are comparing, such as a description of
each asset, but only the information listed above is required.
You load your physical inventory data into Oracle Assets using the
Physical Inventory Entries window, or you can use the Record Physical
Inventory process in the Applications Desktop Integrator (ADI), which
allows you to import data from an Excel spreadsheet. You can also use
SQL*Loader to import physical inventory data from a non–Oracle file
system.
When you finish entering physical inventory data into Oracle Assets,
you run the Physical Inventory comparison program, which highlights

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Asset Maintenance
the differences between the asset information in Oracle Assets and the
actual assets in physical inventory. This program compares your
physical inventory data with your Oracle Assets data for all assets that
have the In Physical Inventory check box checked.
You can view the results of the comparison online in the Physical
Inventory Comparison window, or by running the Physical Inventory
Comparison Report. The comparison results highlight differences
between the assets in your production system and those in physical
inventory You can reconcile the differences between physical inventory
and the information in your database by updating each asset manually,
or you can use the mass additions process to add assets that are
missing from the production system.
When you have completed your physical inventory, you can run the
Missing Assets Report, which lists all assets that have not been
accounted for in the physical inventory process.
Prerequisites
❑ Ensure that the In Physical Inventory check box is checked for all
assets in Oracle Assets that you want included in the physical
inventory comparison program. See: Setting Up Oracle Assets
Data to be Included in Physical Inventory: page 3 – 40.
" To gather and reconcile physical inventory information:
1. Take physical inventory of your assets by using a barcode scanner
(if your assets are set up with barcodes) or by manually noting the
location, number of units, and a unique identifier.
2. Navigate to the Physical Inventory window.
3. Enter the inventory name (for example, Q2 Physical Inventory
USA) and the start date. Entering an end date indicates that the
physical inventory is complete, so you should not enter an end date
until you have completed all physical inventory tasks.
5. Load the physical inventory data into Oracle Assets using the
Physical Inventory window, the Record Physical Inventory process
in ADI, or SQL*Loader. See: Loading Physical Inventory Data:
page 3 – 41.
6. Run the Physical Inventory Comparison program. See: Physical
Inventory Comparison Program: page 3 – 49.

7. Run the Physical Inventory Comparison Report or review the
results online using the Find Physical Inventory Comparison
window. See: Viewing Comparison Results: page 3 – 51.
8. Analyze the report results.
9. Change Oracle Assets data to reconcile with the physical inventory
data and ensure you have accounted for all assets. See:
Reconciliation: page 3 – 52.
10. Run the Missing Assets Report. See: Missing Assets: page 3 – 53
11. Purge the physical inventory data. See: Purging Physical
Inventory Data: page 3 – 53.
See Also
Adding an Asset Specifying Details (Detail Additions): page 2 – 22
Record Physical Inventory Feature (Oracle Applications Desktop
Integrator User Guide)
Setting Up Oracle Assets Data to be Included in Physical Inventory
Assets listed in Oracle Assets will be compared by the Physical
Inventory Comparison program only if the In Physical Inventory check
box is checked for those assets. If the In Physical Inventory check box
is not checked for a particular asset, that asset will be ignored in the
comparison.
The In Physical Inventory check box allows you to determine which
assets are included in the physical inventory process. For example, you
may have several buildings that you track as assets in Oracle Assets,
but you do not want the buildings included in the physical inventory
process.

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Asset Maintenance
Mass Additions
You can designate a group of assets to be included in the physical
inventory process by checking the In Physical Inventory check box in
the Mass Additions window.
Asset Categories
When you set up asset categories in the Asset Categories window, the
In Physical Inventory check box is checked by default. If you do not
want assets in a particular category to be included in physical
inventory, you can uncheck the In Physical Inventory check box when
you set up the category. For example, you may set up a category called
BUILDING, which includes all of the buildings owned by your
company. You may not want your buildings included in the physical
inventory process, so you can uncheck the In Physical Inventory check
box so that all assets with a category of BUILDING will not be included
in physical inventory.
After setting up categories, you can override the value of the In
Physical Inventory check box for individual assets using the Asset
Details window.
Asset Details
You can use the Asset Details window to override the value of the In
Physical Inventory check box. For example, you may have assets with
a category of COMPUTER designated to be included in the physical
inventory process. You may also have a particular asset with a
category of COMPUTER that you do not want included in the physical
inventory process. You can open the Asset Details window for that
particular asset and uncheck the In Physical Inventory check box.
Loading Physical Inventory Data
To use the Physical Inventory feature in Oracle Assets, you must load
physical inventory data that you have collected into the
FA_INV_INTERFACE table in Oracle Assets. The Usage column in the
following table indicates whether a field is required, optional, or
system–generated.
The following table lists the column name, type, description, and usage
for each column in the FA_INV_INTERFACE table.

Column Name Type Description Usage
INVENTORY VARCHAR2 (80) The user–defined inventory
identification number to which
this entry belongs.
Required
ASSET_ID NUMBER (15) The system–generated asset
identification number.
System–generated
ASSET_NUMBER VARCHAR2 (15) The unique asset number assigned
by either the user or Oracle Assets
during asset setup. Although this
field is not required, it is
recommended, because it is the
first field compared by the
Physical Inventory Comparison
program when it attempts to
match an asset in physical
inventory with one in the
production system.
Conditionally required.
When you enter physical
inventory data in the Physical
Inventory window, either the asset
number, tag number, or serial
number is required.
ASSET_KEY_CCID NUMBER (15) The asset key flexfield
combination.
Optional
TAG_NUMBER VARCHAR2 (15) The tag number of the asset. The
Physical Inventory Comparison
program uses the tag number to
uniquely identify an asset if it was
unable to do so using the asset
number, because it was not
provided.
number is required.
DESCRIPTION VARCHAR2 (80) The description of the asset. Optional
MODEL_NUMBER VARCHAR2 (40) The model number of the asset. Optional
SERIAL_NUMBER VARCHAR2 (35) The serial number of the asset.
The Physical Inventory
Comparison program uses the
serial number to uniquely identify
an asset if it was unable to do so
using the asset number or tag
number, because neither was
provided.
number is required.
MANUFACTURER_NAME VARCHAR2 (30) The name of the manufacturer
that made the asset.
Optional
ASSET_CATEGORY_ID NUMBER (15) The category to which the asset
belongs.
Optional
UNITS NUMBER The number of units in physical
inventory for the asset.
Required
Table 3 – 9 (Page 1 of 3) FA_INV_INTERFACE Table

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Asset Maintenance
Usage
Description
Type
Column Name
LOCATION_ID NUMBER (15) The location ID that corresponds
to the location of the asset.
Required
STATUS VARCHAR2 (15) The status of the asset will be one
of the following:
NEW
TO RECONCILE
RECONCILED
DIFFERENCE
NO ASSET NUMBER
NON–INVENTORIAL
NOT UNIQUE
Initially system–generated, but
can be manually changed by the
user.
UNIT_ADJ VARCHAR2 (1) Indicates whether this entry needs
a location adjustment. A NULL
value indicates that this physical
inventory entry has not been
compared.
System–generated
UNIT_RECONCILE_MTH VARCHAR2 (20) The unit adjustment reconciliation
method must be one of the
following:
NONE
ADDITION
UP – UNIT ADJUSTMENT
DOWN – UNIT ADJUSTMENT
REINSTATEMENT
FULL RETIREMENT
PARTIAL RETIREMENT
System–generated
LOCATION_ADJ VARCHAR2 (1) Indicates whether this entry needs
a location adjustment. If there is
no value in this field, it indicates
that this physical inventory entry
has not been compared.
System–generated
LOC_RECONCILE_MTH VARCHAR2 (20) The location adjustment
reconciliation method:
NONE
TRANSFER
System–generated
CREATED_BY NUMBER (15) Standard who columns. Typically,
the username or user ID of the
person running Physical
Inventory.
System–generated
CREATION_DATE DATE Standard who columns. The date
when the physical inventory was
opened.
System–generated

Usage
Description
Type
Column Name
LAST_UPDATE_DATE DATE Standard who columns. This date
corresponds to the last date a user
entered physical inventory
information.
System–generated
LAST_UPDATED_BY NUMBER (15) Standard who columns. The user
ID of the last user to update
physical inventory information.
System–generated
LAST_UPDATE_LOGIN NUMBER (15) Standard who columns. The user
ID of the last user to update
physical inventory information.
System–generated
Status Codes
After you have loaded your physical inventory data and run the
Physical Inventory comparison program, Oracle Assets generates a
status code based on the information it has stored about an asset and
the information you provided during the physical inventory process.
The following table contains descriptions of these codes.
Status Code Description Set by
DIFFERENCE During the comparison, Oracle Assets
identified a difference in the location
or number of units for this asset.
Oracle Assets
NEW When you enter a new physical
inventory entry, the status is
automatically set to NEW. A status of
NEW indicates the entry has not been
compared. After an entry has been
compared, you also have the option to
reset the status to NEW, so that it will
be compared again. You can reset the
status to New in the Inventory Entries
window.
Oracle Assets/User
NO ASSET NUMBER The comparison program could not
locate the asset number in Oracle
Assets.
Oracle Assets
Table 3 – 10 (Page 1 of 2) Status Codes in the FA_INV_INTERFACE Table

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Asset Maintenance
Set by
Description
Status Code
NON–INVENTORIAL The asset associated with the physical
inventory entry is not designated to be
included in physical inventory (the In
Physical Inventory check box is not
checked).
Oracle Assets
NOT UNIQUE During the comparison, more that one
asset listed in Oracle Assets matched a
single physical inventory entry.
Oracle Assets
RECONCILED The asset is the same in Oracle Assets
and in physical inventory, and is
automatically set to a status of
RECONCILED.
User/Oracle Assets
TO RECONCILE When a difference is identified in the
comparison, you change the status to
TO RECONCILE to indicate that the
entry is ready to be reconciled.
User
Table 3 – 10 (Page 2 of 2) Status Codes in the FA_INV_INTERFACE Table
Unit Reconciliation Methods
When you run the Physical Inventory Comparison program, Oracle
Assets updates the UNIT_RECONCILE_MTH field in the
FA_INV_INTERFACE table with the appropriate unit reconciliation
code. The code indicates whether the asset needs an adjustment in the
number of units stored in Oracle Assets, and if so, the type of unit
adjustment needed. The following table lists the unit reconciliation
codes and a description of each code:
Code Description
ADDITION An asset was found in physical inventory that is not in
Oracle Assets. The asset needs to be added to Oracle
Assets.
DOWN – UNIT
ADJUSTMENT
For a particular asset, more units are listed in Oracle Assets
than are found in physical inventory. The number of units
needs to be adjusted down in Oracle Assets.
FULL RETIREMENT An asset needs to be fully retired, because it is listed in
Oracle Assets but not found in physical inventory.
Table 3 – 11 (Page 1 of 2) Codes in the UNIT_RECONCILE_MTH Field

Description
Code
NONE No unit adjustment is necessary.
PARTIAL RETIREMENT An asset needs to be partially retired. Usually, you would
do this when for a particular asset, you found less units in
physical inventory than are listed in Oracle Assets.
REINSTATEMENT An asset needs to be reinstated. Although it was retired,
during the physical inventory process, it was found that
the asset was still being used.
UP – UNIT ADJUSTMENT For a particular asset, less units are listed in Oracle Assets
than are found in physical inventory. The number of units
needs to be adjusted up in Oracle Assets.
Table 3 – 11 (Page 2 of 2) Codes in the UNIT_RECONCILE_MTH Field
Methods for Loading Physical Inventory Data
You can load physical inventory data into Oracle Assets using several
different methods. You can:
• Import data from an Excel spreadsheet using ADI
• Enter data in the Physical Inventory Entries window
• Import data from a non–Oracle system using SQL*Loader
Import data from an Excel spreadsheet using the ADI
You can use ADI to load your physical inventory data into an Excel
spreadsheet and import the data into Oracle Assets.
See: Uploading Physical Inventory Data into Oracle Assets (Oracle
Applications Desktop Integrator User Guide)
Enter data using the Physical Inventory Entries window
You can enter data for each asset directly into Oracle Assets using the
Physical Inventory Entries window. Keep in mind that you can only
enter data for one asset at a time when using this method.

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Asset Maintenance
Import data from a non–Oracle system using SQL*Loader
You can use SQL*Loader to import physical inventory data by
completing the following steps:

the data exists in multiple tables or files in the system from which
you are loading data. In either case, you must eventually place the
data in a single table, the FA_INV_INTERFACE table.
If you prefer, you can load data directly into the
FA_INV_INTERFACE table, but it is more difficult due to the
2. Load your interim table using SQL*Loader.
loads your physical inventory data into your interim table.
need to use SQL*Loader. Simply consolidate the physical
inventory information in your interim table using SQL*Plus or
import, and go directly to .
• Convert the physical inventory information into text form.
If you cannot find a way to produce clean text data, try
generating a report to disk, using a text editor to format your
data. Another option is to have SQL*Loader eliminate
unnecessary information during its run. If there is a large
volume of information, or if the information is difficult to
convert into a loadable format, you can write your own import
program. Construct your program to generate a SQL*Loader
readable text file.
• Create the SQL*Loader control file.
data.
• Run SQL*Loader to import your physical inventory data.
Once you have created your physical inventory data file and
SQL*Loader control file, run SQL*Loader to import your data.
SQL*Loader produces a log file with statistics about the import,
a bad file containing records that could not be imported due to

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Asset Maintenance
errors, and a discard file containing all the records that were
filtered out of the import by commands placed in the control file.
of records in your original physical inventory data file or table to
ensure that all physical inventory records were imported.
4. Spot check the interim table.
them to the corresponding records in the original physical data file
or table. Look for missing or invalid data. This step ensures that
your data was imported into the correct columns and that all
columns were imported.
Physical Inventory Comparison Program
To run the Physical Inventory Comparison program, navigate to the
Run Comparison window. You must enter the name of the physical
inventory being compared. You can also enter either the location, the
category, or both, if you want to narrow the search criteria. If you do
not enter either of these parameters, the comparison program compares
all assets in the physical inventory with the assets in your production
system.
Note: The Physical Inventory Comparison program only
compares physical inventory entries with a status of NEW. If
an entry has been compared and you want it to be compared
again, you must change the status of that entry back to NEW in
the Inventory Entries window.
During the comparison, the comparison program attempts to match
each asset in the physical inventory data to an asset in the production
system. It begins the comparison by searching for matching unique
identifiers. The matching unique identifier can be either the asset
number, tag number, or serial number.
The program first determines whether the physical inventory data
includes an asset number. If an asset number has been provided, the
comparison program searches the Oracle Assets production system for
a matching asset number. If it finds a matching asset number, the

program continues the comparison by determining whether the
location and number of units match. If they do not match, the program
updates the status of that asset to DIFFERENCE. For a list of status
codes, see: Loading Physical Inventory Data: page 3 – 41.
If the program cannot find a matching asset number in the Oracle Asset
production system, it terminates the comparison for that asset and
continues on to the next asset.
If an asset number has not been recorded as part of the physical
inventory, the program next determines whether the physical inventory
data includes a tag number. If there is a tag number, the program
searches the Oracle Assets production system for a matching tag
number. Similarly, if the physical inventory data includes neither an
asset number nor a tag number, the program determines whether a
serial number has been recorded for the asset. If so, it searches the
Oracle Assets production system for a matching serial number. In both
cases, if the program finds a match, it will continue the comparison to
determine whether the location and number of units match. If they do
not match, the program updates the status of that asset to
DIFFERENCE. For a list of status codes, see: Loading Physical
Inventory Data: page 3 – 41.
In both cases, if the program cannot find a matching identifier in the
Oracle Assets production system, it terminates the comparison for that
asset and continues on to the next asset.
If none of the three unique identifiers are present for that asset, the
program attempts to match the asset using other criteria, such as
description and asset key CCID.
Note: When the program attempts to match assets using
criteria other than the three unique identifiers, the matching
criteria may not be unique and the program may not be able to
uniquely identify an asset. Therefore, we strongly recommend
that when bringing physical inventory data into Oracle Assets
using any method other than the Physical Inventory window
(which does not allow you to save your changes unless you
have entered an asset number, tag number, or serial number),
that you include at least one of the three unique identifiers for
each asset in physical inventory.
After completing the comparison, the comparison program updates the
FA_INV_INTERFACE table, indicating the assets in physical inventory
that cannot be reconciled with the assets in Oracle Assets, and, if
necessary, the type of adjustment that needs to be made (either a unit
adjustment or location adjustment). If there are no differences between
the Oracle Assets data and the physical inventory data for a particular

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Asset Maintenance
asset, and the asset meets the other requirements for inclusion in the
physical inventory process, the asset will automatically have a status of
RECONCILED. If there are differences between the Oracle Assets data
and the physical inventory data for a particular asset, or the asset does
not meet the requirements for inclusion in the physical inventory
process, another status code will be assigned to the asset. You can view
the comparison data online using the Find Physical Inventory
Comparison window, or by running the Physical Inventory
Comparison Report.
Viewing Comparison Results
There are two ways to view the results of the Physical Inventory
Comparison.
• Physical Inventory Comparison window
• Physical Inventory Comparison Report
Physical Inventory Comparison Window
You can view the results of the comparison online on the Physical
Inventory Comparison window. The Physical Inventory Comparison
window displays the asset number, location, and number of units for
each asset in your Oracle Assets production system, and the
corresponding asset number in physical inventory, along with its
location and number of units. If the location or number of units differs,
the comparison highlights the differences in the comparison results. It
also indicates when it cannot find a corresponding asset number in the
production system, and when it finds duplicate assets.
Note: Assets with a status of New or Not Unique are not
included on the Physical Inventory Comparison window.
" To view the results of the Physical Inventory Comparison online:
1. Navigate to the Find Physical Inventory Comparison window.
2. Enter the name of the physical inventory to view the results for the
entire physical inventory. If you want to narrow the search criteria,
you can enter additional parameters, such as category or location.
3. Choose Find.

Physical Inventory Comparison Report
Similar to the Physical Inventory Comparison window, the Physical
Inventory Comparison Report displays information on each asset in
your production system, along with the corresponding asset number in
physical inventory. This report displays all assets, including those with
a status of New and Not Unique.
This report is a standard variable format report. You can run this
report from Oracle Assets or from the Applications Desktop Integrator
(ADI) Request Center. The Request Center allows you to manipulate
data in the desktop application of your choice.
See Also
Request Center (Oracle Applications Desktop Integrator User Guide)
Physical Inventory Comparison Report: page 11 – 42
Reconciliation
After you finish running physical inventory and generating reports,
you need to reconcile your physical inventory data with your Oracle
Assets data.
" To reconcile your physical inventory with stored asset information:
1. Analyze your reports to determine the assets that need to be
reconciled.
2. Obtain proper approval to change assets that need to be reconciled.
3. Change the asset information by using the Asset Workbench or the
Mass Change window.
See Also

3 – 53
Asset Maintenance
Missing Assets
When you are finished with reconciling your physical inventory, you
can run the Physical Inventory Missing Assets Report to determine if
there are any assets in your production system that could not be found
during the physical inventory process.
This report is a standard variable format report. You can run this report
from Oracle Assets or from the ADI Request Center. The Request
Center allows you to manipulate data in the desktop application of
your choice.
See Also
Physical Inventory Missing Assets Report: page 11 – 43
Purging Physical Inventory Data
After you close your physical inventory, you can purge the physical
inventory data. Oracle Assets will not allow you to purge the data
unless the physical inventory is closed. You close the physical
inventory by entering an end date in the Physical Inventory window.
" To purge physical inventory data:
1. Navigate to the Physical Inventory window.
2. Choose the Purge button.

Scheduling Asset Maintenance
Oracle Assets allows you to schedule repair and service events for your
long–term capital assets, to help ensure you maintain your long–term
assets in a timely manner. You can plan for maintenance to occur at
appropriate times, such as seasonal downtime. You can also schedule
maintenance to occur at specific intervals, for example, monthly. Using
Oracle Assets to schedule your asset maintenance also allows you to
record the maintenance history of assets, in addition to scheduling
future maintenance events.
" To schedule asset maintenance:
1. Navigate to the Schedule Maintenance Events window.
2. Enter the Start Date and End Date.
3. Enter the depreciation book containing the assets for which
maintenance will be scheduled.
4. Optionally enter additional selection criteria, such as asset numbers,
date placed in service, and category.
5. Enter event information, such as the Event name and Description of
the event.
6. Choose Run to schedule maintenance events.
" To view maintenance schedules:
1. Navigate to the Maintenance Details window.
2. Query the asset for the maintenance event you want to view.
3. Optionally enter changes.
4. Save your work.
" To purge maintenance schedules:
1. Navigate to the Purge Maintenance Schedules window.
2. Enter the selection criteria to select the maintenance schedules that
need to be purged, such as Schedule ID, Asset Number, or
Maintenance Date.
3. Choose Purge.

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Asset Maintenance
Schedule Maintenance Events Window Reference
Schedule ID. The unique identification number assigned to the
transaction.
Status. Status of the concurrent request (NEW, ERROR, or
COMPLETED).
Maintenance Period Region
You can schedule maintenance events during a particular range of dates.
For example, if you want to schedule maintenance yearly, you might
enter a Start Date of January 1 and an End Date of December 31.
Start Date. Enter the date the maintenance event will begin.
End Date. Enter the date the maintenance event will end.
Selection Criteria Region
Book. Enter the depreciation book containing the asset for which you
are scheduling maintenance. This field is required.
Currency. The currency of the depreciation book displays automatically
when you enter the name of the depreciation book.
Asset Number. You can enter the asset number or a range of asset
numbers for which you want to schedule maintenance events. This field
is optional.
Date Placed in Service. Enter the date the asset was placed in service.
This field is optional.
Category. Enter the category of the assets for which you want to
schedule maintenance events. This field is optional.
Location. Enter the location of the assets for which you want to
Asset Key. Enter the asset key of the asset for which you want to
Events Region
Event. Enter the name of the maintenance event, for example, tire
rotation, or oil change. This field is required.
Description. Enter a description of the maintenance event. This field is
required.

Frequency in Days. Enter the frequency (in days) at which the event
should occur. For example, for a monthly service, you would enter 30.
This field is required if no date is specified.
Date. Enter the date the service event will occur. This field is required if
no frequency is specified.
Cost. Enter the cost per event. This field is optional.
Supplier Number. Enter the number of the supplier who will perform
the maintenance. This field is optional.
Supplier Name. Enter the name of the supplier who will perform the
maintenance. This field is optional.
Contact Number. Enter the contact number of the person responsible
for the maintenance task.
Contact Name. Enter the name of the person responsible for the
maintenance task.
Buttons
Run. Choose this button to schedule maintenance events.
Maintenance Details Window Reference
Use the Maintenance Details Window to query assets and review
maintenance events that have been scheduled for those assets.
Selection Criteria Region
Use the Selection Criteria region to select the assets for which you want
to view maintenance details.
Book. Enter the depreciation book containing the asset for which you
want to view maintenance details.
Asset Number. You can enter the asset number as selection criteria for
assets for which you want to view maintenance events. This field is
optional.
Description. You can enter an asset description as selection criteria for
optional.

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Asset Maintenance
Tag Number. You can enter an asset tag number as selection criteria for
optional.
Category. You can enter the category of the assets for which you want
to view maintenance events. This field is optional.
Serial Number. You can enter the serial number of the assets for which
you want to view maintenance events. This field is optional.
Asset Key. You can enter the asset key of the assets for which you want
to view maintenance events. This field is optional.
Events Region
This region displays details of the maintenance schedule you queried.
You cannot create maintenance events here, but you can modify certain
values in an existing event.
Event. The name of the maintenance event, for example, tire rotation, or
oil change.
Description. The description of the maintenance event. This field is
required.
Maintenance Due Date. The frequency (in days) at which the event
should occur. You can update the maintenance due date in this window.
Status. The status of the event, either NEW, COMPLETED, or ERROR.
You can update the status in this window.
Cost. The cost per event. You can update the cost in this window.
Supplier Number. The number of the supplier who will perform the
maintenance. You can update the supplier number in this window.
Supplier Name. The name of the supplier who will perform the
maintenance. You can update the supplier name in this window.
Contact Number. The contact number of the person responsible for the
maintenance task. You can update the contact number in this window.
Contact Name. The name of the person responsible for the maintenance
task. You can update the contact name in this window.

Purge Maintenance Schedules Window Reference
Use this window to specify the selection criteria for maintenance
schedules that should be purged.
Book Name. Enter the name of the depreciation book. This field is
optional.
Asset Number. Enter a range of assets for which maintenance
schedules need to be purged. This field is optional.
Maintenance Date. Enter the range of maintenance dates for which
maintenance schedules need to be purged. This field is optional.
Category. Enter the category of the assets for which you want to purge
maintenance events. This field is optional.
Status. Enter the status of the assets for which you want to purge
maintenance events. This field is optional.

C H A P T E R
4
T
4 – 1
Asset Retirements
Asset Retirements
his chapter provides an overview of retirements, and explains
how to retire and reinstate assets, and how to calculate gains and losses
for these transactions.

About Retirements
Retire an asset when it is no longer in service. For example, retire an
asset that was stolen, lost, or damaged, or that you sold or returned.
Full and Partial Retirements by Units or Cost
You can retire an entire asset or you can partially retire an asset.
• When you retire an asset by units, Oracle Assets automatically
calculates the fraction of the cost retired
• When you retire an asset by cost, the units remain unchanged and
the cost retired is spread evenly among all assignment lines
Restrictions
You cannot retire assets by units in your tax books; you can only
perform partial and full cost retirements in a tax book. Also, you can
only perform full retirements on CIP assets; you cannot retire them by
units, or retire them partially by cost.
If you perform multiple partial retirements on an asset within a period,
you must run the calculate gains and losses program between
transactions.
Gain/Loss = Proceeds of Sale – Cost of Removal – Net Book
Value Retired + Revaluation Reserve Retired
If you partially retire a units of production asset, you must manually
adjust the capacity to reflect the portion retired.
Full Retirement for a Group of Assets (Mass Retirement)
Use the Mass Retirements window to retire a group of assets at one time.
You specify selection criteria, including asset category, asset key,
location, depreciation expense account segments, employee, asset
number range, and date placed in service range, to select the assets you
want to retire. You can also elect to automatically retire subcomponents
along with the parent asset.
When you define a mass retirement, you can choose to immediately
submit the concurrent request to retire the selected assets, or you can
save the mass retirement definition for future submission. You can
change the details of any mass retirement before you submit the
concurrent request.
When you submit a mass retirement, Oracle Assets automatically runs
the Mass Retirements Report and the Mass Retirements Exception

4 – 3
Asset Retirements
Report. You can review these reports, perform a mass reinstatement, or
adjust an individual retirement transaction if necessary.
process to reduce processing time, Oracle Assets can be set up to run
this program in parallel. For more information on setting up parallel
processing and the FA: Number of Parallel Requests profile option, see:
Overview of User Profile Options: page C – 4.
Exceptions
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
Independence Across Depreciation Books
You can retire an asset or a group of assets from any depreciation book
without affecting other books. To retire an asset from all books, retire it
from each book separately, or set up Mass Copy to copy retirements to
the other books in the Book Controls window.
Retirement and Reinstatement Statuses
Each retirement transaction has a status. A new retirement receives the
status PENDING. After you run depreciation or calculate gains and
losses, the status changes to PROCESSED.
When you reinstate a PENDING retirement, Oracle Assets deletes the
retirement transaction and the asset is immediately reinstated. If you
reinstate a PROCESSED retirement, Oracle Assets changes the status to
REINSTATE, and you must rerun the Calculate Gains and Losses
program or run depreciation to process the reinstatement.
When you perform a mass retirement, Oracle Assets creates PENDING
retirement transactions. If you submit a mass reinstatement before
running the Calculate Gains and Losses program, Oracle Assets
immediately reinstates these assets. If you submit a mass reinstatement
to reinstate PROCESSED retirements, you must rerun the Calculate
Gains and Losses program or run depreciation to process the
reinstatements.

ITC Recapture
If you retire an asset for which you took an investment tax credit (ITC)
and the ITC recapture applies, Oracle Assets automatically calculates it.
Correct Retirement Errors
You can undo asset retirement transactions, and Oracle Assets creates all
the necessary journal entries for your general ledger to catch up any
missed depreciation expense. You can reinstate an individual or mass
retirement transaction. For multiple partial retirements, you can
reinstate only the most recent partial retirement. You cannot reinstate an
asset retired in a previous fiscal year. You can only reinstate assets
retired in the current fiscal year.
Retirement Conventions
Oracle Assets lets you use a different prorate convention when you
retire an asset than when you added it. The retirement convention in the
Retirements window and the Mass Retirements window defaults from
the retirement convention you set up in the Asset Categories window.
You can change the retirement convention for an individual asset in the
Retirements window before running the Calculate Gains and Losses
program.
Per Diem Retirements
If you set up a book to divide depreciation by days and to use both a
daily prorate convention and a daily prorate calendar, and if you retire
an asset in that book in the current period, Oracle Assets takes
depreciation expense for the number of days up to, but not including,
the date of retirement. If you perform a prior period retirement, Oracle
Assets backs out the depreciation expense through the date of
retirement. If you reinstate the asset, Oracle Assets catches up
depreciation expense through the end of the current period.
Retirement Transactions
For assets added in the current accounting period:
You cannot retire an asset if you added it in the current period. Instead,
you must enter your retirement as a prior period retirement after you
run depreciation. Or if you do not want to create any journal entries,

4 – 5
Asset Retirements
use Edit, Delete Record from the menu in the Asset Details window to
delete the asset any time in the current period.
For prior–period retirement dates:
You can retire retroactively only in the current fiscal year, and only after
the most recent transaction date.
You cannot perform prior period retirements to assets having unplanned
depreciation amounts. See: Unplanned Depreciation: page 5 – 67.
Proceeds of Sale and Cost of Removal
You can enter proceeds of sale and cost of removal amounts when you
perform a retirement or mass retirement. For a mass retirement, you
enter the total proceeds of sale and/or the total cost of removal amounts,
and Oracle Assets prorates the total amounts over the assets being
retired according to each asset’s current cost.
Oracle Assets uses the following formula to prorate the proceeds of sale
amount across the assets you select:
Proceeds of Sale (per asset) = Current cost of asset/Total current
cost of all selected assets X Proceeds of Sale
Oracle Assets uses the following formula to prorate the cost of removal
amount across the assets you select:
Cost of removal (per asset) = Current cost of asset/Total current
cost of all selected assets X Cost of Removal
See Also
Retiring Assets: page 4 – 6
Correcting Retirement Errors (Reinstatements): page 4 – 11
Calculating Gains and Losses for Retirements: page 4 – 19
Journal Entries for Retirements and Reinstatements: page 6 – 39

Retiring Assets
You can retire an individual asset in the Retirements window. You can
retire a group of assets in the Mass Retirements window.
Partially or fully retiring an asset
Partially or fully retire an asset by cost or units.
" To FULLY retire an asset:
2. Find the asset you want to retire.
3. Choose Retirements.
4. Select the depreciation Book from which you want to retire the
asset.
5. Enter the date of the retirement. It must be in the current fiscal
year, and cannot be before any other transaction on the asset.
6. To fully retire the asset, enter all the units or the entire cost.
7. If you are retiring an asset before it is fully reserved, enter the
Retirement Convention.
8. Enter the Retirement Type.
9. If you are retiring an asset with a 1250 property class in a tax book:
Select the Straight Line Method and life you want Oracle Assets to
use for the Form 4797 – Gain from Disposition of 1250 Property
Report.
10. If there is a trade–in asset that will be used to replace the asset you
are retiring, enter the asset number of the trade–in asset.
Note: The trade–in asset must have been added to the Oracle
Assets system before you retire the current asset, if you want to
track the trade–in asset in the retirement transaction.
11. If you are retiring a parent asset, choose Subcomponents to view
the subcomponents asset(s) affected by the retirement transaction.
You can separately retire these subcomponents if necessary.
12. Save your work.

☞
4 – 7
Asset Retirements
Oracle Assets assigns each retirement transaction a unique
Reference Number that you can use to track the retirement.
13. Optionally calculate gains and losses to change the status of the
retirement transaction from PENDING to PROCESSED. See:
Calculating Gains and Losses for Retirements: page 4 – 19.
" To retire asset costs using Source Lines:
1. Select Assets > Asset Workbench from the Navigator window.
Suggestion: For best performance, find by unique values,
such as asset number or tag number.
3. Select Find to navigate to the Assets window.
4. Choose the asset whose source lines you want to retire.
5. Select Source Lines to navigate to the Source Lines window.
6. Choose the source line or enter the amount you want to retire.
7. Select Retire to navigate to the Source Line Retirement window.
8. Modify the necessary fields.
Note: You cannot modify units retired or cost retired. You
must cancel out of the retire 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.
9. Select Done to save your work.
" To PARTIALLY retire an asset:
H Enter the number of units or cost you want to retire. The salvage
value is reduced proportionately by the ratio (Retired Cost)/ Cost.
Attention: If you partially retire by units, you must choose
Continue to specify which units to retire in the Assignments
window.
Retiring a group of assets
You can retire a group of assets at one time. You enter selection criteria
in the Mass Retirements window to choose the group of assets you
want to retire.

When you define a mass retirement, you can choose to immediately
submit the concurrent request to retire the selected assets, or you can
save the mass retirement definition for future submission. You can
change the details of any mass retirement before you submit the
concurrent request.
You can also reinstate a mass retirement transaction. See: Correcting
Retirement Errors (Reinstatements): page 4 – 11.
Note: When you perform a mass retirement, Oracle Assets
creates PENDING transactions that are not PROCESSED until
you run the Calculate Gains and Losses program.
" To retire a GROUP of assets:
1. Navigate to Mass Retirements window.
2. Enter the Book from which you want to retire multiple assets.
3. Enter the date for the mass retirement. You can back date
retirements to a prior period in the same fiscal year, or enter a date
in the current open period. You cannot enter a date in a future
period.
4. Enter the Retirement Type, or reason for this mass retirement. The
type you enter applies to all the assets that meet your selection
criteria.
5. Enter the total Proceeds of Sale and the total Cost of Removal for
the mass retirement, if any. Oracle Assets prorates these amounts
across the assets you select for the mass retirement according to
each asset’s cost.
6. Choose whether to retire all levels of subcomponents of all parent
assets that meet your mass retirement selection criteria.
7. In the Retirements region, use the Asset Type poplist to indicate
whether you want to retire CIP, Capitalized, or Expensed assets.
Choose the blank option to retire CIP, Capitalized, Expensed, and
Group assets.
8. Choose whether to:
• Retire only fully reserved assets by checking the Fully Reserved –
Yes check box
• Retire only assets that are not fully reserved by checking the
Fully Reserved – No check box
• Retire all assets specified in the window. Do not check either of
the Fully Reserved check boxes.

4 – 9
Asset Retirements
9. Enter one or more of the following selection criteria for your mass
retirement:
• General Ledger Depreciation Expense Account range
• Location
• Group Asset
• Employee Name and Number
• Asset Category
• Asset Key
• Cost Range
• Asset Number range
• Dates in Service range
• Group Asset Association
• Group Asset
If you enter a value in more than one field, Oracle Assets includes
only those assets that meet all the selection criteria in the mass
retirement. For example, if you enter a location and employee,
Oracle Assets includes all assets assigned to that employee AND
location. Oracle Assets does not include assets in that location
which are not assigned to the employee.
Note: Oracle Assets selection criteria is based on an
alphabetical sort. For example, if you enter an asset number
range of 100 to 200, asset numbers such as 1044 or 100234 are
included in the selection.
10. Choose Create, Oracle Assets saves all the retirement information
input, but does not execute the retirement transaction. The status
field changes from New to Created. If you are satisfied with the
retirement created, you may proceed to the next step. Optionally,
you may choose to discard or further modify the criteria of the
retirement transaction created.
• Discard your mass retirement transaction: Choose Discard if you
wish to discard the created retirement. The status will change to
Discard and all the information you entered will be purged.
• Refine your retirement criteria: To further refine or modify the
criteria of the created retirement, navigate to the Prepare Mass
Retirement window. Mass Transaction > Retirements > Prepare
In the Prepare Mass Retirement window, you can modify or
further refine your retirement criteria. For example, you may

change the backdate range, convert selected retirements to
partial retirements, or reallocate the proceeds amounts as
desired.
11. Choose Retire if you want Oracle Assets to automatically complete
and post the retirement you created. Selecting Retire also runs the
Mass Retirements Report and the Mass Retirements Exception
Report. The status of transaction will change from Created to
Pending momentarily, and finally to Completed when the mass
retirement process completes.
• You can also complete the retirement transaction by running the
Post Mass Retirements concurrent program. To run this
program, navigate to Mass Transactions > Retirements > Post.
The Post Mass Retirement concurrent program will prompt for
the Book and batch number parameters of the retirement
transaction you wish to post. After the parameters are entered,
select Submit to complete the mass retirement transaction.
12. Choose Review to submit the Mass Retirement Report. This step
can be done at any time after the Post process has completed.
13. When you are ready to process gains and losses for the completed
mass retirement transaction, run the Calculate Gains and Losses
program. See: Calculating Gains and Losses: page 4 – 19
See Also
About Retirements: page 4 – 2

4 – 11
Asset Retirements
Correcting Retirement Errors (Reinstatements)
You cannot reinstate assets retired in the previous fiscal year. You can
reinstate only the most recent partial retirement. You can reinstate both
individual and mass retirement transactions.
" To correct a retirement error:
2. Find the asset you want to reinstate.
3. Choose Retirements.
4. Query the retirement transaction you want to undo.
5. If the retirement has a status of PROCESSED, choose Reinstate. If
it is PENDING, choose Undo Retirement.
6. If the retirement has a status of PROCESSED, calculate gains and
losses to reinstate the asset. If it is PENDING, Oracle Assets
deletes the retirement transaction.
" To correct a reinstatement error:
H Query the reinstatement transaction in the Retirements window
and choose the Undo Reinstatement button.
" To undo/reinstate a mass retirement transaction:
1. Navigate to the Mass Retirements window.
2. Use the mass transaction number to query the mass retirement
transaction you want to reinstate.
3. Choose Undo. To reverse retirements for which you have not yet
run the Calculate Gains and Losses program.
4. Choose Reinstate. To reverse retirements for which you have
already run the Calculate Gains and Losses program.
Note: If you reinstate a mass retirement after you have run the
Calculate Gains and Losses program, you must rerun the
Calculate Gains and Losses program to process the mass
reinstatement.

See Also

4 – 13
Asset Retirements
Mass External Retirements
You can use Oracle Assets to retire a group of assets by populating an
external interface table with these assets, setting the line status to POST,
and running the Post Mass Retirements process.
Oracle Assets allows both partial cost and partial unit retirements.
However, retirements can only be grouped using a Batch Number,
which restricts you from fully utilizing the benefit of the Oracle Assets
Mass Retirements feature.
Rules for Mass External Retirements
To process the cost or unit retirements for the external retirement batch,
you must populate the FA_MASS_EXT_RETIREMENTS table with the
correct retirement batch. The following business rules apply to Mass
External Retirements:
• The Review Status should be initially set to NEW, ON HOLD or
POST by an external system.
• A Review Status of NEW indicates that the data is new and may
require additional information before retirement can take place
in the Post Mass Retirements process.
• A Review Status of ON HOLD indicates that the data should
remain unprocessed by the Post Mass Retirements process until
it is set to a Review Status of POST.
• A Review Status of POST indicates that the data is ready for
retirement to take place in the Post Mass Retirements process.
• A Review Status of ERROR indicates that the data was invalid
and will not be submitted for retirement in the Post Mass
Retirements process. You can set these errored records to
DELETE if they need to be removed from the database. Remove
them by running the Purge Mass External Retirements program.
• A Review Status of DELETE indicates that the data will not be
submitted for retirement in the Post Mass Retirements process.
• You can use the Purge Mass External Retirements process to
remove posted or deleted records completely from the database.
• All displayed data passed from an external system or Oracle
Projects is subject to modification.

Entering Mass External Retirements
" To enter mass external retirements:
1. Populate the FA_MASS_EXT_RETIREMENTS table with the assets
to be retired along with relevant details.
2. Set the Retirement line to a status of POST.
3. Submit the Post Mass Retirements concurrent process.

4 – 15
Asset Retirements
Mass External Retirements Interface Table
The following table describes the columns and their dependencies
found in the FA_MASS_EXT_RETIREMENTS table.
BATCH_NAME VARCHAR2(15) REQUIRED
Use this column to distinguish a retirement batch from subsequent
retirement batches, or use the same name for all mass retirements from
the external system that you load at once.
MASS_EXTERNAL_
RETIRE_ID NUMBER(15) REQUIRED
Oracle Assets uses this column as a unique identifier for mass
retirements. The values in MASS_EXTERNAL_RETIRE_ID are
generally sequential. You can use a sequence generator to populate this
column.
RETIREMENT_ID NUMBER(15) OPTIONAL
BOOK_TYPE_CODE VARCHAR2(15) OPTIONAL
Use this column for the book that contains the asset you want to retire.
You must choose a book that you have set up in the Book Controls
window, and the asset must be defined for this book. Values in this
column must be in uppercase.
REVIEW_STATUS VARCHAR2(8) REQUIRED
To import retirement information from an external system, use the
value of NEW for this column if you want to review this asset in the
Mass External Retirements window.
Use the value of POST for this column if you are entering all the
required information and want to post the retirement immediately.
ASSET_ID NUMBER OPTIONAL
Use this column for the identifier of the asset that you want to retire.
Note that the ASSET_ID is the unique internal identifier, and not the
same as the external identifier ASSET_NUMBER.

TRANSACTION_NAME VARCHAR2(30) OPTIONAL
Use this column to note any details about the retirement of this asset or
any other details.
DATE_RETIRED DATE OPTIONAL
Use this column to indicate the date you want to retire this asset, or
you can leave it blank and the system determines it. The date must be
in the current fiscal year, and cannot be before any other transaction on
the asset.
DATE_EFFECTIVE DATE OPTIONAL
Reserved for future use.
COST_RETIRED NUMBER OPTIONAL
Use this column for the asset cost you want to retire.
RETIREMENT_PRORATE_
CONVENTION VARCHAR2(10) OPTIONAL
Enter the valid prorate convention for the retirement. You can leave it
blank for the system to determine it for the asset.
UNITS NUMBER OPTIONAL
Use this column for the number of units. If a partial number of units is
supplied, the distribution_id column must be populated accordingly.
PERCENTAGE NUMBER OPTIONAL
Reserved for future use.
COST_OF_REMOVAL NUMBER OPTIONAL
Use this column to enter the cost of removal of the asset, if any.
PROCEEDS_OF_SALE NUMBER OPTIONAL
Use this column to enter the proceeds from the sale of the asset, if any.

4 – 17
Asset Retirements
RETIREMENT_
TYPE_CODE VARCHAR2(15) OPTIONAL
Enter a valid predefined RETIREMENT QuickCode.
REFERENCE_NUM VARCHAR2(15) OPTIONAL
Use this column for the reference number, if any.
SOLD_TO VARCHAR2(30) OPTIONAL
Use this column to enter the name of the party to whom this asset was
sold.
TRADE_IN_ASSET_ID NUMBER OPTIONAL
Use this column for the asset identifier of the new asset for which this
asset was traded in. Note that the ASSET_ID is the unique internal
identifier, and not the same as the external identifier ASSET_NUMBER.
CALC_GAIN_
LOSS_FLAG VARCHAR2(3) REQUIRED
To run the Calculate Gains and Losses process immediately after the
retirements process, enter YES. Otherwise enter NO.
STL_METHOD_CODE VARCHAR2(12) OPTIONAL
Use this column for the straight line method for retirement reporting of
1250 property in a tax book.
STL_LIFE_IN_MONTHS NUMBER OPTIONAL
Use this column for the straight line life for retirement.
STL_DEPRN_AMOUNT NUMBER OPTIONAL
Use this column for straight line depreciation amount for reporting of
1250 property in a tax book.
CODE_
COMBINATION_ID NUMBER(15) OPTIONAL
Use this column, together with the LOCATION_ID and
ASSIGNED_TO columns, if partial units have been entered in the units

column. The combination of these columns determines which
assignment should be partially unit retired.
LOCATION_ID NUMBER(15) OPTIONAL
Use this column, together with the CODE_COMBINATION_ID and
ASSIGNED_TO columns, if partial units have been entered in the units
ASSIGNED_TO NUMBER(15) OPTIONAL
Use this column, together with the CODE_COMBINATION_ID and
LOCATION_ID columns, if partial units have been entered in the units
CREATED_BY NUMBER(15) REQUIRED
Use the value of 1 in this column, or the specific user ID of the person
processing the mass retirements.
CREATION_DATE DATE REQUIRED
Use the column for the date you load this retirement line into the
FA_MASS_EXT_RETIREMENTS table.
LAST_UPDATED_BY NUMBER(15) REQUIRED
LAST_UPDATE_DATE DATE REQUIRED
Use the column for the date you load this retirement line into the
FA_MASS_EXT_RETIREMENTS table.
LAST_UPDATE_LOGIN NUMBER(15) OPTIONAL

4 – 19
Asset Retirements
Calculating Gains and Losses for Retirements
Run the calculate gains and losses program to:
• Calculate gains and losses resulting from retirements
• Correct the accumulated depreciation for reinstated assets
• Calculate Investment Tax Credit recapture for retired assets in a
tax book, if necessary
Suggestion: Although the depreciation program
automatically processes retirements, you can run the Calculate
Gains and Losses program several times during the period to
reduce period end processing time.
" To calculate gains and losses for retirements:
Note: If you are using Multiple Reporting Currencies (MRC),
you can only run the Calculate Gains and Losses program
using the standard Fixed Assets or MRC primary
responsibility. You cannot run this program using an MRC
reporting responsibility.
When you run the Calculate Gains and Losses program using
the standard Fixed Assets or MRC primary responsibility, this
program will also run automatically for the associated
reporting responsibilities. See: Multiple Reporting Currencies in
1. Choose Depreciation > Calculate Gains and Losses from the
Navigator window.
2. In the Parameters window, enter the Book for which you want to
calculate gains and losses.
3. Choose Submit to submit a concurrent process to calculate gains
and losses.

See Also

4 – 21
Asset Retirements
Retirement Requests
Field employees can use the Retirement Requests feature to identify
and submit requests for asset retirements. These requests are received
and reviewed by those responsible for asset retirements in Oracle
Assets, who then edit the requests and complete the retirement process.
The retirement request captures all of the information about the asset
that is available in the field, such as asset category, location, date placed
in service, quantity retired, serial number, manufacturer, model
number, tag number, and more. Information captured about the
retirement transaction also includes project, task, and any removal cost
or sales proceeds. The person responsible for asset retirements in
Oracle Assets, the fixed asset accountant, reviews the request, makes
any necessary additions or corrections, and completes processing of the
retirement request.
An inbound API enables retirement information from external asset
tracking systems to be interfaced directly into Oracle Assets as
retirement requests. Since the imported retirement requests may result
in high volumes of required processing each period, you have the
option of batch processing all imported retirement requests. Using
batch processing can eliminate the need for manual intervention and
review of individual requests. See: Retiring a Group of Assets: page
4 – 7.
Creating Retirement Requests in Oracle Projects – Field Employees
A field employee identifies one or more disposed field assets that
should be retired from the financial systems. The employee enters the
retirement request, which captures as much information about the
assets and its retirement that is known to the field personnel.
" To create a retirement request in Oracle Projects (Field Employee):
1. Navigate to the Mass Retirements window in Oracle Projects.
2. In the top region of the window, enter the name of the asset book,
and any information regarding the asset retirement.
Note: The Status field defaults to New and cannot be changed by
field employees.
3. Using the Retirement Criteria and Additional Criteria tabs, enter
the available asset identification information.

4. From the menu, select Save to save your work.
Note: The mass transaction number is automatically created when
the request is saved. Field and accounting staff can use this
number to query and track the retirement request.
5. You can delete the retirement request by selecting Delete from the
menu. You can only delete the retirement requests that you
created, and only those that have a status of New.
Processing Retirement Requests – Fixed Asset Accountant
The fixed asset accountant reviews the newly created retirement
request for validity and information content. Information in the
retirement request can be added or corrected as needed.
The create mass retirements process finds and selects assets to be
retired based on the criteria entered in the retirement request. This
process also applies retirement cost to each retirement, based on the
cost retired.
You can review the mass retirement batch and the individual assets it
contains, and subsequently edit, add, or delete information. The mass
retirement transactions are then posted into Oracle Assets.
" To process retirement requests – Fixed Asset Accountant:
1. Navigate to the Mass Retirements window.
2. Query the retirement request you wish to review. Add or correct
information if needed.
Note: All new retirement requests have a status of New. You
can change the status to Pending or On Hold.
3. Select the Create button to create a mass retirement batch
containing assets meeting the retirement request criteria. The
selection process also applies retirement cost to each selected
retirement, based on the cost retired. The status of the request
changes from New or Pending to Created.
4. To discard the mass retirement and end further processing, select
the Discard button.
5. Optionally, navigate to Find Mass Retirements window to review,
edit, or delete any of the individual retirements.

4 – 23
Asset Retirements
You can enter or modify the cost of removal and proceeds of sale
for non–project related assets. For project related assets, the cost of
removal and proceeds of sale cannot be changed, since the
retirement costs are handled separately using the retirement cost
processing feature.
6. In the Mass Retirements window, select the Retire button to submit
the Post Mass Retirements process and posts the mass retirement.
The Mass Retirements Report and the Mass Retirements Exception
Report run automatically when the process completes. The status
of the mass retirement will change from Created to Pending
momentarily, and finally to Completed when the process
completes.
Processing Imported Retirement Requests
You can process the imported retirement requests individually or by
batch. Processing imported requests individually is similar to
processing manually created retirement requests, as previously
described.
Retirement requests originating in external systems are imported into
Oracle Assets via the Retirement Requests API. The status field of the
imported request is automatically set to Pending. Optionally, you can
review the request for validity and information content.
Submitting the batch asset selection program finds all retirement
requests with a status of Pending, from these, it selects assets for
retirement that meet the criteria of the requests.
The batch program generates an error log indicating if an insufficient
asset quantity is found to meet the criteria of a retirement request, or
one or more of the required fields were not populated on a retirement
request. The batch process also applies retirement cost to each selected
retirement, based on the cost retired.
You can review the batch of selected assets, and use the batch posting
process to post the mass retirement batches into Oracle Assets.
" To process imported retirement requests individually:
1. Use the Retirement Requests API to import a retirement request
from an external system into Oracle Assets.
2. Navigate to the Mass Retirements window. Use the mass
transaction number to query the individual request you wish to

review. Review the new retirement request for valid and complete
information. Add, edit, or delete information as needed.
3. Select the Create button to create a mass retirement containing
assets meeting the retirement request criteria. The selection process
also applies retirement cost to each selected retirement, based on
the cost retired. The status of the request changes from New or
Pending to Created.
4. To discard the mass retirement and end further processing, select
the Discard button.
5. Optionally, navigate to the Find Mass Retirements window to find,
review, edit, or delete any of the individual retirements.
Cost of Removal and Proceeds of Sale can be entered or modified
for non–project related assets. For project related assets, cost of
removal and proceeds of sale cannot be changed, since retirement
costs are handled separately using the Retirement Cost Processing
feature.
6. In the Mass Retirements window, select the Retire button to submit
the Post Mass Retirements process and posts the mass retirement.
of the mass retirement will change from Created to Pending
momentarily, and finally to Completed when the post mass
" To process imported retirement requests by batch:
1. Use the Retirement Requests API to import retirement requests
from an external system into Oracle Assets.
2. Optionally, review the new retirement requests for valid and
complete information. Navigate to the Mass Retirements window
and query all or selected imported retirement requests. You can
find all newly imported retirement requests by querying for
Pending in the Status field. Review the requests and enter any
needed corrections or additions.
3. Navigate to the Submit Request window and select the Process
Pending Retirements Criteria program.
4. The parameters include Book and Extended Search, Yes or No.
Selecting Yes or No for the Extended Search parameter will result
in the following behavior:
Yes: If Yes is selected for the Extended Search Criteria
parameter, and the number of asset units found using the

4 – 25
Asset Retirements
retirement request criteria is less than the number of units
specified in the retirement request, the system will also
include assets outside of the specified date place in service
range. Assets outside the specified date place in service
range are selected on a FIFO basis.
No: If No is selected for the Extended Search Criteria
parameter, and the number of asset units found using the
retirement request criteria is less than the number of units
specified in the retirement request, the system will put the
request on hold.
5. Submit the Process Pending Retirements Criteria program to
automatically select and process all retirement requests with a
status of Pending.
If the retirement request specifies the cost retired, it will be
prorated by the original cost.
Note: Imported retirements requests have an initial Status of
Pending.
6. Review the error log for error conditions. Possible error conditions
include the following:
• The program found an insufficient number of assets that meet
the retirement request criteria.
• The retirement request has one or more required fields that were
not populated.
7. Optionally, navigate to the Mass Retirements window to query,
review, or edit the mass retirements created. To discard a mass
retirement and end further processing, select the Discard button.
8. Optionally, navigate to Find Mass Retirements to find, review, edit,
or delete any of the individual retirements.
9. Navigate to the Submit Request window and select the Post Mass
Retirements program. The parameters include Book and Batch
Name. You must select a book for the Book parameter. The Batch
Name parameter is optional. If you select a batch, posting is
limited to the batch. If you do not select a batch, the program will
post all mass retirement batches that have a status of Created, and
are associated with the selected book parameter.
of selected mass retirements will change from Created to Pending
momentarily, and finally to Completed when the post mass

See Also

C H A P T E R
5
T
5 – 1
Depreciation
Depreciation
his chapter explains how Oracle Assets calculates depreciation for
assets using the flat–rate, table, calculated, and units of production
depreciation methods. It also describes how to project depreciation
expense to estimate future amounts, and how to archive and purge
transaction and depreciation data to release disk space for current data.

☞
Running Depreciation
Run depreciation to process all assets in a book for a period. If you
have assets that have not depreciated successfully, these assets are
listed in the log file created by Oracle Assets when you run
depreciation.
Closing a Depreciation Period
When you run depreciation, Oracle Assets gives you the option of
closing the current period if you check the Close Period check box on
the Run Depreciation window. If all of your assets depreciate
successfully, Oracle Assets automatically closes the period and opens
the next period for the book. If you do not check the Close Period
check box when you run depreciation, Oracle Assets does not close the
period.
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. See: Rolling
Back Depreciation: page 5 – 4.
Attention: Ensure that you have entered all transactions for the
period before you run depreciation. Once the program closes the
period, you cannot reopen it.
Multiple Reporting Currencies
If you are using Multiple Reporting Currencies (MRC), you can only
run the Calculate Gains and Losses and depreciation programs using
the standard Fixed Assets or MRC primary responsibility. You cannot
run these programs using an MRC reporting responsibility.
When you run the Calculate Gains and Losses and depreciation
programs using the standard Fixed Assets or MRC primary
responsibility, these program will also run automatically for the
associated reporting responsibilities. See: Multiple Reporting Currencies
in Oracle Applications.
Prerequisites
❑ Run the Assets Not Assigned to Any Cost Centers Listing and the
Assets Not Assigned to Any Books Listing to ensure that all assets
are assigned to expense accounts and books. See: Assets Not
Assigned to Any Books Listing/Assets Not Assigned to any Cost
Centers Listing: page 11 – 38.

☞
5 – 3
Depreciation
❑ Optionally process retirements regularly throughout the period.
See: Calculating Gains and Losses for Retirements: page 4 – 19.
" To run depreciation:
1. Open the Run Depreciation window.
2. Choose the Book for which you want to run depreciation.
3. Choose whether you want Oracle Assets to close the period after
successfully depreciating all assets.
4. Choose Run to submit concurrent requests to run the calculate
gains and losses, depreciation, and reporting programs.
Attention: You cannot enter transactions for the book while
depreciation is running.
Oracle Assets automatically runs the Journal Entry Reserve Ledger
report when you run the depreciation program for a corporate
book, and the Tax Reserve Ledger report for a tax book, so you can
review the depreciation calculated. These reports are run
automatically for the primary currency only. You can use the
Standard Report Submission (SRS) process to manually run these
reports for the reporting currencies.
5. Review the log files and report after the request completes.
6. If the log file lists assets that did not depreciate successfully, correct
the errors and re–run depreciation.
See Also
Creating Journal Entries for the General Ledger: page 6 – 2

Rolling Back 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.
Note: You can roll back depreciation only for the current open
period.
Prerequisites
❑ You must have run depreciation for the period for which you want
to roll back depreciation without checking the Close Period check
box. See: Running Depreciation: page 5 – 2.
" To roll back depreciation:
1. Select Rollback Depreciation from the navigator menu to open the
Submit Requests window and the parameters window.
2. On the Parameters window, specify the book for which you want to
roll back depreciation. The period automatically defaults to the
current open period.
3. Choose Submit Request to roll back the depreciation.
See Also

5 – 5
Depreciation
Depreciation Override
Depreciation Override allows you to optionally override the
depreciation amounts calculated by Oracle Assets. Using this feature,
you can manually override the calculated default depreciation amounts
for standalone and group assets.
Before running depreciation or performing adjustments, you must
provide the necessary information in the Depreciation Override
window or the FA_DEPRN_OVERRIDE table, and indicate whether the
override data is for depreciation or adjustments. When running
depreciation, the system will upload and use the depreciation amounts
provided in the interface table.
If you do not use the Depreciation Override window to input the
override amounts, you must first populate the FA_DEPRN_OVERRIDE
table with the necessary depreciation data. Next, the feature uploads
and overrides the system calculated depreciation amounts with the
amounts you provided in the override interface table.
Prerequisite
• Set the profile option FA: Enable Depreciation Override to Yes.
Note: For MRC–enabled 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.
" To override the system calculated depreciation amounts using the
Depreciation Override window:
1. Navigate to 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.

6. In the Use By field, you can select the adjustment type of
Depreciation or Adjustment. The default value is Depreciation
when creating a new record.
7. The Status field displays the current status of the override record,
which may be New, Post, or Posted. If the status is Post or Posted,
you cannot update the record, you can only delete the record and
reenter the updated record.
8. Select Save from the menu to save your work.
" 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 non–posted status.
2. Optionally run What–If 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 over–reserved during the overriding process, the override
will fail and the system will return an error.
Depreciation Example
The following table contains asset setup information used in this
example.

5 – 7
Depreciation
Asset Setup Item Asset Setup Information
Book Type Code CORP
Asset Number ASSET–A (Asset ID: 100869)
Method Flat COST
Rate 10%
Bonus Rule 10%
Cost 1,000,000
Addition Date Qtr–2–95
Salvage Value 0
Load the following override data in the FA_DEPRN_OVERRIDE table
before running depreciation:
BOOK_
TYPE_
CODE
ASSET ID PERIOD NAME DEPRN_
AMOUNT
BONUS_
DEPRN_
AMOUNT
USED BY
CORP 100869 Qtr–2–1996 80,000 (NULL) DEPRECIATION
CORP 100869 Qtr–3–1996 (NULL) 50,000 DEPRECIATION
CORP 100869 Qtr–2–1997 100,000 0 DEPRECIATION
CORP 100869 Qtr–4–1998 (NULL) 0 DEPRECIATION
Expected depreciation results for Asset ID 100869 are included in the
following table:
Fiscal Year 1995 1996 1997 1998 1999
Adjusted Cost 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Q1 0 50,000 50,000 50,000 50,000
Q2 50,000 105,000 100,000 50,000 50,000
Q3 50,000 75,000 50,000 50,000 45,000
Q4 50,000 50,000 50,000 25,000 0
Accumulated 150,000 430,000 680,000 855,000 1,000,000

1999
1998
1997
1996
1995
Fiscal Year
Basic Rate 10% 10% 10% 10% 10%
Bonus Rate 10% 10% 10% 10% 10%
For this example:
• System Calculated Depreciation Amount for each period =
25,000
• System Calculated Bonus Depreciation Amount for each period
= 25,000
• Qtr2–96 = (override deprn amt) + (system calculated bonus
deprn amt) = 80,000 + 25,000 = 105,000
• Qtr3–96 = (system calculated deprn amt) + (override bonus
deprn amt) = 25,000 + 50,000 = 75,000
• Qtr2–97 = (override deprn amt) + (override bonus deprn amt) =
100,000 + 0 = 100,000
deprn amt) = 25,000 = 0 = 25,000
deprn amt) = 25,000 +20,000 = 45,000
Note: Currently, Oracle Assets does not support bonus
depreciation amounts in the last period of an asset’s life
(Qtr3–99 in this example). As a default, the depreciation
amount for Qtr3–99 is calculated as follows:
– The system calculated Depreciation Amount for Qtr3–99 =
Adjusted Recoverable Cost – Depreciation Reserve =
(1,000,000 – 955,000) = 45,000.
– The system calculated Bonus Depreciation Amount for
Qtr3–99 = 0.
Using the override feature, you can define the bonus amount even at
the last period of life for the asset, provided ((Depreciation Reserve +
Current Period Depreciation Total) = Adjusted Recoverable Cost). If
the total of depreciation reserve and current period depreciation is
greater than the adjusted recoverable cost, the system will return an
error. Next, you need to correct the amount and run depreciation
again.

5 – 9
Depreciation
Adjustment Example
example.
Book Type Code CORP
Asset Number ASSET–B (Asset ID: 100870)
Method Flat NBV
Rate 10%
Bonus Rule 0%
Cost 10,000
Addition Date Qtr–2–95
Salvage Value 0
Load the following override data in the FA_DEPRN_OVERRIDE table
before performing the adjustment:
BOOK_
TYPE_
CODE
AMOUNT
BONUS_
DEPRN_
AMOUNT
USED BY
CORP 100870 Qtr–3–1995 0 1,000 ADJUSTMENT
Non–Override Example
For this example:
• Expensed Adjustment on Qtr–1–96
• Adjustment Amount from 10,000 to 20,000
• Missed Depreciation = Re–calculated Depreciation Total –
Depreciation Reserve = (20,000 * 0.1 / 4 * 3) – 750 = 750
• New Adjusted Cost for 1996 = New Cost – Recalculated
Depreciation Reserve for 1995 = 20,000 – (20,000 * 0.1 / 4 * 3)
= 20,000 – 1,500 = 18,500

Expected depreciation results for Asset ID 100870 are included in the
following table:
1995 1996 1997
Adjusted Cost 10,000 18,500 17,400
Q1 0 1,213
(=463+750)
435
Q2 250 463 435
Q3 250 463 435
Q4 250 461 435
Accumulated 750 2,600 4,340
Basic Rate 10% 10% 10%
Bonus Rate 0% 0% 0%
Override Example
For this example:
• Enter the override amount as indicated in the following table:
BOOK_
TYPE_
CODE
AMOUNT
BONUS_
DEPRN_
AMOUNT
USED BY
Scenario:
• Expensed Adjustment on Qtr–1–96
• Adjustment Amount from 10,000 to 20,000
Depreciation Reserve= (20,000 * 0.1 / 4 * 3 + 1,000) – 750 = 1,750
Depreciation Reserve for 1995 = 20,000 – (20,000 * 0.1 / 4 * 3 +
1,000) = 20,000 – 2,500 = 17,500

5 – 11
Depreciation
The expected depreciation results for asset ID 100870 are included in
the following table:
1995 1996 1997
Adjusted Cost 10,000 17,500 16,500
Q1 0 2,188
(=438+1,750)
413
Q2 250 438 413
Q3 250 438 413
Q4 250 436 411
Accumulated 750 3,500 5.150
Bonus Rate 0% 0% 0%
As above, override effect will appear in the adjusted period, in this
case, Qtr–1–96.
For this example:
• Expensed Adjustment on Qtr1–96
• Adjustment Amount: From 10,000 To 20,000
Depreciation Reserve = (20,000*0.1/4*3 + 1,000) – 750 = 2,500 –
750 = 1,750
Depreciation Reserve for 1995 = 20,000 – (20,000*0.1/4*3 + 1,000)
= 20,000 – 2,500 = 17,500
The expected depreciation results for asset ID 100870 are included in
Fiscal Year 1995 1996 1997
Adjusted Cost 10,000 17,500 15,750
Q1 0 438 394

1997
1996
1995
Fiscal Year
Q2 250 438 394
Q3 250 438 394
Q4 250 437 393
Accumulated 750 2,500 4,075
Bonus Rate 0% 0% 0%
In the above example:
• The FA: Annual Rounding profile option is set to always.
• Qtr1–96 = Periodic Depreciation Amount + Missed Depreciation
Amount = 438 + 1750 = 2188.
Currently, Oracle Assets does not support bonus depreciation for
back–dated amortized adjustments. If you provide override bonus
depreciation amounts, and back–dated amortized adjustments are
used, the override will fail with an error.

5 – 13
Depreciation
About the Depreciation Override Interface
You can use the Depreciation Override feature to manually override the
default depreciation amounts calculated by Oracle Assets. The
depreciation override information is loaded in the
FA_DEPRN_OVERRIDE table. The necessary information must be
loaded prior to depreciating or adjusting the assets that will have their
depreciation overridden.
FA_DEPRN_OVERRIDE Interface Table
The database definition of the FA_DEPRN_OVERRIDE table does not
require values for any columns. However, to properly override the
system–calculated depreciation amounts, you should consider the
points below:
• Since no user interface is currently available for this feature, you
must ensure the interface table is properly populated before
running depreciation or making adjustments.
• The status of the records is updated from NEW to POSTED
when the record information actually overrides the depreciation
calculated by Oracle Assets.
• You cannot update records after they are inserted and stored in
the table. For records with a status of New, you can delete the
record and then re–enter the record with the correct information.

Loading Depreciation Override Data
To use the Depreciation Override feature in Oracle Assets, you must
load your depreciation override data into the FA_DEPRN_OVERRIDE
table in Oracle Assets. The Usage column in the following table
indicates whether a field is required, optional, or system–generated.
Column Name Type Description Usage
DEPRN_OVERRIDE_ID NUMBER(15) This is a unique identifier for the
depreciation override records in
this interface table. This number is
automatically assigned to each
record when you insert override
data into this table.
System–generated
BOOK_TYPE_CODE VARCHAR2(15) Use this column for the book that
will receive the depreciation
override. You must choose a book
that you have set up in the Book
Controls window, and the book
class must be CORPORATE or
TAX.
Required
ASSET_ID NUMBER(15) This column is a unique identifier
for assets.
Required
PERIOD_NAME VARCHAR2(15) Use this column for the period on
which you want to perform
overriding the system–calculated
depreciation amounts.
Required
DEPRN_AMOUNT NUMBER Use this column to store the
override depreciation amounts.
This depreciation amount does
not include bonus depreciation
amounts.
Optional
BONUS_DEPRN_
AMOUNT
NUMBER Use this column to store the
override bonus depreciation
amounts. For assets with bonus
depreciation, you need to set up
the bonus rule for the asset as a
prerequisite. Otherwise,
depreciation and adjustments will
fail with an error. You need to
enter the overriding amount in
either the DEPRN_AMOUNT or
BONUS_DEPRN_AMOUNT
column.
Optional
SUBTRACTION_FLAG VARCHAR2(1) Do not use this column. Null

5 – 15
Depreciation
Usage
Description
Type
Column Name
USED_BY VARCHAR2(15) Enter either DEPRECIATION or
ADJUSTMENT in this column
depending on the situation in
which you want to use this data.
Required
STATUS VARCHAR2(1) When you insert asset
depreciation information into this
table, it automatically assigns
NEW in this status column. When
depreciation or adjustments are
performed, the status of the used
record is updated to POSTED.
You cannot delete any records
with a POSTED status from this
table. You can assign multiple
override data for each asset, as
long as the PERIOD_NAME and
USED_BY do not overlap for
records with a non–posted status.
System–generated
TRANSACTION_HEADER
_ID
NUMBER(15) This column stores the
TRANSACTION_HEADER_ID in
the
FA_TRANSACTION_HEADERS
table. The number is
automatically assigned to this
column when you perform
adjustments.
System–generated
REQUEST_ID NUMBER(15) Use this column to store the
REQUEST_ID if you use any
loading program.
Optional
PROGRAM_APPLICATIO
N_ID
NUMBER(15) Use this column to store the
application ID if you use any
loading program.
Optional
PROGRAM_ID NUMBER(15) Use this column to store the
request ID if you use any loading
program.
Optional
CREATED_BY NUMBER(15) Use the value 1 in this column, or
the specific user ID of the person
Optional
CREATION_DATE NUMBER(15) Use this column for the date you
load this asset into
FA_DEPRN_OVERRIDE table.
Optional
Import data from a non–Oracle system using SQL*Loader
You can use SQL*Loader to import depreciation override data by
completing the following steps:

the data exists in multiple tables or files in the system from which
you are loading data. In either case, you must eventually place the
data in a single table, the FA_DEPRN_OVERRIDE table.
If you prefer, you can load data directly into the
FA_DEPRN_OVERRIDE table, but it is more difficult due to the
2. Load your interim table using SQL*Loader.
loads your depreciation override data into your interim table.
need to use SQL*Loader. Simply consolidate the depreciation
override information in your interim table using SQL*Plus or
import, and go directly to .
• Convert the depreciation override information into text form.
If you cannot find a way to produce clean text data, try
generating a report to disk, using a text editor to format your
data. Another option is to have SQL*Loader eliminate
unnecessary information during its run. If there is a large
volume of information, or if the information is difficult to
convert into a loadable format, you can write your own import
program. Construct your program to generate a SQL*Loader
readable text file.
• Create the SQL*Loader control file.
data.
• Run SQL*Loader to import your depreciation override data.
Once you have created your depreciation override data file and
SQL*Loader control file, run SQL*Loader to import your data.
SQL*Loader produces a log file with statistics about the import,
a bad file containing records that could not be imported due to

5 – 17
Depreciation
errors, and a discard file containing all the records that were
filtered out of the import by commands placed in the control file.
of records in your original depreciation override data file or table
to ensure that all depreciation override records were imported.
4. Spot check the interim table.
them to the corresponding records in the original data file or table.
Look for missing or invalid data. This step ensures that your data
was imported into the correct columns and that all columns were
imported.

Basic Depreciation Calculation

5 – 19
Depreciation
Prorate Date
Oracle Assets prorates the depreciation taken for an asset in its first
fiscal year of life according to the prorate date. Oracle Assets calculates
the prorate date when you initially enter an asset. The prorate date is
based on the date placed in service and the asset prorate convention.
For example, if you use the half–year prorate convention, the prorate
date of all assets using that convention is simply the mid–point of your
fiscal year. So assets acquired in the same fiscal year take the same
amount (half a year’s worth) of depreciation in the first year. If
however, you use the following month prorate convention, the prorate
date is the beginning of the month following the month placed in
service, so the amount of depreciation taken for assets acquired in the
same fiscal year varies according to the month they were placed in
service.
Your reporting authority’s depreciation regulations determine the
amount of depreciation to take in the asset’s first year of life. For
example, some governments require that you prorate depreciation
according to the number of months you hold an asset in its first fiscal
year of life. In this case, your prorate convention has twelve rate
periods––one for each month of the year. Other reporting authorities
require that you prorate depreciation according to the number of days
that you hold an asset in its first year of life. This means that the fiscal
year depreciation amount would vary depending on the day you added
the asset. Thus, your prorate convention contains 365 prorate
periods––one for each day of the year.
Depreciation Rate
Calculation Basis
Oracle Assets calculates depreciation using either the recoverable cost or
the recoverable net book value as a basis. If the depreciation method
uses the asset cost, Oracle Assets calculates the fiscal year depreciation
by multiplying the recoverable cost by the rate.
If the depreciation method uses the asset net book value, Oracle Assets
calculates the fiscal year depreciation by multiplying the recoverable net
book value as of the beginning of the fiscal year, or after the latest
amortized adjustment or revaluation, by the rate.
Determining the Prorate Period
Oracle Assets uses the prorate date to choose a prorate period from the
prorate calendar.

For life–based methods, the prorate period and asset age then determine
which rate Oracle Assets selects from the rate table. The depreciation
program calculates asset age from the date placed in service as the
number of fiscal years that you have held the asset. If two assets are
placed in service at different times, but have the same depreciation
method and life, Oracle Assets uses the same rate table, but may choose
a different rate from a different column and row in the table.
Flat–rate methods use a fixed rate and do not use a rate table.
Determining the Depreciation Rate
For life–based 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. Note that the life of an asset has more fiscal years
than its asset calendar life if it is placed in service during a fiscal year.
Flat–rate depreciation methods determine the depreciation rate using
fixed rates, including the basic rate, adjusting rate, and bonus rate.
Calculate Annual Depreciation
Calculated and table–based 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.
Flat–rate 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.
If you choose to allocate depreciation evenly to each of your accounting
periods, Oracle Assets divides the annual depreciation by the number of
depreciation periods in your fiscal year to get the depreciation per
period. If, however, you choose to allocate it according to the number of
days in each period, Oracle Assets divides the annual depreciation by
the number of days the asset depreciates in the fiscal year and multiplies
the result by the number of days in the appropriate accounting period.

5 – 21
Depreciation
Spreading Depreciation Across Expense Accounts
Finally, Oracle Assets allocates the periodic depreciation to the
assignments to which you have assigned 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.
Depreciation Calculation
Run the depreciation program independently for each of your
depreciation books. The depreciation program calculates depreciation
expense and adjustments, and updates the accumulated depreciation
and year–to–date depreciation.
When you run depreciation, the depreciation program submits three
separate requests to:
• Calculate gains and losses for retired assets and catch up
depreciation for retired and reinstated assets
• Calculate depreciation expense and adjustments for the period,
and close the current period
• Run the reserve ledger report
Depreciation expense is calculated as follows:
Depreciation Expense = (Current Cost – Recoverable Cost) * Basic
Rate
Depreciation Calendar
The depreciation calendar determines the number of accounting periods
in your fiscal year.
Prorate Calendar
The prorate calendar determines what rate Oracle Assets uses to
calculate annual depreciation by mapping each date to a prorate period,
which corresponds to a set of rates in the rate table.

☞
Period Close
Oracle Assets automatically closes the book’s current period and opens
the next when you run the depreciation program. You cannot have
more than one open period for a given depreciation book.
Year–End Processing
You can close the year independently in each depreciation book. The
depreciation program automatically resets year–to–date amounts on a
book the first time the depreciation program is run on that book in a
fiscal year. Oracle Assets automatically creates the depreciation and
prorate periods for your new year when you run depreciation for the
last period of the previous fiscal year.
Attention: Verify the depreciation and prorate periods that Oracle
Assets creates before you enter transactions in the new year.
Suspend Depreciation
You can suspend depreciation by unchecking Depreciate in the Books
window. If you suspend depreciation of an asset when you add the
asset, Oracle Assets expenses the missed depreciation in the period you
start depreciating the asset.
For table and calculated methods, Oracle Assets calculates depreciation
expense for the asset based on an asset life that includes the periods you
did not depreciate it. If you suspend depreciation after an asset has
started depreciating, Oracle Assets catches up the missed depreciation
expense in the last period of life.
For flat–rate methods, Oracle Assets continues calculating depreciation
expense for the asset based on the flat–rate. For flat–rate methods that
use net book value, Oracle Assets uses the asset net book value at the
beginning of the fiscal year in which you resume depreciation. The asset
continues depreciating until it becomes fully reserved.
Recoverable Cost
For depreciation methods with a calculation basis of cost, Oracle Assets
calculates depreciation using the recoverable cost. The recoverable cost
is calculated as the lesser of either the cost less the salvage value less the
investment tax credit basis reduction amount, or the cost ceiling. Oracle
Assets depreciates the asset until the accumulated depreciation equals
the recoverable cost.

5 – 23
Depreciation
Adjustments
The following are some examples of financial adjustments you can
expense or amortize:
• Recoverable Cost Adjustments
• Depreciation Method Adjustments
• Life Adjustments
• Rate Adjustments
• Capacity Adjustments
For more information about amortized and expensed adjustments and
how they affect depreciation calculation, see Amortized and Expensed
Adjustments: page 6 – 16.
Prior Period Transactions
Prior Period Additions
If you enter an asset with a date placed in service before the current
accounting period, Oracle Assets automatically calculates the missed
depreciation and adjusts the accumulated depreciation on the next
depreciation run.
If you provide accumulated depreciation when you add the asset,
Oracle Assets does not recalculate the accumulated depreciation. It
accepts the amount you entered.
For table and calculated methods, even if the entered accumulated
depreciation differs from what Oracle Assets would have calculated,
Oracle Assets does not depreciate the asset beyond the recoverable cost.
If the accumulated depreciation is too low, Oracle Assets takes
additional depreciation in the last period of the asset’s life so that the
asset becomes fully reserved. If the asset’s accumulated depreciation is
too high, Oracle Assets stops depreciating the asset when it becomes
fully reserved, effectively shortening the asset life.
Prior Period Transfers
If you back date an asset transfer, Oracle Assets automatically
reallocates depreciation expense by reversing some of the depreciation
charged to the ”from” account, and redistributing it proportionally to
the ”to” accounts. Retroactive transfers do not impact the total
depreciation. You cannot backdate a transfer to a prior fiscal year.

Prior Period Retirements / Reinstatements
If you back date a retirement, Oracle Assets automatically adjusts the
depreciation for the year by the appropriate amount, resulting in a
one–time adjustment in depreciation expense for the period. Oracle
Assets then computes the gain or loss using the resulting net book value.
You cannot backdate a retirement to a previous fiscal year, nor can you
reinstate a retirement performed in a previous fiscal year.
Prior Period Amortized Adjustments
If you back date an amortized adjustment, Oracle Assets automatically
calculates depreciation from the retroactive amortization start date, and
adds the retroactive depreciation to the current period. You can perform
multiple prior period amortized adjustments to an asset.
Credit Assets
You can enter a credit asset as an asset with a negative cost, and Oracle
Assets credits depreciation expense and debits accumulated
depreciation each period for the life of the asset.
Depreciation Projections
Oracle Assets estimates depreciation expense for the periods for which
you project depreciation based on the financial information for your
existing assets at the start of that period. The projection includes
additions, transfers, and reclassification transactions you perform in the
current period. It ignores other asset transactions you make in the
current period, such as the depreciation adjustment for retroactive
additions and retroactive transfers you enter in the current period. The
program 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. For example,
if the current period in your corporate book is JUL–92, and you request
an annual projection starting with JAN–92, Oracle Assets projects
depreciation expense based on the financial information for your
existing assets as of the start of January 1992. The projection does not
include some of the transactions you entered between January and June
1992. If instead you request an annual projection starting with JAN–93,
Oracle Assets projects depreciation expense based on the financial
information for your existing assets as of the start of July 1992.
Note: You cannot run depreciation projections for prior
periods.

5 – 25
Depreciation
See Also
Running Depreciation: page 5 – 2
Projecting Depreciation Expense: page 5 – 50
Asset Accounting: page 6 – 7
Depreciation Calculation for Flat–Rate Methods: page 5 – 26
Depreciation Calculation for Table and Calculated Methods: page 5 – 33
Depreciation Calculation for the Units of Production Method: page
5 – 39
Overview of User Profile Options): page C – 4
Depreciation for Retirements: page 6 – 39
Depreciation for Reinstatements: page 6 – 40

Depreciation Calculation for Flat–Rate Methods

5 – 27
Depreciation
Use a flat–rate method to depreciate the asset over time using a fixed
rate.
Oracle Assets uses a flat–rate and either the recoverable cost or the
recoverable net book value as of the beginning of the fiscal year to
calculate depreciation using a flat–rate depreciation method. The asset
continues to depreciate until its recoverable cost and accumulated
depreciation are the same.
Depreciation in the First Year of Life
An asset’s prorate convention and depreciation method control when
Oracle Assets starts to depreciate new assets. For assets using flat–rate
methods, depreciation starts in the accounting period that either the
date placed in service or the prorate date falls into, depending on the
depreciate when placed in service flag. Oracle Assets allocates the first
year’s depreciation to the accounting periods remaining in the fiscal
year.
Example
Suppose your fiscal year ends in May, you have a monthly (12 period)
depreciation calendar, and you want to allocate depreciation evenly to
each period in the year. You place a $10,000 asset in service in the third
period of your fiscal year (AUG–92) using a half–year prorate
convention. The rate for the diminishing value (calculation basis of
NBV) depreciation method is 20%.
Since the asset is using a half–year prorate convention, the prorate date
is in December––the mid–point of your fiscal year. For assets that have
a prorate date at the mid–point of the fiscal year, depreciation expense
for the first fiscal year of life is 50% of the amount for a full fiscal year.
For the asset in our example, a full fiscal year depreciation amount is
$2,000 (20% of $10,000), so the depreciation for the first year (fiscal
1993) is $1,000.
You can specify whether to start taking depreciation in the period of the
date placed in service or the prorate date using the depreciate when
placed in service flag for the prorate convention. If you elect to start
depreciation in the accounting period corresponding to the date placed
in service, Oracle Assets starts to depreciate the asset in AUG–92, and
the depreciation for each period is $100 ($1000 divided by 10––the
number of periods from August to May).

If you elect to start depreciation on the prorate date, Oracle Assets does
not start to depreciate the asset until December. The depreciation for
each period from DEC–92 to MAY–93 is $166.67 ($1,000 divided by
6––the number of periods from December to May).
Depreciation in the Remaining Years of Life
For methods using the net book value, you use the flat–rate and the
recoverable net book value at the beginning of each fiscal year to
calculate the annual depreciation. In the second year of the asset life
(fiscal 1994), the net book value as of the beginning of the fiscal year is
$9,000. Applying the 20% rate yields an annual depreciation amount of
$1,800. Oracle Assets divides this amount evenly across all twelve
accounting periods in the year, so depreciation expense for each period
is $150.
Similarly, the net book value at the beginning of the 1995 fiscal year is
$7,200. Oracle Assets calculates annual depreciation of $1,440 and
divides this amount evenly to get the depreciation amount for each
period. Oracle Assets repeats this process until the asset is fully
depreciated or retired.
Calculation Basis
Flat–rate methods use a calculation basis of either the recoverable cost
or recoverable net book value to calculate annual depreciation. Assets
depreciating under flat–rate methods with a calculation basis of
recoverable net book value do not become fully reserved. Rather, the
annual depreciation expense becomes smaller and smaller over time.
Strict Calculation Basis
When you adjust an asset, Oracle Assets resets the calculation basis. If
you do not check the Strict Calculation Basis check box on the
Depreciation Methods window, Oracle Assets uses the calculation basis
shown in the following table:

5 – 29
Depreciation
Asset Adjustment Cost NBV
Amortized adjustment with amorti-
zation start date in the current peri-
od.
Recoverable cost NBV as of the current
period
zation start date in a prior period
NBV as of the amorti-
zation start date
NBV as of the amorti-
zation start date
Expensed adjustments Recoverable cost NBV as of current peri-
od
If you check the Strict Calculation Basis check box on the Depreciation
Methods window, Oracle Assets uses the calculation basis shown in the
following table:
Asset Adjustment Cost NBV
zation start date in the current peri-
od.
Recoverable cost NBV as of the begin-
ning of the fiscal year
zation start date in a prior period
Recoverable cost NBV as of the begin-
Expensed adjustments Recoverable cost NBV as of the begin-
Reset Recoverable Net Book Value
At the beginning of each fiscal year, Oracle Assets automatically resets
each asset’s year–to–date depreciation expense to zero and recalculates
the recoverable net book value as of the beginning of the fiscal year.
Oracle Assets also recalculates the recoverable net book value by which
to multiply the flat–rate when you perform an amortized adjustment or
revalue an asset.

Adjusting Rates
In some countries, the flat–rate consists of a basic rate and an adjusting
rate, or loading factor. These rates vary according to your reporting
authority’s depreciation regulations.
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 flat–rate for the fiscal year.
Depreciation Rate = Basic Rate x (1 + Adjusting Rate) + Bonus
Rate
Annual Depreciation Amount = Depreciation Rate x Depreciation
Calculation Basis x Fraction of Year Held
The following table provides examples of how the rate is calculated.
Basic Flat–Rate Adjusting Rate Adjusted Rate
10% 10% 11%
10% 20% 12%
10% 25% 12.5%
10% 40% 14%
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 flat–rate. Oracle Assets adds the bonus rate to the adjusted
rate to give you the flat–rate for the fiscal year. The following table
provides examples of how the rate is calculated
Fiscal Year Adjusted Rate Bonus Rate Flat–Rate for Fiscal
Year
1 20% 10% 30%
2 20% 7% 27%
3 20% 5% 25%

5 – 31
Depreciation
In this example, starting with year four, there is no bonus rate so the
adjusted rate is the normal 20%. From fiscal year four until the asset is
fully reserved, the flat–rate for each fiscal year is 20%.

See Also
Specifying Dates for Prorate Conventions: page 9 – 150
Defining Bonus Depreciation Rules: page 9 – 86
About Prorate and Retirement Conventions: page 9 – 151

5 – 33
Depreciation
Depreciation Calculation for Table and Calculated Methods
Use a life–based method to depreciate the asset over a fixed time using
specified rates. There are two types of life–based methods:
Table: Oracle Assets gets the annual depreciation rate from a rate
table.
Calculated: For straight–line depreciation, the depreciation program
calculates the annual depreciation rate by dividing the life (in years)
into one. Calculated methods spread the asset value evenly over the
life.
You can accommodate new depreciation methods using rate tables
instead of formulas. Add the appropriate rates to create a new method
at any time.
Oracle Assets uses asset recoverable cost or net book value, salvage
value, date placed in service, prorate convention, depreciation method,
and life to calculate depreciation for life–based methods. Oracle
Assets, using rates from a table or calculated rates, depreciates assets
with life–based depreciation methods to be fully reserved at the end of
a fixed lifetime.

5 – 35
Depreciation
Determining the Depreciation Rate
The rate tables contain annual rates for each fiscal year of asset life.
The annual rate varies according to your reporting authority’s depreci-
ation regulations.
For example, some reporting authorities require that you prorate
depreciation according to the number of months you hold an asset in
its first fiscal year of life. In this case, your prorate calendar has 12
prorate periods and your rate table has 12 rates (one for each month of
the year) per year of life. Other governments require that you prorate
depreciation according to the number of days that you hold an asset in
its first fiscal year of life. This means that there is a different
depreciation rate for each day of the year. Thus, the number of rates in
your rate table is a factor of 365. For example, the rate table would have
1825 rates for an asset with a 4 year life (365 x 5). This means that your
prorate calendar must contain 365 prorate periods and
correspondingly, your rate table must have 365 rates (one for each day
of the year) for each year of life.
To determine the rates, calculate an annual depreciation rate for each
fiscal year of an asset’s life, for each period in your prorate calendar.
This rate is the annual rate for the year for an asset where the prorate
date falls into this prorate period. You do not need to calculate the
depreciation rate for each depreciation period in each year of the asset
life. You only enter annual depreciation rates in the Annual Rate field
of the Rates window. The depreciation program uses this annual
depreciation rate to determine the fraction of an asset cost or net book
value to allocate to this fiscal year. It then uses the depreciation
calendar and divide depreciation flag to spread the annual depreciation
over the depreciation periods of the fiscal year.
Annual Depreciation Amount = Depreciation Rate x Depreciation
Calculation Basis x Fraction of Year Held

Oracle Assets standard rate tables contain 12 rates per year of life. If
your government requires daily rates, set up the appropriate rates
using the Depreciation Methods window.
Depreciation in the first year of life
An asset prorate convention and depreciation method control when
Oracle Assets starts to depreciate new assets. For assets using the
straight–line method, depreciation starts in the first accounting period
that the prorate date falls into. For assets using other life–based
depreciation methods, depreciation starts in the first accounting period
that either the date placed in service or the prorate date falls into,
depending on whether Depreciate When Placed In Service is checked
for the prorate convention. In both cases, Oracle Assets allocates the
first year’s depreciation to the depreciation periods remaining in the
fiscal year.
Example
Suppose your fiscal year ends in May, you have monthly (12 period)
depreciation and prorate calendars, and you want to allocate
depreciation evenly to each period in the year. You place a $10,000
asset in service in the third period of your fiscal year (AUG–95) using
the half–year prorate convention. Its life is 5 years and the depreciation
method is 200% declining balance with a straight–line switch and a
calculation basis rule of cost. Since the asset is using the half–year
prorate convention, the prorate date is in December (the mid–point of
your fiscal year) which corresponds to prorate period 7 in your prorate
calendar shown in the following table:
Prorate Calandar
Period
Number
Period Name From Date To Date
1 JUN–95 01–JUN–95 30–JUN–95
2 JUL–95 01–JUL–95 31–JUL–95
3 AUG–95 01–AUG–95 31–AUG–95
4 SEP–95 01–SEP–95 30–SEP–95
5 OCT–95 01–OCT–95 31–OCT–95
6 NOV–95 01–NOV–95 30–NOV–95

5 – 37
Depreciation
To Date
From Date
Period Name
Period
Number
7 DEC–95 01–DEC–95 31–DEC–95
8 JAN–96 01–JAN–96 31–JAN–96
9 FEB–96 01–FEB–96 28–FEB–96
10 MAR–96 01–MAR–96 31–MAR–96
11 APR–96 01–APR–96 30–APR–96
12 MAY–96 01–MAY–96 31–MAY–96
For assets that have a prorate period of 7, the rates listed in the
following table show a 20% annual depreciation rate for the first year of
life. If, however, you had used a prorate convention that resulted in a
prorate period at the beginning of your fiscal year, Oracle Assets would
have used the full rate for the year (40%).
Prorate Periods
Year 1 2 3 4 5 6 7 8 9 10 11 12
1 .40000 .36667 .33333 .30000 .26667 .23333 .20000 .16667 .13333 .10000 .06667 .03333
2 .24000 .25333 .26667 .28000 .29333 .30667 .32000 .33333 .34667 .36000 .37333 .32667
3 .14400 .15200 .16000 .16200 .17600 .18400 .19200 .20000 .20800 .21600 .22400 .23200
4 .10200 .10944 .11077 .11200 .11314 .11421 .11520 .12000 .12480 .12960 .13440 .13920
5 .10200 .10944 .11077 .11200 .11315 .11420 .11520 .11362 .11232 .11109 .10996 .10894
6 .00000 .00912 .01846 .02800 .03771 .04759 .05760 .06632 .07488 .08331 .09164 .09986
Total 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
For the asset in this example, Oracle Assets uses a rate of 20%, so the
depreciation for fiscal 1996 is $2,000 (20% of $10,000).
You can specify whether to start taking depreciation in the period of the
date placed in service or the prorate date using the Depreciate When
Placed In Service flag for the prorate convention. If you elect to start
depreciation in the period corresponding to the date placed in service,

Oracle Assets starts to depreciate the asset in AUG–95, and the
depreciation for each period is $200 ($2,000 divided by 10––the number
of periods from August to May).
If you elect to start depreciation in the period corresponding to the
prorate date, Oracle Assets does not start to depreciate the asset until
DEC–95, and the depreciation for each period from DEC–95 to MAY–96
is $333.33 ($2,000 divided by 6––the number of periods from December
to May).
Depreciation In The Middle Years Of Life
For the rest of the asset life, you use annual depreciation rates that
correspond to the asset’s prorate period in the rate table. Thus, in the
second fiscal year of the asset’s life (fiscal 1996), Oracle Assets uses a
32% annual depreciation rate (prorate period 7, year 2.). This yields a
depreciation amount of $3,200. Oracle Assets divides this amount
evenly across all the accounting periods in the year, so depreciation
expense for each period is $266.67.
Similarly, the rates for 1995, 1996, and 1997 are 19.20%, 11.52%, and
11.52% respectively. Oracle Assets calculates annual depreciation for
these years as $1,920, $1,152, and $1,152 and divides these amounts
evenly across all the accounting periods in the appropriate fiscal years.
Depreciation In The Last Year Of Life
In the asset’s final year of life (fiscal 1998), the rate is 5.76%, so the final
year’s depreciation is $576. This amount is divided evenly across the
number of periods remaining in the asset’s life (in this case 6), to yield a
depreciation amount of $96 per period.
See Also

5 – 39
Depreciation
Depreciation Calculation for the Units of Production Method
Units of production methods depreciate the asset cost based on actual
use or production each period.

Units of production depreciation differs from other methods because it
bases depreciation only on how much you use the asset. While
methods such as straight–line divide depreciation over the asset life
regardless of use, units of production disregards the passage of time.
Units of production depreciation is used for assets for which it is better
to measure the life in terms of the quantity of the resource you expect
to extract from them, such as mines or wells. For example, the
production capacity of an oil well is the number of barrels of oil you
expect to extract from it. For machinery or equipment, you measure
the production capacity in terms of the expected total hours of use.
You can enter the production capacity as the expected total production
or expected total use. First, you enter the units of production
depreciation method, production capacity, and unit of measure. You
then enter the production each period to depreciate the asset according
to actual use that period.
Basic Depreciation Calculation
For a units of production depreciation method, Oracle Assets uses asset
cost, cost ceiling, salvage value, capacity, and production entered for
the period to calculate depreciation. It depreciates assets according to
the actual production you enter. Oracle Assets calculates the period
depreciation rate by dividing the production for the period by the
capacity. The depreciation for the period is the depreciation rate
multiplied by the recoverable cost.
Depreciation Expense = (Production for the Period / Capacity) X
Recoverable Cost
Oracle Assets then allocates the period depreciation to the depreciation
expense accounts to which you have assigned the asset. Notice that for
units of production depreciation there is no annual depreciation
amount.
Depreciation Based on Actual Production
The units of production method does not use depreciation expense
ceilings. Also, since depreciation for these assets is calculated on actual
production, if you resume depreciation for an asset, reinstate the asset,
or perform a prior period transaction, there is no missed depreciation.

5 – 41
Depreciation
See Also
Assets Depreciating Under Units of Production: page 5 – 42
Units of Production Interface: page 5 – 46
Entering Production Amounts: page 5 – 49

Assets Depreciating Under Units of Production
You can use the units of production method to allocate the cost of an
asset by the quantity of resource extracted or used each period. You can
automatically or manually enter production amounts for the asset, and
project future production amounts if necessary. There are some
restrictions when using the units of production depreciation method.
For example, since Oracle Assets only stores production amounts for an
asset in the corporate book, there are some restrictions on changing
depreciation information in corporate or tax books.
Production Interface
You can load production automatically each period using the production
interface. You also can enter or update production manually in the
Periodic Production window.
Production Amount
The start date and end date you enter to which production amounts
apply must fall within a single depreciation period in Oracle Assets.
You cannot enter production for dates before the asset’s prorate date in
the corporate book or for a period for which you have already run
depreciation.
You cannot enter production for periods prior to the current open period
in your corporate book.
You also cannot enter production for date ranges which overlap. For
example, if you enter production for 01–JUN–1995 through
15–JUN–1995, you cannot enter production for 15–JUN–1995 through
30–JUN–1995. You can enter production for 16–JUN–1995 through
30–JUN–1995.
Projected Production Information
You can enter production for dates in the future to calculate depreciation
projections for future periods. You can update the projected amounts
when you know the actual production for the period and want to
actually depreciate the asset.

5 – 43
Depreciation
Retirements
If you have entered production information for future periods to project
depreciation expense, you may have to remove this projected
production information before you retire a units of production asset.
Oracle Assets uses all of the production amounts you entered for dates
before the retirement prorate date to calculate depreciation expense. If
your retirement prorate date is after the retirement date, you may have
to remove projected production to avoid using it to calculate actual
depreciation expense.
When you partially retire a units of production asset, you must
manually adjust the capacity in the Books window. Adjust the capacity
to reflect the decrease only for production not already taken, since you
already entered the actual production amounts.
If you accidentally enter too much production causing the asset to
become fully reserved, you can enter negative production amounts to
correct the error.
If you continue to use an asset after it is fully reserved, Oracle Assets
ignores the production information you enter.
If you enter a retroactive addition or reinstatement, you must enter the
missed production information so Oracle Assets can calculate
depreciation. If you enter a retroactive retirement, Oracle Assets
reverses the depreciation taken since the date of the retirement.
Category Defaults
You can specify a production capacity and unit of measure that you
usually use for assets in a category. When you enter an asset in this
category, Oracle Assets defaults the capacity and unit of measure. You
can override the default values for an individual asset if necessary.
Restrictions
You cannot enter production for a construction–in–process (CIP) asset
before you capitalize it. Similarly, you cannot enter production for a an
asset before its prorate date. If you use a prorate convention such as
actual months, you can enter production for the period you added the
asset.

You cannot enter or upload units of production assets with accumulated
depreciation. Instead, add the asset with zero accumulated
depreciation, and then provide the life–to–date production amount for
the current period in the periodic production table using the Periodic
Production window. Oracle Assets uses the production amount you
enter to calculate the catchup depreciation.
Changing the Depreciation Method
You can change the method from calculated, table, or flat–rate to
production only in the period you add the asset.
Since Oracle Assets only stores production amounts for an asset in the
corporate book, there are some restrictions on changing depreciation
information in corporate or tax books.
An asset can have a production method in the tax book only if it has a
production method in the corporate book. You can change the
depreciation method from production to calculated, table, or flat–rate
type in the corporate book only if the asset does not use a production
method in any associated tax book. An asset can have any kind of
method in the tax book and a production method in the corporate book.
Changing the Capacity
The capacity must be the same in all books in which the asset uses a
production method. You can change the capacity for the asset in the
corporate book only. Use Mass Copy to copy the capacity adjustment to
each tax book.
Mass Copy
Use Mass Copy to copy adjustments to your tax books. If you use a
units of production method in a tax book, you must Mass Copy from the
associated corporate book each period to ensure that the capacity is
up–to–date.
Mass Copy always copies capacity adjustments for your units of
production assets, regardless of the Mass Copy rules you specified for
the book. If you do not allow amortized adjustments in your tax book,
Mass Copy copies an amortized capacity adjustment as an expensed
adjustment.

5 – 45
Depreciation
See Also
5 – 39
Using the Production Interface: page 5 – 46
Production History Report: page 11 – 64

Using the Production Interface
You can enter production information manually, or you can maintain
your production information in another system and upload the
information using the production interface. Prepare and analyze your
production information on any feeder system and then automatically
transfer your production information into Oracle Assets. Oracle Assets
uses that information to calculate depreciation for your units of
production assets.
" To import production information to Oracle Assets:
1. Use an import program or utility to export data from your feeder
system and populate the FA_PRODUCTION_INTERFACE table.
2. Run the Upload Production program to move your production
information into Oracle Assets.
3. Run the Production History report to review the status of all
imported items.
4. Use the Periodic Production window to review or change your
production information.
Assigning Values to Required Columns in the FA_PRODUCTION_INTERFACE
Table
FA_PRODUCTION_INTERFACE, the production interface table, is
organized into columns in which Oracle Assets stores production
information. Enter values for the following required columns:
ASSET_NUMBER: Alphanumeric column. The asset number of the
units of production asset for which you want to enter production.
PRODUCTION: Numeric column. The production amount for the
asset between Start_Date and End_Date.
START_DATE: Date column. The first date to which this production
amount applies.
END_DATE: Date column. The last date to which this production
applies

5 – 47
Depreciation
Customize the Production Interface SQL*Loader Script
Listed below are a sample SQL*Loader script (filename:
production_information.ctl) and production information data file
(filename: production_information.dat) that Oracle Assets uses for units
of production depreciation. You can easily modify this script to load
your production information into the production interface.
Sample SQL*Loader script
LOAD DATA
INFILE production_information.dat
INTO TABLE FA_PRODUCTION_INTERFACE
FIELDS TERMINATED BY WHITESPACE
(ASSET_NUMBER,
PRODUCTION,
START_DATE DATE ”DD–MON–YYYY”,
END_DATE DATE ”DD–MON–YYYY”)
Sample Production Information Data file
321456 10000 01–JUL–1995 31–JUL–1995
322345 1100 01–AUG–1995 05–AUG–1995
322534 1200 16–AUG–1995 26–AUG–1995
323242 1300 24–AUG–1995 31–AUG–1995
334261 1400 01–SEP–1995 30–SEP–1995
433251 1500 01–OCT–1995 13–NOV–1995
Production Information
For each asset and date range for which you want to enter a production
amount, you must specify the following information in the SQL*Loader
script:
• Asset Number
• Production Amount
• Start Date
• End Date

☞
Attention: You must enter the start and end dates in your
data file in the same format which you specify in the
SQL*Loader script.
Remember that you must enter the asset number exactly as it appears
in Oracle Assets. For example, do not to enter the asset number
’uopasset1’ in the script file when your asset number is actually
’UOPASSET1’.
Running SQL*Loader
To execute the SQL*Loader script and load your production data into
the production interface, type the following at the system prompt:
$ sqlload <account_name/password>
control = production_information.ctl
Uploading Production into Oracle Assets
Prerequisites
❑ Load production information into the production interface table
FA_PRODUCTION_INTERFACE.
" To upload production to Oracle Assets:
1. Choose Production:Upload from the Navigator window.
2. Enter the corporate depreciation Book for which you want to
upload production information in the Parameters window.
If you have not yet run depreciation for a period, you can update
or reload production amounts for the same date ranges. Oracle
Assets overwrites the production amounts with the new
production if you reload.
3. Choose Submit to upload the production.
4. Review and update uploaded production amounts in the Enter
Production window. See: Entering Production Amounts: page
5 – 49.

5 – 49
Depreciation
Entering Production Amounts
You can enter or update production amounts for assets depreciating
under units of production. You can enter production information
online, or you can load it automatically from a feeder system using the
Upload Periodic Production program. Enter production more than
once a period if necessary.
" To enter production amounts:
1. Open the Periodic Production window.
2. Find assets within a corporate Book for which you want to enter
production information.
3. Enter the from and to date and the total Production for an asset.
Optionally enter production for multiple non–overlapping date
ranges within a single period.
4. Save your work.
" To update production amounts
H If you have not yet run depreciation for a period, you can update
production amounts if necessary.
See Also
Using the Production Interface: page 5 – 46
5 – 39
Production History Report: page 11 – 64

Projecting Depreciation Expense
Depreciation projections are estimates of actual depreciation expense.
You can project depreciation expense for any depreciation book.
You can run depreciation projection only for the current depreciation
parameters set up in your system. If you need to project depreciation
for scenarios other than your current setup, you can run what–if
depreciation using parameters that are not yet set up in your system.
See: Forecasting Depreciation: page 5 – 52.
Note: You cannot run depreciation projections for group or
member assets, or any asset using the unit of production
depreciation method in budget books.
Prerequisites
❑ Define fiscal years, depreciation and prorate calendars, and prorate
conventions for the periods for which you want to run the
projection. See: Creating Fiscal Years: page 9 – 61, Specifying
Dates for Calendar Periods: page 9 – 62, and Specifying Dates for
Prorate Conventions: page 9 – 150.
❑ If you want to project depreciation for assets depreciating under
the units of production method, enter production amounts for the
periods for which you want to run the projection. See: Entering
Production Amounts: page 5 – 49.
" To project depreciation expense:
1. Navigate to the Depreciation Projections window.
2. Enter the Projection Calendar to specify how you want to
summarize the projection.
You can summarize the results by year, quarter, month, or any
other interval. For example, you can choose a monthly or quarterly
calendar.
3. Enter the Number of Periods for which you want to project
depreciation. You can project depreciation expense for the current
open period or any number of future periods, on up to four
depreciation books at once.
Note: You cannot run depreciation projections for prior
periods.
4. Enter the Starting Period for your projection.

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Depreciation
5. Check Cost Center Detail to print a separate depreciation
projection amount for each cost center. Otherwise, Oracle Assets
prints a consolidated projection report for each expense account
without cost center detail.
6. Check Asset Detail to print a separate depreciation amount for
each asset. Otherwise, Oracle Assets prints a consolidated
projection report without asset detail.
7. Enter the Book(s) that you want to include in your projection. You
can enter a maximum of four books, and all of them must use the
same Account structure. The fiscal year name for the Calendar and
each Book must be the same.
8. Save your work.
Oracle Assets submits a concurrent process to calculate the
projection, and automatically runs the Depreciation Projection
Report.
See Also
Depreciation Projections (Depreciation Calculation): page 5 – 24
Depreciation Projection Report: page 11 – 52

☞
Forecasting Depreciation
You can use what–if depreciation analysis to forecast depreciation for
groups of assets in different scenarios without making changes to your
Oracle Assets data. You can run what–if depreciation analysis on
assets defined in your Oracle Assets system or on hypothetical assets
that are not defined in Oracle Assets.
Attention: You may use What–if Analysis to project
depreciation for a group asset. However, you may not create a
hypothetical group asset. Note that Prorate Convention has no
relevance to group or member assets.
What–if depreciation analysis differs from depreciation projections in
that what–if depreciation analysis allows you to forecast depreciation
for many different scenarios without changing your Oracle Assets data.
Depreciation projection allows projection only for the parameters set
up in Oracle Assets. See: Projecting Depreciation Expense: page 5 – 50.
To perform what–if depreciation analysis in Oracle Assets, you enter
different combinations of parameters for a set of assets in the What–If
Depreciation Analysis window. When you run what–if analysis based
on the parameters you entered, Oracle Assets automatically launches a
report, from which you can review the results of the analysis. You can
run what–if analysis for as many scenarios as you like. Each time you
run what–if analysis, Oracle Assets launches a separate report.
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 what–if analysis.
You may want to run what–if depreciation analysis for several different
scenarios for comparison purposes. You can run what–if depreciation
analysis for any number of scenarios. The results of an analysis will
not overwrite the results of previous analyses.
" To forecast depreciation using what–if depreciation analysis:
1. Navigate to the What–If Depreciation Analysis window in Oracle
Assets.
2. The value in the Currency field defaults to the book’s currency. If
the book you chose is an MRC book, the Currency field defaults to
the primary currency. If you want to run What–if Analysis for the
reporting currency, change the value in the Currency field to the
reporting currency.
3. Enter the starting period for which you want to run What–if
Analysis.

5 – 53
Depreciation
4. Enter the number of periods for which you want to run What–if
Analysis.
Note: You cannot run What–if Analysis for hypothetical assets
in the reporting currency.
5. Enter the book containing the assets for which you want to run
what–if analysis.
6. In the Assets to Analyze tabbed region, enter the parameters you
want to use to identify the set of assets for which you want to run
what–if depreciation analysis.
OR
In the Hypothetical Assets tabbed region, enter the parameters to
identify the hypothetical asset for which you want to run what–if
depreciation analysis.
See: Parameters: page 5 – 54.
7. Enter the Depreciation Scenario parameters to identify the
depreciation rules to be used in the analysis.
See: Depreciation Scenario Parameters: page 5 – 57.
8. Choose Run to run what–if depreciation analysis.
9. Review the results of the What–If Depreciation Report or the
Hypothetical What–If Report by navigating to the View My
Requests window.
10. Update your assets according to the specified parameters in the
Mass Changes window.
OR
Repeat this procedure using different parameters.
" To forecast depreciation using the Request Center:
1. From the Request Center, navigate to the Report Submission and
Publishing window.
2. Choose Standard (Variable Format).
3. In the Report field, choose What–If Depreciation Analysis from the
list f values and choose the Submission button.
4. Enter the book containing the assets for which you want to run
what–if analysis.
5. Enter the begin period and the number of periods.

6. Enter the Assets to Analyze parameters to identify the set of assets
for which you want to run what–if depreciation analysis.
See: Assets to Analyze Parameters: page 5 – 54.
7. Enter the Depreciation Scenario parameters to identify the
depreciation rules to be used in the analysis.
See: Depreciation Scenario Parameters: page 5 – 57.
8. Submit the What–If Depreciation Analysis report from the Request
Center.
9. Review the results of the What–If Depreciation Analysis Report.
10. Update your assets according to the specified parameters in the
Mass Changes window
OR
Repeat this procedure using different parameters.
Parameters
You run what–if depreciation analysis based on parameters you specify
in the What–If Depreciation Analysis window in Oracle Assets. You
enter these parameters for purposes of analysis only. The parameters
you enter in these windows do not affect depreciation of your Oracle
Assets data.
Assets to Analyze Parameters
Use the Assets to Analyze tabbed region when you want to perform
what–if depreciation analysis on assets that exist in your Oracle Assets
system. You use this group of parameters to tell Oracle Assets on
which assets to perform what–if analysis. If you leave the optional
fields blank, Oracle Assets defaults to performing analysis on all
possible assets. The following table provides explanations of the
parameters:

5 – 55
Depreciation
Parameter Usage Explanation
Asset Number Optional You can enter a beginning range, and
ending range, or both. If both fields are
blank, Oracle Assets performs analysis on
all assets in the specified book. If only the
beginning asset number is specified,
Oracle Assets performs analysis on all
assets including and following the
beginning asset number. Similarly, if only
the ending asset number is specified,
Oracle Assets performs analysis on all
assets up to and including the ending asset
number.
Dates in Service Optional You can enter a beginning range, and
ending range, or both. Similar to the Asset
Number field, if you leave both fields
blank, Oracle Assets will perform analysis
on all assets in the specified book, or on all
assets preceding or following the
beginning or ending date.
Description Optional If you only want assets of a particular
description included in your analysis,
enter the description.
Category Optional If you only want assets of a particular
category included in your analysis, enter
the category.
Analyze Fully
Reserved Assets
Optional Check the Analyze Fully Reserved Assets
check box to include fully reserved assets
in your analysis.

Hypothetical Assets Parameters
Use the Hypothetical Assets tabbed region when you want to perform
what–if depreciation analysis on assets that have not been defined in
your Oracle Assets system. The following table provides explanations
of the parameters:
Parameter Usage Explanation
Category Required Enter the category of the hypothetical
asset.
Date in Service Required Enter a hypothetical date placed in
service.
Cost Required Enter a hypothetical asset cost.
Accumulated
Depreciation
Optional Enter hypothetical accumulated
depreciation.

5 – 57
Depreciation
Depreciation Scenario Parameters
Use this group of parameters to indicate the depreciation rules you
want applied in the analysis. If you leave any of the fields blank,
Oracle Assets applies the rules already set up in Oracle Assets. You
can enter any combination of parameters. No specific parameters are
required, but you must enter at least one parameter. The following
table provides explanations of the parameters:
Parameter Explanation
Method Enter the depreciation method, for example, flat–rate. This field is
not required, however, if you do enter a depreciation method in this
field, it affects other fields you can enter, depending on the value you
entered in the Method field. If you enter a life–based method, the
Life field appears where you can enter the life of the asset. If you
enter a rate–based method, the Rate field appears where you can
enter the rate.
Life Enter the life of the asset in years and months. If you entered a value
in the Method field, it must be a life–based method for the Life field
to be valid.
Rate Enter the depreciation rate. If you entered a value in the Method
field, it must be a rate–based method for the Rate field to be valid.
Prorate Convention Enter the prorate convention you want applied to the assets in the
what–if analysis.
Salvage Value % Enter the percentage of the cost of your assets that should be
equivalent to the salvage value, based on the following formula:
Salvage Value=Cost x Default Percentage
Amortize
Adjustments
Check the Amortize Adjustments check box if you want your
adjustments to be amortized in your analysis. If you do not check the
check box, adjustments will be expensed on the analysis.
Bonus Rule If you will be using bonus rules, add the bonus rule used to
depreciate the asset.
Process
After you have entered the parameters you want used in your analysis,
select the Run button to launch the What–if Depreciation Report or the
Hypothetical What–If Report.

For every asset you specified, Oracle Assets will compute depreciation
data for the number of periods you specified.
See Also
What–If Depreciation Report: page 11 – 54
Hypothetical What–If Report: page 11 – 52

5 – 59
Depreciation
Data Archive and Purge
Archive and purge transaction and depreciation data for the book and
fiscal year you specify to release disk space for current data.
If you do not need to run reports for previous fiscal years, you can copy
the data onto tape or any storage device, and then delete it from your
system. If you later need these records online, you can reload them into
Oracle Assets.
What the Purge Program Removes
The purge program removes the depreciation expense and adjustment
transaction records for the book and year you specify. However, it does
not remove the asset identification, financial, and assignment
information for your assets, including assets you retired or that became
fully reserved during that fiscal year.
Maintain Audit Trail of Purge Transactions
Oracle Assets maintains an audit trail of which fiscal years you have
archived, purged, and restored, and how many records were processed.
If your system fails during a purge, you can safely resubmit it. Oracle
Assets only processes those records which it has not yet processed.
Purge Fiscal Years in Chronological Order
You must purge fiscal years in chronological order. Before you purge a
fiscal year, you must archive and purge all earlier fiscal years. You
cannot purge periods in the current fiscal year. If your current period is
the first period of a new fiscal year, you cannot purge the previous
period. You can only restore the most recently purged fiscal year, so you
must restore fiscal years in reverse chronological order. You cannot
archive and purge the period prior to the current period.
Purge Security
You must allow purge for the depreciation book you want to purge in
the Book Controls window. To prevent accidental purge, leave Allow
Purge unchecked for your books, and check it only just before you
perform a purge.
You submit archive, purge, and restore in the Archive and Purge
window. Oracle Assets provides this window only under the standard

Fixed Assets Administrator responsibility. You should limit access to
this responsibility to only users who require it.
Resizing the Archive Tables
If you are archiving a large number of records for a fiscal year, you can
update the FA:Archive Table Sizing Factor to specify the size of the
temporary tables created by an archive. Specifically, if the number of
rows Oracle Assets will archive multiplied by the average rowsize of
that table for all three tables is very different from 100,000 bytes, you
may want to adjust the FA: Archive Table Sizing Factor.
Contact your Database Administrator to find out if you need to update
this factor. You can tell your Database Administrator that the Sizing
Factor specifies how many kilobytes of storage to reserve for the initial
extent. The default value is 100.
You can determine approximately how many rows Oracle Assets will
archive for a fiscal year using the following SQL script. You can expect
to have about six FA_ADJUSTMENTS rows per transaction performed
that year, and one FA_DEPRN_DETAIL row and one
FA_DEPRN_SUMMARY row for each asset for each period in each
book.
To find out about how many FA_ADJUSTMENTS rows Oracle Assets
will archive:
select count(ADJ.ASSET_ID)
from FA_ADJUSTMENTS ADJ,
FA_DEPRN_PERIODS DP,
FA_FISCAL_YEAR FY
where
FY.FISCAL_YEAR = Fiscal Year To Archive and
DP.CALENDAR_PERIOD_OPEN_DATE >= FY.START_DATE and
DP.CALENDAR_PERIOD_CLOSE_DATE <= FY.END_DATE and
ADJ.PERIOD_COUNTER_CREATED = DP.PERIOD_COUNTER;
To find out about how many FA_DEPRN_DETAIL rows Oracle Assets
will archive:
select count(DD.ASSET_ID)
from FA_DEPRN_DETAIL DD,
FA_FISCAL_YEAR FY
where

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Depreciation
DD.PERIOD_COUNTER = DP.PERIOD_COUNTER;
To find out about how many FA_DEPRN_SUMMARY rows Oracle
Assets will archive:
select count(DS.ASSET_ID)
from FA_DEPRN_SUMMARY DS,
FA_FISCAL_YEAR FY
where
DS.PERIOD_COUNTER = DP.PERIOD_COUNTER;
You can determine the average rowsize for each table using something
like the following SQL script. You can expect each row to be about 50
bytes.
select avg(nvl(vsize(column_1),0)) +
avg(nvl(vsize(column_2),0)) +
. . .
avg(nvl(vsize(column_N),0))
from table_name;
See Also
User Profiles in Oracle Assets: page C – 2
Archive, Purge, and Restore Process
There are several steps to archive, purge, and restore a fiscal year. Some
of these steps you can do using the Mass Purge window. Others you
should ask your Database Administrator to perform. To archive and
purge a fiscal year, you need to:
1. Archive and purge all earlier fiscal years.
2. Update FA: Archive Table Sizing Factor if necessary (Database
Administrator).

3. Run Archive (Fixed Assets Administrator).
4. Export temporary archive tables to storage device (Database
Administrator).
5. Run Purge (Fixed Assets Administrator).
6. Drop temporary archive tables (Database Administrator).
7. Export current data from tables from which you purged (Database
Administrator).
8. Drop tables from which you purged (Database Administrator).
9. Recreate tables from which you purged (Database Administrator).
10. Import current data into tables from which you purged (Database
Administrator).
11. Verify tables and indexes (Database Administrator).
If you later need the data online, you can restore it. To restore a fiscal
year you need to:
12. Restore all later fiscal years.
13. Import temporary archive tables from storage device (Database
Administrator).
14. Run Restore (Fixed Assets Administrator).
Archiving Data
When you perform the archive, Oracle Assets assigns a reference
number to it and copies the depreciation expense and adjustment
transaction records to three temporary tables:
• FA_ARCHIVE_SUMMARY_<Archive_Number>
• FA_ARCHIVE_DETAIL_<Archive_Number>
• FA_ARCHIVE_ADJUSTMENT_<Archive_Number>
You can export the temporary archive tables onto tape or any storage
device. If you need these records again, you can restore them. You must
archive records before you can purge them, and Oracle Assets prevents
you from running purge if these tables do not exist. You should not
drop the tables until after you have exported the tables and run purge.

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Depreciation
Purging Data
Oracle Assets prevents you from running purge if the temporary archive
tables from the archive transaction do not exist. Since the archive
number is part of the temporary table name, Oracle Assets purges only
the records that were archived during the archive you specify.
Recreate Database Objects From Which You Purge
After you purge your database, contact your Database Administrator to
export, drop, and recreate the tables from which you purged data. By
recreating these objects, you can reduce the memory each object
occupies in your tablespace and perhaps increase the performance of
your system.
You can tell your Database Administrator that you purged from the
FA_DEPRN_SUMMARY, FA_DEPRN_DETAIL, and
FA_ADJUSTMENTS tables. After recreating the tables and importing
the data, check that all the appropriate indexes were recreated. The
Oracle Assets Technical Reference Manual provides information on which
indexes each database table requires.
Restoring Data
To restore records that you have purged from Oracle Assets, you must
first import the tables from your archive, then perform the restore. You
do not need to archive the records before you purge them again.
Since the archive number is part of the temporary table name, Oracle
Assets restores only the records that were archived during that archive
you specify.

Controlling Your Archive
Use the Status field to determine the next possible action.
New Newly created archive definition Archive
Archived Archive completed successfully Purge
Purged Purge completed successfully Restore
Restored Restoration completed successfully Purge
See Also
Archiving and Purging Transaction and Depreciation Data: page 5 – 65

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Depreciation
Archiving and Purging Transaction and Depreciation Data
If you no longer need to run reports for previous fiscal years, you can
archive and purge historical data to free hardware resources. You can
only restore the most recently purged fiscal year, so you must restore
fiscal years in reverse chronological order.
Prerequisites
❑ If necessary, update the FA:Archive Table Sizing Factor profile
option. See: Overview of User Profile Options: page C – 4.
❑ Allow Purge for the book in the Book Controls window before you
perform the purge. See: Defining Depreciation Books: page 9 – 71.
" To archive and purge transaction and depreciation data:
1. Change Responsibilities to Fixed Assets Administrator.
2. Open the Archive and Purge window.
3. Enter the Book and Fiscal Year you want to archive. You must
archive and purge in chronological order.
4. Choose Archive to submit a concurrent request that changes the
status from New to Archived and creates temporary archive tables
with the data to be purged.
Oracle Assets automatically assigns an Archive Number when you
save your work.
Note: The temporary table name includes a five–digit archive
number.
5. Export the archive tables to a storage device.
6. Return to the Archive and Purge window and use the Archive
Number to find the archive you want to purge.
7. Choose Purge to submit a concurrent request that changes the
status from Archived to Purged and removes the archived data
from Oracle Assets tables. Now your database administrator can
drop the temporary archive tables.
You can only purge definitions with a status of Archived or
Restored.
" To restore archived data to Oracle Assets:
1. Import the archive tables from your storage device.

2. Open the Archive and Purge window under the standard Fixed
Assets Administrator responsibility.
3. Use the Archive Number to query the archive you want to restore.
4. Choose Restore to submit a concurrent process that changes the
status from Purged to Restored and inserts the previously purged
data into Oracle Assets tables.
You can purge the restored data again if necessary.
See Also
Data Archive and Purge: page 5 – 59

5 – 67
Depreciation
Unplanned Depreciation
Unplanned depreciation is a feature used primarily to comply with
special depreciation accounting rules in Germany and the Netherlands.
However, you also can use this feature to handle unusual accounting
situations in which you need to adjust the net book value and
accumulated depreciation amounts for an asset without affecting its
cost.
For more specific information about using the unplanned depreciation
feature to satisfy statutory requirements in Germany, see: Unplanned
Depreciation Report: page 11 – 53.
You can enter unplanned depreciation amounts by asset and book for
any current period during the useful life of an asset. You can enter
unplanned depreciation for an asset in both the corporate and/or tax
books. When you enter unplanned depreciation, Oracle Assets
immediately updates the year–to–date and life–to–date depreciation,
and the net book value of the asset. You can change the depreciation
method after entering unplanned depreciation.
The unplanned depreciation expense you enter must not exceed the
current net book value (cost – salvage value – accumulated depreciation)
of the asset. If necessary, you can enter multiple unplanned depreciation
amounts, both positive and negative, in a single period, provided that
the net amount does not exceed the current net book value of the asset.
Thus, it is possible to enter unplanned amounts that back out
depreciation taken in prior periods, including previously entered
unplanned depreciation amounts.
When you enter unplanned depreciation expense, you can choose in
which period to begin amortization of the asset’s remaining net book
value. You can begin amortization in the current or a subsequent
period, or you can choose not to amortize the remaining net book value.
Note that if you do not amortize the unplanned depreciation or make an
amortized adjustment in a subsequent period, the asset will be fully
reserved before the end of the useful life. If you choose to amortize in a
subsequent period, simply enter an unplanned depreciation amount of
zero, and check the Amortize from Current Period check box. Oracle
Assets will begin to amortize the remaining net book value as of that
period.
Oracle Assets uses the unplanned depreciation amount, in addition to
regular depreciation, to calculate depreciation for the period in which
you entered the unplanned depreciation. When you create journal
entries for the general ledger, Oracle Assets posts the expense due to

unplanned depreciation to the account you selected when you entered
the unplanned depreciation for the asset.
Enable Function Security
You can enable or disable unplanned depreciation entry by
responsibility if you want to allow or restrict user access to this function.
See: Function Security in Oracle Assets: page D – 2.
View Unplanned Depreciation Amounts
You can use the Financial Information inquiry windows to view the
effects of the unplanned depreciation amounts you enter. Oracle Assets
includes unplanned depreciation amounts in the current and prior
period accumulated depreciation, year–to–date depreciation, and net
book value amounts of the asset. The View Depreciation History
window includes unplanned depreciation amounts in the depreciation
expense per period for each asset and book. Note that unplanned
depreciation amounts appear as ADJUSTMENT transactions.
Note: Unplanned depreciation in the period the asset is added
is not tracked as an adjustment transaction in the system. The
effect is reflected in the net book value and accumulated
depreciation amounts for the asset.
If you want to view unplanned depreciation amounts separately, use the
Transaction Detail window. In this window, you can view the
unplanned depreciation type and the unplanned depreciation expense
account for each unplanned amount.
Restrictions
You cannot enter unplanned depreciation for assets shared between
balancing segments. In other words, you cannot allocate unplanned
depreciation amounts to specific distributions of an asset. Oracle Assets
posts the unplanned depreciation expense only to the depreciation
expense account you enter in the Unplanned Depreciation window.
You cannot enter unplanned depreciation for assets depreciating under
table–based methods. If you need to enter unplanned depreciation for
an asset depreciating under a table–based method, you must first
change the depreciation method to a method that is not table–based.
You cannot enter unplanned depreciation to a unit of production asset
that was placed in service in the current period. You can only add
unplanned depreciation to a unit of production asset that has historical
reserves.
You cannot make expensed adjustments to assets for which you have
previously entered unplanned depreciation and have since amortized

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Depreciation
the amount. You may, however, perform expensed adjustments to the
asset until you choose to amortize the unplanned depreciation amount.
In addition, you cannot perform prior period retirements to assets
having unplanned depreciation amounts. In addition, you cannot
perform a mass change for assets that have unplanned depreciation.
Examples
Example 1: Unplanned Depreciation
You place an asset in service with a life of five years, and a cost of
120,000 DEM. The depreciation method is straight–line. There is no
salvage value. The calendar has four periods per year. The following
table shows quarterly depreciation amounts for the first seven quarters:
Year of
Life
Net Book Value
(Start of period)
Depreciation
Expense
Unplanned
Depreciation
Accumulated
Depreciation
Yr 1, Q1 120,000 6,000 0 6,000
Yr 1, Q2 114,000 6,000 0 12,000
Yr 1, Q3 108,000 6,000 0 18,000
Yr 1, Q4 102,000 6,000 0 24,000
Yr 2, Q1 96,000 6,000 0 30,000
Yr 2, Q2 90,000 6,000 0 36,000
Yr 2, Q3 84,000 6,000 0 42,000
In Year 2, Quarter 4 you enter an unplanned depreciation amount of
10,000 DEM. You choose NOT to amortize the unplanned amount this
period. Oracle Assets continues depreciating the asset taking the
regular depreciation expense in subsequent periods until you choose to
amortize the unplanned depreciation or make an amortized adjustment.

If you do not amortize the unplanned depreciation or make an
amortized adjustment in a subsequent period, the asset will be fully
reserved before the end of the useful life. The following table shows
quarterly depreciation amounts for the last twelve quarters:
Year of
Life
Net Book Value
(Start of period)
Depreciation
Expense
Unplanned
Depreciation
Accumulated
Depreciation
Yr 2, Q4 78,000 6,000 10,000 58,000
Yr 3, Q1 62,000 6,000 0 64,000
Yr 3, Q2 56,000 6,000 0 70,000
Yr 3, Q3 50,000 6,000 0 76,000
Yr 3, Q4 44,000 6,000 0 82,000
Yr 4, Q1 38,000 6,000 0 88,000
Yr 4, Q2 32,000 6,000 0 94,000
Yr 4, Q3 26,000 6,000 0 100,000
Yr 4, Q4 20,000 6,000 0 106,000
Yr 5, Q1 14,000 6,000 0 112,000
Yr 5, Q2 8,000 6,000 0 118,000
Yr 5, Q3 2,000 6,000 0 120,000

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Depreciation
Example 2: Unplanned Depreciation Amortized from Following Period
salvage value. The calendar has four periods per year.
You enter an unplanned depreciation of 10,000 DEM in Year 2, Quarter
4, but you choose to amortize the unplanned depreciation expense over
the remaining life of the asset, starting in the period following the
unplanned depreciation. The following table shows quarterly
depreciation amounts:
Year of
Life
Net Book Value
(Start of period)
Depreciation
Expense
Unplanned
Depreciation
Accumulated
Depreciation
Yr 2, Q1 96,000 6,000 0 30,000
Yr 2, Q2 90,000 6,000 0 36,000
Yr 2, Q3 84,000 6,000 0 42,000
Yr 2, Q4 78,000 6,000 10,000 58,000
Yr 3, Q1 62,000 *5,167 0 63,167
Yr 3, Q2 56,833 5,167 0 68,334
Yr 3, Q3 51,666 5,167 0 73,501
Yr 3, Q4 46,499 5,166 0 78,667
Yr 4, Q1 41,333 5,167 0 83,834
Yr 4, Q2 36,166 5,167 0 89,001
Yr 4, Q3 30,999 5,167 0 94,168
Yr 4, Q4 25,832 5,166 0 99,334
Yr 5, Q1 20,666 5,167 0 104,501
Yr 5, Q2 15,499 5,167 0 109,668
Yr 5, Q3 10,332 5,167 0 114,835
Yr 5, Q4 5,165 5,165 0 120,000
* Depreciation Expense Per Period = Net Book Value / Remaining
Periods in Life
For Year 3, Quarter 1 = 62,000 / 12 = 5,167 DEM
The asset is fully reserved at the end of the useful life.

Example 3: Upward and Downward Unplanned Depreciation
Using the asset from the previous example, you enter another
unplanned depreciation of –5,000 DEM in Year 4, Quarter 4, which
partially reverses the previous unplanned depreciation. Oracle Assets
amortizes the unplanned depreciation amount from the current period
since you chose to amortize the unplanned depreciation from Year 2,
Quarter 4 (See Example 2) for the same asset. The following table shows
quarterly depreciation amounts:
Year of
Life
Net Book Value
(Start of period)
Depreciation
Expense
Unplanned
Depreciation
Accumulated
Depreciation
Yr 4, Q1 41,333 5,167 0 83,834
Yr 4, Q2 36,166 5,167 0 89,001
Yr 4, Q3 30,999 5,167 0 94,168
Yr 4, Q4 25,832 *6,166 <5,000> 95,334
Yr 5, Q1 24,666 6,167 0 101,501
Yr 5, Q2 18,499 6,167 0 107,668
Yr 5, Q3 12,332 6,167 0 113,835
Yr 5, Q4 6,165 6,165 0 120,000
* Depreciation Expense Per Period = Net Book Value / Remaining
Periods in Life
For Year 5, Quarter 1 = 24,666 / 4 = 6,167 DEM
The asset is fully reserved at the end of the useful life.
Example 4: Amortized Adjustment after Unplanned Depreciation
salvage value. The calendar has four periods per year.
You enter an unplanned depreciation in Year 1, Quarter 3, which you
amortize from the following period, and then perform an amortized cost
adjustment of 30,000 DEM in Year 2, Quarter 1. The new cost is 150,000
DEM and there is no catchup depreciation since this is an amortized
adjustment. The following table shows quarterly depreciation amounts:

5 – 73
Depreciation
Year of Life Net Book Value
(Start of period)
Depreciation
Expense
Unplanned
Depreciation
Accumulated
Depreciation
Yr 1, Q1 120,000 6,000 0 6,000
Yr 1, Q2 114,000 6,000 0 12,000
Yr 1, Q3 108,000 6,000 10,000 28,000
Yr 1, Q4 92,000 **5,412 0 33,412
Yr 2, Q1 *116,588 ***7,287 0 40,699
Yr 2, Q2 109,301 7,287 0 47,986
Yr 2, Q3 102,014 7,287 0 55,273
Yr 2, Q4 94,727 7,286 0 62,560
Yr 3, Q4 65,580 7,286 0 91,708
Yr 4, Q4 36,433 7,286 0 120,856
Yr 5, Q4 7,286 7,286 0 150,000
* Cost adjustment of 30,000 DEM; new cost is 150,000 DEM
** Depreciation Expense Per Period = Net Book Value / Remaining
Periods in Life
For Year 1, Quarter 4, the depreciation expense per period is 92,000 / 17
= 5,412 DEM
*** Depreciation Expense = (New Cost – Accumulated
Depreciation)/ Remaining Periods in Life
For Year 2, Quarter 1, the new depreciation expense is (150,000 – 33,412)
/ 16 = 7,287 DEM
Oracle Assets includes the unplanned depreciation amount when it
calculates the accumulated depreciation.
Note: If you choose to amortize unplanned depreciation in the
current period, and then perform a cost adjustment on the same
asset in the same book, Oracle Assets automatically amortizes
the cost adjustment as well as the unplanned depreciation
amount. You cannot expense the cost adjustment.
Note: If you choose to expense an unplanned depreciation
amount, and then perform an expensed cost adjustment, Oracle
Assets will override the unplanned depreciation amount to
expense the cost adjustment. You can re–enter the unplanned
depreciation for the asset later if necessary.

See Also
Unplanned Depreciation Report: page 11 – 53
Entering Unplanned Depreciation for an Asset
You can enter unplanned depreciation expense for an asset to comply
with your country’s accounting rules, or to handle an unusual
accounting situation. When you enter unplanned depreciation, you can
choose in which period to begin amortization of the asset’s remaining
net book value.
" To enter unplanned depreciation for an asset:
1. Navigate to the Asset Workbench.
2. Find the asset for which you want to enter unplanned depreciation,
and choose the Books button.
3. In the Books window, enter a Book. You can enter unplanned
depreciation for an asset in a corporate or tax book.
Note: You cannot mass copy unplanned depreciation amounts
from the corporate to the tax book. If you want to enter the
same unplanned depreciation in the tax book, you must enter it
manually.
4. Optionally enter a reason for the unplanned depreciation in the
Comments field. You can use this field to find the transaction later if
necessary.
5. Choose the Unplanned Depr button to open the Unplanned
Depreciation window.
6. Choose the unplanned depreciation Type. See: Entering
QuickCodes: page 9 – 58.
7. Enter the amount of unplanned depreciation expense as a positive
or negative currency amount. Unless you are entering unplanned
depreciation for a credit asset, the unplanned depreciation amount
cannot exceed the net book value of the asset.
8. Enter the complete unplanned depreciation expense account.
9. Check the Amortize From Current Period check box to amortize the
unplanned depreciation starting in the current period.

☞
☞
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Depreciation
Alternatively, leave the check box unchecked if you want to
amortize the remaining net book value in a subsequent period.
Then, in the period you want amortization to start, enter an
unplanned depreciation amount of zero for the same asset and
expense account, and check the Amortize From Current Period
check box. Oracle Assets amortizes the net book value starting in
the period you perform this change.
Attention: The value of this check box overrides the value of the
Amortize Adjustment check box in the Books window.
Attention: If you make any amortized adjustment, for example a
cost or life adjustment, to the asset after entering an expensed or
amortized unplanned depreciation, Oracle Assets begins amortizing
the remaining net book value, which includes the unplanned
depreciation amount, from the period you make the amortized
adjustment.
See Also
Unplanned Depreciation Report: page 11 – 53

Bonus Depreciation
The bonus rate is applied based on either the cost or on the nbv
following the depreciation method calculation basis. That is, the bonus
rate is based on the asset cost for straight–line, but on the nbv for flat
rate methods using nbv as the calculation basis:
Bonus Expense=Depreciable Basis*Bonus Rate
You can also set up Oracle Assets to charge bonus reserve to an account
that is different from the normal accumulated depreciation expense.
Bonus Rule Accounts
You can set up Oracle Assets to charge bonus depreciation expense to a
different account from that of normal depreciation expense.
You can also set up Oracle Assets to charge bonus depreciation reserve
to a different account from that of the normal accumulated depreciation
account.

5 – 77
Depreciation
Bonus Rule Examples
The examples presented in the following tables illustrate how bonus
depreciation works in various situations. and use the rate tables and
depreciation methods provided:
Rate Tables
Bonus Rule 1: VEHICLES
From Year To Year Rate
1 1 20%
2 2 10%
3 3 5%
Bonus Rule 2: MACHINERY
1 3 40%
– – –
– – –
Bonus Rule 3: BUILDINGS
1 1 20%
2 2 15%
3 3 15%
4 8 –10%

Depreciation Methods
The examples presented in the following tables illustrate how bonus
depreciation works in various situations. and use the rate tables and
depreciation methods provided:
T_COST Method
Attributes for the following table are Type = TABLE, Basis = COST, Life
= 8 year and 1 prorate period per year.
Year Pd. Rate
1 1 0.10
2 1 0.09
3 1 0.06
4 1 0.15
5 1 0.15
6 1 0.15
7 1 0.15
8 1 0.15
9 1 0.00
T_NBV Method
Attributes for the following table are Type = TABLE, Basis = NBV, Life
= 3 year and 1 prorate period per year.
Year Pd. Rate
1 1 0.40
2 1 0.50
3 1 1.00
– – –
– – –
– – –
– – –

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Depreciation
Rate
Pd.
Year
– – –
– – –
Example 1: Straight–Line Method
The following tables illustrate using bonus rules with a straight–line
depreciation method:
Asset Number: 101
Cost: 4000 USD
Date in Service: 01–JAN–2000
Method: STL
Life: 4 years
Bonus Rule: VEHICLES
Quarter Depreciation
Expense
Accumulated
Depreciation
Bonus Deprn
Expense
Bonus Deprn
Reserve
Total Accum
Depreciation
NBV
Y1Q1 250 250 200 200 450 3550
Y1Q2 250 500 200 400 900 3100
Y1Q3 250 750 200 600 1350 2650
Y1Q4 250 1000 200 800 1800 2200
Y2Q1 250 1250 100 900 2150 1850
Y2Q2 250 1500 100 1000 2500 1500
Y2Q3 250 1750 100 1100 2850 1150
Y2Q4 250 2000 100 1200 3200 800
Y3Q1 250 2250 50 1250 3500 500
Y3Q2 250 2500 50 1300 3800 200
Y3Q3 200 2700 0 1300 4000 0

Example 2: NBV–Based Table Method
The following tables illustrate calculations using a table–based
depreciation method where the depreciable basis is the net book value
of the asset:
Asset Number: 102
Cost: 100000 USD
Method: T_NBV
Life: 3 years
Bonus Rule: MACHINERY
Expense
Accumulated
Depreciation
Bonus Deprn
Expense
Bonus Deprn
Reserve
Total Accum
Depreciation
NBV
Y1Q1 10000 10000 10000 10000 20000 80000
Y1Q2 10000 20000 10000 20000 40000 60000
Y1Q3 10000 30000 10000 30000 60000 40000
Y1Q4 10000 40000 10000 40000 80000 20000
Y2Q1 2500 42500 2000 42000 84500 15500
Y2Q2 2500 45000 2000 44000 89000 11000
Y2Q3 2500 47500 2000 46000 93500 6500
Y2Q4 2500 50000 2000 48000 98000 2000
Y3Q1 500 50500 200 48200 98700 1300
Y3Q2 500 51000 200 48400 99400 600
Y3Q3 500 51500 100 48500 100000 0
Y3Q4 0 51500 0 48500 100000 0

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Depreciation
Example 3: Table Method, Negative Bonus Rates
The following tables illustrate calculations using a table–based
depreciation method with negative bonus rates:
Asset Number: 103
Cost: 100000 DEM
Method: T_COST
Life: 8 years
Bonus Rule: BUILDINGS
Expense
Accumulated
Depreciation
Bonus Deprn
Expense
Bonus Deprn
Reserve
Total Accum
Depreciation
NBV
Y1Q1 2500 2500 5000 5000 7500 92500
Y1Q2 2500 5000 5000 10000 15000 85000
Y1Q3 2500 7500 5000 15000 22500 77500
Y1Q4 2500 10000 5000 20000 30000 70000
Y2Q1 2250 12250 3750 23750 36000 64000
Y2Q2 2250 14500 3750 27500 42000 58000
Y2Q3 2250 16750 3750 31250 48000 52000
Y2Q4 2250 19000 3750 35000 54000 46000
Y3Q1 1500 20500 3750 38750 59250 40750
Y3Q2 1500 22000 3750 42500 64500 35500
Y3Q3 1500 23500 3750 46250 69750 30250
Y3Q4 1500 25000 3750 50000 75000 25000
Y4Q1 3750 28750 –2500 47500 76250 23750
Y4Q2 3750 32500 –2500 45000 77500 22500
Y4Q3 3750 36250 –2500 42500 78750 21250
Y4Q4 3750 40000 –2500 40000 80000 0000
Y5Q1 3750 43750 –2500 37500 81250 18750
Y5Q2 3750 47500 –2500 35000 82500 17500
Y5Q3 3750 51250 –2500 32500 83750 16250
Y5Q4 3750 55000 –2500 30000 85000 15000
Y6Q1 3750 58750 –2500 27500 86250 13750
Y6Q2 3750 62500 –2500 25000 87500 12500
Y6Q3 3750 66250 –2500 22500 88750 11250

NBV
Total Accum
Depreciation
Bonus Deprn
Reserve
Bonus Deprn
Expense
Accumulated
Depreciation
Depreciation
Expense
Quarter
Y6Q4 3750 70000 –2500 20000 90000 10000
Y7Q1 3750 73750 –2500 17500 91250 8750
Y7Q2 3750 77500 –2500 15000 92500 7500
Y7Q3 3750 81250 –2500 12500 93750 6250
Y7Q4 3750 85000 –2500 10000 95000 5000
Y8Q1 3750 88750 –2500 7500 96250 3750
Y8Q2 3750 92500 –2500 5000 97500 2500
Y8Q3 3750 96250 –2500 2500 98750 1250
Y8Q4 3750 100000 –2500 0 100000 0
See Also
Bonus Depreciation Rule Listing: page 11 – 45
Bonus Depreciation: page 5 – 76

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Depreciation
Defaulting Asset Salvage Value as a Percentage of Cost
You can default the salvage value of your assets as a percentage of cost,
according to percentages you define for each category and book. Oracle
Assets uses the defaults whether you add assets manually,
automatically, or using Mass Additions. You can override the default
value using the Detail Additions process. You also can adjust the
default salvage value after an asset has been added. The following
transactions affect salvage value:
• Additions: page 5 – 83
• Adjustments: page 5 – 84
• Mass Copy: page 5 – 84
Transfers, retirements, and reclassifications do not affect asset salvage
value.
You define a default salvage value percentage for a particular category,
book, and range of dates placed in service in the Asset Categories
window. See: Entering Default Depreciation Rules for a Category: page
9 – 161.
When you perform transactions that affect asset cost, Oracle Assets uses
this default percentage to calculate the salvage value according to the
following formula:
Salvage Value = Cost Default Percentage
Additions
When you add an asset using Mass Additions or QuickAdditions,
Oracle Assets calculates the default salvage value using the cost you
enter and the default salvage value percentage. If you do not specify a
default percentage, Oracle Assets uses a default salvage value of zero.
To change the salvage value, make a salvage value adjustment in the
Books window of the Asset Workbench. See: Changing Financial and
You can override the default salvage value when you add the asset
during Detail Additions. Oracle Assets displays the calculated salvage
value, and you can change it to a different amount if necessary.
For example, you define the AUTO.LUXURY category as follows:
• Book: US CORP
• Dates Placed in Service: 01–JAN–1990 until 31–DEC–1999
• Default Salvage Value Percentage = 5%

You then add a luxury automobile to the US CORP book:
• Category: AUTO.LUXURY
• Date Placed in Service: 16–DEC–1995
• Cost: 50,000 USD
The default salvage value is 50,000 5% = 2,500 USD.
Adjustments
If you adjust the cost of an asset or perform another transaction which
affects asset cost, such as adding an invoice line, Oracle Assets
recalculates the salvage value using the new cost.
For example, in 1997 you buy a new radio for the luxury automobile you
added to the US CORP book. To record this cost, you add an invoice of
500 USD. The adjusted cost is 50,500 USD, and the new salvage value is
50,500 5% = 2525 USD.
Mass Copy
When you Mass Copy additions, cost adjustments, or salvage value
adjustments to a tax book, there are three strategies by which you can
affect asset salvage value in your tax book. You must choose one of
these strategies when you enable Mass Copy for a book in the Book
Controls window. You can choose one of the following options from the
Salvage Value poplist: Copy, Do Not Copy, and Use Default Percent.
See: Entering Accounting Rules for a Book: page 9 – 73.
In Example 1, 2, and 3, the following rules apply for the US TAX book:
• Category: AUTO.LUXURY
• Dates Placed in Service: 01–JAN–1990 until 31–DEC–1999
• Default Salvage Value Percentage = 10%

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Depreciation
Example 1: Mass Copying an Addition
In Q1–95, you add a luxury automobile to the US CORP book. The cost
is 100,000 USD, and the salvage value is 15,000 USD. You mass copy this
transaction to the US TAX book in the same quarter. The following table
provides examples of how mass copy works in various situations:
If You Use This Mass Copy
Strategy...
The New Salvage Value in
US TAX Is...
Copy 15,000 USD
Do Not Copy 0 USD
Use Default % 100,000 10% = 10,000 USD
Example 2: Mass Copying a Cost Adjustment
You place an asset in service in the US CORP and US TAX books as
illustrated in the following table:
Field US CORP US TAX
Category AUTO.LUXURY AUTO.LUXURY
Date in Service 16–DEC–1995 16–DEC–1995
Cost 25,000 USD 25,000 USD
Salvage Value 2500 USD 1250 USD
You adjust the asset cost in the US CORP book to 20,000 USD, leaving
the salvage value at 2500 USD. You then Mass Copy the cost adjustment

to the US TAX book. The following table shows how mass copy works
in these situations:
Strategy...
US TAX Is...
Copy 2500 USD
Do Not Copy 1250 USD
Use Default % 20,000 10% = 2000 USD
Note: Oracle Assets only mass copies the cost adjustment if the
cost is the same in both books before the adjustment.
Example 3: Mass Copying a Salvage Value Adjustment
You place an asset in service in the US CORP and US TAX books as
illustrated in the following table:
US CORP US TAX
Category AUTO.LUXURY AUTO.LUXURY
Date in Service 16–DEC–1995 16–DEC–1995
Cost 25,000 USD 25,000 USD
Salvage Value 1250 USD 1250 USD
You adjust the salvage value in the US CORP book to 1000 USD (cost
remains 25,000 USD). You Mass Copy the salvage value adjustment to

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Depreciation
the US TAX book. The following table shows how mass copy works in
these situations:
Strategy...
US TAX Is...
Copy 1000 USD
Do Not Copy 1250 USD
Use Default % 25,000 10% = 2500 USD
Note: Oracle Assets only mass copies the adjustment if the
salvage value is the same in both books before the adjustment.
See Also
Entering Accounting Rules for a Book: page 9 – 73
Entering Default Depreciation Rules for a Category: page 9 – 161

Depreciating Assets Beyond the Useful Life
You can depreciate an asset in the years following its useful life if the
asset uses a straight–line or flat–rate depreciation method. You must
specify a depreciation limit, defined as a flat amount or as a percentage.
Oracle Assets depreciates the asset up to the salvage value during the
normal useful life. Then Oracle Assets continues to depreciate it, up to
the depreciation limit you choose, in periods after the useful life has
ended.
You can set up a default limit for each asset category, book, and range
of dates in service in the Asset Categories window. See: Entering
Default Depreciation Rules for a Category: page 9 – 161.
For assets using a straight–line depreciation method, you can use the
Set Extended Life window to control the amount of depreciation
expense taken for each period. If you do not specify an extended life in
years, Oracle Assets continues to depreciate the asset at the same rate it
depreciated during the last fiscal year of the asset’s normal useful life.
Additions
When you add an asset to a book, category, and date placed in service
range for which you set up a default depreciation limit as an amount,
Oracle Assets calculates the recoverable cost using the following
formula:
Recoverable Cost = Cost – Default Depreciation Limit
For example, an asset cost of 100,000 yen with a depreciation limit of 1
yen has a recoverable cost of 100,000 – 1 = 99,999 yen.
When you add an asset for which you set up a default depreciation
limit percentage, Oracle Assets calculates the recoverable cost using
the following formula:
Recoverable Cost = Cost Default Depreciation Limit
For example, an asset cost of 100,000 yen with a depreciation limit of
95% has a recoverable cost of 100,000 95% = 95,000 yen.
If you add the asset using Detail Additions, Oracle Assets shows the
recoverable cost in the Books window. You can override this value if
necessary. If you add the asset using QuickAdditions or Mass
Additions, Oracle Assets automatically calculates the recoverable cost
for the asset. You can adjust the recoverable cost at any time during
the normal useful life of the asset. This does not affect the depreciation

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Depreciation
expense during the normal useful life, unless the recoverable cost is less
than the cost less the salvage value.
Note: You cannot adjust the recoverable cost for assets that do
not depreciate using the special depreciation limits. For these
assets, the recoverable cost must equal (cost – salvage value).
Depreciation
Depreciation Methods
If you define a depreciation limit, you must use a straight–line or
flat–rate depreciation method for the asset.
Depreciation During Normal Useful Life
During the normal useful life of the asset, the amount of depreciation
taken per fiscal year depends solely on the cost less the salvage value.
For example, you place in service an asset with a cost of 100,000 yen
and a salvage value of 1000 yen. The asset depreciates using a
straight–line method and a nine year life. Regardless of the
depreciation limit, the depreciation expense for this asset is (100,000 –
1000) / 9 = 11,000 yen per year for the first nine years.
Depreciation During Extended Life
In the years following the useful life, Oracle Assets continues to
depreciate the asset until accumulated depreciation equals recoverable
cost. Note that recoverable cost is calculated by (cost – depreciation
limit amount) or (cost depreciation percent limit). By default, the
amount of depreciation taken per period is the minimum of the
following:
• Depreciation expense per period in the last fiscal year of the
useful life
• Recoverable cost less the life–to–date depreciation
For assets depreciating under a straight–line method, the
corresponding formula is:
Depreciation per period =
min ( (recoverable cost – life–to–date depreciation),
(cost – salvage value) / life in periods) )
For assets using a straight–line depreciation method, you can control
the depreciation expense taken per period in the extended life. To do
this, specify the length of the extended life in years in the Set Extended
Life window.

Depreciation per period = (1/ periods per year)*(Salvage
Value/Extended Life in years)
Example 1
You place an asset in service as follows:
• Cost = 100,000 yen
• Salvage value = 10,000 yen
• Depreciation limit = 1 yen
• Useful life = 10 years
• Depreciation method = Straight Line
The example is illustrated by the following table:
Year
of Life
Annual
Depreciation (Yen)
Accumulated
Depreciation (Yen)
1 9000 9000
2 9000 18,000
: : :
9 9000 81,000
10 9000 90,000 = (cost – salvage
value)
11 9000 = less of (9000, 9999) 99,000
12 999 = less of (9000, 999) 99,999
Recoverable cost is (100,000 – 1) = 99,999 yen.
For the first ten years, Oracle Assets takes an annual depreciation
expense of (100,000 – 10,000) / 10 = 9000 yen. If there are four periods
per year and you are dividing depreciation evenly, Oracle Assets takes
a depreciation expense of 2250 yen per period.
In the 11th year, depreciation expense is also 9000 yen for the year, or
2250 yen per period.
In the 12th year, the depreciation expense is 999 yen. Thus Oracle
Assets fully reserves the asset in the first period of this year. Note that
in the final year, Oracle Assets does not divide the remaining

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Depreciation
recoverable cost evenly among the periods in the fiscal year. The
depreciation expense per period remains the same in all but the last
period of life, when it is equal to the amount necessary to fully reserve
the asset.
Example 2
You place another asset in service as follows:
• Cost = 500,000 yen
• Salvage Value = 50,000 yen
• Depreciation percent limit = 95%
• Depreciation method = Straight Line
The example is illustrated by the following table:
Year
of Life
Annual
Depreciation (Yen)
Accumulated
Depreciation (Yen)
1 90,000 90,000
2 90,000 180,000
3 90,000 270,000
4 90,000 360,000
5 90,000 450,000 = (cost – salvage
value)
6 25,000 475,000
Recoverable cost is (500,000 95%) = 475,000 yen.
For the first five years, Oracle Assets takes an annual depreciation
expense of (500,000 – 50,000) / 5 = 90,000 yen. If there are 12 periods
per year and you divide depreciation evenly, Oracle Assets takes
depreciation expense of 7500 yen per period.
In the sixth year, the depreciation expense is 25,000 yen for the year.
Depreciation expense is 7500 yen per month for the first three months,
and 2500 yen in the fourth month.
Example 3

You place a third asset in service as follows:
• Cost = 4,000,000 won
• Salvage value = 400,000 won
• Depreciation limit = 1,000
Based on this information, the depreciable basis (4,000,000 – 400,000) is
3,600,000. The recoverable cost (4,000,000 – 1,000) is 3,999,000. The
annual depreciation amount (3,600,000/4) is 900,000.
The depreciation over the useful life of the asset is illustrated in the
following table:
Year Cost (Won)
Salvage
Value Deprn Basis
Annual
Deprn. NBV
1 4,000,000 400,000 3,600,000 900,000 3,100,000
2 4,000,000 400,000 3,600,000 900,000 2,200,000
3 4,000,000 400,000 3,600,000 900,000 1,300,000
4 4,000,000 400,000 3,600,000 900,000 400,000
When the asset has completed its useful life, you query the asset in the
Set Extended Life window. You enter the number of years to
depreciate the salvage value, for example, three years.
The depreciation over the extended life of the asset is illustrated in the
following table:
Year Cost (Won)
Salvage
Value Deprn Basis
Annual
Deprn. NBV
5 4,000,000 400,000 400,000 133,333 266,667
6 4,000,000 400,000 400,000 133,333 133,334
7 4,000,000 400,000 400,000 132,334 1,000

5 – 93
Depreciation
To set the extended life of an asset:
1. Navigate to the Set Extended Life window.
2. Query the asset for which you want to set the extended life by asset
number or description.
3. Navigate to the Books field.
A list of values window appears containing the books in which you
can set the extended life of the asset.
4. Select the applicable book.
5. Enter the number of years over which you want to depreciate the
salvage value.
6. Save your work.
Restrictions
You cannot perform the following transactions on an asset that is
beyond its normal useful life:
• Cost Adjustments
• Life Adjustments
• Salvage Value Adjustments
• Revaluations
• Prior Period Transfers
• Invoice Transfers
• Addition of a Mass Addition to an Existing Asset
• Date Placed In Service Change
• Prorate Convention Change
• Depreciation Method Change
• Invoice Adjustments
• Prior–Period Retirements

C H A P T E R
6
T
6 – 1
Accounting
Accounting
his chapter describes asset accounting in Oracle Assets. It
explains how to create journal entries, including an overview of the
Account Generator. In addition, this chapter provides an overview of
accounting in Oracle Assets, plus detailed journal entry examples for
each type of asset transaction.

Creating Journal Entries for the General Ledger
Oracle Assets creates journal entries for depreciation expense, asset
cost, and other accounts. Oracle Assets automatically creates
transaction journal entries for your general ledger, if you have set up
the journal entry category for that transaction type for that book.
Oracle Assets creates journal entries that summarize the activity for
each account for each transaction type.
Oracle Assets allows you to run the Create Journal Entries 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 period, you need to rerun
Depreciation, then you can rerun the Create Journal Entries program.
Oracle Assets also allows you to roll back journal entries in an open
depreciation period, as long as those journals have not already been
posted to General Ledger. After you make the necessary adjustments,
you run the Create Journal Entries program once again and post the
journals to General Ledger.
You cannot roll back individual journal entries. When you run the
Rollback Journal Entries program, all journals created thus far in the
current open depreciation period will be rolled back. These journals
will be reprocessed the next time you run the Create Journal Entries
program. If the Rollback Journal Entries program fails, for example, if
you have already posted journals to General Ledger, you can still
continue to process additional transactions. However, you will not be
able to re–run journal entries for that period until you have fixed the
error and run the Rollback Journal Entries program successfully.
You cannot run Rollback Journal Entries or rerun Create Journal Entries
for budget books.
Once you close the depreciation period, you can run the Create Journal
Entries program only once more. When the depreciation period is
closed, you cannot roll back Create Journal Entries, and therefore,
cannot run the program again.
Note: When you run the Rollback Depreciation process, it does
not automatically run the Rollback Journal Entries process.
Consequently, if you enter new transactions and rerun
Depreciation, the journals in Oracle Assets will not match the
journals in Oracle General Ledger. If you have already run
Create Journal Entries for the period, you must run Rollback
Journal Entries before you run Rollback Depreciation, even if
the Create Journal Entries process ended in error.

☞
6 – 3
Accounting
Prerequisite
❑ Run the depreciation program for your depreciation book for this
period. See Running Depreciation: page 5 – 2.
To create journal entries for the general ledger:
you can only run the Create Journal Entries program using the
standard Fixed Assets or MRC primary responsibility. You
cannot run this program using an MRC reporting
responsibility.
When you run the Create Journal Entries program using the
standard Fixed Assets or MRC primary responsibility, the
Attention: The general ledger period for which you want to create
journal entries must be open.
1. Choose Journal Entries Standard from the Navigator.
2. Enter the Book and the Period for which you want to create journal
entries in the Parameters window.
3. Choose Submit to submit a concurrent process to create journal
entries for your general ledger.
To roll back journal entries:
you can only run the Rollback Journal Entries program using
the standard Fixed Assets or MRC primary responsibility. You
cannot run this program using an MRC reporting
responsibility.
When you run the Rollback Journal Entries program using the
standard Fixed Assets or MRC primary responsibility, the
1. Choose Journal Entries Rollback Journal Entries from the
Navigator.
2. Enter the Book for which you want to roll back journal entries in
the Parameters window.

Note: The open period will be system–defaulted and cannot be
overridden.
3. Choose Submit to submit a concurrent process to roll back the
journal entries you created earlier.
See Also
Using the Account Generator to Generate Account Combinations: page
6 – 5

6 – 5
Accounting
Generating Account Combinations
There are two methods for generating accounting flexfield
combinations:
• Account Generator: page 6 – 5
• FA_CUSTOM_GEN_CCID_PKG Stub Package: page 6 – 5
Account Generator
Oracle Assets uses the Account Generator to generate accounting
flexfield combinations for which to create journal entries to your general
ledger. The Account Generator allows you to designate a specific source
for each segment in the account for which Oracle Assets creates a
journal entry. The Account Generator gives you the flexibility to create
journal entries according to your requirements. You can specify to what
detail to create journal entries, and you can specify the detail level for
each book and account type.
By default, Oracle Assets creates journal entries without cost center level
detail, except for depreciation expense. Using the default assignments,
it creates journal entries using the balancing segment from the
distribution line in the Assignments window and the account segment
from the asset category or book, depending on the account type. The
Account Generator gets the other segments from the default segment
values you entered for the book. You can modify the default Account
Generator process so that Oracle Assets creates journal entries to a
different detail level.
FA_CUSTOM_GEN_CCID_PKG Stub Package
Oracle Assets provides the FA_CUSTOM_GEN_CCID_PKG PL/SQL
stub package , which you can modify to generate code combinations.
The stub package calls the gen_ccid stub function. Oracle Assets returns
a value of either True or False.
• True: indicates a code combination was successfully generated
• False: indicates a code combination was not successfully
generated
If Oracle Assets returns a value of True, the function checks that the
returned ccid exists in GL_CODE_COMBINATIONS and is enabled.

The function will not check cross validation rules or the validity of
individual segment values that make up the code combinations, since
these validations are contained within the Account Generator workflow
process which is now being bypassed. If the function returns a value of
False, fafbgcc also returns a failure to the calling function which could
have been invoked during a transaction or by a concurrent program.
See Also
Using the Account Generator in Oracle Assets: page 9 – 27

6 – 7
Accounting
Asset Accounting
Creating journal entries is a two step process:
1. At the end of each accounting period, run the depreciation
program for each of your books. If you check the Close Period
check box on the Run Depreciation window, running the
depreciation program closes the current period and opens the next
period. If you do not check the check box, the period will remain
open after you run depreciation.
2. Run the Create Journal Entries program to create journal entries to
your general ledger.
• If the period is closed, you can run the Create Journal Entries
program only once for each period in each book for which you
allow posting to the general ledger.
• If the period is still open, you can run the Create Journal Entries
program multiple times before closing the period.
Journal Entries
The create journal entries process creates journal entries for the
appropriate general ledger set of books. You can review these journal
entries in the general ledger and post them.
Adjusting Journal Entries
Oracle Assets creates adjusting journal entries to depreciation expense,
bonus expense, accumulated depreciation accounts, and bonus reserve
accounts when you enter prior period additions, transfers, or
retirements:
• For a prior period addition, Oracle Assets creates journal entries
for the missed depreciation
• For a prior period transfer, Oracle Assets reverses a portion of
the depreciation expense posted to the ”from” depreciation
expense account and posts it to the ”to” depreciation expense
account
• For prior period retirements, Oracle Assets creates journal
entries that reverse the depreciation taken for periods after the
retirement prorate date

Depreciation Adjustments
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.
Any General Ledger
You can create journal entries for any general ledger. If you do not use
Oracle General Ledger, you can copy the journal entry information
from the GL tables.
Oracle Assets Accounts
Oracle Assets creates journal entries for the following general ledger
accounts:
• Accumulated Depreciation
• Asset Clearing
• Asset Cost
• Bonus Expense
• Bonus Reserve
• CIP Clearing
• CIP Cost
• Cost of Removal Gain, Loss, and Clearing
• Deferred Accumulated Depreciation
• Deferred Depreciation Expense
• Depreciation Adjustment
• Depreciation Expense
• Intercompany Payables
• Intercompany Receivables
• Net Book Value Retired Gain and Loss
• Proceeds of Sale Gain, Loss, and Clearing
• Revaluation Amortization
• Revaluation Reserve

☞
6 – 9
Accounting
• Revaluation Reserve Retired Gain and Loss
Debit (Dr.) A debit to the asset cost, asset clearing, bonus expense, CIP
cost, CIP clearing, depreciation expense, proceeds of sale clearing, or
intercompany receivables account is an addition to the account. A
debit to the accumulated depreciation, bonus reserve, cost of removal
clearing, or intercompany payables account is a subtraction from the
account. In the journal entry examples, debits are in the left column.
Credit (Cr.) A credit to the accumulated depreciation, bonus reserve,
cost of removal clearing, or intercompany payables account is an
addition to the account. A credit to the asset cost, asset clearing, bonus
expense, CIP cost, CIP clearing, depreciation expense, proceeds of sale
clearing, or intercompany receivables account is a subtraction from the
account. In the journal entry examples, credits are in the right column.
Reviewing Journal Entries
After sending journal entries from Oracle Assets to your general ledger,
you can review or modify journal entries in your general ledger before
posting them.
If you integrate Oracle Assets with Oracle General Ledger, use the
Enter Journals window in Oracle General Ledger to review, change or
correct your entries.
If you use a different general ledger, you can review or change entries
in that general ledger.
Journal Entry Examples
This guide contains examples of asset transactions you can perform
and the journal entries that Oracle Assets creates.
The journal entries are for the period that the asset transaction was
entered into Oracle Assets. Oracle Assets creates these journal entries
when you run the Create Journal Entries program.
The asset cost, accumulated depreciation, bonus reserve, and
year–to–date depreciation numbers in the following tables are end of
quarter balances. The depreciation expense numbers are per period.
Attention: In the following examples, if you have set up
specific bonus expense and bonus reserve accounts, they

behave like depreciation and accumulated depreciation
accounts. However, bonus expense and bonus reserve are
treated separately in certain cases.
Journal Entry Transaction Examples:
• Depreciation: page 6 – 11
• Additions and Capitalizations: page 6 – 12
• Adjustments: page 6 – 16
• Transfers and Reclassifications: page 6 – 32
• Revaluations: page 6 – 47
• Retirements and Reinstatements: page 6 – 39
• Tax Accumulated Depreciation Adjustments: page 6 – 63
See Also
Entering Journals (Oracle General Ledger User Guide)
6 – 5

6 – 11
Accounting
Journal Entries for Depreciation
When you run depreciation, Oracle Assets creates journal entries for
your accumulated depreciation accounts and your depreciation
expense accounts. Oracle Assets creates journal entries for your bonus
reserve accounts and your bonus depreciation accounts, if any. Oracle
Assets creates separate journal entries for current period depreciation
expense and for adjustments to depreciation expense for prior period
transactions and changes to financial information.
Oracle Assets creates the following journal entries for a current period
depreciation charge of $200 and a bonus charge of $50:
Dr. Depreciation Expense 200.00
Dr. Bonus Expense 50.00
Cr. Accumulated Depreciation 200.00
Cr. Bonus Reserve 50.00
Oracle Assets
See Also

Journal Entries for Additions and Capitalizations
For manual additions, Oracle Assets gets the clearing account from the
category. For mass additions, the clearing account comes from your
source system.
Example: The recoverable cost is $4,000 and the method is
straight–line 4 years.
Current and Prior Period Addition
You purchase and place the asset into service in Year 1, Quarter 1.
Payables System
Dr. Asset Clearing 4,000.00
Cr. Accounts Payable Liability 4,000.00
Oracle Assets – CURRENT PERIOD ADDITION
Dr. Asset Cost 4,000.00
Cr. Asset Clearing 4,000.00
Cr. Accumulated Depreciaiton 250.00
You place an asset in service in Year 1, Quarter 1, but you do not enter
it into Oracle Assets until Year 2, Quarter 2. Your payables system
creates the same journal entries to asset clearing and accounts payable
liability as for a current period addition.
Oracle Assets – PRIOR PERIOD ADDITION
Dr. Depreciation Expense (Adjustment) 1,250.00
Cr. Accumulated Depreciaiton 1,500.00
When you merge two mass additions, Oracle Assets adds the asset cost
of the mass addition that you are merging to the asset account of the
mass addition you are merging into. Oracle Assets records the merge

6 – 13
Accounting
when you perform the transaction. Oracle Assets does not change the
asset clearing account journal entries it creates for each line, so each of
the appropriate clearing accounts clears separately.
As an audit trail after the merge, the original cost of the invoice line
remains on each line. When you create an asset from the merged line,
the asset cost is the total merged cost.
Oracle Assets creates journal entries for the asset cost account for the
mass addition into which the others were merged. Oracle Assets
creates journal entries for each asset clearing account. For example,
you merge mass addition #1 into mass addition #2, so Oracle Assets
creates the following journal entries:
Payables System
(mass addition #2 asset cost account)
(mass addition #1 accounts payable
clearing account)
(mass addition #2 accounts payable
clearing account)
Cr. Accumulated Depreciaiton 1,500.00
Construction–In–Process (CIP) Addition
You add a CIP asset. (CIP assets do not depreciate)
Dr. CIP Cost 4,000.00
Cr. CIP Clearing 4,000.00
Deleted Mass Additions
Oracle Assets creates no journal entries for deleted mass additions and
does not clear the asset clearing accounts credited by accounts payable.
You clear the accounts by either reversing the invoice in your payables
system, or creating manual journal entries in your general ledger.

Capitalization
A capitalization transaction is similar to an addition transaction: you
place the asset in service so you can begin depreciating it. When you
capitalize an asset in the period you added it, Oracle Assets creates the
following journal entries:
Cr. CIP Clearing 4,000.00
When you capitalize an asset in a period after the period you added it,
Oracle Assets creates journal entries that transfer the cost from the CIP
cost account to the asset cost account. The clearing account has already
been cleared.
Cr. CIP Cost 4,000.00
Asset Type Adjustments
If you change the asset type from capitalized to CIP, Oracle Assets
creates journal entries to debit the CIP cost account and credit the asset
clearing account. Oracle Assets does not create capitalization or
reverse capitalization journal entries for CIP reverse transactions.

6 – 15
Accounting
See Also
Construction–In–Process (CIP) Assets: page 2 – 16
Cost Adjustment by Adding a Mass Addition to an Existing Asset:
page 6 – 25
Placing Construction–In–Process (CIP) Assets in Service: page 3 – 27

Journal Entries for Adjustments
Refer to the following sections for examples of different types of
adjustments:
Recoverable Cost Adjustments: page 6 – 18
Depreciation Method Adjustments: page 6 – 27
Life Adjustments: page 6 – 28
Rate Adjustments – Flat–Rate Depreciation Method: page 6 – 29
Rate Adjustments – Diminishing Value Depreciation Method: page
6 – 29
Capacity Adjustments: page 6 – 31
Amortized and Expensed Adjustments
In the period you add an asset or for CIP assets, changing financial
information does not adjust depreciation, since no depreciation has
been taken. If you change financial information after you have run
depreciation, you must choose whether to expense or amortize the
adjustment:
Expensed Adjustment
For expensed adjustments, Oracle Assets recalculates depreciation
using the new information and expenses the entire adjustment amount
in the current period. Expensing the adjustment results in a one–time
adjusting journal entry.
Amortized Adjustment
For amortized adjustments, Oracle Assets spreads the adjustment
amount over the remaining life or remaining capacity of the asset. For
flat–rate methods, Oracle Assets starts depreciating the asset using the
new information. You can set up your amortized adjustments to have a
retroactive start date by changing the default amortization start date
(usually the system date) to a date in a previous period. Any
adjustment amount missed since the amortization start date is taken in
the current period.

6 – 17
Accounting
If you amortize an adjustment for an asset, you cannot expense any
future adjustments for that asset in that book.
You can allow an amortized adjustment for the book in the Book
Controls window.
• Method Adjustments: For amortized method changes, Oracle
Assets does not recalculate accumulated depreciation, but uses
the new information for the remaining time the asset is in
service.
– For table and calculated methods, Oracle Assets depreciates
the cost less the accumulated depreciation over the
remaining life of the asset.
– For diminishing value methods, Oracle Assets calculates
depreciation based on the recoverable net book value of the
asset as of the period you make the change.
– If, instead, your depreciation method multiplies the flat–rate
by the cost, Oracle Assets begins using the new information
to calculate depreciation.
• Bonus Adjustments:
– For assets with a cost–based depreciation basis, the bonus
rate is applied to the cost.
– For assets with a net book value depreciation method basis,
the bonus rate is applied to the cost less total reserve
(accumulated depreciation and bonus reserve).
See Also

Recoverable Cost Adjustments
A cost adjustment includes any adjustment that affects the recoverable
cost, including a change in cost, salvage value, depreciation, and cost,
depreciation expense, ITC ceilings, or bonus rules. You can manually
perform a cost adjustment in the Books window or in the Source Lines
window. You can automatically perform a cost adjustment by adding a
mass addition to an existing asset using Mass Additions.
You can choose to expense or amortize the adjustment. See:
Cost Adjustment Examples
This section illustrates the following types of cost adjustments:
• Cost Adjustments to Assets Using a Life–Based Depreciation
Method: page 6 – 19
• Cost Adjustments to Assets Using a Flat–Rate Depreciation
Method: page 6 – 20
• Cost Adjustments to Assets Using a Diminishing Value
Depreciation Method: page 6 – 21
• Cost Adjustments to Assets Depreciating Under a Units of
Production Depreciation Method: page 6 – 22
• Cost Adjustments to Capitalized and CIP Source Lines: page
6 – 23
• Cost Adjustment by Adding a Mass Addition to an Existing
Asset: page 6 – 25

6 – 19
Accounting
Cost Adjustments to Assets Using a Life–Based Depreciation Method
Example: You place an asset in service in Year 1, Quarter 1. The
recoverable cost is $4,000. The life of your asset is 4 years, and you are
using straight–line depreciation. The bonus rate is 10%. In Year 1,
Quarter 4, you receive an additional invoice for the asset and change
the recoverable cost to $4,800.
Dr. Asset Clearing 800.00
Cr. Accounts Payable Liability 800.00
Payables System
Dr. Asset Cost 800.00
Cr. Asset Clearing 800.00
Oracle Assets
Expensed
Dr. Depreciation Expense
(adjustment)
150.00
Dr. Bonus Expense (adjustment) 60.00
Oracle Assets – EXPENSED
Amortized
Oracle Assets – AMORTIZED

Cost Adjustments to Assets Using a Flat–Rate Depreciation Method
recoverable cost is $4,000. You are depreciating the asset cost at a 20%
flat–rate. The bonus rate is 10%. In Year 1, Quarter 4, you change the
recoverable cost to $4,800.
Payables System
Oracle Assets
Expensed
(adjustment)
120.00
Amortized

6 – 21
Accounting
Cost Adjustments to Assets Using a Diminishing Value Depreciation Method
recoverable cost is $4,000. You are using a 20% flat–rate that you apply
to the beginning of year net book value. The bonus rate is 10%. In Year
2, Quarter 1, you change the recoverable cost to $4,800.
Payables System
Oracle Assets
Expensed
(adjustment)
160.00
Amortized

Cost Adjustments to Assets Depreciating Under a Units of Production Method
Example: You purchase an oil well for $10,000. You expect to extract
10,000 barrels of oil from this well. Each quarter you extract 2,000
barrels of oil. In Year 1, Quarter 3, you realize that you entered the
wrong asset cost. You adjust the recoverable cost to $15,000.
Dr. Asset Clearing 5,000.00
Payables System
Oracle Assets
Expensed
Dr. Depreciation Expense 3,000.00
(adjustment)
2,000.00
Cr. Accumulated Depreciation 5,000.00
Amortized
Dr. Depreciation Expense 3,666.67

6 – 23
Accounting
Cost Adjustments to Capitalized and CIP Source Lines
When you transfer source lines you adjust the recoverable cost of an
asset. Depreciation is calculated based on the asset type.
Transfer Source Lines Between Capitalized Assets
Oracle Assets creates the following journal entries for a source line
transfer between capitalized assets.
Dr. Asset Cost
(from destination asset
category)
400.00
Cr. Asset Cost
(from source asset category)
400.00
Oracle Assets – TRANSFER LINE FROM SOURCE ASSET TO DESTINATION
ASSET
Dr. Accumulated Depreciation
70.00
Cr. Depreciation Expense 70.00
Oracle Assets – ADJUST DEPRECIATION ON SOURCE ASSET
(adjustment)
70.00
Cr. Accumulated Depreciation
(from destination asset category)
125.00
Oracle Assets – ADJUST DEPRECIATION ON DESTINATION ASSET
Transfer Source Lines From Capitalized Assets to CIP Assets
When you transfer source lines from capitalized to CIP assets, Oracle
Assets must back out some of the depreciation from the capitalized
asset, because CIP assets do not depreciate.
transfer between capitalized assets and CIP assets:
Dr. CIP Asset Cost
category)
400.00
Cr. Asset Cost
400.00
ASSET

Dr. Accumulated Depreciation
70.00
Oracle Assets – ADJUST DEPRECIATION ON SOURCE ASSET
Transfer Source Lines from CIP Assets to Capitalized Assets
When you transfer source lines from CIP to capitalized assets, Oracle
Assets takes catchup depreciation as for any cost adjustment
transaction.
transfer between CIP assets and capitalized assets:
Dr. Asset Cost
category)
400.00
Cr. CIP Asset Cost
400.00
ASSET
125.00
Cr. Accumulated Depreciation Ex-
pense (from destination asset
category)
125.00
Oracle Assets – ADJUST DEPRECIATION ON DESTINATION ASSET
Transfer Source Lines Between CIP Assets
Oracle Assets does not need to reverse depreciation expense when you
transfer invoice lines between CIP assets Because CIP assets do not
depreciate.
transfer between CIP assets:
Dr. CIP Asset Cost
category)
400.00
Cr. CIP Asset Cost
400.00
ASSET

6 – 25
Accounting
Cost Adjustment by Adding a Mass Addition to an Existing Asset
If you add a mass addition to an asset, Oracle Assets creates a journal
entry to the asset cost account of the existing asset. Oracle Assets also
credits the clearing account you assigned to the invoice distribution
line in accounts payable to net it to zero.
If you want the existing asset to assume the asset category and
description of the mass addition, Oracle Assets creates a journal entry
for the new total asset cost to the asset cost account of the mass
addition’s category. It also creates journal entries for the clearing
account you assigned to the invoice line in accounts payable, and for
the clearing or cost account of the original addition category.
Oracle Assets creates the following journal entries for a capitalized
$2,000 mass addition added to a new, manually added $500 asset,
where the asset uses the category of the mass addition:
Dr. Asset Cost
(from asset category of mass
addition)
2,500.00
Cr. Asset Clearing
(from original asset category)
500.00
Cr. Asset Clearing
(from accounts payable)
2,000.00
Oracle Assets – ADD MASS ADDITION TO AN EXISTING ASSET
See Also
Changing Invoice Information for an Asset: page 3 – 20

Amortized Adjustments Using a Retroactive Start Date
recoverable cost is $4,000. The life of your asset is four years, and you
are using straight–line depreciation. In Year 2, Quarter 2, you receive
an additional invoice for the asset and change the recoverable cost to
$4,800. Since, the invoice date is in Year 1, Quarter 4, you want to
amortize the change from that period.
Payables System
Oracle Assets
(adjustment)
123.06
Oracle Assets – Year 2, Quarter 2
Oracle Assets – Subsequent Periods

6 – 27
Accounting
Depreciation Method Adjustments
recoverable cost is $4,000, the life is 4 years, and you are using the 200
declining balance depreciation method. In Year 2, Quarter 1, you
change the depreciation method to straight–line.
Expensed
Dr. Accumulated Depreciation 750.00
Cr. Depreciation Expense
(adjustment)
1,000.00
Amortized
See Also

Life Adjustments
Example: You place an asset in service in Year 1, Quarter 1. The asset
cost is $4,000, the life is 4 years, and you are using straight–line
depreciation. In Year 2, Quarter 2, you change the asset life to 5 years.
Expensed
(adjustment)
250.00
Amortized
See Also

6 – 29
Accounting
Rate Adjustments
Rate Adjustments – Flat–Rate Depreciation Method
recoverable cost is $4,000 and you are depreciating the asset cost at a
20% flat–rate. In Year 2, Quarter 3, you change the flat–rate to 25%.
Expensed
(adjustment)
300.00
Amortized
Rate Adjustments – Diminishing Value Depreciation Method
recoverable cost is $4,000 and you are using a 20% flat–rate that you
apply to the beginning of year net book value. In Year 2, Quarter 3, you
change the flat–rate to 25%.
Expensed
(adjustment)
255.00

Amortized
See Also

6 – 31
Accounting
Capacity Adjustments
Example: You purchase an oil well for $10,000. You expect to extract
10,000 barrels of oil from this well. Each quarter you extract 2,000
barrels of oil. In Year 1, Quarter 4 you discover that you entered the
wrong capacity. You increase the production capacity to 50,000 barrels.
Expensed
Dr. Accumulated Depreciation 4,400.00
(adjustment)
4,800.00
Amortized
See Also

Journal Entries for Transfers and Reclassifications
recoverable cost is $4,000, the life is 4 years, and you are using
straight–line depreciation.
This section illustrates the following journal entry examples:
• Current Period Transfer Between Cost Centers: page 6 – 32
• Prior Period Transfer Between Cost Centers: page 6 – 33
• Current Period Transfer Between Balancing Segments: page
6 – 34
• Prior Period Transfer Between Balancing Segments: page 6 – 34
• Unit Adjustment: page 6 – 36
• Reclassification: page 6 – 37
Current Period Transfer Between Cost Centers
In Year 2, Quarter 2, you transfer the asset from cost center 100 to cost
center 200 in the current period.
Cost Center 100
Cr. Asset Cost 4,000.00
Oracle Assets – TRANSFER ASSET / CHARGE DEPRECIATION
Cost Center 200
Oracle Assets – TRANSFER ASSET / CHARGE DEPRECIATION

6 – 33
Accounting
Prior Period Transfer Between Cost Centers
In Year 3, Quarter 4, you discover that an asset was transferred in Year
3, Quarter 3, from cost center 100 to cost center 200.
Cost Center 100
Period
(Yr.,Qtr.)
Asset
Cost
Accumulated
Depreciation
Yr–to–Date
Depreciation
Depreciation
Expense
Y3,Q1 4,000.00 2,250.00 250.00 250.00
Y3,Q2 4,000.00 2,500.00 500.00 250.00
Y3,Q3 4,000.00 2,750.00 750.00 250.00
Y3,Q4 0.00 0.00 500.00 –250.00*
Cost Center 200
Period
(Yr.,Qtr.)
Asset
Cost
Accumulated
Depreciation
Yr–to–Date
Depreciation
Depreciation
Expense
Y3,Q1 0.00 0.00 0.00 0.00
Y3,Q2 0.00 0.00 0.00 0.00
Y3,Q3 0.00 0.00 0.00 0.00
Y3,Q4 4,000.00 3,000.00 500.00 500.00*
Cost Center 100
(adjustment)
250.00
Oracle Assets – TRANSFER ASSET / ADJUST AND CHARGE DEPRECIATION
Cost Center 200

(adjustment)
250.00
Oracle Assets – TRANSFER ASSET / ADJUST AND CHARGE DEPRECIATION
Current Period Transfer Between Balancing Segments
In Year 3, Quarter 4, you transfer the asset from the ABC
Manufacturing Company to the XYZ Distribution Company.
ABC Manufacturing
Dr. Intercompany Receivables 1,250.00
Oracle Assets – TRANSFER ASSET
XYZ Distribution
Cr. Intercompany Payables 1,250.00
Oracle Assets – TRANSFER ASSET
Prior Period Transfer Between Balancing Segments
In Year 3, Quarter 4, you discover that the asset was transferred in Year
3, Quarter 3, from the ABC Manufacturing Company to the XYZ
Distribution Company.

6 – 35
Accounting
ABC Manufacturing
Period
(Yr.,Qtr.)
Asset
Cost
Accumulated
Depreciation
Yr–to–Date
Depreciation
Depreciation
Expense
Y3,Q1 4,000.00 2,250.00 250.00 250.00
Y3,Q2 4,000.00 2,500.00 500.00 250.00
Y3,Q3 4,000.00 2,750.00 750.00 250.00
Y3,Q4 0.00 0.00 500.00 –250.00*
XYZ Distribution
Period
(Yr.,Qtr.)
Asset
Cost
Accumulated
Depreciation
Yr–to–Date
Depreciation
Depreciation
Expense
Y3,Q1 0.00 0.00 0.00 0.00
Y3,Q2 0.00 0.00 0.00 0.00
Y3,Q3 0.00 0.00 0.00 0.00
Y3,Q4 4,000.00 3,000.00 500.00 500.00*
ABC Manufacturing
Dr. Intercompany Receivables 1,500.00
(adjustment)
250.00
Oracle Assets – ADJUST AND CHARGE DEPRECIATION
XYZ Distribution

(adjustment)
250.00
Cr. Intercompany Payables 1,500.00
Oracle Assets – ADJUST AND CHARGE DEPRECIATION
Unit Adjustment
A unit adjustment is similar to a transfer, since you must update
assignment information when you change the number of units for an
asset. For example, you place the same $4,000 asset in service with two
units assigned to cost center 100. In Year 2, Quarter 3, you realize the
asset actually has four units, two of which belong to cost center 200.
Cost Center 100
Oracle Assets – ADJUST UNITS

6 – 37
Accounting
Cost Center 200
Oracle Assets – ADJUST UNITS
Note: If all units remain in the original cost center, Oracle
Assets creates journal entries with zero amounts.
Reclassification
Example: You reclassify an asset from office equipment to computers in
Year 1, Quarter 3. The asset cost is $4,000, the life is 4 years, and you
are using straight–line depreciation.
When you reclassify an asset in a period after the period you entered it,
Oracle Assets creates journal entries to transfer the cost and
accumulated depreciation to the asset and accumulated depreciation
accounts of the new asset category. This occurs when you create
journal entries for your general ledger. Oracle Assets also changes the
depreciation expense account to the default depreciation expense
account for the new category, but does not adjust for prior period
expense.
Office Equipment
Period
(Yr.,
Qtr.)
Asset
Cost
Accumulated
Depreciation
Yr–to–Date
Depreciation
Depreciation
Expense
Yr1,Q1 4,000.00 250.00 250.00 250.00
Yr1,Q2 4,000.00 500.00 500.00 250.00
Yr1,Q3 0.00 0.00 500.00 0.00*
Yr1,Q4 0.00 0.00 500.00 0.00

Computers
Period
(Yr.,Qtr.)
Asset
Cost
Accumulated
Depreciation
Yr–to–Date
Depreciation
Depreciation
Expense
Yr1,Q1 0.00 0.00 0.00 0.00
Yr1,Q2 0.00 0.00 0.00 0.00
Yr1,Q3 4,000.00 750.00 250.00 250.00*
Yr1,Q4 4,000.00 1,000.00 500.00 250.00
Office Equipment
Oracle Assets – TRANSFER COST AND ACCUMULATED DEPRECIATION
Computers
Oracle Assets – TRANSFER COST AND ACCUMULATED DEPRECIATION
See Also
Reclassifying an Asset to Another Category: page 3 – 2

6 – 39
Accounting
Journal Entries for Retirements and Reinstatements
When you retire an asset and create journal entries for that period,
Oracle Assets creates journal entries for your general ledger for each
component of the gain/loss amount. Oracle Assets creates journal
entries for either the gain or the loss accounts for the following
components: proceeds of sale, cost of removal, net book value retired,
and revaluation reserve retired. Oracle Assets also creates journal
entries to clear the proceeds of sale and cost of removal.
Oracle Assets creates journal entries for the retirement accounts you set
up in the Book Controls window. If you enter distinct gain and loss
accounts for each component of the gain/loss amount, Oracle Assets
creates multiple journal entries for these accounts. You can enter
different sets of retirement accounts for retirements that result in a gain
and retirements that result in a loss.
Depreciation for Retirements
The retirement convention, date retired, and depreciation method
control how much depreciation Oracle Assets takes when you retire an
asset.
Oracle Assets reverses the year–to–date depreciation if the asset’s
depreciation method does not depreciate it in the year of retirement. In
this case, when you perform a full retirement, Oracle Assets reverses
the year–to–date depreciation of the asset, and computes the gain or
loss using the resulting net book value. For partial retirements, Oracle
Assets reverses the appropriate fraction of the year–to–date
depreciation and computes the gain or loss using the appropriate
fraction of the resulting net book value.
If the depreciation method takes depreciation in the year of retirement,
Oracle Assets uses your retirement convention to determine whether
the asset is eligible for additional depreciation in that year or whether
some of that year’s depreciation must be reversed.
When you perform a partial retirement, Oracle Assets depreciates the
portion of the asset you did not retire based on the method you use. If
your depreciation method multiplies a flat–rate by the cost, Oracle
Assets depreciates the asset’s cost remaining after a partial retirement.
For assets that use a diminishing value method, Oracle Assets
depreciates the remaining fraction of the asset’s net book value as of
the beginning of the fiscal year.

Depreciation for Reinstatements
The retirement convention, date retired, and period in which you
reinstate an asset control how much depreciation Oracle Assets
calculates when you reinstate an asset.
When you reinstate a retired asset, Oracle Assets usually calculates
some additional depreciation expense in the period in which you
perform the reinstatement, unless you perform it in the same period
that you retired the asset. This additional depreciation is the
depreciation that would have been taken if you had not retired the
asset.
Sometimes, however, a reinstatement results in a reversal of
depreciation. This occurs if the retirement convention caused some
additional depreciation when you retired the asset, and then you
reinstate the asset before the retirement prorate date. Then Oracle
Assets reverses the extra depreciation that it took at retirement, and
waits until the appropriate accounting periods to take it.

6 – 41
Accounting
Current Period Retirements
depreciation. In Year 3, Quarter 3, you sell the asset for $2,000. The cost
to remove the asset is $500. The asset uses a retirement convention and
depreciation method which take depreciation in the period of
retirement. You retire revaluation reserve in this book.
Dr. Accounts Receivable 2,000.00
Cr. Proceeds of Sale Clearing 2,000.00
Receivables System
Dr. Cost of Removal Clearing 500.00
Cr. Accounts Payable 500.00
Payables System
Dr. Proceeds of Sale Clearing 2,000.00
Dr. Cost of Removal Gain 500.00
Dr. Revaluation Reserve 600.00
Dr. Net Book Value Retired Gain 1,500.00
Cr. Proceeds of Sale Gain 2,000.00
Cr. Cost of Removal Clearing 500.00
Cr. Revaluation Reserve Retired Gain 600.00
Oracle Assets – MULTIPLE GAIN/LOSS ACCOUNTS

If you enter the same account for each gain and loss account, Oracle
Assets creates a single journal entry for the net gain or loss as shown in
Book Controls window:
Accounts Gain Loss
Proceeds of Sale 1000 1000
Cost of Removal 1000 1000
Net Book Value Retired 1000 1000
Revaluation Reserve Retired 1000 1000
Cr. Gain/Loss 600.00
Oracle Assets – SINGLE GAIN/LOSS ACCOUNT

6 – 43
Accounting
Prior Period Retirement
depreciation. In Year 3, Quarter 3, you discover that the asset was sold
in Year 3, Quarter 1, for $2,000. The removal cost was $500. The asset
uses a retirement convention and depreciation method which allow
you to take depreciation in the period of retirement.
Dr. Accounts Receivable 2,000.00
Receivables System
Cr. Accounts Payable 500.00
Payables System
Dr. Cost of Removal Loss 500.00
Dr. Net Book Value Retired Loss 1,750.00
Cr. Proceeds of Sale Loss 2,000.00
Oracle Assets

Current Period Reinstatement
Example: You discover that you retired the wrong asset. Oracle Assets
creates journal entries for the reinstatement to debit asset cost, credit
accumulated depreciation, and reverse the gain or loss you recognized
for the retirement. Oracle Assets reverses the journal entries for
proceeds of sale, cost of removal, net book value retired, and
revaluation reserve retired. Oracle Assets also reverses the journal
entries you made to clear the proceeds of sale and cost of removal.
Oracle Assets also creates journal entries to recover the depreciation
not charged to the asset and for the current period depreciation
expense.
Dr. Gain / Loss 600.00
Cr. Revaluation Reserve 600.00
Oracle Assets

6 – 45
Accounting
Prior Period Reinstatement
depreciation. In Year 2, Quarter 1, you retire the asset. In Year 2,
Quarter 4, you realize that you retired the wrong asset so you reinstate
it.
Dr. Proceeds of Sale Loss 2,000.00
(adjustment)
500.00
Cr. Net Book Value Retired Loss 2,750.00
Cr. Cost of Removal Loss 500.00
Oracle Assets

Assets Fully Reserved Upon Addition
If you add an asset with an accumulated depreciation equal to the
recoverable cost, it is fully reserved upon addition. When you retire it,
Oracle Assets does not back out any depreciation, even if you assigned
the asset a depreciation method that backs out all depreciation in the
year of retirement. However, it creates all the other journal entries
associated with retiring a capitalized asset.
Non–Depreciated Capitalized/Construction–In–Process (CIP) Assets
A non–depreciated capitalized asset or a CIP asset has no accumulated
depreciation. Therefore, Oracle Assets does not create journal entries
to catch up depreciation to the retirement prorate date, and does not
remove the accumulated depreciation. However, Oracle Assets creates
all other journal entries associated with retiring a capitalized asset.
Reinstatement Transactions
PENDING Asset Retirement
When you reinstate an asset retired in the current accounting period
that the calculate gains and losses program has not yet processed, the
retirement transaction is deleted, and the asset is immediately
reinstated. No journal entries are created.
PROCESSED Asset Retirement
When you reinstate an asset retired in a previous accounting period or
already processed in the current period, the existing retirement
transaction gets a new Status REINSTATE, and the asset is reinstated
when you process retirements. Oracle Assets creates journal entries to
catch up any missed depreciation expense.
See Also

6 – 47
Accounting
Journal Entries for Revaluations
The following examples illustrate the effect on your assets and your
accounts when you specify different revaluation rules.
Revalue Accumulated Depreciation
Example 1: You place an asset in service in Year 1, Quarter 1. The asset
depreciation.
In Year 2, Quarter 1 you revalue the asset using a revaluation rate of
5%. Then in Year 4, Quarter 1 you revalue the asset again using a
revaluation rate of –10%.
Revaluation Rules:
• Revalue Accumulated Depreciation = Yes
• Amortize Revaluation Reserve = No
• Retire Revaluation Reserve = No
Oracle Assets bases the new depreciation expense on the revalued
remaining net book value.
In Year 5, Quarter 4, at the end of the asset’s life, you retire the asset
with no proceeds of sale or cost of removal.

The effects of the revaluations are illustrated in the following table:
Period
(Yr, Qtr.)
Asset
Cost
Deprn.
Expense
Accum.
Deprn.
Reval.
Reserve
Yr1,Q1 10,000.00 500.00 500.00 0.00
Yr1,Q2 10,000.00 500.00 1,000.00 0.00
Yr1,Q3 10,000.00 500.00 1,500.00 0.00
Yr1,Q4 10,000.00 500.00 2,000.00 0.00
Reval. 1
5%
10,500.00 0.00 *2,100.00 **400.00
Yr2,Q1 10,500.00 525.00 2,625.00 400.00
Yr2,Q2 10,500.00 525.00 3,150.00 400.00
Yr2,Q3 10,500.00 525.00 3,675.00 400.00
Yr2,Q4 10,500.00 525.00 4,200.00 400.00
Yr3,Q1 10,500.00 525.00 4,725.00 400.00
Yr3,Q2 10,500.00 525.00 5,250.00 400.00
Yr3,Q3 10,500.00 525.00 5,775.00 400.00
Yr3,Q4 10,500.00 525.00 6,300.00 400.00
Reval. 2
–10%
9,450.00 0.00 *5,670.00 **–20.00
Yr4,Q1 9,450.00 472.50 6,142.50 –20.00
Yr4,Q2 9,450.00 472.50 6,615.00 –20.00
Yr4,Q3 9,450.00 472.50 7,087.50 –20.00
Yr4,Q4 9,450.00 472.50 7,560.00 –20.00
Yr5,Q1 9,450.00 472.50 8,032.50 –20.00
Yr5,Q2 9,450.00 472.50 8,505.00 –20.00
Yr5,Q3 9,450.00 472.50 8,977.50 –20.00
Yr5,Q4 9,450.00 472.50 9,450.00 –20.00
Retire 0.00 0.00 0.00 –20.00

6 – 49
Accounting
REVALUATION 1
Year 2, Quarter 1, 5% revaluation
*Accumulated Depreciation =
Existing Accumulated Depreciation +
[Existing Accumulated Depreciation x (Revaluation Rate / 100)]
2,000 + [2,000 X (5/100)] = 2,100
**Revaluation Reserve =
Existing Revaluation Reserve + Change in Net Book Value
0 + (8,400 – 8,000) = 400
Cr. Revaluation Reserve 400.00
Oracle Assets – REVALUATION
REVALUATION 2
–10% revaluation in Year 4, Quarter 1:
Retirement in Year 5, Quarter 4:
Oracle Assets – RETIREMENT

Accumulated Depreciation Not Revalued
depreciation.
In Year 2, Quarter 1 you revalue the asset using a revaluation rate of
5%. Then in Year 4, Quarter 1 you revalue the asset again using a
revaluation rate of –10%.
Revaluation Rules:
• Revalue Accumulated Depreciation = No
• Retire Revaluation Reserve = Yes
For the first revaluation, the asset’s new revalued cost is $10,500. Since
you do not revalue the accumulated depreciation, Oracle Assets
transfers the balance to the revaluation reserve in addition to the
change in cost.
Since you are also not amortizing the revaluation reserve, this amount
remains in the revaluation reserve account until you retire the asset,
when Oracle Assets transfers it to the appropriate revaluation reserve
retired account. Oracle Assets bases the new depreciation expense on
the revalued net book value.
For the second revaluation, the asset’s revalued cost is $9,450. Again,
since you do not revalue the accumulated depreciation, Oracle Assets
transfers the balance to the revaluation reserve along with the change
in cost.
You retire the asset in Year 5, Quarter 4, with no proceeds of sale or cost
of removal.

6 – 51
Accounting
Period
(Yr, Qtr.)
Asset
Cost
Deprn.
Expense
Accum.
Deprn.
Reval.
Reserve
Yr1,Q1 10,000.00 500.00 500.00 0.00
Yr1,Q2 10,000.00 500.00 1,000.00 0.00
Yr1,Q3 10,000.00 500.00 1,500.00 0.00
Yr1,Q4 10,000.00 500.00 2,000.00 0.00
Reval. 1
5%
10,500.00 0.00 0.00 *2,500.00
Yr2,Q1 10,500.00 **656.25 6,56.25 2,500.00
Yr2,Q2 10,500.00 656.25 1,312.50 2,500.00
Yr2,Q3 10,500.00 656.25 1,968.75 2,500.00
Yr2,Q4 10,500.00 656.25 2,625.00 2,500.00
Yr3,Q1 10,500.00 656.25 3,281.25 2,500.00
Yr3,Q2 10,500.00 656.25 3,937.50 2,500.00
Yr3,Q3 10,500.00 656.25 4,593.75 2,500.00
Yr3,Q4 10,500.00 656.25 5,250.00 2,500.00
Reval. 2
–10%
9,450.00 0.00 0.00 *6,700.00
Yr4,Q1 9,450.00 **1,181.25 1,181.25 6,700.00
Yr4,Q2 9,450.00 1,181.25 2,362.50 6,700.00
Yr4,Q3 9,450.00 1,181.25 3,543.75 6,700.00
Yr4,Q4 9,450.00 1,181.25 4,725.00 6,700.00
Yr5,Q1 9,450.00 1,181.25 5,906.25 6,700.00
Yr5,Q2 9,450.00 1,181.25 7,087.50 6,700.00
Yr5,Q3 9,450.00 1,181.25 8,268.75 6,700.00
Yr5,Q4 9,450.00 1,181.25 9,450.00 6,700.00

REVALUATION 1
5% revaluation in Year 2, Quarter 1:
Cr. Revaluation Reserve 2,500.00
REVALUATION 2
–10% revaluation in Year 4, Quarter 1:
Retirement in Year 5, Quarter 4:
Dr. Revaluation Reserve 6,700.00
Cr. Revaluation Reserve Retired Gain 6,700.00

6 – 53
Accounting
Amortizing Revaluation Reserve
depreciation.
In Year 2, Quarter 1 you revalue the asset using a rate of 5%. Then in
Year 4, Quarter 1 you revalue the asset again using a rate of –10%.
Revaluation Rules:
• Amortize Revaluation Reserve = Yes
For the first revaluation, the asset’s new revalued cost is $10,500. Since
you do not revalue the accumulated depreciation, Oracle Assets
transfers the entire amount to the revaluation reserve. Since you are
amortizing the revaluation reserve, Oracle Assets calculates the
revaluation amortization amount for each period using the asset’s
depreciation method. Oracle Assets also bases the new depreciation
expense on the revalued net book value.
For the second revaluation, the asset’s revalued cost is $9,450. Again,
since you do not revalue the accumulated depreciation, Oracle Assets
transfers the entire amount to the revaluation reserve.

Period
(Yr,Qtr.)
Asset
Cost
Deprn.
Expense
Accum.
Deprn.
Reval.
Amortize
Reval.
Reserve
Yr1,Q1 10,000.00 500.00 500.00 0.00 0.00
Yr1,Q2 10,000.00 500.00 1,000.00 0.00 0.00
Yr1,Q3 10,000.00 500.00 1,500.00 0.00 0.00
Yr1,Q4 10,000.00 500.00 2,000.00 0.00 0.00
Reval. 1
5%
10,500.00 0.00 0.00 0.00 *2,500.00
Yr2,Q1 10,500.00 **656.25 656.25 ***156.25 2,343.75
Yr2,Q2 10,500.00 656.25 1,312.50 156.25 2,187.50
Yr2,Q3 10,500.00 656.25 1,968.75 156.25 2,031.25
Yr2,Q4 10,500.00 656.25 2,625.00 156.25 1,875.00
Yr3,Q1 10,500.00 656.25 3,281.25 156.25 1,718.75
Yr3,Q2 10,500.00 656.25 3,937.50 156.25 1,562.50
Yr3,Q3 10,500.00 656.25 4,593.75 156.25 1,406.25
Yr3,Q4 10,500.00 656.25 5,250.00 156.25 1,250.00
Reval. 2
–10%
9,450.00 0.00 0.00 0.00 *5,450.00
Yr4,Q1 9,450.00 **1,181.25 1,181.25 ***681.25 4,768.75
Yr4,Q2 9,450.00 1,181.25 2,362.50 681.25 4,087.50
Yr4,Q3 9,450.00 1,181.25 3,543.75 681.25 3,406.25
Yr4,Q4 9,450.00 1,181.25 4,725.00 681.25 2,725.00
Yr5,Q1 9,450.00 1,181.25 5,906.25 681.25 2,043.75
Yr5,Q2 9,450.00 1,181.25 7,087.50 681.25 1,362.50
Yr5,Q3 9,450.00 1,181.25 8,268.75 681.25 681.25
Yr5,Q4 9,450.00 1,181.25 9,450.00 681.25 0.00

6 – 55
Accounting
REVALUATION 1
Year 2, quarter 1, 5% revaluation
Oracle Assets creates the following journal entries each period to
amortize the revaluation reserve:
Cr. Revaluation Amortization 156.25
REVALUATION 2
Year 4, quarter 1, –10% revaluation

Revaluation of a Fully Reserved Asset
depreciation. The asset’s life extension factor is 2 and the maximum
fully reserved revaluations allowed for this book is 3.
In year 5, quarter 4 the asset is fully reserved. In Year 9, Quarter 1 you
want to revalue the asset with a revaluation rate of 5%.
Revaluation Rules:
First, Oracle Assets checks whether this fully reserved asset has been
previously revalued as fully reserved, and that the maximum number
of times is not exceeded by this revaluation. Since this asset has not
been previously revalued as fully reserved, this revaluation is allowed.
The asset’s new revalued cost is $10,500. The life extension factor for
this asset is 2, so the asset’s new life is 2 5 years = 10 years. Oracle
Assets calculates depreciation expense over its new life of 10 years.
Oracle Assets calculates the depreciation adjustment of $2,000 using the
new 10 year asset life. It transfers the change in net book value to the
revaluation reserve account.
Oracle Assets revalues the accumulated depreciation using the 5%
revaluation rate. The change in net book value is transferred to the
revaluation reserve account. Since you do not amortize the revaluation
reserve, the amount remains in the revaluation reserve account.

6 – 57
Accounting
The effect of the revaluation is illustrated in the following table:
Period
(Yr, Qtr.)
Asset
Cost
Deprn.
Expense
Accum.
Deprn.
Reval.
Reserve
Yr1 to
Yr4
Yr5,Q1 10,000.00 500.00 8,500.00 0.00
Yr5,Q2 10,000.00 500.00 9,000.00 0.00
Yr5,Q3 10,000.00 500.00 9,500.00 0.00
Yr5,Q4 10,000.00 500.00 10,000.00 0.00
Reval.
5%
10,500.00 0.00 *8,400.00 **2,100.00
Yr9,Q1 10,500.00 ***262.50 8,662.50 2,100.00
Yr9,Q2 10,500.00 262.50 8,925.00 2,100.00
Yr9,Q3 10,500.00 262.50 9,187.50 2,100.00
Yr9,Q4 10,500.00 262.50 9,450.00 2,100.00
Yr10,Q1 10,500.00 262.50 9,712.50 2,100.00
Yr10,Q2 10,500.00 262.50 9,975.00 2,100.00
Yr10,Q3 10,500.00 262.50 10,237.50 2,100.00
Yr10,Q4 10,500.00 262.50 10,500.00 2,100.00

Revaluation with Life Extension Ceiling
depreciation. The asset’s life extension factor is 3.0 and its life
extension ceiling is 2.
In Year 5, Quarter 4 the asset is fully reserved. In year 9, quarter 1 you
want to revalue the asset with a revaluation rate of 5%.
Revaluation Rules:
To determine the depreciation adjustment, Oracle Assets uses the
smaller of the life extension factor and the life extension ceiling. Since
the life extension ceiling is smaller than the life extension factor, Oracle
Assets uses the ceiling to calculate the depreciation adjustment. The
new life used to calculate the depreciation adjustment is 2 5 years =
10 years, the life extension ceiling of 2 multiplied by the original 5 year
life of the asset.
Oracle Assets calculates the asset’s depreciation expense under the new
life of 10 years up to the revaluation period, and moves the difference
between this value and the existing accumulated depreciation from
accumulated depreciation to revaluation reserve.
Oracle Assets then determines the new asset cost using the revaluation
rate of 5% and revalues the accumulated depreciation with the same
rate. Oracle Assets calculates the asset’s new life by multiplying the
current life by the life extension factor. The asset’s new life is 3 5
years = 15 years. Oracle Assets bases the new depreciation expense on
the revalued net book value and the new 15 year life.

6 – 59
Accounting
Period
(Yr, Qtr.)
Asset
Cost
Deprn.
Expense
Accum.
Deprn.
Reval.
Reserve
Yr1 to
Yr4
Yr5,Q1 10,000.00 500.00 8500.00 0.00
Yr5,Q2 10,000.00 500.00 9000.00 0.00
Yr5,Q3 10,000.00 500.00 9,500.00 0.00
Yr5,Q4 10,000.00 500.00 10,000.00 0.00
Reval.
5%
10,500.00 0.00 *8,400.00 **2,100.00
Yr9,Q1 10,500.00 ***75.00 8,475.00 2,100.00
Yr9,Q2 10,500.00 75.00 8,550.00 2,100.00
Yr9,Q3 10,500.00 75.00 8,625.00 2,100.00
Yr9,Q4 10,500.00 75.00 8,700.00 2,100.00
Yr10 to
Yr15
Depreciation Adjustment (calculated using life extension ceiling)=
2,000

Revaluation with a Revaluation Ceiling
Example 6: You own an asset which has been damaged during its life.
You placed the asset in service in Year 1, quarter 1. The asset cost is
$10,000, the life is 5 years, and you are using straight–line depreciation.
You entered a revaluation ceiling of $10,300 for the asset.
In year 3, quarter 3 you revalue the asset’s category with a revaluation
rate of 5%.
Revaluation Rules:
• Amortize Revaluation Reserve = Yes
If Oracle Assets applied the new revaluation rate of 5%, the asset’s new
cost would be higher than the revaluation ceiling for this asset, so
instead Oracle Assets uses the ceiling as the new cost. The ceiling
creates the same effect as revaluing the asset at a rate of 3%. Oracle
Assets bases the asset’s new depreciation expense on the revalued asset
cost.

6 – 61
Accounting
Period
(Yr, Qtr.)
Asset
Cost
Deprn.
Expense
Accum.
Deprn.
Reval.
Amortize
Reval.
Reserve
Yr1 to
Yr 2
Yr3,Q1 10,000.00 500.00 4,500.00 0.00 0.00
Yr3,Q2 10,000.00 500.00 5,000.00 0.00 0.00
Reval.
*3%
10,300.00 0.00 0.00 0.00 **5,300.00
Yr3,Q3 10,300.00 ***1,030.00 1,030.00 ****530.00 4,770.00
Yr3,Q4 10,300.00 1,030.00 2,060.00 530.00 4,240.00
Yr4,Q1 10,300.00 1,030.00 3,090.00 530.00 3,710.00
Yr4,Q2 10,300.00 1,030.00 4,120.00 530.00 3,180.00
Yr4,Q3 10,300.00 1,030.00 5,150.00 530.00 2,650.00
Yr4,Q4 10,300.00 1,030.00 6,180.00 530.00 2,120.00
Yr5,Q1 10,300.00 1,030.00 7,210.00 530.00 1,590.00
Yr5,Q2 10,300.00 1,030.00 8,240.00 530.00 1,060.00
Yr5,Q3 10,300.00 1,030.00 9,270.00 530.00 530.00
Yr5,Q4 10,300.00 1,030.00 10,300.00 530.00 0.00

See Also
page 3 – 32

6 – 63
Accounting
Journal Entries for Tax Accumulated Depreciation Adjustments
depreciation. In Year 4, Quarter 1, your tax authority requests that you
change the depreciation taken in Year 2 from $1000 to $800.
Oracle Assets creates the following journal entries for the reserve
adjustment:
Cr. Depreciation Adjustment 200.00
Oracle Assets
See Also

C H A P T E R
7
T
7 – 1
Tax Accounting
Tax Accounting
his chapter explains tax accounting in Oracle Assets. It explains
how to update a tax book with assets and transactions, determine
deferred income tax liability, update an Adjusted Current Earnings
(ACE) book, and adjust tax book accumulated depreciation.

Tax Book Maintenance
You can copy your assets and transactions from your corporate book to
your tax books automatically using Mass Copy. You can create as
many tax books as you need, maintain your asset information in your
corporate book, and then update your tax books with assets and
transactions from your corporate book.
You must allow Mass Copy and choose whether to copy additions, cost
adjustments, retirements, and salvage value for your tax book in the
Book Controls window before you can run mass copy. You also specify
which corporate book mass copy uses as the source. You cannot copy
assets from one corporate book into another corporate book.
If you choose to copy adjustments, Oracle Assets copies cost
adjustments from the associated corporate book if the unrevalued cost
in the corporate book before the adjustment matches the unrevalued
cost in the tax book. It copies both adjustments that are ADJUSTMENT
type in the tax book and adjustment transactions that create a new
ADDITION type and update the ADDITION/VOID in the tax book.
How Initial Mass Copy Works
Use Initial Mass Copy to initially populate your tax book by adding
existing assets to a tax book.
Initial Mass Copy copies all the assets added to your corporate book
before the end of the current tax fiscal year into the open accounting
period in your tax book. The following graphic illustrates the Initial
Mass Copy process. In the following example, your fiscal year is from
January to December. Your corporate book open accounting period is
February 1994 and your tax book open period is December 1993.

7 – 3
Tax Accounting
When using Initial Mass Copy for the first time in your tax book, you
can run it as many times as necessary for the first period to copy all
existing assets. When you rerun the process, Initial Mass Copy only
looks at assets which it did not copy into the tax book during previous
attempts, so no data is duplicated.
What Gets Copied
The current fiscal year in your tax book determines which assets Initial
Mass Copy copies into your tax book. If the current fiscal year of your
tax book is 1994, Initial Mass Copy copies all assets into your tax book
as they appeared at the end of 1994 in your corporate book, even if
1995 is the current fiscal year of your corporate book. The fiscal year
must be closed in the corporate book. 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.
When the Initial Mass Copy program copies an asset into a tax book,
the following basic financial information comes from the corporate
book:
• Cost
• Original Cost
• Units
• Date Placed in Service
• Capacity and unit of measure, for units of production assets
• Salvage Value, if you choose to Copy Salvage Value for the tax
book in the Book Controls window
The remaining depreciation information comes from the default
category information for your tax book according to the asset category
and the date placed in service. You must set up your asset categories
with default information for your tax book before you run Initial Mass
Copy.
Since tax books share the category and assignments with their
associated corporate book, you do not need to copy reclassifications or
transfers from one book to another. Tax books also share production
amounts with their associated corporate books for assets depreciating
under units of production. Initial Mass Copy does not copy any
transactions on CIP assets or expensed items. Finally, it does not copy
revaluations.
For subcomponent assets, copy the parent asset first. Then copy the
subcomponent asset, defaulting the asset life according to the
subcomponent life rule you defined for the tax category and the parent
asset life. You must set up the depreciation method for the
subcomponent asset life before you can use the method and life. If
your subcomponent asset uses straight–line depreciation, Oracle Assets
sets up the depreciation method for the calculated life for you. If the
depreciation method is not straight–line, and not already set up for the
subcomponent life rule default, Oracle Assets uses the asset category
default life.

7 – 5
Tax Accounting
Group and member assets are copied like any other asset in Oracle
Assets. As with any asset in Oracle Assets, the group assets must exist
in a corporate book before they are added to the associated tax book.
Mass copy will copy group assets from a corporate book to the
associated tax book only if the same category exist in both books.
Initial Mass Copy Example
You add an asset to your CORP book in the AUTO.DELIVERY category
on 01–OCT–1994. You then continue depreciating your CORP book.
You run initial mass copy for OCT–94 to your FEDERAL book. Notice
that the asset has not yet been depreciated in the FEDERAL book.
CORP FED
Cost 12,000.00 12,000.00
Net Book Value 10,000.00 10,000.00
CORP book FEDERAL book
Open Period APR–94 Q4–93
Depreciation Method STL MACRS HY
Life 3 years 3 years
Prorate Convention Current Month Half Year
Choose the first period for your tax book
Choose the period you begin your tax book carefully. For example,
assume that 1994 is the current fiscal year in your corporate book, and
you want to calculate your federal taxes for 1994. Also, assume you use
a monthly calendar in your corporate book and a quarterly calendar in
your tax book. If you start your new tax book for the end of the last
quarter of 1993, you can reconcile your new book with the audited
results from the accounting system you previously used to calculate
your tax depreciation. This provides you with a verified starting point.
Use the Book Controls window to create a new federal tax book with
Q4–93 as the Current Period Name. Enter 1993 as the current fiscal

year for your tax book. When you run Initial Mass Copy, it copies all
active assets from your corporate book, as of the end of 1993, into the
Q4–93 period in your federal tax book. When you run the depreciation
program, it calculates the net book value of each asset in your tax book
using the depreciation method you specified in the Asset Categories
window for the tax book. Reconcile these results with those of your
previous tax system.
Verifying Initial Mass Copy
To verify that all assets were processed successfully, review the log file
for your initial mass copy concurrent request. The log file lists the
assets and transactions that did not copy into your tax book, the
reasons why, and the actions you must take to resolve the problem.
After you run the program, run the Tax Additions Report to verify that
initial mass copy added all the assets to the tax book. When you are
satisfied with the information copied into your tax book, run
depreciation to close the initial period and open the first period of the
next fiscal year, 1993.
Now you can run Periodic Mass Copy. Since the corporate book uses a
calendar fiscal year, run Periodic Mass Copy for JAN–93, FEB–93, and
MAR–93 for the tax book while Q1–93 is open.
Note: You can use Periodic Mass Copy to populate a new tax
book only if you added all your assets to your corporate book
in the period for which you are running Mass Copy.
How Periodic Mass Copy Works
Use Periodic Mass Copy each period to keep your tax book up to date
with your corporate book.
Oracle Assets copies new assets and transactions you made in your
corporate book during one accounting period in the current fiscal year
into the open period of your tax book. You can run periodic mass copy
on each tax book after you close each period in the corporate book.
The following graphic illustrates the Periodic Mass Copy process. In
the following example, your fiscal year is from January to December.
Your corporate book open accounting period is February 1994 and your
tax book open period is January 1994.

7 – 7
Tax Accounting
Note: You can only run Periodic Mass Copy sequentially
without skipping periods. When running Periodic Mass Copy,
only the last period run and the following period are available
in the period list of values.
What Gets Copied
The Periodic Mass Copy program copies addition, adjustment,
retirement, and reinstatement transactions to your tax book from the
current period in the associated corporate book.
Note: You can use Periodic Mass Copy to populate a new tax
book if you added all your assets to your corporate book in the
period for which you are running Mass Copy.
Periodic Mass Copy copies all qualifying transactions for an asset one
at a time. It does not combine transactions, and only copies

transactions from a closed accounting period in the associated
corporate book.
Since tax books share the category and assignments with their
associated corporate book, you do not need to copy reclassifications or
transfers from your corporate book to your tax books. Tax books also
share production information with their associated corporate book for
your units of production assets. Periodic Mass Copy does not copy any
transactions on CIP assets or expensed items. Finally, it does not copy
revaluations.
When you use the same calendar in both the tax and the corporate
book, Periodic Mass Copy copies asset transactions into your tax book
just as they appear in your corporate book. If two transactions that fall
into separate corporate periods fall into the same tax period, Periodic
Mass Copy may copy the transactions differently.
The corporate book period must be closed before you can copy the
information to your tax book. The Book Controls window displays the
last mass copy period that you copied for that tax book.
Addition Transactions
Oracle Assets copies additions from your corporate book to your tax
book if you chose to Copy Additions in the Book Controls window.
If you add an asset in one period and adjust it several times in the
following period in your corporate book, and these two periods fall
into the same tax book period, Oracle Assets modifies the transactions
in your tax book. Oracle Assets changes the addition transaction and
all the adjustments, except the last one, to addition/void transactions.
The last adjustment transaction in the corporate book becomes the
addition transaction in the tax book.
Example: You use the periodic mass copy program to copy an
addition to your quarterly tax book. The next month in your
corporate book, you adjust the cost of the asset. When you run
periodic mass copy Oracle Assets voids the addition and creates a
new addition transaction that reflects the cost adjustment.
If you use different calendars in the tax and the corporate books, some
prior period additions in your corporate book might be current period
additions in your tax book. Oracle Assets treats an addition in your tax
book as prior period only if the asset’s date placed in service is before
the first day of the current tax book accounting period.
When your tax book period spans several corporate book periods, and
you add an asset and then retire the asset in the same tax book period,
Oracle Assets copies the addition transaction but not the retirement

7 – 9
Tax Accounting
transaction. If the retirement transaction is a partial retirement, Oracle
Assets skips any following transactions for the asset. This is because
Oracle Assets does not allow an addition and a retirement in the same
period. You must wait until the following period in your tax book and
perform a prior period retirement manually.
Continuing with the above example, if you retire the asset in your
corporate book in the third month of the quarter, Oracle Assets does
not copy the retirement transaction when you run Periodic Mass Copy
for the third month.
Capitalizations
The Periodic Mass Copy program treats CIP asset capitalization
transactions exactly the same way it treats addition transactions, since
the CIP asset is not already in the tax book.
Adjustments
Oracle Assets always copies capacity adjustments and unit of measure
changes for your units of production assets, regardless of what you
enter for the Copy Adjustments flag in the Book Controls window. If
you do not allow amortized adjustments in your tax book, Mass Copy
copies an amortized capacity adjustment as an expensed adjustment.
Oracle Assets copies other adjustments from your corporate book to
your tax book if you check Copy Adjustments in the Book Controls
window. Oracle Assets copies all adjustments, whether your tax book
periods are the same as your corporate book periods or longer. It only
copies cost adjustments if the unrevalued cost before the adjustment in
the corporate book and the unrevalued cost in the tax book are the
same. It copies both adjustments that are ADJUSTMENT type in the
tax book and adjustment transactions that create a new ADDITION
type and update the ADDITION/VOID in the tax book.
Oracle Assets copies salvage value adjustments if you chose Copy
Salvage Value in the Book Controls window. It only copies adjustments
if the salvage value before the adjustment in the corporate book and the
current salvage value in the tax book are the same.
Retirements
Oracle Assets copies retirement (partial and full) and reinstatement
transactions from your corporate book to your tax books if you check
Copy Retirements in the Book Controls window.
Oracle Assets does not allow partial unit retirements in tax books, so
Oracle Assets translates partial unit retirements in the corporate book
into partial cost retirements for your tax books.

For partial cost retirements, if the asset cost is not the same in the two
books, Oracle Assets retires an amount from the tax book that is
proportional to the cost retired in the corporate book, using this
formula:
Tax Cost Retired = (Corporate Cost Retired / Total Corporate Cost)
X Total Tax Cost
Oracle Assets copies full retirements, even when the cost is different in
the tax book. If you have fully retired an asset in your tax book, Oracle
Assets does not copy over any more transactions for the asset, unless
you reinstate it.
Oracle Assets copies reinstatement transactions into your tax book,
unless you already performed the reinstatement in your tax book.
Oracle Assets treats a retirement in your tax book as prior period only
if the asset’s retirement date is before the first day of the current tax
book accounting period.
Periodic Mass Copy Example
You adjust the cost of an asset on 15–APR–94. The new asset cost is
$15,000.00, and you expense the adjustment.
Field CORP FED
Cost 15,000.00 15,000.00
Net Book Value 12,000.00 8,333.31
CORP book FEDERAL book
Open Period APR–94 Q2–94
Depreciation Method STL MACRS HY
Life 3 years 3 years
Prorate Convention Current Month Half Year

7 – 11
Tax Accounting
Verifying Periodic Mass Copy
After the Periodic Mass Copy process runs, it will return a status of
Error, Warning, or Normal. These are described in the table below:
Status Description
ERROR One or more fatal errors
WARNING One or more non–fatal errors
NORMAL No errors
To verify that all assets were processed successfully, review the log file
of your periodic mass copy concurrent request. The log file lists the
assets and associated transaction numbers that did not copy into your
tax book. The transaction number is a unique reference to the
transaction being copied from the corporate to the tax book. The log
file lists the reason for the error, and may include the action you must
take for resolution. You can also use Transaction History to query the
transaction number of the error to determine the cause of the error and
to determine the corrections required.
The difference between a fatal and a non–fatal error is where the failure
occurs in the program. Mass copy performs various basic validation
routines for all transactions being copied. If the validation fails, it is
treated as a non–fatal error and the reason is noted in the execution
report as shown in the following example:
Asset Number Transaction
Number
Action
10–02 585 The adjustment is not a cost, salvage value,
or production capacity adjustment
Some errors cannot be resolved and are just noted, as illustrated by the
example above. You can optionally address some non–fatal errors, such
as a category not being defined in the tax book for an asset addition
being copied.
A fatal error occurs when the transaction passes all the initial
validation within mass copy, but fails within the corresponding
transaction. Any such failure will be noted in the exception report as
illustrated in the following example:

Asset Number Transaction
Number
Action
10–27 587 Mass Copy failed on this asset transaction
More details about such problems must be retrieved from the log file to
determine what action must be taken. For example, this could include
addressing disabled accounts causing account generator failures or
suggesting a call to support for additional debugging or assistance.
Next, run the Tax Additions Report, Financial Adjustments Report, and
Tax Retirements Report on your tax book to view all the transactions
that Oracle Assets copied to the tax book.
See Also
Tax Additions Report: page 11 – 84
Financial Adjustments Report: page 11 – 106
Tax Retirements Report: page 11 – 85

7 – 13
Tax Accounting
Tax Book Upload Interface
The Tax Book Upload interface table allows you to enter tax
information via SQL. Once the assets have been added into your tax
books, you can change basic financial information, such as
year–to–date depreciation, accumulated reserve, cost, and salvage
value, for an unlimited number of assets in the tax books. You can use
the Tax Book Upload interface table to enter tax information only in the
period you added the assets to your tax book. You can also use the Tax
Book Upload interface table to upload short tax year information.
You can use the FA: Copy All Cost Adjustments profile option to allow
the Mass Copy program to copy all cost adjustments, even when the
unrevalued cost is different in the corporate book and the associated
tax books. See: Profile Options in Oracle Assets: page C – 2.
Populating the FA_TAX_INTERFACE Table
Use SQL*Plus to enter the appropriate information into the
FA_TAX_INTERFACE table for each asset and tax book name. See: Tax
Book Upload Example: page 7 – 18.
Required fields are Asset Number, Asset ID, and Tax Book. You cannot
run the Upload Tax Book Interface concurrent process unless these
fields contain values.
If you need to make changes to the Tax Book Upload Interface table
that include changes to the DEPRECIATE_FLAG column, you must
upload the changes to the DEPRECIATE_FLAG column separately
from other changes. For example, you cannot upload changes to the
COST column and the DEPRECIATE_FLAG column at the same time.
You should make all changes to the asset (excluding changes to the
DEPRECIATE_FLAG column) and post them. You can then delete the
original rows in the table, and for those assets requiring a change to the
DEPRECIATE_FLAG column insert new rows with only the
ASSET_ID, BOOK, and DEPRECIATE_FLAG specified. You can also
submit the changes to the DEPRECIATE_FLAG column first, before
submitting the other changes.
If you specify a depreciation method in the table, other fields may be
required. For Calculated and Table–based methods,
LIFE_IN_MONTHS is required. For Units of Production methods,
PRODUCTION_CAPACITY is required. For Flat Rate methods,
ADJUSTED_RATE and BASIC_RATE are required. Also note that if
you enter values for any of these fields, you must enter the

depreciation method. For example, if you enter a value for
LIFE_IN_MONTHS, you should enter Calculated or Table for the
depreciation method.
Note: Only the values you are changing need to be populated,
with the exception of required fields.
The following table lists the name, type, and description of each
column in the FA_TAX_INTERFACE table, along with whether each
column is null or not null.
ADJUSTED_RATE NUMBER NULL
The actual rate used to calculate depreciation for flat–rate methods.
AMORTIZATION_
START_DATE DATE NULL
The date to start amortizing the net book value over the remaining
useful life, if AMORTIZE_NBV_FLAG is set to Y.
AMORTIZE_NBV_FLAG VARCHAR2(3) NULL
Determines whether to amortize the net book value over the remaining
useful life.
ASSET_NUMBER VARCHAR2(15) NOT NULL
Enter the assigned asset number of the short tax year assets.
BASIC_RATE NUMBER NULL
The base rate used to calculate the depreciation amount for flat–rate
methods.
BONUS_RULE VARCHAR2(30) NULL
This field identifies a depreciation ceiling to use in calculating
depreciation.
BOOK_TYPE_CODE VARCHAR2(15) NOT NULL
The tax book name.

7 – 15
Tax Accounting
CEILING_NAME VARCHAR2(30) NULL
Identifies the bonus rule to use in calculating depreciation for the
flat–rate methods.
CONVERSION_DATE DATE NULL
The date the short tax year asset was added to the acquiring company.
COST NUMBER NULL
The current cost of the asset.
CREATED_BY NUMBER(15) NULL
Standard Who column.
CREATION_DATE DATE NULL
DATE_PLACED_IN_SERVICE DATE NULL
The date the asset was placed in service.
DEPRECIATE_FLAG VARCHAR2(3) NULL
Indicates whether the asset is depreciating.
DEPRN_METHOD_CODEVARCHAR2(12) NULL
The name of the depreciation method for the asset.
DEPRN_RESERVE NUMBER NULL
The amount of depreciation reserve.
FULLY_RSVD_REVALS
COUNTER NUMBER NULL
The number of time an asset has been revalued as fully reserved.
ITC_AMOUNT_ID NUMBER(15) NULL
The amount of the investment tax credit (ITC).

LAST_UPDATE_DATE DATE NULL
LAST_UPDATE_LOGIN NUMBER(15) NULL
LAST_UPDATED_BY NUMBER(15) NULL
LIFE_IN_MONTHS NUMBER(4) NULL
The life of the asset in total months.
ORIGINAL_COST NUMBER NULL
The original cost of the asset.
ORIGINAL_DEPRN_START_
DATE DATE NULL
Enter the original depreciation start date. This is the date when the
asset began depreciating in the acquired company.
POSTING_STATUS VARCHAR2(15) NULL
The tax upload status: New, On Hold, Post, or Posted.
PRODUCTION_CAPACITY NUMBER NULL
The capacity of a units of production asset.
PRORATE_CONVENTION_
CODE VARCHAR2(10) NULL
The depreciation prorate convention used for the asset.
REVAL_AMORTIZATION
BASIS NUMBER NULL
The revaluation reserve used in calculating amortization of revaluation
reserve. This is updated only when the asset is revalued or an
amortized adjustment is performed on the asset.

7 – 17
Tax Accounting
REVAL_CEILING NUMBER NULL
The upper limit for revaluing asset cost.
REVAL_RESERVE NUMBER NULL
For a period in which the asset was revalued, this field shows the
change in the net book value due to revaluation of asset cost, and
sometimes, revaluation of depreciation reserve. For all other periods,
this field shows the revaluation reserve amount after depreciation is
run.
SALVAGE_VALUE NUMBER NULL
The asset salvage value.
SHORT_FISCAL_YEAR_
FLAG VARCHAR2(3) NULL
Determines whether the asset should be set up as a short tax year asset.
TAX_REQUEST_ID NUMBER(15) NULL
The concurrent request number for the Tax Book Upload program.
TRANSACTION_NAME VARCHAR2(30) NULL
Description of the transaction.
UNREVALUED_COST NUMBER NULL
The cost of the asset without regard to any revaluations.
YTD_DEPRN NUMBER NULL
The year to date depreciation.
YTD_REVAL_DEPRN
EXPENSE NUMBER NULL
The year–to–date depreciation expense due to revaluation. Oracle
Assets does not create journal entries for this amount. It is for
reporting purposes only.

ATTRIBUTE1 –
ATTRIBUTE15 VARCHAR2(150) NULL
Descriptive flexfield segment.
GLOBAL_ATTRIBUTE1 –
GLOBAL_ATTRIBUTE20 VARCHAR2(150) NULL
Reserved for country–specific functionality.
GLOBAL_ATTRIBUTE
CATEGORY VARCHAR2(150) NULL
Reserved for country–specific functionality.
Upload Tax Book Interface
To copy tax book information into your tax book, you need to run the
Upload Tax Book Interface concurrent process from the Submit Request
window. Before running the Upload Tax Book Interface concurrent
process, make sure POSTING_STATUS is set to Post.
Tax Book Upload Example
The following example shows how you can use the Tax Book Upload
feature and the FA: Copy All Cost Adjustments profile option to copy
cost adjustments when the unrevalued cost in the corporate book is
different from the unrevalued cost in the tax book:
1. You add an asset in the corporate book with an original cost of
$100.
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:

7 – 19
Tax Accounting
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.

☞
Updating a Tax Book with Assets and Transactions
Use Initial Mass Copy once to set up your tax book with assets from
your corporate book. Then use Periodic Mass Copy each period to
update the tax book with new assets and transactions. You also can
manually add a single asset to a tax book.
Oracle Assets defaults the depreciation rules you defined for the
category and date placed in service in the tax book. For assets
depreciating under the units of production method, Oracle Assets
automatically copies the cost, date placed in service, and capacity from
the corporate book.
Prerequisites for Initial Mass Copy
❑ Specify Mass Copy rules, and Allow Mass Copy for the tax book in
the Book Controls window. See: Defining Depreciation Books:
page 9 – 71.
❑ Set up your asset categories for the tax book in the Asset Categories
window. See: Setting Up Asset Categories: page 9 – 158.
❑ Set up your prorate calendar for the tax book for the first tax
period. See: Specifying Dates for Calendar Periods: page 9 – 62.
To initially populate a new tax book with assets and transactions:
1. Choose Tax Initial Mass Copy from the Navigator window.
2. In the Parameters window, enter the name of the tax depreciation
Book to which you want to copy your corporate book assets and
transactions.
3. Choose Submit to submit a concurrent process that copies assets
and transactions into your new tax book.
4. Review the log file and correct any errors.
5. Run the Initial Mass Copy program again if necessary.
To periodically update a tax book with assets and transactions:
Attention: Ensure that you have run Initial Mass Copy for your
tax book if you added assets to the corporate book before this
period. You also must close the appropriate period in the corporate
book before copying assets and transactions to a tax book.

7 – 21
Tax Accounting
H Choose Tax:Periodic Mass Copy from the Navigator window.
Enter the Book and Corporate Period from which you want to copy
assets and transactions for the period. Review the log file and
correct any errors.
To manually add a single asset to a tax book:
1. Choose Assets Asset Workbench from the Navigator window.
2. Find the asset you want to add to a tax book.
3. Choose Books.
4. Enter the name of the tax Book to which you want to add the asset.
5. Review the depreciation rules.
6. Save your work.
See Also
Tax Book Maintenance: page 7 – 2
Tax Additions Report: page 11 – 84
Financial Adjustments Report: page 11 – 106

Deferred Income Tax Liability
Your tax authority determines how you account for temporary
differences in expenses between the corporate book and the tax book.
One of the largest temporary differences is depreciation expense. For
example, in the corporate book, you may depreciate assets using a
straight–line method. For tax purposes, however, you can often use an
accelerated depreciation method to take more depreciation in the early
years of an asset’s life and less in the later years. The higher
depreciation expense in the early years reduces your taxes at that time.
Your tax authority may require that you create a liability on your
balance sheet to account for the tax payment delay. Deferred
depreciation, the temporary difference in depreciation expense between
the corporate book and the tax book, is a part of this liability.
To determine the depreciation contribution to your tax liability,
calculate the two types of depreciation differences that exist between
the corporate book and the tax book. Some differences are temporary;
they occur when you use different depreciation methods in the
corporate and the tax books. The depreciation calculation reduces, and
eventually eliminates, the temporary difference as the asset becomes
fully reserved.
Permanent differences occur when you define different recoverable
costs for an asset in the corporate book and the tax book. Permanent
differences arise from differences in cost or salvage value, or the effect
of investment tax credit basis reductions. The difference is permanent
because you never eliminate it through depreciation. The following
equations describe how permanent differences affect the recoverable
cost in the corporate book and the tax book:
Corporate Recoverable Cost = Corporate Cost – Corporate
Salvage Value
Tax Recoverable Cost = the lesser of (Tax Cost – Tax Salvage
Value – ITC Basis Reduction Amount) or Depreciation Cost
Ceiling, if any
You can use these calculations to determine your FASB 109 tax liability
under United States tax law.
Determine Your Future Income Tax Liability
You can determine the contribution that depreciation makes to your tax
liability by projecting depreciation expense for future years and then
adjusting depreciation expense for permanent differences. To
determine your future income tax liability, you can:

7 – 23
Tax Accounting
1. Project annual depreciation expense in the corporate and tax books.
2. Determine the recoverable cost in the corporate and tax books as of
the end of the fiscal year.
3. Adjust the depreciation projection values to account for the
permanent differences in depreciation.
For each projected year, you need three values: corporate
depreciation expense, tax depreciation expense, and adjusted tax
depreciation expense. You take the corporate and tax depreciation
expense values directly from the Depreciation Projection Report.
To determine the adjusted tax depreciation expense, you calculate
the ratio of the corporate recoverable cost to the tax recoverable
cost. You take the corporate and tax recoverable cost values
directly from the Recoverable Cost Report. You then multiply the
ratio by the tax depreciation expense.
Adjusted Tax Depreciation Expense = Tax Depreciation
Expense X (Corporate Recoverable Cost/Tax Recoverable
Cost)
You can use the difference between the corporate depreciation
expense and the adjusted tax depreciation expense for each
projection year as the net amount in your tax liability calculations.
Use this information to determine the tax liability depreciation
contribution net of the permanent differences.
Example: Future Income Tax Liability Calculation
You have closed your corporate and tax books for your 1992 fiscal year.
You run the Depreciation Projections program to project depreciation
for five years, beginning with fiscal year 1993. The Depreciation
Projection Report prints the following results:
Year
Corporate
Depreciation Expense
Tax
1993 15,000 25,000
1994 15,000 20,000
1995 15,000 15,000
1996 10,000 10,000
1997 10,000 5,000

Next, you run the Recoverable Cost Report for the last period of your
1992 fiscal year to determine the recoverable cost in both depreciation
books.
Corporate Recoverable Cost = 65,000
Tax Recoverable Cost = 75,000
You then calculate the ratio of the corporate recoverable cost to the tax
recoverable cost.
Corporate Recoverable Cost/Tax Recoverable Cost
= 65,000/75,000
= 0.867
Now you have the information you need to adjust the tax depreciation
projections. Using the ratio 0.867, you can calculate the adjusted tax
depreciation expense:
Year
Tax
Adjusted Tax
1993 25,000 21,675
1994 20,000 17,340
1995 15,000 13,005
1996 10,000 8,670
1997 5,000 4,335
You now can determine the tax liability depreciation contribution net of
the permanent differences:
Year Corporate Adjusted Tax
Net Taxable
(Deductible)
1993 15,000 21,675 (6,675)
1994 15,000 17,340 (2,340)
1995 15,000 13,005 1,995
1996 10,000 8,670 1,330
1997 10,000 4,335 5,665

7 – 25
Tax Accounting
You can use the net taxable (deductible) amount in your tax liability
calculations for each projection year in your financial statement.
See Also
Determining Deferred Income Tax Liability: page 7 – 26
Depreciation Projection Report: page 11 – 52

Determining Deferred Income Tax Liability
You can determine either actual income tax liability or future deferred
income tax liability. You can calculate deferred depreciation and create
deferred depreciation journal entries for your general ledger. Deferred
depreciation is the difference in depreciation expense taken for an asset
between a tax book and its associated corporate book. You can also
project depreciation expense and use those values to determine future
income tax liability.
Your tax book and associated corporate book must use the same
number of periods per fiscal year. The general ledger period for which
you want to create journal entries must be open.
Note: You cannot roll back deferred journal entries, nor can
you run the Deferred Create Journal Entries program multiple
times.
Prerequisite
❑ Run the Depreciation program for your corporate and tax books for
this period. See: Running Depreciation: page 5 – 2.
To calculate journal entries for ACTUAL income tax liability:
1. Choose Journal Entries Deferred from the Navigator window.
2. Enter the tax book from which you want to create journal entries
for your general ledger.
3. Enter the period in your tax book from which you want to create
journal entries.
4. Choose Submit to submit a concurrent process to create deferred
depreciation journal entries.
To calculate FUTURE income tax liability:
1. Project annual depreciation expense in the corporate book and the
tax book. See: Projecting Depreciation Expense: page 5 – 50.
You can project depreciation expense for future periods based on
the asset’s current financial information. To calculate your tax
liability, run depreciation projections as soon as you close your
corporate and tax books for the fiscal year. You project
depreciation expense for several years, beginning with the next
fiscal year. When you wait until the end of a fiscal year to project

7 – 27
Tax Accounting
depreciation, Oracle Assets calculates depreciation expense using
financial information from the entire previous fiscal year.
2. Run the Recoverable Cost Report for the last period of the fiscal
year you just closed to determine the recoverable cost in the
corporate and the tax book as of the end of the fiscal year.
3. Adjust the depreciation projection values to account for the
permanent differences in depreciation between the two books.
See Also
Deferred Income Tax Liability: page 7 – 22
Recoverable Cost Report: page 11 – 81

Tax Credits
You can automatically calculate an asset’s Investment Tax Credit (ITC).
You can use investment tax credit as specified in United States tax law
that affects assets placed in service before 1987. Oracle Assets
calculates the ITC amount and basis reduction amount and reduces the
asset’s depreciable basis.
An asset is eligible for ITC only if you allow ITC on your book. ITC
only applies to assets depreciating under life–based depreciation
methods.
Enter an asset’s ITC
ITC rates vary according to asset life. You choose a rate from a list of
rates that are defined for the asset life and date placed in service. After
you enter the ITC Rate for your asset, Oracle Assets automatically
calculates and displays the ITC Amount and the Recoverable Cost.
Calculate ITC
Oracle Assets calculates the ITC for an asset. The ITC Basis for an asset
is the lesser of its original cost and the ITC Ceiling, if one is used.
ITC Basis Reduction Amount = ITC Basis X Basis Reduction Rate
ITC Amount = ITC Basis X ITC Rate
When you retire an asset for which you have claimed an Investment
Tax Credit, Oracle Assets checks if the retirement is premature. If you
retire an asset before it is fully reserved, the Calculate Gains and Losses
program calculates the recapture amount.
ITC Recapture = ITC Amount X ITC Recapture Rate X (Cost Retired
/ Current Cost)

7 – 29
Tax Accounting
See Also
Defining Investment Tax Credit Rates: page 9 – 148
Investment Tax Credit Report: page 11 – 78

☞
Assigning Tax Credits
You can assign an Investment Tax Credit to an asset in a tax book only
if you allow ITC for that tax book, and if it is depreciating using a
life–based method.
You can assign an ITC for an asset in as many tax books as you want.
For each tax book, Oracle Assets shows you the current cost and the
recoverable cost, which is reduced by the basis reduction amount.
Prerequisites
❑ Allow ITC for the book and the category. See: Defining
Depreciation Books: page 9 – 71.
❑ Set up investment tax credit rates and ceilings. See: Defining
Investment Tax Credit Rates: page 9 – 148.
❑ Add your assets to your tax book. See: Updating a Tax Book with
Assets and Transactions: page 7 – 20.
To assign tax credit rates for an asset:
1. Choose Tax Tax Workbench from the Navigator window.
2. Find your asset.
3. Choose Investment Tax Credits.
4. Scroll to the record to which you want to assign tax credit rates.
5. Specify the ITC rate and the Basis Reduction Rate for the asset.
Note the new recoverable cost of the asset. Oracle Assets calculates
the ITC basis, ITC amount, and the recoverable cost automatically.
6. Save your work
To cancel ITC for an asset:
Attention: You can cancel ITC for assets added in the current
period only.
H Erase the rate and save your change.
To change a previously assigned ITC rate for an asset:
H Change the rate and save your change.

7 – 31
Tax Accounting
You cannot change any ITC information if retirements are pending
or if the asset is fully reserved or fully retired.
See Also
Tax Credits: page 7 – 28
Investment Tax Credit Report: page 11 – 78

Adjusted Current Earnings
United States tax law defines the Adjusted Current Earnings (ACE)
depreciation rules. You can update your ACE book according to ACE
rules automatically.
To provide sufficient ACE information for your tax purposes, you must
create a separate ACE book for your existing assets. Assign each asset
a depreciation method, life, and prorate convention according to ACE
rules. Oracle Assets converts your assets to the new depreciation
methods automatically when you update the ACE book. Oracle Assets
also provides two exception reports that list the assets that Oracle
Assets cannot update in the ACE book.
To implement ACE, you must define the initial open period of your
corporate, ACE, federal, and Alternate Minimum Tax (AMT) books as
a period on or before the last period in the last tax year beginning
before 1990. Each book must also use the same depreciation calendar
Note: If you have ACE accumulated depreciation information
from a previous assets system, you can set up your books for
the last period for which you have the information and upload
it using the ACE conversion table.
You must set up the ACE book, mass copy your assets into the ACE
book, and then update the ACE book according to ACE rules.
Adjusted Current Earning Steps:
1. Define ACE book
2. Define categories for the book
3. Run Initial Mass Copy
4. Run ACE Exception reports
5. Run Depreciation
6. Populate the conversion table according to ACE rules
7. Run Update ACE Book program
8. Run Periodic Mass Copy
9. Run ACE Depreciation Comparison Report

7 – 33
Tax Accounting
ACE Depreciation Rules
The ACE depreciation rules require you to depreciate your assets using
specific methods, lives, and prorate conventions. The ACE rules for
depreciation focus on assets you depreciate in the federal tax book
under ACRS and MACRS methods. In some cases, the ACE rules
require you to use the asset’s net book value, not the cost, as the
depreciable basis.
According to ACE rules, you calculate ACE depreciation beginning
with your fiscal year that begins in 1990. Thus, the first open period in
the ACE book is the last period of the last fiscal year beginning before
1990. When you copy your assets into this period, ACE rules determine
the depreciable basis, depreciation method, and other financial
information for each asset.
Oracle Assets looks at the asset’s financial information in either the
AMT or the federal book to determine new ACE information. If an
asset is depreciating in the federal tax book using ACRS, Oracle Assets
uses the federal book information. If the asset is depreciating in the
federal book using MACRS, Oracle Assets uses the AMT book
information. Oracle Assets automatically updates your assets when
you run the Update ACE Book program.

The following table summarizes the ACE rules:
Federal Book
Depreciation
Method
ACE Book
Depreci-
ation
Method
ACE Book
Asset Life
ACE
Book
Prorate
Conven-
tion
ACE Book
Depreciable
Basis
ACRS STL Remaining
Life
New Federal NBV
at the start of
1990
MACRS
before 1990
STL Remaining
Life
New AMT NBV at
the start of
1990
All after 1989
(including
MACRS)
STL Whole Life New Federal Book
Cost
All Others Federal
Book
Remaining
Life
Old Federal NBV
at the start of
1990
Note: Oracle Assets does not change the asset cost or life in
your ACE book. Instead, it uses an internal factor to adjust the
depreciation rates to depreciate the net book value over the
remaining life.
Note: Assets placed in service after December 31, 1993 are not
subject to ACE depreciation rules.
See Also
About the ACE Interface: page 7 – 39
Updating an ACE Book with Accumulated Depreciation: page 7 – 36

7 – 35
Tax Accounting

Updating an ACE Book with Accumulated Depreciation
If you are providing historical information for Oracle Assets to
calculate ACE information for you, set up and update your book as
described in the steps below.
Note: If you have calculated ACE information already, define
the initial period of your ACE book as the last period of the last
fiscal year you completed on your previous system. Then load
the accumulated depreciation for your ACE assets using the
ACE interface and update the ACE book with the information.
Prerequisites
❑ Create your ACE book using the Book Controls window; define the
initial open period on or before the last period in the last tax year
beginning before 1990. See: Defining Depreciation Books: page
9 – 71.
❑ Set up asset categories for your ACE book with the appropriate
depreciation methods, lives, and prorate conventions using the
Asset Categories window. See: Setting Up Asset Categories: page
9 – 158.
❑ Run the Initial Mass Copy program to copy assets from the
corporate book into the ACE book. See: Updating a Tax Book with
Assets and Transactions: page 7 – 20.
To update the ACE book to the current period:
1. Run the ACE exception reports (ACE Unrecognized Depreciation
Method Code Exception Report and the ACE Non–Depreciating
Assets Exception Report). See: To run the ACE reports: page 7 – 37.
The reports evaluate the financial information in your federal tax
book as of the end date of the open period in your ACE book and
list the assets that Oracle Assets cannot update in the ACE book.
Manually update these assets in the federal book according to ACE
rules.
2. Run depreciation on your ACE book to close the period. See:
Running Depreciation: page 5 – 2.
3. Run the Populate ACE Interface program to automatically insert
information into the ACE conversion table for your assets
according to ACE rules. See: To populate the ACE interface table:
page 7 – 37.

7 – 37
Tax Accounting
4. Run the Update ACE Book program to update the financial
information in your ACE book as of the end date of the most recent
closed period. Update your ACE book in the first period of a fiscal
year, before you enter any transactions. See: To update the ACE
book from an interface: page 7 – 37.
5. Run depreciation and periodic mass copy to update the ACE book
to the current period if necessary. To prevent assets added after
December 31, 1993 from being copied to your tax book, uncheck
Copy Additions after that date in the Book Controls window.
Note: If you run the balances reports for the first period of
your ACE book, expect the report to be out of balance. Oracle
Assets only updates the accumulated depreciation, not the
depreciation expense, when you update an ACE book.
6. Run the ACE Depreciation Comparison Report to review a list of
differences in depreciation between your ACE, federal, and AMT
books. You can use this information in your tax calculations. See:
To run the ACE reports: page 7 – 37.
To run the ACE reports:
1. Choose Tax Adjusted Current Earnings Run Exception Reports
from the Navigator window.
2. In the Parameters window, enter the ACE Book and Federal Book.
3. Choose Submit.
4. Review the reports after the request completes.
To populate the ACE interface table:
1. Choose Tax Adjusted Current Earnings Populate ACE Interface
from the Navigator window.
2. In the Parameters window, enter the ACE Book you want to
populate. The ACE book must use the same associated corporate
book as the federal tax book and the AMT book.
3. Choose Submit.
To update the ACE book from an interface:
1. Choose Tax Adjusted Current Earnings Update ACE Book from
the Navigator window.

2. In the Parameters window, enter the ACE Book you want to
update.
3. Choose Submit.
See Also
Adjusted Current Earnings: page 7 – 32

7 – 39
Tax Accounting
About the ACE Interface
You can either have Oracle Assets calculate ACE information for you,
or enter it yourself. If you want Oracle Assets to calculate ACE
accumulated depreciation for you, enter historical asset information
beginning no later than the last period of fiscal 1989. Start your
depreciation books in Oracle Assets before the end of fiscal 1989, and
enter asset transactions through the current period.
If you have ACE information from another asset system, you can load
it into Oracle Assets using the ACE interface. Define the initial open
period of your ACE book as the last period of the last fiscal year you
completed on your previous system. Then load the accumulated
depreciation for your ACE assets using this interface.
ACE Update Process Using the ACE Interface
1. Create an ACE tax book with ACE depreciation rules. Copy your
assets into the ACE book from the corporate book.
2. Populate the ACE conversion table. Either use the Populate ACE
Interface Table program, or load the table manually with the ACE
information from your previous system.
3. Update the ACE book with the information in the ACE conversion
table.

ACE Conversion Table
The following table shows how FA_ACE_BOOKS, the ACE conversion
table, stores ACE information:
Column Name Type Description
ASSET_ID Numeric Asset identification number
MLC_UPDATE_FLAG Alphanumeric YES if update ACE book program needs to up-
date the depreciation method, life, prorate con-
vention, and rate adjustment factor with the
values in this table
COST Numeric Current asset cost
ADJUSTED_COST Numeric Depreciable basis of the asset, calculated as
recoverable cost for cost–based depreciation
methods, less the accumulated depreciation
for NBV–based methods
DEPRN_METHOD_CODE Alphanumeric Depreciation method for the asset
LIFE_IN_MONTHS Numeric Whole life of the asset in months
PRORATE_CONVENTION_CODE Alphanumeric Prorate convention for the asset
RATE_ADJUSTMENT_FACTOR Numeric Internal factor used to adjust depreciation
rates to depreciate the net book value over the
remaining life
YTD_DEPRN Numeric Not currently used
DEPRN_RESERVE Numeric Starting accumulated depreciation for the as-
set
PRODUCTION_CAPACITY Numeric Production capacity for assets that use a units
of production method
ADJUSTED_CAPACITY Numeric Remaining capacity to use for depreciation for
assets that use a units of production method
LTD_PRODUCTION Numeric Life–to–date production for assets that use a
units of production method
ADJUSTED_RATE Numeric Not currently used
BASIC_RATE Numeric Not currently used
Table 7 – 8 (Page 1 of 1) FA_ACE_BOOKS table

7 – 41
Tax Accounting
Automatically Populate the ACE Conversion Table
The Populate ACE Interface Table program uses the existing asset
information in your federal and AMT tax books to load the table. Cost,
depreciation rule, and rate adjustment factor information comes from
the FA_BOOKS row that was active for the source tax book at the
beginning of fiscal 1990. Accumulated depreciation information comes
from the FA_DEPRN_SUMMARY row for the source tax book for the
last period in fiscal 1989.
The program creates a row in the table for each asset in the ACE book
that you placed in service before the end of fiscal 1989.
The following table shows rows created for assets placed in service
before fiscal 1981 or assets not using ACRS or MACRS depreciation
methods:
Column Value Source Tax Book
ASSET_ID Asset Identification Number Federal Book
MLC_UPDATE_FLAG YES
COST Current Cost Federal Book
ADJUSTED_COST Adjusted Cost Federal Book
DEPRN_METHOD_CODE Depreciation Method Federal Book
LIFE_IN_MONTHS Life Federal Book
PRORATE_CONVENTION_CODE Prorate Convention Federal Book
RATE_ADJUSTMENT_FACTOR Rate Adjustment Factor Federal Book
DEPRN_RESERVE Accumulated Depreciation Federal Book
at end of fiscal
1989
The following table shows rows created for assets depreciating under
ACRS:

MLC_UPDATE_FLAG NO
ADJUSTED_COST Recoverable Cost –
Federal Book
DEPRN_METHOD_CODE NULL
LIFE_IN_MONTHS NULL
PRORATE_CONVENTION_CODE NULL
RATE_ADJUSTMENT_FACTOR Remaining Life in Months /
Whole Life in Months
Federal Book
at end of fiscal
1989
The following table shows rows created for assets depreciating under
MACRS and placed in service before fiscal 1990:
ASSET_ID Asset Identification Number AMT Book
MLC_UPDATE_FLAG NO
COST Current Cost AMT Book
AMT Book
LIFE_IN_MONTHS NULL
AMT Book
DEPRN_RESERVE Accumulated Depreciation AMT Book
at end of fiscal
1989

7 – 43
Tax Accounting
Manually Load the ACE Conversion Table
When you manually load the ACE conversion table, you must enter the
existing ACE information for all assets that you placed in service before
fiscal 1990.
The following table shows how to load asset information for assets
placed in service before fiscal 1981 or assets with unrecognized
depreciation methods:
MLC_UPDATE_FLAG YES
ADJUSTED_COST Adjusted Cost Federal Book
DEPRN_METHOD_CODE Depreciation Method Federal Book
LIFE_IN_MONTHS Life Federal Book
PRORATE_CONVENTION_CODE Prorate Convention Federal Book
RATE_ADJUSTMENT_FACTOR Rate Adjustment Factor Federal Book
at end of
conversion
period
For all assets placed in service before fiscal 1981 and assets that are not
using ACRS or MACRS methods, load asset information from the
federal book as of the end of the conversion period. The conversion
period is the first period of your ACE book in Oracle Assets.
If you have not performed any amortized adjustments or revaluations
on the asset, the adjusted cost is the same as the current cost, and the
rate adjustment factor is 1. Otherwise, the adjusted cost is the
recoverable cost less the accumulated depreciation and the rate
adjustment factor is the remaining life divided by the whole life at the
time of the adjustment.
The following table shows how to load asset information for assets
depreciating under ACRS or MACRS placed in service before fiscal
1994:

MLC_UPDATE_FLAG NO
Calculated
LIFE_IN_MONTHS NULL
Calculated
DEPRN_RESERVE Accumulated Depreciation Entered
For all assets depreciating under ACRS or MACRS that you placed in
service before fiscal 1994, load accumulated depreciation and cost
information from your old ACE system as of the end of the conversion
period. The conversion period is the first period of your ACE book in
Oracle Assets.
See Also
Adjusted Current Earnings: page 7 – 32
Updating a Tax Book with Accumulated Depreciation: page 7 – 36

7 – 45
Tax Accounting
Handle Tax Audits
You can adjust the depreciation taken for one or all assets for a
previous fiscal year in a tax book. Use the Reserve Adjustments
window to adjust the tax book accumulated depreciation for a single
asset. Use Mass Depreciation Adjustments to adjust the depreciation
expense taken for all the assets in a tax book. Some tax authorities
allow you to prorate the depreciation expense you recognize, such as
for French Fiscal Depreciation.
You can adjust tax book depreciation between minimum and maximum
depreciation expense amounts according to a factor you enter. The
minimum and maximum amounts are determined by comparing the
accumulated depreciation in your tax book, in a control tax book, and
in the associated corporate book.
Prepare for a Mass Depreciation Adjustment
You must define your corporate, tax, and control tax books before
performing a mass depreciation adjustment. The adjusted tax book
and control tax book must be associated with the same corporate book.
In addition, the fiscal year must be closed in all three books to run a
mass depreciation adjustment. You must be in the first period of your
fiscal year immediately following the closed year you are adjusting.
You can only adjust the previous fiscal year in your tax book.
You cannot adjust depreciation if you have performed any transactions
in the tax book in the current period. You also cannot adjust
depreciation if you have performed any transactions in the corporate
book that affect the distribution, units, or category of the assets in the
current period, such as transfers, reclassifications, unit adjustments, or
partial retirements.
You cannot adjust the depreciation expense taken in a previous fiscal
year for assets that use a units of production depreciation method in
the adjusted tax book. Oracle Assets does not adjust depreciation for
assets where the cost at the end of the fiscal year is not the same in all
three books, or where there was an asset retirement during the fiscal
year. The log file for the mass depreciation adjustment concurrent
request lists assets that the program did not adjust and the reasons
why.

Control Your Mass Depreciation Adjustment
Use the Status field to see the current status of the adjustment and to
determine the next possible action, as shown in the following table.
Each adjustment definition has a unique Mass Transaction Number that
you can use to find your adjustment definition when you want to
perform the next step.
New Newly created mass depreciation definition Preview
Updated Adjustment definition updated after previewing Preview
Running Adjustment currently running None
Completed Adjustment completed successfully Review
Error Preview report or adjustment completed in error Preview or Run,
whichever failed

7 – 47
Tax Accounting
Mass Depreciation Adjustment Process

Determine Adjusted Accumulated Depreciation
The Mass Depreciation Adjustment program calculates the minimum
accumulated depreciation as follows:
Minimum Accumulated Depreciation is the greatest of accumulated
depreciation in:
• The adjusted tax book at the beginning of the fiscal year
• The control tax book at the end of the fiscal year
• The corporate book at the end of the fiscal year
The Mass Depreciation Adjustment program calculates the maximum
accumulated depreciation as follows:
Maximum Accumulated Depreciation is the greatest of accumulated
depreciation in:
• The adjusted tax book at the end of the fiscal year
• The control tax book at the end of the fiscal year
• The corporate book at the end of the fiscal year
The Mass Depreciation Adjustment program calculates the minimum
depreciation expense as follows:
Minimum Depreciation Expense = Minimum Accumulated
Depreciation – Accumulated Depreciation in the Adjusted Book at
the Beginning of the Fiscal Year
The Mass Depreciation Adjustment program calculates the maximum
Maximum Depreciation Expense = Maximum Accumulated
Depreciation – Accumulated Depreciation in the Adjusted Book at
the Beginning of the Fiscal Year
The minimum and maximum depreciation expense amounts are the
depreciation amounts necessary to bring the accumulated depreciation
in the adjusted tax book at the beginning of the fiscal year to the
minimum and maximum amounts that have been calculated for
accumulated deprecation at the end of the fiscal year.
Oracle Assets modifies the depreciation expense for all assets in your
tax book according to the depreciation adjustment factor you enter.

7 – 49
Tax Accounting
The Mass Depreciation Adjustment program calculates the adjusted
Adjusted Depreciation Expense = Minimum Depreciation Expense +
Depreciation Adjustment Factor (Maximum Depreciation
Expense – Minimum Depreciation Depreciation)
Mass Depreciation Adjustment does not adjust fully retired assets.
However, it adjusts the depreciation expense for credit (negative cost)
assets between the minimum (least negative) and maximum (most
negative) depreciation expense.
Mass Depreciation Adjustment Examples
Example 1
Asset scenario and depreciation information are as follows:
Beginning Value 10000
Life 5 years
Corporate Book Depreciation Straight–Line
Control Book Depreciation 20% Flat–Rate with 3% Bonus
Rate in the first year
Adjusted Tax Book DMV with STL switch
Depreciation Adjustment Factor .5
Before the adjustment, the accumulated depreciation and net book
value for each book are as illustrated in the following table:
Book
Accumulated
Depreciation
Net Book Value
Adjusted tax book at beginning of
year
4000 6000
Adjusted tax book at end of year 6400 3600

Net Book Value
Accumulated
Depreciation
Book
Corporate book at end of year 4000 6000
Control book at end of year 4300 5700
Oracle Assets calculates the minimum and maximum accumulated
depreciation as:
• Minimum = 4300 (control book at end of year)
• Maximum = 6400 (adjusted tax book at end of year)
Oracle Assets calculates the minimum and maximum depreciation
expense as:
So, with a depreciation adjustment factor of .5, the adjusted
depreciation is:
• Adjusted depreciation expense = 1350 = 300 + .5 * (2400 – 300)
The effect of this adjustment is shown in the following graph of net
book value over time.

Example 2
Life 5 years
Adjusted Tax Book Depreciation DMV with STL switch
Book
Accumulated
Depreciation
Net Book Value
year
6400 3600
depreciation as:
• Minimum = 6400 (adjusted tax book at beginning of year)
expense as:
• Minimum = 0 (adjusted tax book at beginning of year)
So, with a depreciation adjustment factor of .75, the adjusted
depreciation is:

7 – 53
Tax Accounting
• Adjusted depreciation expense = 1080 = 0 + .75 * (1440 – 0)

7 – 55
Tax Accounting
Example 3
Life 5 years
Depreciation Adjustment Factor N/A
Book
Accumulated
Depreciation
Net Book Value
year
7840 2160
depreciation as:
• Maximum = 9500 (control book at end of year)
expense as:
• Maximum = 1660 (control book at end of year)
Notice that both the minimum and maximum amounts are the control
book accumulated depreciation. Since the minimum and maximum

depreciation expense are the same, the depreciation adjustment factor
has no effect and the adjusted depreciation is:
• Adjusted depreciation expense = 1660 (Minimum and
Maximum depreciation expense have the same value of 1660)

Example 4
Life 5 years
Corporate Book Depreciation Sum of the Years–Digits
Book
Accumulated
Depreciation
Net Book Value
year
0 10000
depreciation as:
• Minimum = 3334 (corporate book at end of year)
expense as:
So, with a depreciation adjustment factor of.67, the adjusted
depreciation is:

7 – 59
Tax Accounting
• Adjusted depreciation expense = 3778 = 3334 + .666667 * (4000 –
3334)
Example 5
Life 5 years
Book
Accumulated
Depreciation
Net Book Value
year
6267 3733
depreciation as:
• Maximum = 7996 (corporate book at end of year)
expense as:

Notice that both the minimum and maximum amounts are the
corporate book accumulated depreciation. Since the minimum and
maximum depreciation expense are the same, the depreciation
adjustment factor has no effect and the adjusted depreciation is:
Example 6
Life 5 years
Book
Accumulated
Depreciation
Net Book Value
year
7996 2004
depreciation as:

7 – 61
Tax Accounting
expense as:
Notice that both the minimum and maximum amounts are the
corporate book accumulated depreciation. Since the minimum and
maximum depreciation expense are the same, the depreciation
adjustment factor has no effect and the adjusted depreciation is:
The effect of these three adjustments is shown in the following graph of
net book value over time.

7 – 63
Tax Accounting
See Also

Adjusting Tax Book Accumulated Depreciation
If your tax authority requires you to change the depreciation taken for
an asset in a previous fiscal year, you can adjust the depreciation for
one or more assets for that year in your tax book. When you perform
the change, Oracle Assets adjusts the depreciation for the year you
make the change and all subsequent years up to the current fiscal year.
If you make an expensed adjustment to an asset after you perform a
reserve adjustment on it, Oracle Assets recalculates the asset’s
depreciation using the depreciation limitations created by the reserve
adjustment. For assets using the flat–rate method, Oracle Assets
recalculates depreciation expense for each year the asset was in service
except the year in which you made the reserve adjustment. For that
year, depreciation remains the same.
You can review depreciation reserve adjustments to previous fiscal
years using the Adjusted Form 4562 – Depreciation and Amortization
Report or the Adjusted Form 4626 – AMT Detail or Summary Reports.
See Also
Adjusted Form 4562 – Depreciation and Amortization Reports: page
11 – 73
Adjusted Form 4626 – AMT Detail Report: page 11 – 74
Adjusted Form 4626 – AMT Summary Report: page 11 – 74
Prerequisites
❑ Allow Reserve Adjustments for the tax book. See: Defining
Depreciation Books: page 9 – 71
❑ Add your assets to your tax book using Mass Copy. See: Updating
a Tax Book with Assets and Transactions: page 7 – 20
❑ Close the fiscal year you want to adjust.
To adjust tax book depreciation for a single asset:
1. Choose Tax Tax Workbench from the Navigator window.

☞
☞
7 – 65
Tax Accounting
2. Find the asset for which you want to adjust the depreciation
expense.
3. Choose the Reserve Adjustments button.
4. Enter the tax Book in which you want to make the adjustment.
5. Enter the Fiscal Year for which you want to adjust depreciation.
6. Enter the asset’s new depreciation expense for the fiscal year you
are adjusting.
7. Optionally check the Strict Calculation Method check box. When
you check this check box, Oracle Assets calculates the new
depreciable basis based on the net book value as of the beginning of
the current fiscal year instead of as of the current period.
Note: To use the Strict Calculation Method check box, the asset
must have a depreciation method of Flat and a calculation basis
of NBV.
Attention: You cannot adjust the depreciation taken in a previous
fiscal year for assets using a units of production depreciation
method.
Attention: You also cannot adjust the depreciation for assets on
which you have performed an amortized cost adjustment since the
end of the fiscal year you are adjusting.
8. Save your work to automatically adjust the asset’s accumulated
depreciation for that year and all subsequent years up to the
current fiscal year.
To adjust tax book depreciation for a group of assets:
Note: Ensure that you have run depreciation to close the
previous fiscal year for the tax book you want to adjust, its
associated corporate book, and the control tax book.
1. Choose Tax Mass Depreciation Adjustments from the Navigator
window.
2. Enter the Adjusted tax Book for which you want to adjust
depreciation. The open period of the book must be the first period
of the following fiscal year with no transactions entered.
3. Enter the name of the Control Book that holds the minimum
accumulated depreciation control.
Oracle Assets does not adjust the depreciation for each asset in the
adjusted book to be less than the depreciation in the control book.

The control book must have the same associated corporate book as
the adjusted book.
4. Enter the factor by which you want to adjust depreciation above
the minimum. Oracle Assets adjusts the previous year’s
depreciation expense in the adjusted book according to this
formula:
Adjusted Depreciation Expense = Minimum Depreciation +
Depreciation Adjustment Factor (Maximum Depreciation –
Minimum Depreciation)
5. Choose Preview. You must preview the effects of the adjustment in
the Mass Depreciation Adjustment Preview Report before you
perform it. If necessary, modify the adjustment definition and run
preview again.
6. Find the definition you want to perform using the Mass
Transaction Number.
7. Choose Run to perform the adjustment.
9. Optionally choose Review to run the review report to show the
effects of the adjustment.
See Also
Adjusted Form 4562 – Depreciation and Amortization Reports: page
11 – 73
Adjusted Form 4626 – AMT Detail and Summary Reports: page 11 – 74
Mass Depreciation Adjustment Preview and Review Reports: page
11 – 78
Journal Entries for Tax Accumulated Depreciation Adjustments: page
6 – 63

C H A P T E R
8
T
8 – 1
Capital Budgeting
Capital Budgeting
his chapter includes an overview of capital budgeting and the
budget interface, and explains how to budget for asset acquisition.

Capital Budgeting
You can enter budget information manually, or you can maintain your
budget information in another system and upload the information
using the budget interface. You prepare and analyze your budget
information on any feeder system and then automatically transfer it
into Oracle Assets. You can use this information to project depreciation
expense for your capital budgets and compare actual and planned
capital spending in Oracle Assets.
After you create a budget book and budget assets, you can run budget
reports and project depreciation expense for amounts budgeted to each
category.
You can project depreciation expense on any of your budget books.
You can enter budget information and create budget assets for each
category from the information. Then you project depreciation for the
budget assets in the budget book using the category default
depreciation rules from the associated corporate book.
Compare Actual to Budgeted Spending to Plan Purchases
You can compare the cost of the assets you actually acquired in a
period to the cost you budgeted for that period using the
Budget–to–Actual Report. This report lists the actual and budgeted
amounts for each category, and the percent variance between the two
amounts. It also shows you how much you spent for each category for
which you did not enter a budget amount.
Enter budget information either at the major category level, or for each
full category flexfield combination. Enter a budget amount for each
period.
You can create an asset in the budget book for each budget amount,
category, and general ledger depreciation expense account you enter.
The budget asset is placed in service in the period for which you
specified the budget amount. The budget book depreciation calendar
must be the same as the associated corporate book and can have up to
twelve periods.
When you project depreciation, Oracle Assets projects depreciation for
these budget assets, to the detail entered. It projects on a budget book
based on the budget amounts you enter for each period. So, if you
have entered budget amounts for a year in advance, the projection
includes projected depreciation for additions during all twelve periods.

8 – 3
Capital Budgeting
To run the Capital Spending Report, Oracle Assets requires full
category flexfield combinations. However, when you compare
spending using the Budget–to–Actual Report, Oracle Assets reports on
the major category and cost center for each company, regardless of the
budget information detail. The report compares budgeted and actual
amounts for all categories for which there exists a budget, and it sums
them by major category. It also sums the actual expenditures for
non–budgeted categories by major category.
If you enter budget amounts for each major category, Oracle Assets
projects depreciation expense using the depreciation rules from the
major category where the other segments have a value such as NONE.
To enter major category budget amounts for the purposes of
depreciation projection, set up a category combination for the
associated corporate book for each major category. Define the category
using the major category value and a value such as NONE for the other
segments. Specify the general depreciation rules for assets in this major
category.
Note: The value NONE is an example of a dummy category;
Oracle Assets does not compare budget amounts entered for
this dummy category with actual expenditures in other
categories with the same major category.
If you entered a budget amount for each full category combination, the
depreciation program projects depreciation expense for each category
using the depreciation rules from that category.
See Also
Budget Open Interface: page 8 – 6
Budgeting for Asset Acquisition: page 8 – 4
Budget Report: page 11 – 27
Budget–To–Actual Report: page 11 – 27
Capital Spending Report: page 11 – 28

☞
Budgeting for Asset Acquisition
After you create a budget book, you can enter or upload capital budget
information. You can change the budget amounts for your existing
budget assets at any time. You must delete the existing budget before
uploading a new capital budget from a spreadsheet.
You can enter budget information for each full category combination,
or for each major category. Then you can project depreciation expense
for each category you entered. Use the budget reports to review your
capital budgets.
To prepare the budget book for budget information:
H Open the Upload Capital Budgets window and enter a new budget
Book name.
Attention: The budget book must use the same calendar as its
associated corporate book so you can compare actual and budgeted
spending.
To delete a budget:
1. Open the Upload Capital Budgets window.
2. Enter the name of your budget Book.
3. Choose Delete Existing Budget.
4. Save your work.
To manually enter or update a budget:
1. Open the Capital Budgets window.
2. Choose the budget Book, asset Category, and general ledger
Expense Account for which you want to budget.
3. Enter or update the budget amounts for this period. The budget
amount is the amount you plan to spend on new assets in this
category in this period for this expense account.
4. Save your work.
5. Review the capital budget for the year using the Budget Report.
To automatically upload a budget:
1. Open the Upload Capital Budget window.

8 – 5
Capital Budgeting
3. Choose Delete Existing Budget to remove your old budget.
4. Save your work.
5. Load your budget information into the budget interface from a
feeder system.
6. Return to the Upload Capital Budgets window and choose Upload
Capital Budget.
7. Save your work.
To create budget assets in a budget book:
1. Open the Upload Capital Budget window.
3. Choose Create Budget Assets.
Oracle Assets creates a budget asset for each category, expense
account, and budget amount you enter for each period in the
Capital Budgets window. The period is determined by the
calendar you assigned to the budget book.
4. Save your work.
See Also
Capital Budgeting: page 8 – 2
Budget Open Interface: page 8 – 6

Budget Open Interface
Capital Budgeting Process
If you maintain your budget information in a spreadsheet, you can
upload it to Oracle Assets using the budget interface. You can transfer
budget data from any software package that prints to an ASCII file, and
then use SQL*Loader to load the FA_BUDGET_INTERFACE table.
Steps in the Capital Budgeting Process
1. Develop your budget in the environment you prefer.
2. Transfer your budget data from the system where you maintain
your budget to the system where you have Oracle Assets.
3. Use SQL*Loader to move your budget data into the budget
interface.
4. Use the Upload Capital Budget window to move your budget into
the budget worksheet.
a budget book.
6. Run depreciation projections and other reports on your budget
book.

Upload Budget Process
Uploading budgets from other systems (such as a spreadsheet on a
personal computer) into Oracle Assets is a five step process.
1. Use a file transfer program to upload your ASCII budget file from
your personal computer to the computer where you have Oracle
Assets.
2. Use SQL*Loader to move your budget into the Budget Interface.
See: Customize the SQL*Loader Script: page 8 – 10.
the Budget Worksheet. Check Delete Existing Budget if you are
replacing an existing budget.
4. Use the Capital Budgets window to review or change your budget.
a budget book.
Budget Interface Table
FA_BUDGET_INTERFACE, the budget interface table, is organized
into columns in which Oracle Assets stores budget information. The
following table provides the data type and a description of the
columns:
Column Name Type Description
BOOK_TYPE_CODE Alphanumeric The name of the budget
book
PERIOD1_AMOUNT
through
PERIOD12_AMOUNT
Numeric The budget amount you
allocate to an asset cate-
gory and cost center for
one period in your fiscal
year. For a budget book,
you allocate the annual
budget over up to 12 peri-
ods

8 – 9
Capital Budgeting
Description
Type
Column Name
ACCT_SEGMENT1
through
ACCT_SEGMENT30
Numeric Segment of your account-
ing flexfield
CAT_SEGMENT1 through
CAT_SEGMENT7
Alphanumeric Segment of your category
flexfield

Customize the SQL*Loader Script
The first script is a sample SQL*Loader script (filename: budget.ctl)
and the next script is a budget information data file (filename:
budget.dat). You can easily modify the SQL*Loader script to load your
budget into the Budget Interface. This script only expects the company,
cost center, and major category. Modify it to accept whatever detail
you provide.
Sample SQL*Loader script
LOAD DATA
INFILE budget.dat
INTO TABLE FA_BUDGET_INTERFACE
FIELDS TERMINATED BY WHITESPACE
(BOOK_TYPE_CODE CONSTANT ’FY90’,
PERIOD1_AMOUNT,
PERIOD2_AMOUNT,
PERIOD3_AMOUNT,
PERIOD4_AMOUNT,
PERIOD5_AMOUNT,
PERIOD6_AMOUNT,
PERIOD7_AMOUNT,
PERIOD8_AMOUNT,
PERIOD9_AMOUNT,
PERIOD10_AMOUNT,
PERIOD11_AMOUNT,
PERIOD12_AMOUNT,
ACCT_SEGMENT1,
ACCT_SEGMENT2,
ACCT_SEGMENT3 CONSTANT ’0000’,
CAT_SEGMENT1,
CAT_SEGMENT2 CONSTANT ’NONE’)
The accounting flexfield structure is composed of the following
segments: Company Code (nn), Cost Center (nnn), Account (nnnn),
Product (nnn), Product Line (nnn), Sub Account (nnnn).
The category flexfield structure flexfield is composed of the following
segments: Primary Category, Subcategory.

8 – 11
Capital Budgeting
Sample budget data file
1200 15000 15000 15000 36000 20000 20000 20000 20000 20000 15000 15000 01 100 COMPUTER
15000 12000 17500 25000 28000 28000 28000 28000 15000 15000 15000 20000 01 200 AUTO
The SQL*Loader script reads in three kinds of data: budget amounts,
general ledger numbers, and categories.
Budget Amounts
You must define a PERIOD#_AMOUNT in the SQL*Loader script for
each period of your corporate calendar.
Therefore, edit the SQL*Loader script to:
• Reflect the number of periods in your company’s corporate
calendar
General Ledger Number
You must define an ACCT_SEGMENT# in the SQL*Loader script for
each segment in your accounting flexfield. In this case, only the
company and cost center are specified in the data file. The other
ACCT_SEGMENT#s are held constant in the control file with values
such as zeros as place holders.
• Reflect the number of segments in your company’s accounting
flexfield
• Reflect the position of each segment in your company’s
accounting flexfield
When creating your budget data file, make sure that each segment
value has the correct number of digits. For example, if your cost center
consists of three digits, you must enter cost centers 5 and 25 as 005 and
025.

Categories
You must define a CAT_SEGMENT# in the SQL*Loader script for each
segment in your category flexfield. In this example, only the major
category is specified in the data file. The other CAT_SEGMENT#s are
held constant in the control file with the word NONE. Note that each
asset category must be defined with subcategory NONE for the
corporate book.
• Reflect the number of segments used in your company’s
category flexfield
• Reflect the position of each segment used in your company’s
category flexfield
For your SQL*Loader script to work properly, you must define your
segments as one word. For instance, you could define the asset
category name Leasehold Improvements as LImprove or
Lease_Improvement. For information on how to change the
SQL*Loader script to accept asset category names of more than one
word, consult the SQL*Loader manual.
You must also change the name of the data file, budget book, and
company number in the SQL*Loader script (see italicized words in
script). Remember that you must enter names exactly as they appear in
Oracle Assets. Thus, do not enter the budget book name fy90 in the
script file when your budget book name is actually FY90.
To execute the SQL*Loader script and load your budget data into the
Budget Interface, type the following at the system prompt:
sqlload account_name/password control=budget.ctl

C H A P T E R
9
T
9 – 1
System Setup
System Setup
his chapter illustrates the setup steps you need to perform to set
up Oracle Assets, including information about setting up Oracle Assets
with multiple sets of books. It also explains how to perform each setup
step.

Overview of Setting Up
This section contains a brief overview of each task you need to
complete to set up Oracle Assets.
See Also
Related Product Setup Steps: page 9 – 2
Setup Flowchart: page 9 – 6
Setup Checklist: page 9 – 7
Setup Steps: page 9 – 9
Related Product Setup Steps
You may need to perform the following steps to implement Oracle
Assets. These steps are discussed in detail in the Setting Up sections of
other Oracle product user guides. The following tables list the related
product setup steps.
To set up the underlying Oracle Applications technology, you need to
complete several additional setup steps, including:
• performing system–wide setup tasks such as configuring
concurrent managers and printers
• managing data security, which includes setting up
responsibilities to allow access to a specific set of business data
and complete a specific set of transactions, and assigning
individual users to one or more of these responsibilities.
• setting up Oracle Workflow
See Also
Oracle Applications System Administrator’s Guide
Oracle Workflow Guide

9 – 3
System Setup
General Ledger Setup Steps
Use the Setting Up General Ledger section in the General Ledger User
Guide for help in completing the following setup steps.
Step
Define Your Set of Books
See: Defining Sets of Books (Oracle General Ledger User Guide)
Note: If you are not implementing Oracle General Ledger, you can
use the Set of Books window in Oracle Assets to define your set of
books.
Define Additional Journal Entry Sources
See: Defining Journal Sources (Oracle General Ledger User Guide)
use the Journal Entry Sources window in Oracle Assets to define
journal entry sources.
Define Additional Journal Entry Categories
See: Defining Journal Categories (Oracle General Ledger User Guide)
use the Journal Entry Categories window in Oracle Assets to define
journal entry categories.

Oracle Inventory Setup Steps
Use the Setting Up Oracle Inventory section in the Oracle Inventory User
Step
Define Your Unit of Measure Classes
See: Defining Units of Measure Classes (Oracle Inventory User Guide)
Note: If you are not implementing Oracle Inventory, you can use the
Unit of Measure Classes window in Oracle Assets to define your unit
of measure classes.
Define Your Units of Measure
See: Defining Units of Measure (Oracle Inventory User Guide)
Note: If you are not implementing Oracle Inventory, you can use the
Units of Measure window in Oracle Assets to define your units of
measure.
Oracle Human Resources Setup Steps
Use Managing Your Workforce Using Oracle HRMS for help in completing
the following setup steps.
Step
Define Your Employees
See: Entering a New Person (Managing Your Workforce Using Oracle
HRMS)
Note: If you are not implementing Oracle Human Resources, you can
use the Enter Person window in Oracle Assets to define your
employees.

9 – 5
System Setup
Oracle Payables Setup Steps
Use the Setting Up Oracle Payables section in the Oracle Payables User
Step
Define Your Supplier and Employee Numbering Schemes
See: Defining Financials Options (Oracle Payables User Guide).
Note: If you are not implementing Oracle Payables, you can use the
Financial Options window in Oracle Assets to define your supplier
and employee numbering schemes.
Define Your Suppliers
See: Entering Suppliers (Oracle Payables User Guide).
Note: If you are not implementing Oracle Payables, you can use the
Suppliers window in Oracle Assets to define your suppliers.

Setup Flowchart
Some of the steps outlined in this flowchart and setup checklist are
Required and some are Optional. Required step with Defaults refers to
setup functionality that comes with pre–seeded, default values in the
database; however, you should review those defaults and decide
whether to change them to suit your business needs. If you want or
need to change them, you should perform that setup step. You need to
perform Optional steps only if you plan to use the related feature or
complete certain business functions.

9 – 7
System Setup
Setup Checklist
The following table lists Oracle Assets setup steps and whether the step
is optional or required. After you log on to Oracle Applications,
complete these steps to implement Oracle Assets:
Step
No.
Required Step
Step 1 Required Define Your Sets of Books: page 9 – 9
Step 2 Optional Define Your Unit of Measure Classes: page 9 – 9
Step 3 Optional Define Your Units of Measure: page 9 – 10
Step 4 Optional Define Your Employees: page 9 – 10
Step 5 Optional Define Your Descriptive Flexfields: page 9 – 11
Step 6 Required
with
defaults
Decide How to Use the Account Generator: page 9 – 11
Step 7 Required
with
defaults
Define Additional Journal Entry Sources: page 9 – 12
Step 8 Required
with
defaults
Define Additional Journal Entry Categories: page 9 – 12
Step 9 Optional Define Your Supplier and Employee Numbering Schemes: page 9 – 12
Step 10 Optional Define Your Suppliers: page 9 – 13
Step 11 Required Define Your Asset Key Flexfield: page 9 – 13
Step 12 Required Define Your Asset Category Flexfield: page 9 – 13
Step 13 Required Define Your Location Flexfield: page 9 – 14
Step 14 Required Define Your System Controls: page 9 – 14
Step 15 Optional Define Your Locations: page 9 – 14
Step 16 Optional Define Your Asset Keys: page 9 – 15
Step 17 Required
with
defaults
Define Your Standard Asset Descriptions and Other QuickCode Values:
page 9 – 15
Step 18 Required Define Your Fiscal Years: page 9 – 16
Step 19 Required Define Your Calendars: page 9 – 16
Step 20 Optional Set Up Security by Book: page 9 – 17
Step 21 Required Define Your Book Controls: page 9 – 17

Step
Required
Step
No.
Step 22 Required
with
defaults
Define Additional Depreciation Methods and Rates: page 9 – 18
Step 23 Optional Define Your Depreciation Ceilings: page 9 – 19
Step 24 Optional Define Your Investment Tax Credits: page 9 – 19
Step 25 Required Define Your Prorate and Retirement Conventions: page 9 – 20
Step 26 Optional Define Your Price Indexes: page 9 – 20
Step 27 Required Define Your Asset Categories: page 9 – 21
Step 28 Optional Define Distribution Sets: page 9 – 21
Step 29 Optional Enter Leases: page 9 – 21
Step 30 Optional Define Warranties: page 9 – 22
Step 31 Optional Set Profile Options: page 9 – 22
Step 32 Optional Define Asset Insurance: page 9 – 22

Step 1
Step 2
☞
☞
9 – 9
System Setup
Setup Steps
For each step, we include a Context section that indicates whether you
need to repeat the step for each set of tasks, set of books, inventory
organization, HR organization, or other operating unit under Multiple
Organizations.
Define Your Set of Books
You need to define at least one set of books before you can implement
and use Oracle Assets.
A set of books includes an accounting calendar, a functional currency,
and an account structure. The account defines the structure of your
general ledger accounts. If you have not defined your account while
setting up a set of books, you need to set the account to match your
accounting structure and provide valid values for expense, cash, and
accounts payable liability accounts.
If you previously defined your set of books while setting up a different
Oracle Financials product, proceed to the next step.
You can use Oracle Assets with multiple sets of books within a single
installation. See: Oracle Assets with Multiple Sets of Books: page
9 – 24.
Default – This is a required step. If you skip this step, you will not be
able to use Oracle Assets.
Context: You need to perform this step only once per installation.
See: Defining Sets of Books (Oracle General Ledger User Guide)
Define Your Unit of Measure Classes (optional)
If you do not install Oracle Inventory or Oracle Purchasing, use the
Unit of Measure Classes window in Oracle Assets to define your unit
of measure classes. You can define classes for the units you use to
measure production for your units of production assets.
If you previously defined your unit of measure classes while setting up
a different Oracle Applications product, proceed to the next step.
Attention: You must set up an organization before you can
define units of measure classes. See: Creating an Organization
(Oracle Human Resources Management System User Guide).
Attention: You must define the profile option HR:User Type
before you can set up an organization. See: Setting User Profile
Options (Oracle Applications System Administrator’s Guide).

Step 3
☞
☞
Step 4
Default – If you skip this step, Oracle Assets will use the defaults set
up in Oracle Inventory or Oracle Purchasing. If neither Oracle
Inventory nor Oracle Purchasing are installed, you will not be able to
use unit of measure classes.
Context: Perform this step once for each Inventory organization.
See: Defining Units of Measure Classes (Oracle Inventory User Guide)
Define Your Units of Measure (optional)
If you do not install Oracle Inventory or Oracle Purchasing, use the
Units of Measure window in Oracle Assets to define your units of
measure. You can define the units you use to measure production for
your units of production assets.
Attention: You must set up an organization before you can
define units of measure. See: Creating an Organization (Oracle
Human Resources Management System User Guide).
Attention: You must define the profile option HR:User Type
before you can set up an organization. See: Setting User Profile
Options (Oracle Applications System Administrator’s Guide).
If you previously defined your units of measure while setting up a
different Oracle Applications product, proceed to the next step.
Default – If you skip this step, Oracle Assets will use the defaults set
up in Oracle Inventory or Oracle Purchasing. If neither Oracle
Inventory nor Oracle Purchasing are installed, you will not be able to
use units of measure.
Context: Perform this step once for each Inventory organization.
See: Defining Units of Measure (Oracle Inventory User Guide)
Define Your Employees (optional)
If you do not install Oracle Personnel, Oracle Payroll, Oracle
Purchasing, or Oracle Payables, use the Enter Person window in Oracle
Assets to define employees. You must enter an employee before you
can assign an asset to the employee. Oracle Assets only uses the
employee name, number, and termination date.
If you previously defined your employees while setting up a different
Oracle Applications product, proceed to the next step.
Default – If you skip this step, you will not be able to track assets by
employee name.
Context: Perform this step once for each business group.

Step 5
Step 6
9 – 11
System Setup
See: Entering a New Person (Managing Your Workforce Using Oracle
HRMS)
Define Your Descriptive Flexfields (optional)
You can set up descriptive flexfields to track additional information.
For example, you can set up a descriptive flexfield for each asset
category to collect information relevant to your business. For example,
you might want to track the license number for cars, but the square
footage for buildings. Then, when you assign a new asset to a category,
you can enter the additional information.
There are many other descriptive flexfields in Oracle Assets. For
example, you can set up a descriptive flexfield to store additional
information about your transactions.
Note: To set up the Leases GUI descriptive flexfield or the
Retirements GUI descriptive flexfield, see: Defining
Descriptive Flexfield Structures (Oracle Applications Flexfields
Guide)
Default – If you skip this step, you will not be able to enter additional
descriptive information to track assets.
See: Defining the Asset Category Descriptive Flexfield: page 9 – 26 and
Defining Descriptive Flexfields (Oracle Applications System
Administrator’s Guide).
Decide How to Use the Account Generator (required with defaults)
flexfield combinations for journal entries. You must review the default
process that Oracle Assets uses to see if it meets your accounting
requirements. You can optionally customize the Account Generator for
each set of books that you have defined. Note that you must set up
Oracle Workflow in order to use the Account Generator.
Default – If you skip this step, Oracle Assets will use the default
Account Generator settings to build accounting flexfield code
combinations.
Context: Perform this step once for each (entity) i.e. organization
operating unit, business group, or legal entity.
See: Using the Account Generator in Oracle Assets: page 9 – 27

Step 7
Step 8
Step 9
Define Additional Journal Entry Sources (required with defaults)
If you do not install Oracle General Ledger, use the Journal Entry
Sources window in Oracle Assets to define additional journal entry
sources. Journal entry sources are used to identify the origin of your
journal entry transactions.
If you previously defined your journal entry sources while setting up
Oracle General Ledger, proceed to the next step.
Default – If you skip this step, Oracle Assets will use the journal entry
sources set up in Oracle General Ledger.
Context: Perform this step once for each operating unit.
See: Defining Journal Sources (Oracle General Ledger User Guide).
Define Additional Journal Entry Categories (required with defaults)
If you do not install Oracle General Ledger, use the Journal Entry
Categories window in Oracle Assets to define additional journal entry
categories. Journal entry categories describe the purpose or type of
your journal entries.
If you previously defined your journal entry categories while setting up
Oracle General Ledger, proceed to the next step.
Default – If you skip this step, Oracle Assets will use the journal entry
categories set up in Oracle General Ledger.
See: Defining Journal Categories (Oracle General Ledger User Guide).
Define Your Supplier and Employee Numbering Schemes (optional)
If you do not install Oracle Purchasing or Oracle Payables, use the
Financials Options window in Oracle Assets to define your supplier
and employee numbering schemes. You need to specify how to
number your suppliers and employees before you can enter suppliers
or employees.
If you previously defined your supplier and employee numbering
schemes while setting up a different Oracle Applications product,
proceed to the next step.
Default – If you skip this step, you will not be able to track asset
assignments against employees and assignments.

Step 10
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9 – 13
System Setup
See: Defining Financials Options (Oracle Payables User Guide).
Define Your Suppliers (optional)
If you do not install Oracle Purchasing or Oracle Payables, use the
Suppliers window in Oracle Assets to define your suppliers. You must
enter a supplier before you can enter assets or bring over mass
additions purchased from that supplier. Oracle Assets only uses the
supplier name, number, and inactive date.
If you previously defined your suppliers while setting up a different
Oracle Applications product, proceed to the next step.
Default – If you skip this step, you will not be able to track assets
assigned to specific suppliers.
See: Entering Suppliers (Oracle Payables User Guide).
Define Your Asset Key Flexfield
The asset key flexfield allows you to define asset keys that let you name
and group your assets so you do not need an asset number to find
them. The asset key is similar to the asset category in that it allows you
to group assets. However, the asset key has no financial impact.
This flexfield lets you assign the same name to many assets so you can
find similar assets. You can provide additional descriptive data to
group assets by project or other functional group. You can use this
flexfield to track your CIP assets. You use the same setup windows to
create your asset key flexfield as you do for your other key flexfields.
See: Asset Key Flexfield: page 9 – 41.
Define Your Asset Category Flexfield
The asset category flexfield allows you to define asset categories and
subcategories. For example, you can create an asset category for your
computer equipment. You can then create subcategories for personal
computers, terminals, printers, and software. You must assign the
major category segment qualifier to one segment of your category
flexfield. The major category segment facilitates capital budgeting. All
other segments are optional. You use the same setup windows to

Step 13
Step 14
Step 15
create your asset category flexfield as you do for your other key
flexfields. See: Category Flexfield: page 9 – 44
See: Category Flexfield: page 9 – 44
Define Your Location Flexfield
The location flexfield allows you to specify and track the exact location
of your assets. You must assign the state segment qualifier to one
segment of your location flexfield. The state segment facilitates
property tax reporting. All other segments are optional. You use the
same setup windows to create your location flexfield as you do for
your other key flexfields.
See: Location Flexfield: page 9 – 50
Define Your System Controls
Set up your system controls. You specify your enterprise name, asset
numbering scheme, and key flexfield structures in the System Controls
window. You also specify the oldest date placed in service of your
assets.
Context: Perform this step once per set of books.
See: Specifying System Controls: page 9 – 54.
Define Your Locations (optional)
Define valid locations. Your location flexfield combinations tell Oracle
Assets what locations are valid for your company. Oracle Assets uses
location for tracking assets and for property tax reporting.
If your location flexfield has dynamic insertion turned off, this is the
only place you can define valid combinations. If dynamic insertion is
turned on, Oracle Assets automatically updates the Locations window
with the values you enter in the Assignments window.

Step 16
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9 – 15
System Setup
See: Defining Locations: page 9 – 56.
Define Your Asset Keys (optional)
Define valid asset keys. You can use the list of values to choose these
combinations for your assets when you enter them.
If dynamic insertion is disabled for your asset key flexfield, Asset Keys
is the only window where you can define valid combinations. If
dynamic insertion is enabled, Oracle Assets automatically updates the
Define Asset Keys window with the values you enter when you add
assets.
See: Defining Asset Keys: page 9 – 57.
Define Your Standard Asset Descriptions and Other QuickCode
Values (required with defaults)
QuickCode values are values that you can choose from a list of values
when you enter and maintain assets. You can define the QuickCode
values that you want for the following items:
• Standard Asset Descriptions
• Journal Entries
• Mass Additions Queue Names
• Property Type
• Retirement
• Asset Category
• Asset Subcategory
Default – If you skip this step, the list of values you receive for
maintaining assets will be the seeded defaults.
See: Entering QuickCodes: page 9 – 58.

Step 18
Step 19
Define Your Fiscal Years
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. Create fiscal years from the oldest date placed in
service through at least one fiscal year beyond the current fiscal year.
Depreciation will fail if the current fiscal year is the last fiscal year.
See: Creating Fiscal Years: page 9 – 61.
Define Your 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.
Define a prorate calendar and a depreciation calendar for each
depreciation book. Depreciation books can share a calendar, and you
can use the same calendar for your depreciation calendar and prorate
calendar if appropriate.
Determines, with the divide depreciation flag,
what fraction of the annual depreciation amount to
take each period.
Determines, with the date placed in service, which
depreciation rate to select from the rate table.
You can set up different calendars for each depreciation book. For
example, you might set up a monthly calendar for financial reporting
and a quarterly calendar for tax reporting.
See: Specifying Dates for Calendar Periods: page 9 – 62.
Depreciation
Calendar
Prorate Calendar

Step 20
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9 – 17
System Setup
Set Up Security by Book (optional)
If you have multiple depreciation books, you may need to set up
security for each book. For example, you may have operations in the
U.S., Europe, and Asia, and may have sets of books and associated
depreciation books set up for each country, according to that country’s
currency and tax laws. For a variety of reasons, you may prefer that
the staff at the different sites are unable to view depreciation
information for another site.
Oracle Assets allows you to limit access to each book so that only
certain individuals can view the information. You do this by creating
asset organizations and organization hierarchies that determine which
organizations have access to a specific depreciation book.
Default – If you skip this step, all asset depreciation books will be
accessible to all users.
Define Your 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.
When you define a tax book, you must specify an associated corporate
book. You can mass copy assets and transactions from the source book
into your tax book. You specify the current open period, and Initial
Mass Copy copies each asset into the tax book from the corporate book
as of the end of that fiscal year in the corporate book.
To set up security for your sets of books, you need to complete the
following steps:
• Define organizations. See: Asset Organizations Overview: page
9 – 65
• Define organizations hierarchies. See: Organization Hierarchies
in Oracle Assets: page 9 – 67
• Define security profiles. See: Security Profiles: page 9 – 68
• Run the Security List Maintenance process. See: Security List
Maintenance Process: page 9 – 68

Step 22
• Define responsibilities. See: Defining Responsibilities. See:
Defining Responsibilities: page 9 – 68
• Assign responsibilities to users. See: Assigning Responsibilities
to Users: page 9 – 69
• Set up the FA: Security Profile profile option. See: Setting Up FA:
Security Profile: page 9 – 69
See: Defining Depreciation Books: page 9 – 71.
Define Additional Depreciation Methods and Rates (required with
defaults)
Depreciation methods specify how to spread the asset cost. Oracle
Assets includes many standard depreciation methods, and you can
define additional methods in the Methods window, if necessary.
Oracle Assets includes standard life–based
depreciation methods and rates. However, you can
define additional life–based methods.
*You can define additional flat–rate methods, such
as Diminishing Value. You can define your
methods to calculate depreciation using either the
net book value or the cost of the asset.
Use the Bonus Depreciation Rules window to enter
bonus rates for your flat–rate depreciation
methods. Bonus rules allow you to take additional
depreciation in the early years of an asset’s life.
You can define a units of production method so
you can calculate depreciation for an asset based
on actual production or use for the period.
You can define specific formulas to derive annual
depreciation rates for your assets. You can use
these user–defined depreciation formulas in lieu of
table–based, flat rate, calculated, or units of
measure depreciation methods.
Default – If you skip this step, you will be able to use only the standard
depreciation methods included in Oracle Assets.
See: Defining Additional Depreciation Methods: page 9 – 78, Defining
Formula–Based Depreciation Methods: page 9 – 81 and Defining Bonus
Depreciation Rules: page 9 – 86.
Life–Based
Depreciation
Method
Flat–Rate
Depreciation
Method
Bonus
Depreciation
Rules
Units Of
Production
Formula–Based
Depreciation

Step 23
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9 – 19
System Setup
Define Your Depreciation Ceilings (optional)
Depreciation ceilings limit the depreciation expense you can take for an
asset. Set up depreciation expense ceilings to limit the annual amount
of depreciation expense you can take on an asset. Or set up
depreciation cost ceilings to limit the recoverable cost of an asset.
Use the Ceilings window to define your
depreciation expense ceilings. If you are subject to
United States tax law, you must set up depreciation
ceilings for luxury automobiles.
If you do business in a country which requires cost
ceilings, such as Australia, you can limit the cost
Oracle Assets uses to calculate depreciation. When
you use a cost ceiling, Oracle Assets bases
depreciation expense on the lesser of the cost
ceiling and the asset cost.
Default – If you skip this step, depreciation expense will not be limited
by depreciation ceilings.
See: Setting Up Depreciation Ceilings: page 9 – 147.
Define Your Investment Tax Credits (optional)
Set up your Investment Tax Credit (ITC) rates, recapture rates, and
ceilings. Investment tax credits (ITC) allow you to reduce the
recoverable cost of an asset.
Oracle Assets allows you to set up ITC rates for
assets that are eligible for Investment Tax Credit.
ITC rates determine the amount of ITC for an asset.
Oracle Assets allows you to set up ITC recapture
rates for assets with Investment Tax Credits. ITC
recapture rates determine the portion of the
investment tax credit that must be recaptured if
you retire the asset prematurely.
See: Defining Investment Tax Credit Rates: page 9 – 148.
Oracle Assets allows you to define Investment Tax
Credit (ITC) ceilings. ITC ceilings limit the amount
of ITC for an asset. If you are subject to United
States tax law, you must set up ITC ceilings for
luxury automobiles.
Depreciation
Expense Ceilings
Depreciation
Cost Ceilings
ITC Rates
ITC Recapture
Rates
ITC Ceilings

Step 25
Step 26
Default – If you skip this step, you will not be able to use investment
tax credits.
See: Setting Up Depreciation Ceilings: page 9 – 147.
Define Your Prorate and Retirement Conventions
Use the Prorate Conventions window to set up your prorate and
retirement 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. Oracle Assets lets you
set up as many prorate and retirement conventions as you need.
Determines how much depreciation expense to
take in the first year of life.
If you do business in a country that requires you to
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.
You must set up your prorate conventions for the entire 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.
See: Specifying Dates for Prorate Conventions: page 9 – 150.
Define Your Price Indexes (optional)
A price index lets you calculate gains and losses for retirements using
current value rather than historical cost. If you do business in a
country that requires you to base gains and losses on current value
rather than historical cost, Oracle Assets lets you set up price indexes
to calculate the gains and losses for your asset upon retirement. When
you retire an asset assigned to a category and book for which you have
defined a price index, you can run the Revalued Asset Retirements
Report which uses the revalued asset cost in calculating gains and
losses.
You can use a different index for each asset category or the same index
for all categories. You associate an index with an asset category by
Prorate
Conventions
Retirement
Conventions

Step 27
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9 – 21
System Setup
entering the name of the price index in the Price Index field on the
Asset Categories window.
Default – If you skip this step, you will not be able to use price indexes
with features such as retirements and insurance.
See: Defining Price Indexes: page 9 – 157.
Define Your Asset Categories
Asset categories let you define information that is common to all assets
in a category, such as depreciation method and prorate convention.
Oracle Assets uses this information to provide default values to help
speed asset entry.
See: Setting Up Asset Categories: page 9 – 158.
Define Distribution Sets (optional)
Distribution sets let you automatically assign distributions to a new
asset or mass addition quickly and accurately by using a predefined
distribution set. Default distribution sets appear in the Distribution Set
poplist in the Assignments window.
Default – If you skip this step, you will not be able to use distribution
sets to automatically assign distributions to new asset additions.
See: Defining Distribution Sets: page 9 – 166.
Enter Leases (optional)
Define leases in the Lease Details window. You can assign leases to one
or more assets in the Asset Details window. You can also test your
leases in accordance with generally accepted accounting principles in
the Lease Details window, and you can analyze alternate leasing
strategies using the Lease Payments window.
Default – If you skip this step, you will not be able to assign a lease to
an asset.

Step 30
Step 31
Step 32
See: Entering Leases: page 9 – 175 and Lease Analysis: page 9 – 168.
Define Warranties (optional)
Define and track descriptive information on manufacturer and vendor
warranties. You define the warranty information in the Asset
Warranties window. You can then assign assets to these previously
defined warranties in the Asset Details window. You can assign any
number of assets to the same warranty.
Default – If you skip this step, you will not be able to track descriptive
information on manufacturer and vendor warranties.
See: Defining Asset Warranties: page 9 – 181.
Set Profile Options (optional)
Profile options specify how Oracle Assets controls access to and
processes data. In general, profile options can be set at one or more of
the following levels: site, application, responsibility, and user.
Oracle Assets users use the Personal Profile Values window to set
profile options only at the user level. System administrators use the
Update System Profile Options window to set profile options at the
site, application, responsibility, and user levels.
You can set or view the following profile options in Oracle Assets. The
table also includes profile options from other applications that are used
by Oracle Assets.
Default – If you skip this step, you will not be able to control access to
and process data optimally in Oracle Assets.
See: Overview of User Profiles and Setting User Profile Options (Oracle
Applications System Administrator’s Guide).
Define Asset Insurance (optional)
You can use the Fixed Asset Insurance window to define insurance
information for your assets, such as insurance policy information and
calculation methods. You can enter multiple insurance policies for an
asset for different categories of insurance. Oracle Assets uses the
insurance information that you enter here to calculate the current
insurance value of the asset.

9 – 23
System Setup
Default – If you skip this step, you will not be able to track insurance
information for assets.
See: Overview of Asset Insurance: page 9 – 182.

Oracle Assets With Multiple Sets of Books
You can use Oracle Assets with multiple sets of books, within a single
Oracle Assets installation.
You can handle multiple companies in two different ways. You can
have multiple companies within one general ledger set of books, or you
can have multiple companies each with its own general ledger set of
books. Regardless of the way you choose, you create at least one
depreciation book for each set of books that you want to use.
Example: Global Computers is a parent company with three
subsidiaries. They are:
Global Computers G/L set of books 1
Real Estate G/L set of books 2
Research Development G/L set of books 3
Distribution G/L set of books 3
Since Global Computers and the Real Estate subsidiary are in different
sets of books, they must be in different depreciation books. The
Research Development and Distribution subsidiaries are in the same
set of books so you can either set up one depreciation book for both, or
a separate depreciation book for each.

9 – 25
System Setup
Implementation
You need only one copy of Oracle Assets to implement multiple sets of
books. Use AutoInstall to install the single copy.
Once you install Oracle Assets, use the Book Controls window to set
up as many depreciation books as you need. For each depreciation
book, you choose to create journal entries to the appropriate set of
books.
Remember that before you use the Book Controls window to set up
your depreciation books, you must:
• Set up the Account structure (chart of accounts) associated with
each general ledger sets of books
• Use Oracle General Ledger to set up the general ledger sets of
books you need. If you do not have Oracle General Ledger, you
can set up your sets of books using the Set of Books window in
Oracle Assets
Limitations
Implementing multiple sets of books in Oracle Assets has the following
limitations:
• If you want to transfer assets that are in different corporate
depreciation books, you must retire the asset from one
depreciation book and add it to the other.
• You can run depreciation projections for several books at once if
all books have the same Account flexfield structure. If they have
different structures, you must project them separately.
See Also
Oracle Assets System Setup: page 9 – 2
Defining Sets of Books (Oracle General Ledger User Guide)

Defining the Asset Category Descriptive Flexfield
You can set up the Asset Category descriptive flexfield to store
additional information based on the asset category. The Asset
Category descriptive flexfield appears in both the Additions and Quick
Additions forms.
Enter ATTRIBUTE_CATEGORY_CODE as the reference field to base
the descriptive flexfield structure on the value of your Category
Flexfield (key flexfield). See: Category Flexfield: page 9 – 44.
You define your context field values (structure names) to exactly match
your concatenated Category Flexfield combinations. For example, if
you have a Major Category value of BUILDING, and a Minor Category
of OFFICE, your Category Flexfield combination is
BUILDING.OFFICE, so you would define BUILDING.OFFICE as your
context value (structure name). Similarly, you could define another
context value as VEHICLE.DELIVERY. Note that the segment
separator, spelling and case must exactly match your Category
Flexfield combination.
You need not define a descriptive flexfield structure for each
combination of your Category Flexfield; define structures only for
those categories where you want to capture additional information
(such as license number, insurance policy number, and so on).
Note that you may want to ”share” segment names (not necessarily the
same as your segment prompts) among different structures of
context–sensitive segments if you plan to use flexfield views for
reporting.
See:
Overview of Flexfield Views (Oracle Applications Flexfields Guide)
Segment Naming Conventions (Oracle Applications Flexfields Guide)
Descriptive Flexfield View Example (Oracle Applications Flexfields Guide)

9 – 27
System Setup
Using the Account Generator in Oracle Assets
This essay describes how to use and customize the default Account
Generator process in Oracle Assets.
The Account Generator in Oracle Assets utilizes Oracle Workflow. You
can view and customize Account Generator processes through the
Oracle Workflow Builder. See: Oracle Workflow Guide.
flexfield combinations for journal entries. The Account Generator
allows you to designate a specific source for each segment in the
account for which Oracle Assets creates a journal entry. The Account
Generator gives you the flexibility to create journal entries according to
your requirements. You can specify to what detail to create journal
entries, and you can specify the detail level for each book and account
type.
For example, when creating journal entries for asset cost, you can
specify that the cost center segment comes from the depreciation
expense account of the distribution line you entered for the asset in the
Assignments window. Or, you can specify that the cost center comes
from the default value you defined for the depreciation book.
Oracle Assets sets up the Account Generator to create journal entries
using default assignments when you set up a depreciation book.
Oracle Assets provides two seeded Account Generator processes.
• Generate Default Account process
• Generate Distribution Detail Account process
The Generate Default Account process creates journal entries without
cost center level detail, except for depreciation expense. Using the
default assignments, it creates journal entries using the balancing
segment from the distribution line in the Assignments window and the
natural account segment from the asset category or book, depending on
the account type. The Account Generator gets the other segments from
the default segment values you entered for the book. You can modify
the default Account Generator processes so that Oracle Assets creates
journal entries to a different detail level.
The Generate Distribution Detail Account process creates journal
entries with cost center level detail. It creates journal entries using the
distribution expense account for all segment values, except the natural
account segment. The natural account segment is created from the
asset category or book, depending on the account type. You can

☞
modify the default Account Generator processes so that Oracle Assets
creates journal entries to a different detail level.
Suggestion: You only need to read this essay and modify the
default process if you want to use the Account Generator to
post to a different level of detail.
Attention: Notice that the default process is different for the
depreciation expense account and the bonus depreciation
expense account. Using the default process, Oracle Assets
creates full detail journal entries for depreciation expense.
Oracle Assets creates journal entries for depreciation expense
using all the segments from the distribution line you enter for
the asset in the Assignments window. For bonus depreciation
expense, Oracle Assets creates journal entries using the account
segment from the asset category and the other segments from
the distribution line.
See Also
Overview of the Account Generator: (Oracle Applications Flexfields
Guide)
Decide How to Use the Account Generator
In Release 10, several Oracle Applications products used FlexBuilder to
derive account code combinations for certain account transactions. In
Release 11, FlexBuilder is replaced by the Account Generator to
provide implementation teams with even greater flexibility and a better
user interface with Oracle Workflow.
If you are upgrading from Release 10 and used FlexBuilder, then you
should perform the equivalent of this setup step as part of your
upgrade. See the FlexBuilder chapter of the Oracle Applications Upgrade
Preparation Manual.
If you are implementing Oracle Assets for the first time, then you
need to review how Assets uses the Account Generator to build
Accounting Flexfield code combinations. Consider whether the default
Account Generator process is appropriate for each set of books that
uses a unique Accounting Flexfield structure. For each structure and
set of books, you can choose one of the following:

9 – 29
System Setup
• Use the Generate Default Account process
• Use the Generate Distribution Detail Account process
• Customize the default Account Generator processes
This decision determines which setup steps your implementation team
needs to perform.
Note: You cannot create a new Account Generator process.
However, you can customize the default Account Generator
processes, as stated above.
Prerequisites to Using the Account Generator
Before using the Account Generator on a production database in Oracle
Assets to generate accounting flexfield combinations, you must:
❑ Define your Accounting Flexfield structure for each General Ledger
set of books.
❑ Define flexfield segment values and validation rules.
❑ Set up Oracle Workflow (Oracle Workflow Guide)
❑ Choose whether you want to use the default Account Generator
process, or if you need to customize it to meet your accounting
needs.
❑ Do one of the following for each set of books:
• Choose to use the default Account Generator process.
• Customize the default Account Generator process, test your
customizations, and choose the process for a flexfield structure,
if necessary.
See Also
The Default Account Generator Processes for Oracle Assets: page 9 – 29
Customizing the Account Generator for Oracle Assets: page 9 – 36
The Default Account Generator Processes for Oracle Assets
Evaluate whether the default Account Generator processes meet your
accounting requirements. No setup steps are required to use the
default processes. The default processes can also be updated later as

your needs change. You can make minor changes to the default
processes without changing the name.
Note: If you used FlexBuilder in Release 10 but did not
customize the default configuration, you can use the default
Account Generator process in Release 11, which gives you the
same result as the default assignments in FlexBuilder.
Each Account Generator workflow is called an item type. Oracle Assets
comes with the following Account Generator item type:
• FA Account Generator
The FA Account Generator contains the following workflow processes:
• Generate Default Account
• Generate Distribution Detail Account
• Generate Account Using FlexBuilder Rules
Generate Default Account Process
Use the Generate Default Account process to generate asset–level,
book–level, and category–level accounts. You can use the default
settings or customize it as required.
Start Generating Code Combination (Node 1)
This is a standard activity that marks the start of the process.
Get Account Group (Node 2)
This function returns the group to which the account belongs, either
book level, category level, or asset level.

9 – 31
System Setup
Generate Book Level Account (Node 3)
This activity generates the code combination ID (CCID) for a
book–level account. The FA Account Generator finds the name of the
account for which it is generating code combinations. Possible account
names are:
• Cost of Removal Clearing
• Cost of Removal Gain
• Cost of Removal Loss
• Deferred Depreciation Reserve
• Intercompany Accounts Payable
• Intercompany Accounts Receivable
• Net Book Value Retired Gain
• Net Book Value Retired Loss
• Proceeds of Sale Clearing
• Proceeds of Sale Gain
• Proceeds of Sale Loss
• Revaluation Reserve Retired Gain
• Revaluation Reserve Retired Loss
Generate Category Level Account (Node 4)
category–level account. The FA Account Generator finds the name of
the account for which it is generating code combinations. Possible
account names are:
• Asset Clearing
• Asset Cost
• Bonus Expense
• Bonus Reserve
• Construction–In–Process Clearing
• Construction–In–Process Cost
• Depreciation Reserve

Generate Asset Level Account (Node 5)
This activity generates the code combination ID (CCID) for an
asset–level account. The FA Account Generator finds the name of the
names are:
Validate Code Combination (Node 6)
The FA Account Generator validates the generated code combination.
End Generating Code Combination (Node 7)
It is always the End function for an Account Generator process.
Generate Distribution Detail Account Process
Use the Generate Distribution Detail Account process to generate
asset–level, book–level, and category–level accounts. You can use the
default settings or customize it as required.

9 – 33
System Setup
Start Generating Code Combination (Node 1)
This is a standard activity that marks the start of the process.
Get Account Group (Node 2)
This function returns the group to which the account belongs, either
book level, category level, or asset level.
Generate Book Level For Distribution Detail (Node 3)
book–level account. The FA Account Generator finds the name of the
names are:
• Cost of Removal Clearing
• Cost of Removal Gain
• Cost of Removal Loss
• Deferred Depreciation Reserve

• Intercompany Accounts Payable
• Intercompany Accounts Receivable
• Net Book Value Retired Gain
• Net Book Value Retired Loss
• Proceeds of Sale Clearing
• Proceeds of Sale Gain
• Proceeds of Sale Loss
• Revaluation Reserve Retired Gain
• Revaluation Reserve Retired Loss
Generate Category Level for Distribution Detail (Node 4)
category–level account. The FA Account Generator finds the name of
the account for which it is generating code combinations. Possible
account names are:
• Asset Clearing
• Asset Cost
• Bonus Expense
• Bonus Reserve
• Construction–In–Process Clearing
• Construction–In–Process Cost
• Depreciation Reserve
Generate Asset Level Account (Node 5)
This activity generates the code combination ID (CCID) for an
asset–level account. The FA Account Generator finds the name of the
names are:

9 – 35
System Setup
Validate Code Combination (Node 6)
The FA Account Generator validates the generated code combination.
End Generating Code Combination (Node 7)
It is always the End function for an Account Generator process.
Generate Account Using FlexBuilder Rules Process
If you used FlexBuilder in a previous release to generate account
combinations, you can use the Generate Account Using FlexBuilder
Rules process to replicate your FlexBuilder setup automatically,
without changing any of your predefined FlexBuilder Rules, and
without customizing the Account Generator. The Generate Account
Using FlexBuilder Rules process includes a function generated during
your upgrade from Release 10 to Release 11.
If you are upgrading from Release 10, follow the guidelines in the
FlexBuilder chapter of the Oracle Applications Upgrade Preparation
Manual.
Exceptions
In a few special cases, Oracle Assets does not use the Account
Generator to determine for which account to create journal entries.
These special cases are for the clearing account for an asset added
using mass additions, and for the depreciation expense account after a
reclassification.
When you add an asset using mass additions, Oracle Assets clears the
asset clearing or CIP clearing account to which your payables system
charged the asset in your corporate book, without using the Account
Generator.
When you reclassify an asset, Oracle Assets changes the depreciation
expense account segment for all books to that of the new asset category,
without using the Account Generator, or the account segment from the
distribution you specified for the asset in the Assignments window.
When Generate Accounts is run, all required accounts are generated
and stored in fa_distribution_accounts if they pass account validation.
If the account combination already exists in fa_distribution_accounts,
Generate Accounts will use the account combination without
revalidation.

☞
See Also
Assigning an Asset: page 2 – 28
Customizing the Account Generator for Oracle Assets
Oracle Assets provides two default Account Generator processes for
you to use. If the default processes do not satisfy your accounting
requirements, you can use the Oracle Workflow Builder to customize
the default process or create a new one.
If you want to create a new process to meet your company’s needs, use
the Oracle Workflow Builder to create a new process, or copy the
existing default and change the name before making extensive changes
to it.
See Also
Customization Guidelines: page 9 – 36
Customizing the Account Generator
(Oracle Applications Flexfields Guide)
Oracle Workflow Guide
Customization Guidelines
You can define to what level of detail Oracle Assets creates journal
entries by specifying how the Account Generator generates the account
combination. You can indicate the source in Oracle Assets for the value
of each segment in the account combination.
Attention: If you create journal entries to the detail level for
segments without qualifiers, the Journal Entry Reserve Ledger
Report does not directly reconcile with the general ledger.
Most Oracle Assets reports do not report to unqualified
segment detail. Only the Drill Down Report and Account Drill
Down Report provide this detail. Use these reports to see the

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System Setup
detail level posted to the general ledger. See: Drill Down and
Account Drill Down Reports: page 11 – 61.
Note: Oracle Assets standard reports show the balancing
segment from the distribution line, and the cost center and
natural account from the asset category or book. They show
these values even if you modify the Account Generator process
to create journal entries using different segment values.
Functions
In addition to the functions used in the default processes, the FA
Account Generator contains several unique functions, which you can
use along with the Standard and Standard Flexfield Workflow
functions to customize the FA Account Generator.
Note: You cannot delete or modify any of the functions listed
in this section.
Get Book Account Name. This function returns only one of the book
level accounts.
Get Book Class. This function determines the book class of the book,
either corporate, tax, or budget.
Get Book Type Code. This function returns the book type code to be
used in the workflow process. To use this function in a process, you
must do the following:
• Define a new lookup type called Books.
• Add the lookup codes you have defined to the lookup type
Books. The lookup codes should be valid book type codes you
defined in the Book Controls window, for example, MYCORP or
MYTAX.
• In the Get Book Type Code properties, enter Books in the Result
Type field.
Oracle Assets Default Account Generator Assignments
The following table illustrates default segment sources for each
segment:
Account Structure

Segment Name Default Segment Sources
Company Distribution CCID
Cost Center Default CCID
Account Account Segment Value
Product Default CCID
Sub–Account Default CCID
Customization Example
The Account Generator uses several sources to fill in the account
combination for which to create a journal entry.
Example 1: Cost Center Detail
To create journal entries to the cost center level for all your
category–level accounts in your Corporate book, you specify that the
Account Generator uses the cost center segment value in the
distribution line attribute.
Using these attributes, Oracle Assets creates journal entries using the
balancing and cost center segments from the distribution line. The

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System Setup
account segment still comes from the asset category, and the other
segments still come from the defaults you entered for the book.
Testing a Customized Account Generator Process
You must test any modified Account Generator process before using it
on a production database.
You can test the supplier invoice account generation process by running
the SQL script faxagtst.sql. At the system prompt, type:
$FA_TOP/admin/sql/faxagtst.sql
The script prompts you to enter a value for the following parameters:
• account_type (for example, asset_cost or asset_cost_clearing)
• book
• distribution_ccid
• account_segment
• default_ccid
• account_ccid
Implementing a Customized Account Generator Process
If you have customized your Account Generator process for the FA
Account Generator item type and assigned a new name to it, use the
Account Generator Processes window to associate the new process
name with the appropriate Accounting Flexfield structure and item
type.
If you made customizations to the default process, but did not change
the name of it, you do not need to perform this step.
Choosing the Process for a Flexfield Structure
1. Navigate to the Account Generator Processes window.
In the System Administrator responsibility, this window is under the
navigation path Application Flexfield Key Accounts. In your
Oracle Assets responsibility, it is under Setup Flexfields Key
Accounts.
2. Select the structure to which you want to assign a process. You can
choose the application, flexfield title, structure, and description
from the row list of values.

3. Specify the FA Account Generator item type.
4. Specify the process you want to use to generate the accounts.
The Generate Default Account process will default in. If you want to
use a different process, such as the Generate Distribution Detail
Account process, enter the name of the process you want to use.

9 – 41
System Setup
Asset Key Flexfield
Oracle Assets uses the asset key flexfield to group your assets by
non–financial information. You design your asset key flexfield to
record the information you want. Then you group your assets by asset
key so you can find them without an asset number.
Warning: Plan your flexfield carefully. Once you have started
entering assets using the flexfield, you cannot change it.
Asset Key Flexfield
Owner Oracle Assets
Flexfield Code KEY#
Table Name FA_ASSET_KEYWORDS
Number of Columns 10
Width of Columns 30
Dynamic Inserts Possible Yes
Unique ID Column CODE_COMBINATION_ID
Structure Column None
Group Assets According To Your Needs
Use the asset key flexfield to group your assets. Group your assets
according to non–financial information. You can assign the same asset
key to many assets to easily find similar assets. All Oracle Assets
transaction forms allow you to query using the asset key, and help you
find your assets without an asset number.
Asset Key Flexfield Structure
You define your asset key flexfield structure to fit the specific needs of
your organization. You choose the number of segments, the length of
each segment, and the name and order of each segment in your asset
key flexfield. You can define up to ten asset key segments. This key
flexfield supports only one structure.
Not Using The Asset Key Flexfield
If you choose not to track assets using the asset key, you must define at
least one segment asset key flexfield without validation.

Determine Your Needs
Asset Key Structure
Consider the way you group and query your assets. You need to
decide how many levels (segments) your asset key structure needs.
Value Sets
Each segment of your asset key structure needs a value set. The terms
you used to group your assets are the values you enter for these value
sets.
Suggestion: The asset key name (all segments concatenated)
appears on forms and reports which display only a limited
number of characters. You may want to abbreviate some asset
key segment values.
Define Your Asset Key Flexfield
Create A Value Set For Each Segment
Create a value set for each segment using the Value Set windows. If
you want to set up a segment which is dependent on another segment,
create an independent value set for the segment which the user enters
first, and a dependent value set for the segment which depends on the
value entered. See: Value Set Windows (Oracle Applications Flexfields
Guide).
Alternatively you can set up cascading dependencies for your category
flexfield value sets.
Enable Each Segment For Your Asset Asset Key Flexfield
Define new asset key segments using the Define Key Segments form.
Remember, you must log into Oracle Assets again before you add
assets after you recompile your key flexfield.
If you want to define all valid combinations and prevent users from
creating additional combinations while entering assets, uncheck Allow
Dynamic Inserts. If you do not need to limit valid combinations, check
Allow Dynamic Inserts. You can define valid combinations in the
Define Asset Key Flexfield Combinations form. See: Key Flexfield
Segments (Oracle Applications Flexfields Guide).

9 – 43
System Setup
Define Values For Each Segment
Create a list of valid values for each segment using the Segment Values
Window. Since Oracle Assets only displays a limited number of
characters of the asset key flexfield on forms and reports, you may
want to keep the values short. See: Segment Values Window (Oracle
Applications Flexfields Guide).
Create Asset Key Flexfield Combinations
Use the Define Asset Key Flexfield Combinations form to enter the
combination using the segments you defined. You do not need to use
this form to define combinations if you checked Allow Dynamic
Inserts.
See: Defining Asset Keys: page 9 – 57
Example
You decide to use a two segment asset key flexfield. A typical asset key
combination might be JET 10.ENGINE. To set up your asset key
flexfield you must set up value sets, enable your segments, and enter
valid segment values.
First, use the Value Set windows to set up a value set for each segment.
For example, you create the value sets Project and Component.
Then use the Key Flexfield Segments window to enable your segments.
Enter each segment and the value set for validation in the Segments
window.
Now use the Segment Values windows to enter the valid values for
each asset key segment. For example, you enter JET 10 as a valid value
for the Project segment.
Now, when you enter an asset, you can specify JET 10.ENGINE as the
asset key. Since you checked Allow Dynamic Inserts, Oracle Assets
creates the combination for you if it doesn’t already exist. Or you can
create the combination explicitly in the Define Asset Key Flexfield
Combinations form.

Category Flexfield
Oracle Assets uses the category flexfield to group your assets by
financial information. You design your category flexfield to record the
information you want. Then you group your assets by category and
provide default information that is usually the same for assets in that
category.
Category Flexfield
Owner Oracle Assets
Flexfield Code CAT#
Table Name FA_CATEGORIES
Number of Columns 7
Width of Columns 30
Dynamic Inserts Possible No
Unique ID Column CATEGORY_ID
Group Assets According To Your Needs
Define the category flexfield to fit the way you group your assets. Use
the category flexfield to group your assets. Group your assets
according to depreciation rules. By standardizing category names, you
can more easily track your assets.
Category Flexfield Structure
You define your category flexfield structure to fit the specific needs of
your organization. You must define a major category segment and you
can also define up to six subcategory segments. 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.

9 – 45
System Setup
Category Hierarchy
You can set up your category flexfield so that the valid values for the
subcategory segment are dependent on the major category value
entered. Then, if you have a dependent segment, only the valid values
appear in the list of values for that segment.
Category Default Depreciation Rules
You can default asset financial information for new assets based on the
asset category. You can enter default depreciation rules for each
category flexfield combination for each book. When you add an asset
to a book, Oracle Assets defaults the depreciation rules from the asset
category. If necessary, you can specify different depreciation rule
defaults for different date placed in service ranges.
Category Budget
You can track actual spending versus budgeted amounts for each
category. Enter budgeting information based on asset category. Enter
budget amounts for each category for each period and then run
depreciation projections for your budgeted additions. You can also run
reports that compare budgeted and actual spending or show asset
additions to categories for which you did not enter budget amounts.
Descriptive Flexfield Based on the Asset Category
You can set up a descriptive flexfield that stores additional information
based on the asset category. Enter the asset category flexfield as the
reference field, and the concatenated category segments as the context
field value for that descriptive flexfield structure.

See:
Asset Category Descriptive Flexfield in Oracle Assets: page 9 – 26
Descriptive Flexfield Segments (Oracle Applications Flexfields Guide)
Category Structure
Consider the way you group your assets. Determine which assets
share depreciation information such as prorate convention and
depreciation method. You also need to decide how many levels
(segments) your category structure needs. Decide which is the top
level (major category segment).
You may want to set up your categories to match your chart of
accounts. Each chart account defines a major category. You can define
at least one subcategory segment to allow for distinctions within a
major category.
Suggestion: You can define up to seven segments for your
asset category flexfield. Since Oracle Assets only displays a
limited number of characters on its forms and reports, you may
wish to use only two or three segments so they can be
displayed. Also, since you must define depreciation rules for
each category flexfield combination, more segments require
more setup and maintenance effort.
Value Sets
Each segment of your category structure needs a value set. The terms
you used to group your assets are the values you enter for these value
sets.
Suggestion: The category name (all segments concatenated)
appears on forms and reports which only display a limited
number of characters. You may want to abbreviate some
category segment values.
Dependent Segments
To set up a subcategory segment for which the valid values are
dependent on the value of a previously entered segment, create a
dependent value set. Create an independent value set for the first
segment using the Value Set windows. Then create a dependent value

9 – 47
System Setup
set for the dependent segment. Enter the name of the independent
value set, and specify the value which must be entered for the
dependent value set to be valid.
The valid values for the minor category segment are dependent on the
value of the major category segment.
flexfield value sets. See: Example of $FLEX$ Syntax (Oracle Applications
Flexfields Guide).
Major Category Qualifier
You must define exactly one Major Category segment when setting up
your category flexfield. Specify which segment is your major category
segment by entering Yes for the Major Category qualifier in the Define
Key Segments form. You can enter capital budgeting information for
your major categories.

Define Your Category Flexfield
Guide).
Enable Each Segment For Your Asset Category Flexfield
Define new asset category segments using the Define Key Segments
form. For your major category segment, check Enabled for the Major
Category qualifier. Remember, you must log into Oracle Assets again
to add assets after you recompile your key flexfield.
Because you must enter dependent values for each asset category and
assign the category to at least one book, Oracle Assets does not allow
dynamic insertion when you use the Category flexfield. Make sure the
Allow Dynamic Inserts check box on the Key Flexfield Segments
window is unchecked and the flexfield registration (Key Flexfields
window) is not modified to alter the availability of dynamic insertion.
See: Key Flexfield Segments (Oracle Applications Flexfields Guide).
Window. Since Oracle Assets only displays a limited number of
characters of the asset category flexfield on forms and reports, you may
want to keep the values short. See: Segment Value Window (Oracle
Applications Flexfields Guide).
Suggestion: If you are setting up the descriptive flexfield on
forms where you add assets to reference the asset category, you
may want to enter all values in uppercase. Then, when you
enter the concatenated category flexfield segments value for
which the descriptive flexfield structure applies, you can just
enter the segment values in all uppercase separated by your
segment separator.
Create Asset Categories
Use the Asset Categories form to enter the asset category name using
the segments you defined. Also enter the asset category default

9 – 49
System Setup
information. You must define your category for a book using the Asset
Categories form before you can enter assets in that category and book.
See: Setting Up Asset Categories: page 9 – 158
Example
You decide to use a two segment category flexfield with a dependent
segment. A typical category combination might be
COMPUTER.HARDWARE, where HARDWARE is a valid value for the
second segment only if the value of the first segment is COMPUTER.
To set up your category flexfield you must set up value sets, enable
your segments, enter valid segment values, and set up the category.
For example, you create the value sets Major, and Minor Computer.
Since you want the Minor Computer value set to be dependent on the
Major value set, create an independent value set for Major and a
dependent value set for Minor Computer. The Independent Value Set
on which Minor Computer depends is Major, and the Dependent
Default Value is COMPUTER.
Then use the Key Flexfield Segments windows to enable your
segments. Enter each segment and the value set for validation in the
Segments window. For the major category segment, check Enabled for
the Major Category qualifier.
each subcategory segment. For example, you enter HARDWARE as a
valid value for the Minor segment.
Finally, use the Asset Categories window to enter the asset category
name and information.
Flexfield Qualifiers
Major Category
You must have exactly one Major Category segment in your Category
Flexfield. Oracle Assets uses the Major Category segment for capital
budgeting.

Location Flexfield
Oracle Assets uses the location flexfield to group your assets by
physical location. You design your location flexfield to record the
information you want. Then you can report on your assets by location.
You can also transfer assets that share location information as a group,
such as when you move an office to a new location.
Location Flexfield
Owner Oracle Assets
Flexfield Code LOC#
Table Name FA_LOCATIONS
Number of Columns 7
Width of Columns 30
Dynamic Inserts Possible Yes
Unique ID Column LOCATION_ID
Track Asset Location According To Your Needs
Define the location flexfield to fit the way you track your asset
locations. Use the location flexfield to track the physical location of
your assets. For example, if you do business internationally (or plan to
do so in the future), you may want to track the country an asset is in.
Other segments you may want include are state, city, and site. If you
track asset location to more detail, such as for barcoding, you can also
add segments for building and room number.
Location Flexfield Structure
You define your location flexfield structure to fit the specific needs of
your organization. You choose the number of segments, the length of
each segment, and the name and order of each segment in your
location flexfield. You must define a state segment and you can also
define up to six other location segments.

9 – 51
System Setup
Property Tax Reporting
You can run the Property Tax Report for your states. The Property Tax
Report sorts your assets by the location segment with the state qualifier
set to Yes.
See: Property Tax Report: page 11 – 79
Mass Transfer By Location
You can transfer assets that share location information as a group. Or
you can use the location as a criterion to select assets to transfer
between employees or general ledger expense accounts.
See: Transferring Assets: page 3 – 15
Location Structure
Consider the way you track asset location. You need to decide how
many levels (segments) your location structure needs. Also decide
which is the state segment.
Value Sets
Each segment of your location structure needs a value set. The terms
you used to describe your asset locations are the values you enter for
these value sets.
Suggestion: The location name (all segments concatenated)
appears on forms and reports which only display a limited
number of characters. You may want to abbreviate some
location segment values.
State Qualifier
You must define exactly one State segment when setting up your
location flexfield. Specify which segment is your state segment by
checking Enabled for the State qualifier in the Segments window. You
can run the Property Tax Report for your states.

Define Your Location Flexfield
Guide).
flexfield value sets.
Enable Each Segment For Your Location Flexfield
Define new location segments using the Define Key Segments form.
For your state segment, check Enabled for the State qualifier.
Remember, you must log into Oracle Assets again to add assets after
you recompile your key flexfield.
If you want to define all valid locations and prevent users from creating
additional location flexfield combinations while entering assets,
uncheck Allow Dynamic Inserts. If you do not need to limit valid
locations, check Allow Dynamic Inserts. You can define valid location
flexfield combinations in the Locations form.
If you want to define shorthand aliases for your location flexfield,
check Enable Shorthand Flexfield Entry. You can then set up aliases to
represent your locations in the Shorthand Aliases window. See: Key
Flexfield Segments and Shorthand Aliases (Oracle Applications Flexfields
Guide).
form. Since Oracle Assets only displays a limited number of characters
of the location flexfield on forms and reports, you may want to keep
the values short. See: Segment Value Window (Oracle Applications
Flexfields Guide).
Create Locations
Use the Locations form to enter the location name using the segments
you defined. You do not need to use this form to define locations if
you checked Allow Dynamic Inserts.

9 – 53
System Setup
See: Defining Locations: page 9 – 56
You decide to use a three segment location flexfield. A typical location
combination might be UK.OXFORDSHIRE.BDG3. To set up your
location flexfield you must set up value sets, enable your segments,
enter valid segment values, and set up the location.
For example, you create the value sets Country, District Council, and
Site.
Then use the Key Flexfield Segments windows to enable your
segments. Enter each segment and the value set for validation in the
Segments window. For the District Council segment, enable the State
qualifier.
each segment. For example, you enter UK as a valid value for the
Country segment.
Finally, use the Locations window to enter the location flexfield
combination UK.OXFORDSHIRE.BDG3.
Flexfield Qualifiers
State
You must have exactly one State segment in your Location Flexfield.
Oracle Assets uses the State segment for property tax reporting.

☞
Specifying System Controls
Use this form to specify your company name, asset numbering scheme,
and key flexfield structures.
Prerequisites
❑ Set up your Category, Location, and Asset Key Flexfields. See:
Setting Up the Asset Category Flexfield: page 9 – 44, Setting Up
the Asset Key Flexfield: page 9 – 41, and Setting Up the Location
Flexfield: page 9 – 50.
To specify system controls:
1. Open the System Controls window.
2. Enter the enterprise name as you want it to appear on reports.
3. Enter the Oldest Date Placed In Service, which controls what dates
are valid to place assets in service and on what date to begin your
calendars.
If you change this field, you do not affect the assets already in the
system. However, you cannot place new assets in service before
the new date.
Attention: You can only update the Oldest Date Placed in Service
before you assign any calendars to depreciation books.
4. Enter the Starting Number at which you want Oracle Assets to
begin automatically numbering your assets. Note that some asset
numbers may be skipped.
Suggestion: If you are converting from another system, enter
a starting number greater than the number of assets you want
to convert so converted assets keep the same number from the
previous system. For example, if you are converting 75,000
assets, you may want to enter 100,000 as the Starting Number
to reserve the numbers 1 to 100,000 for manual asset
numbering. Note that adding the 75,000 assets will increment
the automatic numbering sequence by 75,000 (automatically
numbered assets will begin at 175,001).
Note that asset numbers with a letter in them are not reserved for
automatic asset numbering, since the automatic numbers are a
numerical sequence.

☞
9 – 55
System Setup
Attention: If you are using automatic numbering, then manual
numbering should be between 1,000,000,000 and 2,000,000,000.
Oracle Assets does not support asset numbers that exceed
2,000,000,000.
5. Enter the Location, Category, and Asset Key Flexfield structures
you want to use.
6. Save your work.

Defining Locations
If you chose to Allow Dynamic Inserts in the Define Key Segments
form, you do not need to define valid locations, since you
automatically create locations when you assign assets to assignment.
Prerequisite
❑ Specify the location flexfield structure you want to use. See:
Specifying System Controls: page 9 – 54.
To define location flexfield combinations:
1. Open the Locations window.
2. Enter valid location flexfield combinations.
3. Choose whether to Enable the combination.
4. Save your work.
See Also
Setting Up the Location Flexfield: page 9 – 50

9 – 57
System Setup
Defining Asset Keys
If you chose to Allow Dynamic Inserts in the Define Key Segments
form, you do not need to define valid asset keys.
Prerequisite
❑ Specify the asset key flexfield structure you want to use. See:
Specifying System Controls: page 9 – 54.
To define location flexfield combinations:
1. Open the Asset Keys window.
2. Enter valid asset key flexfield combinations.
3. Choose whether to Enable the combination.
4. Save your work.
See Also
Setting Up the Asset Key Flexfield: page 9 – 41

Entering QuickCodes
Use this window to enter QuickCode values in addition to those
provided. These values appear in Lists of Values throughout Oracle
Assets.
To enter QuickCode values:
1. Open the QuickCodes window.
2. Query the QuickCode Name for which you want to define values.
3. Enter a Value for the QuickCode type.
QuickCode Types and their values are listed in the table below:
QuickCode Type QuickCode Values
Asset Description Enter values such as PERSONAL COMPUT-
ER and DELIVERY VEHICLE to standardize
asset descriptions.
Journal Entries You cannot enter new Journal Entry values,
but you can change the descriptions.
Queue Name Enter values such as ACCOUNT HOLD, or
LOCATION HOLD to describe your hold
queues for Mass Additions. You cannot
change values DELETE, ON HOLD, and
POST.
Property Type Enter values such as PERSONAL, REAL, or
RESIDENTIAL to describe your property.
Retirement Enter values such as EXTRAORDINARY and
SALE to describe your retirements.
Asset Category Enter values such as AUTO and COMPUTER
to describe your major asset categories. You
enter major category values in the Quick-
Codes window if you are using table–based
validation for your asset categories.

9 – 59
System Setup
QuickCode Values
QuickCode Type
Asset Subcategory Enter values such as SALES and DELIVERY
to describe your asset subcategories. For ex-
ample, you can use these values to create AU-
TO.SALES and AUTO.DELIVERY asset cate-
gories. You enter minor category values in
the QuickCodes window if you are using
table–based validation for your asset catego-
ries.
Unplanned
Depreciation Type
You can enter values in addition to UN-
PLANNED DEPRN to describe different
types of unplanned depreciation adjustments.
Lease Frequency The possible values for Lease Compounding
Frequency are: Monthly, Quarterly, Semi–
Annually, and Annually. You cannot alter
existing or enter new Lease Frequency values,
but you can change the existing descriptions.
Lease Payment Type You can enter lease payment types in addi-
tion to Annuity, Balloon Payment, Bargain
Purchase Option, and Bargain Renewal Op-
tion.
Suggestion: If you want to create hierarchical asset category
flexfield segment values, use the Define Value Set, Define Key
Segment, and Define Key Segment Value windows to define
your asset category flexfield. Then, to set up the value of the
minor segment to be dependent on the value of the major
segment, define the Value Set for the minor segment to be
dependent on the value of the major segment.
If you create hierarchical asset category values, you do not
need to enter category and subcategory QuickCode values.
Suggestion: The values you enter appear in List of Values
windows which allow no more than 12 spaces. You may want
to limit your values to 12 characters.
4. Enter a description of your QuickCode value.
5. Optionally enter a Disable Date after which this value no longer
appears in Lists of Values.

6. Save your work.
See Also
Setting Up the Asset Category Flexfield: page 9 – 44

9 – 61
System Setup
Creating Fiscal Years
Specify the start and end dates of each fiscal year for a fiscal year name.
Create fiscal years from the oldest date placed in service through at
least one fiscal year beyond the current fiscal year. Depreciation will
fail if the current fiscal year is the last fiscal year.
You can set up multiple fiscal years in this window. You can assign
different fiscal years to your different corporate books. The calendar
for a tax book must use the same fiscal year name as the calendar for
the associated tax book.
Prerequisite
❑ Specify the Oldest Date Placed in Service. See: Specifying System
Controls: page 9 – 54.
To create a fiscal year:
1. Open the Asset Fiscal Years window.
2. Enter a Fiscal Year Name and Description. You can set up multiple
fiscal years with different names.
Suggestion: The name you enter appears in List of Values
to limit your name to 15 characters.
3. Enter the start and end date of each fiscal year.
4. Enter the Fiscal Year you are defining.
5. Save your work.

☞
Specifying Dates for Calendar Periods
You can set up as many calendars as you need. Each book you set up
requires a depreciation calendar and a prorate calendar. The
depreciation calendar determines the number of accounting periods in
a fiscal year, and the prorate calendar determines the number of
prorate periods in your fiscal year. You can use one calendar for
multiple depreciation books, and as both the depreciation and prorate
calendar for a book.
Your corporate books can share the same calendar. A tax book can
have a different calendar than its associated corporate book. The
calendar for a tax book must use the same fiscal year name as the
calendar for the associated tax book.
The depreciation program uses the prorate calendar to determine the
prorate period which is used to choose the depreciation rate. The
depreciation program uses the depreciation calendar and divide
depreciation flag to determine what fraction of the annual depreciation
expense to take each period. For example, if you have a quarterly
depreciation calendar, Oracle Assets calculates one–fourth of the
annual depreciation each time you run depreciation.
You must initially set up all calendar periods from the period
corresponding to the oldest date placed in service to the current period.
You must set up at least one period before the current period. At the
end of each fiscal year, Oracle Assets automatically sets up the periods
for the next fiscal year.
Attention: If you use this depreciation calendar in a
depreciation book from which you create journal entries for
your general ledger, you must make the period names identical
to the periods you have set up in your general ledger.
You can define your calendar however you want. For example, to
define a 4–4–5 calendar, set up your fiscal years, depreciation calendar,
and prorate calendar with different start and end dates, and fill in the
uneven periods. To divide annual depreciation proportionately
according to the number of days in each period, enter By Days in the
Divide Depreciation field in the Book Controls window.
Prerequisites
❑ Set up your Oldest Date Placed in Service. See: Specifying System
❑ Set up your fiscal years. See: Creating Fiscal Years: page 9 – 61.

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To specify dates for calendar periods:
1. Open the Asset Calendars window.
2. Enter the name of your Calendar.
3. Choose Fiscal or Calendar to append either the fiscal or calendar
year to get the accounting period name. If you do not want the
fiscal or calendar year automatically appended, choose None.
For example, if your fiscal year runs from June 1 to May 31, and the
current date is July 15, 1995, you are in calendar 1995 and fiscal
1996. If you specify FISCAL, your period name is JUL–96. If you
specify CALENDAR, your period name is JUL–95.
4. Enter the Fiscal Year Name you want to use for this calendar.
5. Enter the number of periods in the fiscal year for this calendar.
Note: You cannot enter more than 365 periods per year.
6. Enter the Name of this period.
If your periods include the year, such as JAN–1995, and you are
using the hyphen (–) as the suffix delimiter, you must use either a
two or four–digit year suffix. Oracle Assets automatically adds a
four–digit year to the end of the period name if you do not enter a
year. Otherwise, you can enter a two–digit year suffix.
If you use this depreciation calendar in a depreciation book from
which you create journal entries for your general ledger, you must
make the period names identical to the periods you have set up in
your general ledger.
7. Enter the start and end dates of this period.
8. Save your work.
To change period names for future periods:
Note: Use this procedure if you have already created periods,
but need to change them to correspond with GL periods. You
can only change the names of future period names.
1. Open the Asset Calendars window.
2. Query the calendar for which you want to change period names
and scroll to the last period.

3. From the Main menu, select Edit/Delete Record. Delete all of the
periods you plan to rename.
4. Reenter the deleted periods with the correct name.
See Also
Calendar Listing: page 11 – 46
Defining Calendars (Oracle General Ledger User Guide)

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System Setup
Setting Up Security by Book
Oracle Assets shares organization and hierarchy information with
Oracle Human Resources. If your business does not currently use
Oracle Human Resources, you define this data using the Oracle Human
Resources windows provided with Oracle Assets.
If you have already implemented Oracle Human Resources, you can
skip many of the steps included in this section. Ensure that the
organizations and hierarchies you defined in Oracle Human Resources
corresponds to the data you want to use with Oracle Assets.
Asset Organization Overview
Organizations are departments, sections, divisions, companies, or other
organizational units in your business.
The illustration below depicts ABC Corporation’s organization
structure. There are three levels of organizations. ABC Corporation, the
top–level organization, has three child organizations Americas, Europe,
and Asia/Pacific. Each of these organizations also has several child
organizations. For example, the Americas organization has the
following child organizations: US, Canada, and Brazil.

ABC Corporation uses the following information to define its default
reporting organization hierarchy:
Name Oracle Assets
Version 1
Organization Name ABC Corporation
Business Groups
A business group is the highest level of organization and the largest
grouping of employees across which you may report.
Oracle Human Resources includes a predefined organization named
Setup Business Group. We recommend that you modify the definition of
this predefined business group rather than defining a new one. If you
define a new business group instead of modifying the predefined Setup
Business Group, you need to set the HR: Security Profile profile option to
point to the security profile for the new business group. Oracle Human
Resources automatically creates a security profile with the business
group name when you define a new business group. Oracle Human
Resources incorporates all other organizations you specify into the
business group you define. See: Security (Oracle Human Resources
Documentation Set).
You use the Organization window to retrieve the predefined Setup
Business Group. Then, you can create your own business group by
changing the name of the Setup Business Group. The business group
you define here appears in the list of values when you set up the HR:
Security Profile profile option.
Note: If you already use Oracle Human Resources, we
recommend that you continue using the same business group
you defined in Human Resources. If you are using a shared
installation of Human Resources, we recommend you use the
pre–defined Setup Business Group.
A business group is a special classification of an organization, so you
also need to specify its organization type, location, and whether it is an
internal or external organization. It is also essential to select the correct
legislation code for a business group for correct functioning of Oracle
Human Resources. You cannot change the legislation code after
entering employees in a business group. See also: Entering Business
Group Information (Oracle Human Resources Documentation Set).

☞
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System Setup
Attention: Employees, organizations, and other entities are
partitioned by business group. If you set up more than one
business group, your data will be partitioned accordingly. In
addition, classifying an organization as a business group is not
reversible. Be sure to plan your business group setup carefully.
For more information, refer to the Oracle Human Resources
Documentation Set.
Organization Window
You use the Organization window in Oracle Assets or Oracle Human
Resources to specify all the organizations within your company. By
choosing the Others button on this window, you can then set up the
corporate and tax book information for that particular organization.
Organization Classifications
Oracle Human Resources uses organization classifications to determine
the type of organizations being set up. To flag an organization for use in
Oracle Assets, you enable the Asset Organization classification.
An asset organization is an organization that allows you to perform
asset–related activities for specific Oracle Assets corporate depreciation
books. Oracle Assets uses only organizations designated as asset
organizations.
If you require other types of organization classifications, see the Oracle
Human Resources Documentation Set.
See Also
Creating an Organization Oracle Human Resources Documentation Set
Organization Hierarchies in Oracle Assets
Organization hierarchies show reporting lines and other hierarchical
relationships among the organizations in your business.

You use the Organization Hierarchy window to specify your
organization hierarchy.
You need to define the top organization in the hierarchy and at least one
organization subordinate to it.
See Also
Organization Hierarchies Oracle Human Resources Documentation Set
Security Profiles
A security profile allows you to control access to Oracle Assets through
responsibilities that you create and assign to users of the system. Users
can sign on to Oracle Assets only through the responsibilities that you
give them. Their responsibilities control what they can see and do in the
system.
A responsibility always includes a security profile, which you associate
with a work structure such as an organization hierarchy.
See: Security Profiles (Oracle Human Resources Documentation Set)
Security List Maintenance Process
This process maintains the lists of organizations, positions, employees,
and applicants that security profile holders can access. You should
schedule it to run every night to take account of changes made during
the day. If a disruption, such as a power outage, occurs while the
process is running, you can manually restart it from the Submit
Requests window.
See: Security Processes (Oracle Human Resources Documentation Set)
Defining Responsibilities
A responsibility is a level of authority in Oracle Applications that allows
users to access only those Oracle Applications functions and data
appropriate to their roles in an organization. Each responsibility allows

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System Setup
access to specific applications, sets of books, windows, functions, and
reports.
See Also
Defining a Responsibility (Oracle Applications System Administrator
Guide)
Overview of Oracle Applications Security (Oracle Applications System
Administrator Guide)
Assigning Responsibilities to Users
When defining Applications users, you need to assign each user to a
responsibility. You do this by navigating to the the Users Window in the
System Administration responsibility.
See: User’s Window (Oracle Applications System Administrator Guide)
Setting Up FA: Security Profile
The FA: Security Profile profile option restricts access to the
organizations defined in the security profile. The options available for
the FA: Security Profile are the previously defined security profile
values.
For example, you may want to set up the security profiles for the ABC
Corporation. Since there is a one to one correspondence between an
organization and a security profile, a logical naming standard for the
security profile value would include the organization name and the
organization identification number. In this case, the organization ABC
Corporation might have a security profile value of
ABC_Corporation_100, the organization Americas might have a profile
value of Americas_200, and so forth.

Restrictions
Users associated with a security profile are not able to delete setup data
(such as categories and depreciation methods). These types of deletions
must be performed by someone with access to the FA Manager
responsibility, and who is not associated with a security profile and can
therefore, access all data.
You cannot create a tax book for an organization in a node that is higher
up in the security hierarchy than its associated corporate book. To
prevent the data in your corporate and tax books from becoming
corrupted, a tax book must be at the same level or at a lower level than
its associated corporate book.
See Also
Overview of User Profile Options: page C – 4
Setting User Profile Options (Oracle Applications System Administrator
Guide)

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System Setup
Defining Depreciation Books
You can define corporate, tax, and budget depreciation books. You
must set up your depreciation books before you can add assets to them.
You can set up multiple corporate books that create journal entries for
different general ledger sets of books, or to the same set of books. In
either case, you must both run depreciation and create journal entries
for each depreciation book. For each corporate book, you can set up
multiple tax and budget books that are associated with it.
Prerequisites
❑ Specify system controls. See: Specifying System Controls: page
9 – 54.
❑ Define your calendars. See: Specifying Dates for Calendar Periods:
page 9 – 62.
❑ Set up your Account segment values and combinations. See:
Defining Accounts (Oracle General Ledger User Guide)
❑ Set up your journal entry formats. See: Defining Journal Sources
and Defining Journal Categories (Oracle General Ledger User Guide)
To define a depreciation book:
1. Open the Book Controls window.
2. Enter the name of the book you want to define.
The book name cannot contain any special characters, and must not
begin with a number.
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: page 9 – 72.
6. Enter accounting rules for your book: page 9 – 73.
7. Enter natural accounts for your book: page 9 – 74.
8. Enter journal categories for your book: page 9 – 75.
9. Enter tax rules for your book: page 9 – 76.
10. Save your work.

☞
See Also
6 – 5
Entering Calendar Information for a Book
1. In the Book Controls window, choose the Calendar tabbed region.
2. Optionally enter a disable date for the depreciation book.
3. Choose whether to Allow Purge for the book.
4. Enter the general ledger set of books for which you want to create
journal entries. Allow GL Posting if you want to create journal
entries for this book. You cannot allow general ledger posting for
your budget books
Your tax book must have the same account structure, general
ledger calendar, and functional currency as the associated
corporate book. If you want to create journal entries from your tax
book, you must enter a different set of books for your tax book and
the associated corporate book. You can then Allow G/L Posting.
5. Enter the name of the Depreciation Calendar you want to use for
this book.
6. Enter the name of the Prorate Calendar that you want to use for
this book.
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.
7. Enter the current open period name for this book.
Attention: You must set up the depreciation calendar for at least
one period before the current period. See: Specifying Dates for
Calendar Periods: page 9 – 62.

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System Setup
8. Enter the method for dividing the annual depreciation amount over
the periods in your fiscal year for this book.
• Choose Evenly to divide depreciation evenly to each period
• Choose By Days to divide it proportionally based on the number
of days in each period
9. Choose whether to depreciate assets in this book that are retired in
their first year of life.
10. Enter the date on which you last calculated depreciation for this
book. Oracle Assets updates this date when you run depreciation.
11. Enter accounting rules for your book: page 9 – 73.
See Also
Defining Sets of Books (Oracle General Ledger User Guide)
Specifying Dates for Calendar Periods: page 9 – 62.
Entering Accounting Rules for a Book
1. In the Book Controls window, choose the Accounting tabbed
region.
2. Check the Allow Amortized Changes check box to allow amortized
changes in this book.
3. Choose Allow Mass Changes to allow mass changes in this book.
Note: Oracle Assets does not allow mass change to assets for
which you have entered unplanned depreciation. See:
Unplanned Depreciation: page 5 – 67.
4. Enter the minimum time you must hold an asset for Oracle Assets
to report it as a capital gain when you retire it. If you want Oracle
Assets to report a capital gain for all assets when you retire them,
enter zero for the threshold.
If you hold the asset for less than the threshold, Oracle Assets
reports it as ordinary income.
5. If you choose to Allow Revaluation, specify revaluation rules:

Revalue Accumulated Depreciation If you do not revalue
accumulated depreciation, Oracle Assets transfers the accumulated
depreciation to the revaluation reserve account upon revaluation.
Revalue YTD Depreciation Check this check box to revalue
year–to–date depreciation.
Retire Revaluation Reserve Check this check box to retire
revaluation reserve.
Amortize Revaluation Reserve Check this check box to allow
revaluation reserve to be amortized in this book. See: Asset
Management in a Highly Inflationary Economy (Revaluation): page
3 – 32.
Revalue Fully Reserved Assets Check this check box to revalue
fully reserved assets.
Maximum Revaluations Enter the maximum number of times an
asset in this book can be revalued as fully reserved. If you leave
this field blank, Oracle Assets does not limit the number of times
you can revalue an asset as fully reserved.
Life Extension Factor Enter the life extension factor for fully
reserved assets in this book. Oracle Assets multiplies the life
extension factor by the asset original life to determine the asset’s
new, extended life.
Life Extension Ceiling The life extension ceiling limits the
depreciation adjustment when revaluing fully reserved assets.
6. Choose Allow Group Depreciation to allow group assets to be
added in this book. If you choose to allow group depreciation,
specify these group depreciation rules:
Allow CIP Depreciation in Group Assets Check this check box to
allow depreciation of member CIP asset cost.
Allow Intercompany Member Asset Assignments Check this
check box to allow the group asset and its member assets to have a
different balancing segment value. If the check box is not checked,
the group asset and each of its member assets must have the same
balancing segment value.
Entering Natural Accounts for a Book
1. In the Book Controls window, choose the Natural Accounts tabbed
region.

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System Setup
2. Enter Retirement Accounts.
You can set up your gain and loss accounts so that Oracle Assets
creates individual journal entries for each component of the
gain/loss amount to separate accounts, or to a single account for
the net gain or loss.
3. Enter Intercompany Receivables and Payables clearing account
numbers.
4. Enter Deferred Depreciation Reserve and Deferred Depreciation
Expense accounts.
5. Enter the general ledger account that you want to use as an offset
account for the entry against accumulated depreciation when you
perform reserve adjustments.
6. Enter the Account Generator default segment values for this book’s
journal entries.
By default, Oracle Assets creates journal entries without cost center
level detail for all accounts except the depreciation expense
account. Using the default assignments, it creates journal entries
using the balancing segment from the expense account in the
Assignments window and the account segment from the asset
category or book, depending on the account type. The Account
Generator uses the other segments from the default segment values
you enter for the book in this field.
7. Enter journal categories for your book: page 9 – 75.
Entering Journal Entry Categories for a Book
1. In the Book Controls window, choose the Journal Categories tabbed
region.
2. Enter the Journal Source of your general ledger entries. This source
labels the journal entries that come from Oracle Assets.
3. Enter the general ledger category you want to use for capitalized
and CIP journal entries.
4. Save your work.

Entering Tax Rules for a Book
The Tax Rules tabbed region is only available for tax books. This
tabbed region will not appear if you did not select Tax in the Class field
in the Book Controls window.
1. In the Book Controls window, choose the Tax Rules tabbed 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.
2. 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.
3. If you choose to Allow Mass Copy into this tax book, choose
whether to copy additions, adjustments, retirements, and/or
salvage value.
4. In the Group Asset Additions field, choose Copy if you wish to
allow mass copy of group assets into this tax book. The default
value is Do Not Copy.
Note: Mass Copy does not copy group reclassification
transactions that are performed when changing member assets’
group assignment. Mass Copy does not copy an type of group
adjustment, including group reserve transfer, group retirement
adjustments, and group unplanned depreciation.
5. In the Member Asset Assignments field, choose Copy if you wish
to allow mass copy of the member asset group asset assignments
into this tax book. The default value is Do Not Copy.
6. Enter natural accounts for your book: page 9 – 74.
See Also
Entering Default Depreciation Rules for a Category: page 9 – 161.
Determine Adjusted Accumulated Depreciation: page 7 – 48

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System Setup

Defining Additional Depreciation Methods
Once you start using a method you cannot update it. Enter another
method if you need different rates.
To define a calculated depreciation method:
1. Navigate to the Depreciation Methods window.
2. Enter a depreciation Method name and Description.
3. Select Calculated from the Method Type poplist.
4. The calculation basis automatically defaults to Cost (NBV is not
valid for calculated methods).
5. Choose whether this depreciation method allows you to depreciate
an asset in the year it is retired.
6. Choose the Exclude Salvage Value check box if you want this
method to exclude the salvage value from the depreciable basis.
7. Enter the number of Years and Months of asset life.
8. Save your work.
To define a table–based depreciation method:
3. Select Table from the Method Type poplist.
4. Choose whether to use Cost or NBV as the basis for calculating
depreciation from the Calculation Basis poplist.
7. Choose whether this method is a straight–line method.
8. Enter the number of Years and Months of asset life.
9. Enter the number of Prorate Periods Per Year this method uses.
10. Choose the Rates button to enter rates in the Depreciation Rates
window.
11. Enter annual depreciation rates.

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System Setup
You must enter rates that fully depreciate an asset over its life. If
you specify a calculation basis rule of Cost, the sum of all the years’
rates for each period must be one. If you specify a calculation basis
rule of NBV, the rate for the last year of life for each period must be
one and all the other rates must be between zero and one.
Attention: For table methods, the annual rate you enter for each
prorate period must reflect the fraction of the fiscal year the asset
was in service. The rate must be prorated based on the number of
periods in the year and on the prorate convention.
12. Save your work.
To define a units of production depreciation method:
3. Select Production from the Method Type poplist.
4. The calculation basis automatically defaults to Cost (NBV is not
valid for units of production methods).
6. Save your work.
To define a flat–rate depreciation method:
3. Select Flat from the Method Type poplist.
6. In the Depreciable Basis Rule field, select a depreciable basis rule
from the poplist.
You can exclude salvage value only if you have a flat–rate method
that uses NBV as the calculation basis.

8. Check the Polish Adjustment Calculation Basis check box, if
applicable. This check box affects the calculation when creating
negative cost adjustments to assets depreciating under Polish tax
depreciation. See: Adjusting Polish Tax Depreciation Transactions:
page 9 – 126.
Note: This check box is available only if you have selected one
of the Polish tax depreciable basis rules as your depreciable
basis rule.
window.
10. Enter basic rates.
11. Enter the adjusting rate, or loading factor.
12. Save your work.
See Also
Depreciation Calculation for Table and Calculated Methods: page 5 – 33
5 – 39

9 – 81
System Setup
Defining Formula–Based Depreciation Methods
Oracle Assets allows you to define depreciation formulas to calculate
annual depreciation rates.
You use the Depreciation Formula window to define depreciation
formulas. When you are finished defining your formula, we
recommend you test your formula using the Test Formula tabbed
region.
Note: Defining depreciation formulas requires some
knowledge of SQL. See: Oracle 8i SQL Reference.
To define a depreciation formula:
3. Select Formula from the Method Type poplist.
5. Optionally select one of the following depreciable basis rules, if you
have selected NBV as the basis for calculating depreciation:
• Beginning Period Balance
• Period End Average
See: Defining Depreciable Basis Rules: page 9 – 92.
You can exclude salvage value only if you have a flat–rate method
that uses NBV as the calculation basis.
8. Choose whether this method is a straight–line method.
9. Enter the life in years and months.
10. Choose the Formula button to define depreciation formulas in the
Depreciation Formula window.
11. While in the Define Formula tabbed region, enter a formula by
clicking buttons to insert elements into the formula.
12. Optionally test the formula by choosing the Test Formula tab.
13. Save the formula.

☞
To test a depreciation formula:
1. In the Depreciation Formula window, go to the Test Formula
tabbed region.
2. Optionally enter parameters, such as Life in Years or Salvage Value.
3. Make sure that the test results indicate that your assets will
depreciate properly.
4. Save the formula.
Using the Calculator to Define a Formula
The Depreciation Formula window contains a calculator with buttons
that you click to insert elements into the formula.
Attention: You cannot enter the formula directly into the
display field. You can update the formula only by clicking on
the buttons.
In addition to the standard calculator keys, which insert constants and
operators directly into the display, the Depreciation Formula: Method
Name window contains the following special keys: Variables,
Functions, and Formulas.
Variables
Oracle Assets provides a poplist of variables. When you choose one of
these variables, Oracle Assets inserts the value for the asset that is
depreciating. For example, if you enter 1/Salvage Value, when you
run depreciation for a particular asset using this formula, Oracle Assets
will retrieve the salvage value of the asset when calculating
depreciation.
See: How Oracle Assets Calculates Depreciation in a Short Tax Year:
page 2 – 99.
Functions
The Functions poplist contains SQL function operators, such as SIGN,
ROUND, and DECODE.
Formulas
Any formulas you defined previously appear in the Formulas poplist.
Use the Formulas poplist to insert existing user–defined formulas into
the display field.

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System Setup
Changing the Depreciation Rate at a Specified Point in Time
For some companies, it may be advantageous to depreciate an asset at a
certain rate, or at a specific point in time, to begin depreciating the
asset at a different rate. Oracle Assets allows you to define
depreciation formulas in which the depreciation rate changes at a
specified point in time. To do this you define a formula that uses a
combination of the SQL functions DECODE and SIGN.
For more information on SQL, see: Oracle 8i SQL Reference.
Example 1
You have an asset with a life of 15 years. You want the asset to
depreciate at a rate of 0.05 while the asset’s remaining life is greater
than 10 years. See: How Oracle Assets Calculates Depreciation in a
Short Tax Year: page 2 – 99.
When the asset has a remaining life of 10 years, you want the asset to
depreciate at 0.07. When the remaining life of the asset is less than 10
years, you want the asset to depreciate at a rate of 0.08. To accomplish
this, you would enter the following formula in the Depreciation
Formula window:
DECODE(SIGN(Remaining Life2 – 10), 1, 0.05, 0, 0.07, –1, 0.08)
Example 2
You can switch from one depreciation method to another, depending
on the rate:
GREATEST(1 / Life * 2, 1 / Remaining Life1)
The following table provides examples of how to use the available
functions:
Function Example Result
Decode Decode(Remaining
Life 1, 3, 0.3, 2, 0.2, 0.1)
If Remaining Life 1 is 3, Oracle Assets returns
the value 0.3; if Remaining Life 1 is 2, Oracle
Assets returns the value 0.2; otherwise, Oracle
Assets returns the value 0.1
Greatest Greatest(2/Life, 0.5) Oracle Assets returns the greater of 2 divided by
the life or 0.5.
Least Least(2/Life, 0.5) Oracle Assets returns the smaller of 2 divided
by the life or 0.5.

Result
Example
Function
Power Power(0.5, 3) Oracle Assets returns 0.5 to the power of 3
(0.125).
Round Round(2.33333, 4) Oracle Assets rounds to the fourth position and
returns a value of 2.3333.
Sign Sign(Life – 5) If Life minus 5 is a positive number, Oracle
Assets returns a value of 1; if Life minus 5 is
zero, Oracle Assets returns a value of zero.
Otherwise, Oracle Assets returns a value of –1.
Sqrt Sqrt(25) Oracle Assets returns the square root of 25 (5).
Guidelines for Defining Depreciation Formulas
When you use formula–based depreciation, you have the flexibility to
create custom depreciation methods to meet your specific needs.
However, it is essential that you plan and thoroughly test your custom
depreciation formulas to ensure that your assets will depreciate
correctly. Poorly thought out depreciation formulas can cause
unexpected and incorrect depreciation rates.
Note: Oracle Assets does not validate custom depreciation
formulas.
The following is an example of a poorly thought out depreciation
formula:
100 / Salvage Value + 0.01
If the salvage value of an asset is greater than 100, the asset depreciates
at an expected rate (between 0 and 100). However, if the salvage value
of the asset is less than 100, the asset actually appreciates over time.
Also, if the salvage value for an asset is zero, Oracle Assets
automatically sets any amount you divide by the salvage value to zero
(100 / 0 = 0). In this case, the rate when you use the above depreciation
formula would always equal 0.01.
Finally, if the salvage value is set to null for an asset, the value is
automatically set to 0. Again, the rate when you use the above
depreciation formula would always equal 0.01.

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System Setup
See Also
Adding Assets in Short Tax Years: page 2 – 97

Defining Bonus Depreciation Rules
A bonus rule can have a different bonus rate for each year of the asset’s
life. You can modify the rate at any time for current and future fiscal
years.
You can use bonus rules with corporate books as well as tax books.
Bonus rates let you increase the annual depreciation expense for assets
using flat–rate, straight–line, table–based, and formula–based
depreciation methods. Oracle Assets also allows you to set up negative
bonus rates to amortize bonus reserve.
For reporting purposes, you can set the bonus year and rate to 0.
Oracle Assets does not calculate any bonus expense.
You can use the One–Time Depreciation check box to limit bonus rules
to one fiscal year.
To define your bonus rules:
1. Open the Bonus Depreciation Rules window.
2. Enter a Bonus Rule name and description.
3. Check the One–Time Depreciation check box, if applicable.
4. Enter the fiscal year range of the asset life to which the bonus rate
applies.
5. Enter the bonus rate for each fiscal year range.
6. If you are setting up a bonus rule for use with Polish tax
depreciation, enter a depreciation factor and an alternate
depreciation factor. When you enter either a depreciation factor or
an alternate depreciation factor, the value in the Rate % field is
automatically set to 0%.
Note: You need to ensure the depreciation factor and alternate
depreciation factor are set up appropriately. Oracle Assets
does not validate that the factor is between a predetermined
range.
7. Save your work.
See Also

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System Setup
Bonus Depreciation Rule Listing: page 11 – 45

Depreciation Methods for the Job Creation and Worker Assistance Act
of 2002
Oracle Assets provides special depreciation methods to help you take
advantage of the additional first–year depreciation deduction provided
by the Job Creation and Worker Assistance Act of 2002.
The Job Creation and Worker Assistance Act of 2002 provides an
additional depreciation deduction for both regular tax and alternative
minimum tax purposes in the United States. It provides an additional
first–year depreciation deduction that is equal to 30 percent of the
qualified asset’s depreciable basis. The depreciable basis of the asset
and the depreciation deduction in the year of purchase and in later
years would be adjusted to reflect the additional first–year depreciation
deduction. Refer to the Job Creation and Worker Assistance Act of
2002 for compliance.
Table–Based Depreciation Methods for the Job Creation and Worker Assistance
Act of 2002
The following table shows the table–based depreciation methods
Oracle Assets provides to help you take advantage of the additional
first–year depreciation deduction allowed by the Job Creation and
Worker Assistance Act of 2002.
Method Life Method Description Derived From
Method
MACRS 30B HY 3, 5, 7, 10, 15, 20
years
MACRS: Half–Year Con-
vention – 30% Bonus
MACRS HY
MACRS 30B MQ 3, 5, 7, 10, 15, 20
years
MACRS: Mid–Quarter Con-
vention – 30% Bonus
MACRS MQ
MACRS STL30B 27.5, 39 years MACRS: Straight–line Mid–
Month Convention – 30%
Bonus
MACRS STL MM
AMT 30B HY 2.5 – 20 years Alternative Minimum Tax:
Half–Year Convention –
30% Bonus
AMT HY

☞
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System Setup
Derived From
Method
Method Description
Life
Method
AMT 30B MQ 2.5 – 20 years Alternative Minimum Tax:
Mid–Quarter Convention –
30% Bonus
AMT MQ
STL 30B 3 years Straight–Line – 30% Bonus
(Applies to Mid–Month
Convention)
N/A
Attention: The table–based methods referred to above
represent modified versions of methods previously included
with Oracle Assets. The methods from which they where
derived are listed in the Derived From Method column. If you
currently use customized rate tables for tax depreciation
methods, you will need to modify the rate tables accordingly.
Example
On June 1, 2002, a corporation acquires and places in service qualified
property that costs $1 million. The corporation is allowed an
additional first–year depreciation deduction of $300,000. The
depreciation calculation is computed as shown in the following table:
Asset Cost: $1 million
Date placed in service: June 1, 2002
Prorate date: January 1, 2002
Life: 5 years
Period: Yearly calendar ending December 31
Depreciation method: MACRS 30B HY
Prorate convention: Half Year
The following table shows the yearly depreciation:

Period Cost Depreciation Accumulated
Depreciation
Depreciation
Rates for MACRS
30B HY – 5 Years
Depreciation
Rates for MACRS
HY – 5 Years
FY 2002 1,000,000 440,000 440,000 44% 20%
FY 2003 1,000,000 224,000 664,000 22.4% 32%
FY 2004 1,000,000 134,400 798,000 13.44% 19.2%
FY 2005 1,000,000 80,640 879,040 8.064% 11.52%
FY 2006 1,000,000 80,640 959,680 8.064% 11.52%
FY 2007 1,000,000 40,320 1,000,000 4.032% 5.76%
Depreciation is calculated as follows:
FY 2002= 44% * 1,000,000 = 440,000
FY 2003= 22.4% * 1,000,000 = 224,000
FY 2004= 13.44% * 1,000,000 = 134,400
FY 2005= 8.064% * 1,000,000 = 80,640
FY 2006= 8.064% * 1,000,000 = 80,640
FY 2007= 4.032% * 1,000,000 = 40,320
Depreciation rates of MACRS 30B HY – 5 years are modified from
MACRS HY – 5 years table rates, listed as follows:
FY 2002= 30% + 20% * (1 – 30%) = 44%
FY 2003= 32% * (1 – 30%) = 22.4%
FY 2004= 19.2% * (1 – 30%) = 13.44%
FY 2005= 11.52% * (1 – 30%) = 8.064%
FY 2006= 11.52% * (1 – 30%) = 8.064%
FY 2007= 5.76% * (1 – 30%) = 4.032%
Changing the Depreciation Method
You can change the depreciation method of existing assets to take the
additional first–year depreciation deduction. You can perform a prior

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System Setup
period depreciation method change and execute the depreciation
method change as an expensed adjustment. The catch–up expense will
be taken in the current period of change.
You can change the depreciation method of an asset via the Asset
Workbench. For a range of affected assets, use Mass Change to
perform the depreciation method change. See: Changing Financial and
You cannot perform an expensed adjustment if you have previously
performed an amortized adjustment for the asset.
Note: If you need to adjust prior fiscal year accumulated
depreciation, you should perform the reserve adjustment on
your assets prior to any depreciation method change.
Adjusting Accumulated Depreciation for the Prior Fiscal Year
Because the additional first–year depreciation deduction retroactively
applies to assets placed in service after September 10, 2001, many users
may have closed their previous fiscal year before the additional
first–year depreciation deduction was available.
If you need to file amended prior year tax returns, you can use Reserve
Adjustment to adjust the depreciation for one or more assets for the
previous fiscal year in your tax book.
See: Adjusted Tax Book Accumulated Depreciation: page 7 – 64.

Defining Depreciable Basis Rules
Depreciable Basis Rules
Oracle Assets provides the Depreciable Basis Rules feature to
accommodate depreciation method setup requirements not met by the
Cost or NBV calculation basis types. The combination of depreciable
basis rule and depreciation method determine how depreciable basis is
derived.
Applying Depreciable Basis Rules
Choose the desired depreciable basis rule when you set up the
depreciation methods. When you create transactions, the depreciable
basis of the asset is calculated based on the depreciable basis rules
specified in the Depreciable Basis Rule field.
Note: You can only use depreciable basis rules with flat–rate
based methods, with the following exceptions: Beginning
Period Balance and Period End Average can also be used with
formula–based methods.
• Use Recoverable Cost
• Use Transaction Period Basis
• Use Fiscal Year Beginning Basis
• Flat Rate Extension
• Period End Balance
• Beginning Period Balance
• Period End Average
• Year to Date Average Balance
• Year to Date Average with Half Year Rule
• Year End Balance
• Year End Balance with Positive Reduction Amount
• Year End Balance with Half Year Rule
The following depreciable basis rules are applicable only to Polish tax
depreciation. See: Polish Tax Depreciable Basis Rules: page 9 – 117.
Note: When you use one of the Polish Tax depreciable basis
rules, the Method Type must be set to Flat and the Calculation
Basis must be set to Cost.

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System Setup
• Polish 30% with a Switch to Declining Classic and Flat Rate
• Polish 30% with a Switch to Flat Rate
• Polish Declining Modified with a Switch to Declining Classic and
Flat Rate
• Polish Declining Modified with a Switch to Flat Rate
• Polish Standard Declining with a Switch to Flat Rate
The depreciable basis rules provide calculations as described below:
Use Recoverable Cost Rule
When the Use Recoverable Cost rule is used, the depreciable basis is
equal to the new recoverable cost or Cost – Salvage Value. This
depreciable basis rule is only available for the Flat rate method with
Cost basis.
Current Period Depreciation Expense with Use Recoverable Cost =
(Cost – Salvage Value) * Annual Depreciation Rate / Periods per Year
Example: Use Recoverable Cost
example.
Asset A
Depreciation Method: Flat Rate with Cost Basis
Depreciation Basis Rule: Use Recover-
able Cost
Depreciation Rate: 30%
Salvage Value: 20%
Group DPIS / Prorate
Date:
01–JAN–2000
Depreciation Calendar: Monthly
example.
Asset A – Current Period Cost Adjustment

Cost Adjustment: 10,000
Period Performed: Mar–2000
Amortization Start Date: 01–MAR–2000
The table below illustrates asset and calculated amounts for the first
four periods of 2000.
Jan–2000 Feb–2000 Mar–2000 Apr–2000
Asset A Cost 30,000 30,000 40,000 40,000
Asset A Depreciable
Basis
24,000 24,000 32,000 32,000
Asset A
600 600 800* 800
Asset A
Accumulated
Depreciation
600 1,200 2,000 2,800
* Depreciation Expense in Mar–2000 = 32,000 * 30% / 12 = 800
Use Transaction Period Basis Rule
This depreciable basis rule is available for Flat rate method with NBV
basis only. NBV basis = Cost – Salvage Value – Accumulated
Depreciation. The basis will be reset at the end of each fiscal year. If
you have performed an amortize adjustment, the NBV basis will be
reset at the amortization date.
Use Transaction Period Basis = (Cost – Salvage Value) – Accumulated
Depreciation

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System Setup
Use Fiscal Year Beginning Basis Rule
This depreciable basis rule is available for the Flat rate method with
NBV basis only. NBV basis = Cost – Salvage Value – Accumulated
Depreciation as of the beginning of the fiscal year. The basis will be
reset at the end of each fiscal year.
Use Fiscal Year Beginning Basis = (Cost – Salvage Value) –
Accumulated Depreciation as of Beginning of the Fiscal Year
If you have performed an adjustment, the NBV basis will be reset as
follows:
Use Fiscal Year Beginning Basis = Current Cost – Current Salvage Value
– Recalculated Accumulated Depreciation as of the Beginning of the
Fiscal Year
Flat Rate Extension Rule
This rule supports depreciation method changes from flat–rate and
NBV–based methods, to flat–rate and cost–based methods, which are
legally required in Japan.
When you change the depreciation method from flat–rate and
NBV–based, to flat–rate and cost–based depreciation, the adjustment is
amortized. The depreciable basis becomes the NBV on the date
amortization begins.
When this rule is applied to flat–rate and NBV–based depreciation
methods, the behavior is the same as when the depreciable basis rule is
set to Use Fiscal Year Beginning Basis. You can only apply this rule to
flat–rate and cost/NBV–based depreciation methods.
For group assets, when member asset tracking is enabled with the
Allocate Group Amount option, the depreciable basis of the fully
reserved member assets will be removed from the group level
depreciable basis. When member tracking is enabled with the
Calculate Member Asset Amounts option, and the depreciation method
selected is Cost, the depreciable basis of the fully reserved member
assets will be removed from the group level depreciable basis.
The following is an example of flat rate extension.
example.
Asset Before Adjustment Added in Q1–1998

Method Type Flat–Rate
Calculation Basis NBV
Rate 20%
Exclude Salvage Value On
Depreciable Basis Rule Use Fiscal Year Beginning Basis
Period Q1–1998
Calculation Basis Rate NBV, 20%
Cost 1,000,000
Activity Add new Assets
example.
Asset After Adjustment Adjusted in Q1–2000
Method Type Flat–Rate
Calculation Basis Cost
Rate 25%
Salvage Value 10%
Exclude Salvage Value Off
Depreciable Basis Rule Flat Rate Extension
Period Q1–2000
Calculation Basis Rate Cost, 25%
Cost 1,000,000
Activity Amortized Adjustment: Method
Change Amortization Start Date:
01–JAN–2000 (Q1–2000)
The table below illustrates depreciation calculated after the adjustment.

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System Setup
Period Cost Depreciable
Basis
Depreciation
Expense
Accumulated
Depreciation
Q4–1998 1,000,000 1,000,000 50,000 200,000
Q1–1999 1,000,000 800,000 40,000 240,000
Q2–1999 1,000,000 800,000 40,000 280,000
Q3–1999 1,000,000 800,000 40,000 320,000
Q4–1999 1,000,000 800,000 40,000 360,000
Q1–2000 1,000,000 540,000 33,750 393,750
Q2–2000 1,000,000 540,000 33,750 427,500
Q3–2000 1,000,000 540,000 33,750 461,250
Q4–2000 1,000,000 540,000 33,750 495,000
Q1–2001 1,000,000 540,000 33,750 528,750
Q2–2001 1,000,000 540,000 33,750 562,500
Q3–2001 1,000,000 540,000 33,750 596,250
Q4–2001 1,000,000 540,000 33,750 630,000
The following are calculations for the period Q1–2000:
• [Depreciable Basis] = (1,000,000 – [Salvage Value]) –
[Accumulated Depreciation] + [YTD Depreciation]
= (1,000,000 – 1,000,000*10%) – 360,000 – 0 = 540,000
• [Depreciation Expense] = [Depreciable Basis] * [Rate] * (1/
[Period])
= 540,000 * 0.25 * (1/4) = 33,750
Period End Balance Rule
When the Period End Balance rule is used, current period depreciation
is calculated as follows:
Current Period Depreciation Expense for Period End Balance = (Group
Asset Balance at Period End * Annual Depreciation Rate) / Periods Per
Year

Example: Period End Balance
example.
Group Asset: Group A
Member Assets: Asset 1
Asset 2
Depreciable Basis Rule: Period End
Balance
Group Asset DPIS / Prorate
Date:
01–JAN–2000
example.
Asset 1 – Current Period Cost Adjustment
Jan–2000 Feb–2000 Mar–2000 Apr–2000
Asset 1 10,000 10,000 20,000 20,000
Asset 2 20,000 20,000 20,000 20,000

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System Setup
Apr–2000
Mar–2000
Feb–2000
Jan–2000
Group A Cost 30,000 30,000 40,000 40,000
Group A Depreciable
Basis
30,000 30,000 40,000 40,000
Group A
Depreciation
750 750 1,000* 1,000
Group A
Accumulated
Depreciation
750 1,500 2,500 3,500
* Group Depreciation Expense in Mar–2000 = (Group Asset Depreciable
Basis * Annual Depreciation Rate) / Periods Per Year = (40,000 * 30%) /
12 = 1,000
Beginning Period Balance Rule
When the Beginning Period Balance rule is used, current period
depreciation is calculated as follows:
Current Period Depreciation Expense for Beginning Period Balance =
(Group Asset Balance at Beginning of Period *Annual Depreciation
Rate)/ Periods Per Year
Example: Beginning Period Balance
example.
Asset 2
Depreciation Basis Rule: Beginning Peri-
od Balance

Asset Setup Item
Group Asset DPIS / Pro-
rate Date:
01–JAN–2000
example.
Jan–2000 Feb–2000 Mar–2000 Apr–2000
Asset 1 10,000 10,000 20,000 20,000
Asset 2 20,000 20,000 20,000 20,000
Group A Cost 30,000 30,000 40,000 40,000
Group A Depreciable
Basis
0 30,000 30,000 40,000
Group A
Depreciation
0 750 750 1,000*
Group A
Accumulated
Depreciation
0 750 1,500 2,500

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System Setup
* Group Depreciation Expense in Apr–2000 = (Group Asset Depreciable
Basis) * Annual Depreciation Rate / Periods Per Year = 40,000 * 30% /
12 = 1,000
Period End Average Rule
When the Period Average Balance rule is used, current period
Current Period Depreciation Expense for Period Average Balance =
(End of Current Period Balance + End of Previous Period Balance) /2 *
Rate / Periods Per Year.
Example: Period End Average
example.
Asset 2
Depreciation Basis Rule: Period Average
Balance
Date:
01–JAN–2000
example.

Jan–2000 Feb–2000 Mar–2000 Apr–2000
Asset 1 10,000 10,000 20,000 20,000
Asset 2 20,000 20,000 20,000 20,000
Group A Cost 30,000 30,000 40,000 40,000
Group A Depreciable
basis
15,000 30,000 35,000* 40,000
Group A Depreci-
ation
375 750 875** 1,000
Group A
Accumulated
Depreciation
375 1,125 2,000 3,000
* Group Asset Depreciable Basis in Mar–2000
= (End of Current Period Balance + End of Previous Period Balance) / 2
= (40,000 + 30,000) / 2 = 35,000
** Group Asset Depreciation Expense Mar–2000
= Group Asset Depreciable Basis * Annual Depreciation Rate / Periods
Per Year = 35,000 * 30% / 12 = 875
Year to Date (YTD) Average Balance Rule
When the Year to Date Average Balance rule is used, current period

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System Setup
Current Period Depreciation Expense for Year to Date Average Balance
= (End of Current Period Balance + End of Previous Year Balance) / 2 *
Rate / Periods Per Year
Example: Year to Date (YTD) Average Balance
example.
Member Assets: Asset 1 – cost adjusted in Mar–2000
Asset 2 – cost adjusted in Feb–2000
Depreciation Basis Rule: YTD Average
Balance
Date:
01–JAN–2000
example.
example.

Period Performed: Feb–2000
Amortization Start Date: 01–FEB–2000
Jan–2000 Feb–2000 Mar–2000 Apr–2000
Asset 1 10,000 10,000 20,000 20,000
Asset 2 20,000 40,000 40,000 40,000
Group A Cost 30,000 50,000 60,000 60,000
Group A Depreciable
Basis
15,000 25,000* 30,000** 30,000
Group A
Depreciation
375 625 750*** 750
Group A
Accumulated
Depreciation
375 1,000 1,750 2,500
* Group Asset Depreciable Basis in Feb–2000
= (End of Current Period Balance + End of Previous Year Balance) / 2 =
(50,000 + 0) / 2 = 25,000
** Group Asset Depreciable Basis in Mar–2000 = (End of Current Period
Balance + End of Previous Year Balance) / 2)
= (60,000 + 0) / 2 = 30,000
*** Group Asset Depreciation Expense Mar–2000 = (Group Asset
Depreciable Basis * Annual Depreciation Rate) / Periods Per Year
= (30,000 * 30%) / 12 = 750

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System Setup
Year to Date (YTD) Average with Half Year Rule
This depreciable basis rule is only available for the Flat rate method
with Cost basis. When the Year to Date Average with Half Year rule is
used, current period depreciation is calculated as follows:
Current Period Depreciation Expense for Year to Date Average with
Half Year rule = (((End of Current Period Balance + End of Previous
Year Balance) / 2 * Rate) – Year to Date Depreciation ) / Remaining
Fiscal Periods
Example: Year to Date (YTD) Average with Half Year Rule
example.
Asset 2
Depreciation Basis Rule: Year to Date
Average with Half Year rule
Date:
01–JAN–2000
example.

example.
Period Performed: Feb–2000
Amortization Start Date: 01–FEB–2000
Jan–2000 Feb–2000 Mar–2000 Apr–2000
Asset 1 10,000 10,000 20,000 20,000
Asset 2 20,000 40,000 40,000 40,000
Group A Cost 30,000 50,000 60,000 60,000
Group A
Depreciation
375* 647.73** 797.73*** 797.73
Group A
Accumulated
Depreciation
375 1,022.73 1,820.46 2,618.19
Group A
Year to Date
Depreciation
375 1,022.73 1,820.46 2,618.19
* Group A Depreciation Expense in Jan–2000
= (((End of Current Period Balance + End of Previous Year Balance) / 2)
x Annual Depreciation Rate – Year to Date Depreciation ) / Remaining
Fiscal Year Periods
= ((( 30,000 + 0 ) / 2 ) x 30% – 0 ) / 12
= 375
** Group A Depreciation Expense in Feb–2000

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System Setup
Fiscal Year Periods
= ((( 50,000 + 0 ) / 2 ) x 30% – 375 ) / 11
= 647.73
*** Group A Depreciation Expense in Mar–2000
Fiscal Year Periods
= ((( 60,000 + 0 ) / 2 ) x 30% – 1,022.73 ) / 10
= 797.73
Year End Balance Rule
End of Current Fiscal Year balance. This depreciable basis rule is
available for the Flat method with NBV basis only.
Current Period Expense for Year End Balance
= Current Period YTD Depreciation – Prior Period Ytd Depreciation
Example: Year End Balance – NBV Basis
example.
Asset Information
Member Assets: Asset 1 Cost adjusted in FY2002
Asset 2
example.
Group Asset A Setup

Depreciation Method: Flat Rate with NBV Basis
Depreciation Basis Rule: Year End Bal-
ance
Date:
01–JAN–2000
Depreciation Calendar: Yearly
example.
Period Performed: FY–2002
Amortization Start Date: 01–JAN–2002
The table below illustrates asset and calculated amounts for four years.
FY 2000 FY 2001 FY 2002 FY 2003
Asset 1 10,000 10,000 20,000 20,000
Asset 2 20,000 20,000 20,000 20,000
Group Asset A Cost 30,000 30,000 40,000 40,000
Group Asset A De-
preciable Basis
30,000 21,000 24,700* 17,290

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System Setup
FY 2003
FY 2002
FY 2001
FY 2000
Group A
9,000 6,300 7,410** 5,187
Group A
Accumulated
Depreciation
9,000 15,300 22,710 27,897
* Group Asset A Depreciable Basis in FY–2002
= Cost – Salvage Value – Accumulated Depreciation
= 40,000 – 15,300 – 24,700
(Additions + / – Adjustments) – (Proceeds of Sales – Cost of Removal)
0
** Group Asset Depreciation Expense in FY–2002
= Depreciable Basis * Annual Rate = 24,700 * 30% = 7,410
Year End Balance with Positive Reduction Amount Rule
This rule can be applied to Flat method with Cost or NBV basis. The
Reduction Rate field is enabled only for group and member assets, and
it is not enabled for standalone assets.
In Canada, if the following calculation is greater than zero in any given
period for a group asset, then half of the excess amount must be
deducted from the depreciable basis when calculating the group
depreciation amount. The calculation is as follows:
(Additions + / – Adjustments) – Proceeds of Sales
– Cost of Removal 0
However, some groups may be exempted from 50% rule. In order to
accommodate Canada’s 50% rule, you must select the Year End Balance
with Positive Reduction Amount depreciable basis rule for the group
asset depreciation method, and enter the reduction rate of 50% for the
group asset.
You may enter a reduction rate for the group asset if the group asset
has this depreciable basis rule setup in the depreciation method.
Example: Year End Balance with Positive Reduction Amount

example.
Asset Information
Member Assets: Asset 1 Cost adjusted in FY2002
Asset 2
example.
Group Asset A Setup
ance with Positive Adjustment Amount
Reduction Rate: 50%
Date:
01–JAN–2000
example.
Period Performed: FY–2002
Amortization Start Date: 01–JAN–2002

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System Setup
FY 2000 FY 2001 FY 2002 FY 2003
Asset 1 10,000 10,000 20,000 20,000
Asset 2 20,000 20,000 20,000 20,000
Group Asset A De-
preciable Basis
15,000* 25,500** 22,850*** 20,995
Group A
4,500 7,650 6,855**** 6,298.50
Group A
Accumulated
Depreciation
4,500 12,150 19,005 25,303.50
* Group A Depreciable Basis in FY 2000 =
Cost – Salvage Value – Accumulated Depreciation – Reduced
Amount = 30,000 – (30,000 * 50%) = 15,000
** Group A Depreciable Basis in FY 2001
= 30,000 – 4,500 = 25,500
*** Group A Depreciable Basis in FY 2002
= 40,000 – 12,150 – 10,000 * 50% = 22,850
**** Group A Depreciation Expense in FY 2002
= Depreciable Basis * Annual Rate
= 22,850 * 30% = 6,855
Year End Balance with Half Year Rule
The Year End Balance with Half Year Rule basis rule can be applied to
the Flat method with NBV basis. The Reduction Rate field is enabled
only for group and member assets, and it is not enabled for standalone
assets.
In India, if a member asset is added during the second half of the fiscal
year, the depreciation rate is reduced by 50% for the member asset.
Otherwise, 100% of depreciate rate can be used if the member asset is
placed into service during the first half of the fiscal year.

In order to accommodate India’s 50% rule, you must select the Year
End Balance with Half Year Rule depreciable basis rule for the group
asset depreciation method, and enter the reduction rate of 50% for the
group asset. You also need to enter the Mid Year Start Date on the
Fiscal Year setup window.
• If the date placed in service is in the first half of the year, use
100% of Group Depreciation Rate.
• If the date placed in service is in the second half of the year, use
50% of Group Depreciation Rate.
You may enter a reduction rate for the group asset if the group asset
has this depreciable basis rule setup in the depreciation method.
Example: Year End Balance with Half Year Rule
example.
Member Assets: Asset 1 DPIS: 01–JAN–2000
Asset 2 DPIS: 01–AUG–2000
example.
Group Asset A Setup
ance with Half Year Rule
Reduction Rate: 50%
Date:
01–JAN–2000

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System Setup
Asset Setup Item
Mid Year Start Date: 01–JUL–2000
FY 2000 FY 2001 FY 2002 FY 2003
Asset 1 10,000 10,000 10,000 10,000
Asset 2 20,000 20,000 20,000 20,000
Group Asset A De-
preciable Basis
20,000* 24,000*** 16,800 11,760
Group A
6,000** 7,200 5,040 3,528
Group A
Accumulated
Depreciation
6,000 13,200 18,240 21,768
* Group A Depreciable Basis in FY 2000
= Cost – Salvage Value – Accumulated Depreciation – Reduced
Amount = 30,000 – (20,000 * 50%) = 20,000
** Group A Depreciation Expense in FY 2000
= Depreciable Basis * Annual Rate
= 20,000 * 30% = 6,000
***Group A Depreciable Basis in FY 2001
= 30,000 – 6,000 = 24,000

Defining Depreciable Basis Rules
To define depreciable basis rules:
2. In the Method field, enter a name for your depreciation method.
3. In the Description field, enter a description for your depreciation
method.
4. Select Flat from the Method Type poplist.
depreciation from the Calculation Basis Rule poplist.
6. Select the Depreciable Basis Rule.
Note: When you select Flat in the Method Type field, the
Depreciable Basis Rule field becomes required. You can update
the defaulted value.
7. Check the Depreciate in Year Retired check box if you want
depreciation calculated in the year retired.
8. Check the Exclude Salvage Value check box if you want this
method to exclude the salvage value from the calculation of Cost –
Salvage Value.
window.
10. Enter the basic rates.
11. Enter the adjusting rate, or loading factor.
12. Save your work.

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System Setup
Polish Tax Depreciation
Oracle Assets provides five seeded depreciable basis rules to support
Polish tax depreciation requirements. Each of these five depreciable
basis rules is comprised of several Polish tax depreciation methods.
These Polish tax depreciation methods are in effect in a predetermined
or conditional sequence. For example, if a depreciable basis rule
consists of three Polish tax depreciation methods, then the first Polish
tax depreciation method may be effective in fiscal year one, the second
Polish tax depreciation method may be effective from fiscal year two
through fiscal year four, and the third Polish tax depreciation method
may be effective for the remaining fiscal years until the asset is fully
depreciated.
Polish tax depreciation methods are similar to depreciation methods,
except they cannot be set up or used individually to depreciate assets.
That is, you cannot assign an asset to depreciate using one of these
Polish tax depreciation methods.
The Polish tax depreciation methods are as follows:
• 30% Flat Rate: Assets depreciate at the rate of 30 percent in the
period of addition and depreciation is suspended for the rest of
the periods in the fiscal year.
• Declining Classic: Assets depreciate at the defined flat rate
multiplied by the depreciation factor. When this Polish tax
depreciation method is used in a depreciable basis rule, it always
begins in the second fiscal year.
• Declining Modified: Assets depreciate at the defined flat rate
multiplied by the alternate depreciation factor.
• Standard Declining: Assets depreciate at the defined flat rate
multiplied by the depreciation factor.
• Flat Rate: Assets depreciate at the defined flat rate.
The Polish tax depreciable basis rules are each comprised of two or
more of the Polish tax depreciation methods listed above. The
depreciable basis rules for Polish tax depreciation are as follows:
• Polish 30% with a Switch to Declining Classic and Flat Rate
• Polish 30% with a Switch to Flat Rate
Flat Rate
• Polish Declining Modified with a Switch to Flat Rate

• Polish Standard Declining with a Switch to Flat Rate
To set up Polish tax depreciation:
1. Define a new depreciation method in the Depreciation Methods
window. See: Defining Additional Depreciation Methods: page
9 – 78.
2. Choose one of the Polish tax depreciable basis rules from the
Depreciable Basis Rule list of values, for example, Polish 30% with
a Switch to Flat Rate. See: Polish Tax Depreciable Basis Rules: page
9 – 117.
3. Navigate to the Depreciation Rates window and enter the flat rate.
4. Save your work.
5. Navigate to the Bonus Depreciation Rules window and define the
bonus rule. See: Defining Bonus Depreciation Rules: page 9 – 86.
6. Enter the depreciation factor and the alternate depreciation factor.
See: Defining Bonus Depreciation Rules: page 9 – 86.
7. Navigate to the Books window and assign the method and bonus
rule to the asset. See: Entering Financial Information (Detail
Additions Continued): page 2 – 24.
You can also assign the method to an asset category. See: Entering
Default Depreciation Rules for a Category: page 9 – 161.

9 – 117
System Setup
Polish Tax Depreciable Basis Rules
Oracle Assets provides five seeded polish tax depreciable basis rules:
• Polish 30% with a Switch to Declining Classic and Flat Rate: page
9 – 117
• Polish 30% with a Switch to Flat Rate: page 9 – 119
Flat Rate: page 9 – 120
• Polish Declining Modified with a Switch to Flat Rate: 9 – 123
• Polish Standard Declining with a Switch to Flat Rate: 9 – 124
Polish 30% with a Switch to Declining Classic and Flat Rate
In the first fiscal year this depreciable basis rule uses the 30% Flat Rate
Polish tax depreciation method. The asset is depreciated at a fixed
depreciation rate of 30 percent in the period of addition. After that, the
depreciation is suspended for the remainder of the periods in the fiscal
year. There should be no catchup depreciation even if an adjustment is
made in subsequent periods in the first fiscal year after the 30 percent
depreciation has been charged.
In the second fiscal year, the depreciation rate is calculated using the
Declining Classic Polish tax depreciation method. The formula to be
used by the Declining Classic Polish tax depreciation method is
calculated by multiplying the flat rate with the depreciation factor
defined in the Bonus Depreciation Rules window.
The formula used to calculate the rate of depreciation used by the
Declining Classic Polish tax depreciation method is as follows:
Flat Rate * Depreciation Factor
For example, if the flat rate = 20 percent and the depreciation factor is
2, then the resulting depreciation rate for this Polish tax depreciation
method is:
20% * 2 = 40%
Depreciation in the second fiscal year is always calculated on the basis
of cost. Depreciation in the subsequent fiscal years (where the
Declining Classic depreciation Polish tax depreciation method is used)
is calculated on the following basis:
Cost – Depreciation Reserve + First Year Reserve

After the end of the second fiscal year, at the beginning of every fiscal
year, a test is performed to verify whether the estimated depreciation
amount calculated based on the Declining Classic Polish tax
depreciation method is equal to or less than the estimated depreciation
amount calculated based on the flat rate.
If the estimated depreciation calculation based on the Declining Classic
Polish tax depreciation method is equal to or less than the estimated
depreciation amount calculated based on the flat rate (the depreciation
basis for the Flat Rate method is always cost), then the depreciation
method from that fiscal year onward needs to switch to the Flat Rate
method. Otherwise, depreciation will continue with the Declining
Classic Polish tax depreciation method.
Example – Polish 30% with a Switch to Declining Classic and Flat
Rate
Month Year 1:
30% (3000.00)
Year 2:
20% * 2 (4000.00)
Year 3:
20% * 2 (2400.00)
Year 4:
20% (600.00)
M1 3000.00 333.33 200.00 166.67
M2 0.00 333.33 200.00 166.67
M3 0.00 333.33 200.00 166.67
M4 0.00 333.33 200.00 99.99
M5 0.00 333.33 200.00 ––
M6 0.00 333.33 200.00 ––
M7 0.00 333.33 200.00 ––
M8 0.00 333.33 200.00 ––
M9 0.00 333.33 200.00 ––
M10 0.00 333.33 200.00 ––
M11 0.00 333.33 200.00 ––
M12 0.00 333.37 200.00 ––
In this example:
• The asset cost is $10,000.
• Year 1 uses the 30% Flat Rate Polish tax depreciation method
with a depreciation basis of 10,000.

9 – 119
System Setup
• Year 2 uses the Declining Classic Polish tax depreciation method
with a depreciation basis of 6000.
Note: In this case, the basis has changed to Cost – Reserve +
First year reserve.
• Year 4 uses the Flat Rate method with a depreciation basis of
10,000.
The depreciation reserve amounts at the end of each year are as
follows:
• Year 1: 3000.00
• Year 2: 7000.00
• Year 3: 9400.00
• Year 4: 10,000.00
Polish 30% with a Switch to Flat Rate
In the first fiscal year this depreciable basis rule uses the 30% Flat Rate
Polish tax depreciation method. The asset is depreciated at a fixed
depreciation rate of 30 percent in the period of addition. After that, the
depreciation is suspended for the remainder of the periods in the fiscal
year.
In the second fiscal year this depreciable basis rule automatically
switches from the 30% Flat Rate Polish tax depreciation method to the
Flat Rate method.
Example – Polish 30% with a Switch to Flat Rate
Month Year 1:
30% (3000.00)
Year 2:
20% (2000.00)
Year 3:
20% (2000.00)
Year 4:
20% (2000.00)
Year 5:
20% (1000.00)
M1 3000.00 166.67 166.67 166.67 166.67
M2 0.00 166.67 166.67 166.67 166.67
M3 0.00 166.67 166.67 166.67 166.67
M4 0.00 166.67 166.67 166.67 166.67

Year 5:
20% (1000.00)
Year 4:
20% (2000.00)
Year 3:
20% (2000.00)
Year 2:
20% (2000.00)
Year 1:
30% (3000.00)
Month
M5 0.00 166.67 166.67 166.67 166.67
M6 0.00 166.67 166.67 166.67 166.65
M7 0.00 166.67 166.67 166.67 ––
M8 0.00 166.67 166.67 166.67 ––
M9 0.00 166.67 166.67 166.67 ––
M10 0.00 166.67 166.67 166.67 ––
M11 0.00 166.67 166.67 166.67 ––
M12 0.00 166.63 166.63 166.63 ––
In this example:
• Year 1 uses the 30% Flat Rate Polish tax depreciation method
• Years 2 through 5 use the Flat Rate method with a depreciation
basis of 10,000.
follows:
• Year 1: 3000.00
• Year 2: 5000.00
• Year 3: 7000.00
• Year 4: 9000.00
• Year 5: 10,000.00
Polish Declining Modified with a Switch to Declining Classic and Flat Rate
When you use this depreciable basis rule the depreciation for the first
fiscal year is based on the Declining Modified Polish tax depreciation
method. The rate of depreciation used by the Declining Modified
Polish tax depreciation method is obtained by multiplying the flat rate
with the alternate depreciation factor.

9 – 121
System Setup
Declining Modified Polish tax depreciation method is as follows:
Flat Rate * Alternate Depreciation Factor
For example if the flat rate is 20 percent and the alternate depreciation
factor is 3, then the depreciation rate is:
20% * 3 = 60%
At the beginning of the second fiscal year the Polish tax depreciation
method automatically switches from the Declining Modified Polish tax
depreciation method to the Declining Classic Polish tax depreciation
method. The depreciation rate is calculated using the Declining Classic
Polish tax depreciation method.
Declining Classic Polish tax depreciation method is as follows:
For example if the flat rate is 20 percent and the depreciation factor is 2,
then the resulting depreciation rate for this Polish tax depreciation
method is:
20% * 2 = 40%
Depreciation in the second fiscal year is always calculated on the basis
of cost. Depreciation in the subsequent fiscal years (where the
Declining Classic Polish tax depreciation method is used), is calculated
on the following basis:
Cost – Depreciation Reserve + First Year Reserve
After the second fiscal year, at the beginning of every fiscal year, a test
is performed to verify whether the estimated depreciation amount
calculated based on the Declining Classic Polish tax depreciation
method is equal to or less than the estimated depreciation amount
calculated based on the flat rate.
If the estimated depreciation calculation based on the Declining Classic
Polish tax depreciation method is equal to or less than the estimated
depreciation amount calculated based on the flat rate, then from that
fiscal year onward, the depreciation method needs to change to the Flat
Rate method. Otherwise depreciation will continue with the Declining
Classic Polish tax depreciation method.
Example – Polish Declining Modified with a Switch to Declining
Classic and Flat Rate

Month Year 1:
20% * 2.5 (5000.00)
Year 2:
20% * 2 (4000.00)
Year 3:
20% * 2 (1000.00)
M1 416.67 333.33 200.00
M2 416.67 333.33 200.00
M3 416.67 333.33 200.00
M4 416.67 333.33 200.00
M5 416.67 333.33 200.00
M6 416.67 333.33 ––
M7 416.67 333.33 ––
M8 416.67 333.33 ––
M9 416.67 333.33 ––
M10 416.67 333.33 ––
M11 416.67 333.33 ––
M12 416.63 333.37 ––
In this example:
• Year 1 uses the Declining Modified Polish tax depreciation
method with a depreciation basis of 10,000.
with a depreciation basis of 6000.
Note: In this case, the basis has changed to Cost – Reserve +
First year reserve.
The depreciation reserve amounts for each year are as follows:
• Year 1: 5000.00
• Year 2: 9000.00
• Year 3: 10,000.00

9 – 123
System Setup
Polish Declining Modified with a Switch to Flat Rate
The Polish tax depreciation method used in the first fiscal year is the
Declining Modified Polish tax depreciation method. The calculations
are similar to the first year calculation in the Polish Declining Modified
with a Switch to Declining Classic and Flat Rate depreciable basis rule.
See: Polish Declining Modified with a Switch to Declining Classic and
Flat Rate: page 9 – 120.
In the second fiscal year, the depreciation method automatically
changes to the Flat Rate method and the asset continues to depreciate
using the Flat Rate method until the asset is fully depreciated.
Example – Polish Declining Modified with a Switch to Flat Rate
Month Year 1:
20% * 2.5 (5000.00)
Year 2:
20% (2000.00)
Year 3:
20% (2000.00)
Year 4:
20% (1000.00)
M1 416.67 166.67 166.67 166.67
M2 416.67 166.67 166.67 166.67
M3 416.67 166.67 166.67 166.67
M4 416.67 166.67 166.67 166.67
M5 416.67 166.67 166.67 166.67
M6 416.67 166.67 166.67 166.65
M7 416.67 166.67 166.67 ––
M8 416.67 166.67 166.67 ––
M9 416.67 166.67 166.67 ––
M10 416.67 166.67 166.67 ––
M11 416.67 166.67 166.67 ––
M12 416.63 166.63 166.63 ––
In this example:
• Year 1 uses the Declining Modified Polish tax depreciation
• Years 2 through 4 use the Flat Rate method with a depreciation
basis of 10,000.

follows:
• Year 1: 5000.00
• Year 2: 7000.00
• Year 3: 9000.00
• Year 4: 10,000.00
Polish Standard Declining with a Switch to Flat Rate
The Polish tax depreciation method used in the first fiscal year is the
Standard Declining Polish tax depreciation method. The rate of
depreciation is derived by multiplying the flat rate with the
depreciation factor.
Declining Standard Polish tax depreciation method is as follows:
For example if the flat rate is 20 percent and the depreciation factor is 3,
then the depreciation rate is:
20% * 3 = 60%
After the first fiscal year, at the beginning of every fiscal year a test is
performed to verify whether the estimated depreciation amount
calculated based on the Standard Declining Polish tax depreciation
method is equal to or less than the estimated depreciation amount
calculated based on the flat rate.
If the estimated depreciation calculation based on the Standard
Declining Polish tax depreciation method is equal to or less than the
estimated depreciation amount calculated based on the flat rate, then
the depreciation method from that fiscal year onward changes to the
Flat Rate method. Otherwise, depreciation should continue with the
Standard Declining Polish tax depreciation method. The depreciation
basis for the Standard Declining Polish tax depreciation method is
always net book value.
Example – Polish Standard Declining with a Switch to Flat Rate

9 – 125
System Setup
Month Year 1:
20% * 2 (4000.00)
Year 2:
20% * 2 (2400.00)
Year 3:
20% (2000.00)
Year 4:
20% (1600.00)
M1 333.33 200.00 166.67 166.67
M2 333.33 200.00 166.67 166.67
M3 333.33 200.00 166.67 166.67
M4 333.33 200.00 166.67 166.67
M5 333.33 200.00 166.67 166.67
M6 333.33 200.00 166.67 166.67
M7 333.33 200.00 166.67 166.67
M8 333.33 200.00 166.67 166.67
M9 333.33 200.00 166.67 166.67
M10 333.33 200.00 166.67 99.97
M11 333.33 200.00 166.67 ––
M12 333.37 200.00 166.63 ––
In this example:
• Year 1 uses the Standard Declining Polish tax depreciation
• Year 2 uses the Standard Declining Polish tax depreciation
method with a depreciation basis of 6000.
• Years 3 and 4 use the Flat Rate method with a depreciation basis
of 10,000.
follows:
• Year 1: 4000.00
• Year 2: 6400.00
• Year 3: 8400.00
• Year 4: 10,000.00

Adjusting Polish Tax Depreciation Transactions
You can perform cost adjustments on assets that are depreciating using
Polish Tax Depreciation transactions. The cost adjustments can be for
either a positive (higher cost) or a negative (lower cost) amount. You
can perform a current dated adjustment, which means the adjustment
applies to any date in the current period, or you can perform a prior
period adjustment.
See Also
Negative Cost Adjustments: page 9 – 126
Positive Cost Adjustments: page 9 – 136
Negative Cost Adjustments
A negative cost adjustment occurs when the cost of an asset is reduced
from the current cost. When you perform negative cost adjustments,
depreciation is calculated based on whether you have checked the
Polish Adjustment Calculation Basis check box.
Note: The Polish Adjustment Calculation Basis check box
applies only to negative cost adjustments.
Polish Adjustment Calculation Basis Checked
If this check box is checked, Oracle Assets uses special rules to
calculate the new depreciation basis. The new depreciation basis is
calculated using the following formula:
Old Cost – Net Book Value of Adjustment Amount
To calculate the net book value of the adjustment amount, Oracle
Assets first calculates the calculated proportion of the reserve. This is
calculated using the following formula:
Old Reserve * Adjustment Amount/Old Cost
Oracle Assets then uses the calculated proportion of the reserve to
calculate the net book value of the adjusted amount using the following
formula:

9 – 127
System Setup
Adjusted Amount – Calculated Proportion of Reserve
For example, assume the old cost is 20,000, the old reserve is 10,800,
and the adjustment amount is 8,000. Oracle Assets first calculates the
proportion of the reserve:
10,800 * 8,000/20,000 = 4,320
Oracle Assets then calculates the net book value of the adjustment
amount:
8,000 – 4,320 = 3,680
Finally, Oracle Assets calculates the new depreciation basis:
20,000 – 3,680 = 16,320
Polish Adjustment Calculation Basis Unchecked
If this check box is unchecked, Oracle Assets uses the following
formula to calculate the new depreciation basis:
Old Basis – Old Basis * Adjustment Amount/Old Cost
For example, if the old cost is 20,000 and the old basis is 12,000, the
adjustment amount is 8,000. The new basis is calculated as follows:
12,000 – 12,000 * 8,000/20,000 = 7,200
Example: Current Dated Negative Cost Adjustment: Polish Adjustment Calculation
Basis Checked
In the following example:
• Depreciable basis rule: Polish Standard Declining with a Switch
to Flat Rate
• Flat rate: 20 percent
• Factor: 2
• In year 1, no test is performed to determine whether to switch
the depreciation method. In all subsequent years, the test is
performed.
In this example, the negative cost adjustment occurs in year 2, month 8.
The following table shows depreciation information for year one:
Note: The rounding in this table and subsequent tables is
approximate.

Month Cost Depreciation Reserve Depreciation
Basis
1 20,000.00 666.67 666.67 20,000.00
2 20,000.00 666.67 1,333.33 20,000.00
3 20,000.00 666.67 2,000.00 20,000.00
4 20,000.00 666.67 2,666.67 20,000.00
5 20,000.00 666.67 3,333.33 20,000.00
6 20,000.00 666.67 4,000.00 20,000.00
7 20,000.00 666.67 4,666.67 20,000.00
8 20,000.00 666.67 5,333.33 20,000.00
9 20,000.00 666.67 6,000.00 20,000.00
10 20,000.00 666.67 6,666.67 20,000.00
11 20,000.00 666.67 7,333.33 20,000.00
12 20,000.00 666.67 8,000.00 20,000.00
The following table shows depreciation information for year two:
Basis
1 20,000.00 400.00 8,400.00 12,000.00
2 20,000.00 400.00 8,800.00 12,000.00
3 20,000.00 400.00 9,200.00 12,000.00
4 20,000.00 400.00 9,600.00 12,000.00
5 20,000.00 400.00 10,000.00 12,000.00
6 20,000.00 400.00 10,400.00 12,000.00
7 20,000.00 400.00 10,800.00 12,000.00
8 12,000.00 544.00 11,344.00 16,320.00
9 12,000.00 544.00 11,888.00 16,320.00

9 – 129
System Setup
Depreciation
Basis
Reserve
Depreciation
Cost
Month
10 12,000.00 544.00 12,432.00 16,320.00
11 12,000.00 544.00 12,976.00 16,320.00
12 12,000.00 544.00 13,520.00 16,320.00
The following table shows depreciation information for year three:
Basis
1 12,000.00 272.00 13,792.00 16,320.00
2 12,000.00 272.00 14,064.00 16,320.00
3 12,000.00 272.00 14,336.00 16,320.00
4 12,000.00 272.00 14,608.00 16,320.00
5 12,000.00 272.00 14,880.00 16,320.00
6 12,000.00 272.00 15,152.00 16,320.00
7 12,000.00 272.00 15,424.00 16,320.00
8 12,000.00 272.00 15,696.00 16,320.00
9 12,000.00 272.00 15,968.00 16,320.00
10 12,000.00 272.00 16,240.00 16,320.00
11 12,000.00 80.00 16,320.00 16,320.00
12
Example: Back Dated Negative Cost Adjustment: Polish Adjustment Calculation Basis
Checked
to Flat Rate

• Factor: 2
performed.
In this example, the negative cost adjustment occurs in year 3, month 7,
and is back dated to year 2, month 8. Note that the depreciation
amount of 624.00 shown for year 3, month 7 includes the current period
depreciation expense of 272.00 plus the catchup depreciation.
Basis
1 20,000.00 666.67 666.67 20,000.00
2 20,000.00 666.67 1,333.33 20,000.00
3 20,000.00 666.67 2,000.00 20,000.00
4 20,000.00 666.67 2,666.67 20,000.00
5 20,000.00 666.67 3,333.33 20,000.00
6 20,000.00 666.67 4,000.00 20,000.00
7 20,000.00 666.67 4,666.67 20,000.00
8 20,000.00 666.67 5,333.33 20,000.00
9 20,000.00 666.67 6,000.00 20,000.00
10 20,000.00 666.67 6,666.67 20,000.00
11 20,000.00 666.67 7,333.33 20,000.00
12 20,000.00 666.67 8,000.00 20,000.00
Basis
1 20,000.00 400.00 8,400.00 12,000.00
2 20,000.00 400.00 8,800.00 12,000.00

9 – 131
System Setup
Depreciation
Basis
Reserve
Depreciation
Cost
Month
3 20,000.00 400.00 9,200.00 12,000.00
4 20,000.00 400.00 9,600.00 12,000.00
5 20,000.00 400.00 10,000.00 12,000.00
6 20,000.00 400.00 10,400.00 12,000.00
7 20,000.00 400.00 10,800.00 12,000.00
8 20,000.00 400.00 11,200.00 12,000.00
9 20,000.00 400.00 11,600.00 12,000.00
10 20,000.00 400.00 12,000.00 12,000.00
11 20,000.00 400.00 12,400.00 12,000.00
12 20,000.00 400.00 12,800.00 12,000.00
Basis
1 20,000.00 333.33 13,133.33 20,000.00
2 20,000.00 333.33 13,466.67 20,000.00
3 20,000.00 333.33 13,800.00 20,000.00
4 20,000.00 333.33 14,133.33 20,000.00
5 20,000.00 333.33 14,466.67 20,000.00
6 20,000.00 333.33 14,800.00 20,000.00
7 12,000.00 624.00 15,424.00 16,320.00
8 12,000.00 272.00 15,696.00 16,320.00
9 12,000.00 272.00 15,968.00 16,320.00
10 12,000.00 272.00 16,240.00 16,320.00

Depreciation
Basis
Reserve
Depreciation
Cost
Month
11 12,000.00 80.00 16,320.00 16,320.00
12
Example: Current Dated Negative Cost Adjustment: Polish Adjustment Calculation
Basis Unchecked
to Flat Rate
• Factor: 2
performed.
In this example, the negative adjustment from 20,000.00 to 12,000.00
occurs in year 2, month 8. The new depreciation basis is 7,200.00.
Basis
1 20,000.00 666.67 666.67 20,000.00
2 20,000.00 666.67 1,333.33 20,000.00
3 20,000.00 666.67 2,000.00 20,000.00
4 20,000.00 666.67 2,666.67 20,000.00
5 20,000.00 666.67 3,333.33 20,000.00
6 20,000.00 666.67 4,000.00 20,000.00
7 20,000.00 666.67 4,666.67 20,000.00
8 20,000.00 666.67 5,333.33 20,000.00

9 – 133
System Setup
Depreciation
Basis
Reserve
Depreciation
Cost
Month
9 20,000.00 666.67 6,000.00 20,000.00
10 20,000.00 666.67 6,666.67 20,000.00
11 20,000.00 666.67 7,333.33 20,000.00
12 20,000.00 666.67 8,000.00 20,000.00
Basis
1 20,000.00 400.00 8,400.00 12,000.00
2 20,000.00 400.00 8,800.00 12,000.00
3 20,000.00 400.00 9,200.00 12,000.00
4 20,000.00 400.00 9,600.00 12,000.00
5 20,000.00 400.00 10,000.00 12,000.00
6 20,000.00 400.00 10,400.00 12,000.00
7 20,000.00 400.00 10,800.00 12,000.00
8 12,000.00 240.00 11,040.00 7,200.00
9 12,000.00 240.00 11,280.00 7,200.00
10 12,000.00 240.00 11,520.00 7,200.00
11 12,000.00 240.00 11,760.00 7,200.00
12 12,000.00 240.00 12,000.00 7,200.00
Example: Back Dated Negative Cost Adjustment: Polish Adjustment Calculation Basis
Unchecked
to Flat Rate

• Factor: 2
performed.
In this example, the negative adjustment from 20,000.00 to 12,000.00
occurs in year 3, month 7, but is back dated to year 2, month 8. The
negative 2,800.00 shown as the depreciation amount in year 3 month 7
is the amount of excess depreciation expense and reserve that is backed
out.
Basis
1 20,000.00 666.67 666.67 20,000.00
2 20,000.00 666.67 1,333.33 20,000.00
3 20,000.00 666.67 2,000.00 20,000.00
4 20,000.00 666.67 2,666.67 20,000.00
5 20,000.00 666.67 3,333.33 20,000.00
6 20,000.00 666.67 4,000.00 20,000.00
7 20,000.00 666.67 4,666.67 20,000.00
8 20,000.00 666.67 5,333.33 20,000.00
9 20,000.00 666.67 6,000.00 20,000.00
10 20,000.00 666.67 6,666.67 20,000.00
11 20,000.00 666.67 7,333.33 20,000.00
12 20,000.00 666.67 8,000.00 20,000.00

9 – 135
System Setup
Basis
1 20,000.00 400.00 8,400.00 12,000.00
2 20,000.00 400.00 8,800.00 12,000.00
3 20,000.00 400.00 9,200.00 12,000.00
4 20,000.00 400.00 9,600.00 12,000.00
5 20,000.00 400.00 10,000.00 12,000.00
6 20,000.00 400.00 10,400.00 12,000.00
7 20,000.00 400.00 10,800.00 12,000.00
8 20,000.00 400.00 11,200.00 12,000.00
9 20,000.00 400.00 11,600.00 12,000.00
10 20,000.00 400.00 12,000.00 12,000.00
11 20,000.00 400.00 12,400.00 12,000.00
12 20,000.00 400.00 12,800.00 12,000.00
Basis
1 20,000.00 333.33 13,133.33 20,000.00
2 20,000.00 333.33 13,466.67 20,000.00
3 20,000.00 333.33 13,800.00 20,000.00
4 20,000.00 333.33 14,133.33 20,000.00
5 20,000.00 333.33 14,466.67 20,000.00
6 20,000.00 333.33 14,800.00 20,000.00
7 12,000.00 (2800.00) 12,000.00 7,200.00

Positive Cost Adjustments
A positive cost adjustment occurs when the cost of an asset is increased
from the current cost.
Example: Current Dated Positive Cost Adjustment
to Flat Rate
• Factor: 2
performed.
In this example, the positive cost adjustment from 10,000.00 to
20,000.00 occurs in year 3, month 7.
Note: In this example, although depreciation is shown only
through year 3, it should be assumed that depreciation will
continue until the asset is fully reserved.
Basis
1 10,000.00 333.33 333.33 10,000.00
2 10,000.00 333.33 666.67 10,000.00
3 10,000.00 333.33 1,000.00 10,000.00
4 10,000.00 333.33 1,333.33 10,000.00
5 10,000.00 333.33 1,666.67 10,000.00
6 10,000.00 333.33 2,000.00 10,000.00
7 10,000.00 333.33 2,333.33 10,000.00
8 10,000.00 333.33 2,666.67 10,000.00
9 10,000.00 333.33 3,000.00 10,000.00

9 – 137
System Setup
Depreciation
Basis
Reserve
Depreciation
Cost
Month
10 10,000.00 333.33 3,333.33 10,000.00
11 10,000.00 333.33 3,666.67 10,000.00
12 10,000.00 333.33 4,000.00 10,000.00
Basis
1 10,000.00 200.00 4,200.00 6,000.00
2 10,000.00 200.00 4,400.00 6,000.00
3 10,000.00 200.00 4,600.00 6,000.00
4 10,000.00 200.00 4,800.00 6,000.00
5 10,000.00 200.00 5,000.00 6,000.00
6 10,000.00 200.00 5,200.00 6,000.00
7 10,000.00 200.00 5,400.00 6,000.00
8 10,000.00 200.00 5,600.00 6,000.00
9 10,000.00 200.00 5,800.00 6,000.00
10 10,000.00 200.00 6,000.00 6,000.00
11 10,000.00 200.00 6,200.00 6,000.00
12 10,000.00 200.00 6,400.00 6,000.00
Basis
1 10,000.00 166.67 6,566.67 10,000.00
2 10,000.00 166.67 6,733.33 10,000.00

Depreciation
Basis
Reserve
Depreciation
Cost
Month
3 10,000.00 166.67 6,900.00 10,000.00
4 10,000.00 166.67 7,066.67 10,000.00
5 10,000.00 166.67 7,233.33 10,000.00
6 10,000.00 166.67 7,400.00 10,000.00
7 20,000.00 333.33 7,733.33 20,000.00
8 20,000.00 333.33 8,066.67 20,000.00
9 20,000.00 333.33 8,400.00 20,000.00
10 20,000.00 333.33 8,733.33 20,000.00
11 20,000.00 333.33 9,066.67 20,000.00
12 20,000.00 333.33 9,400.00 20,000.00
Example: Back Dated Positive Cost Adjustment
to Flat Rate
• Factor: 2
performed.
In this example, the positive cost adjustment from 10,000.00 to
20,000.00 occurs in year 3, month 7, with an effect beginning year 2,
month 7. Note that the depreciation amount of 1,333.33 shown for year
3, month 7 includes the current period depreciation expense of 333.33
plus the catchup depreciation. The amount of catchup depreciation
between year 2, month 7 and year 3, month 2 is 1,000.00.
Note: In this example, although depreciation is shown only
through year 3, it should be assumed that depreciation will
continue until the asset is fully reserved.

9 – 139
System Setup
Basis
1 10,000.00 333.33 333.33 10,000.00
2 10,000.00 333.33 666.67 10,000.00
3 10,000.00 333.33 1,000.00 10,000.00
4 10,000.00 333.33 1,333.33 10,000.00
5 10,000.00 333.33 1,666.67 10,000.00
6 10,000.00 333.33 2,000.00 10,000.00
7 10,000.00 333.33 2,333.33 10,000.00
8 10,000.00 333.33 2,666.67 10,000.00
9 10,000.00 333.33 3,000.00 10,000.00
10 10,000.00 333.33 3,333.33 10,000.00
11 10,000.00 333.33 3,666.67 10,000.00
12 10,000.00 333.33 4,000.00 10,000.00
Basis
1 10,000.00 200.00 4,200.00 6,000.00
2 10,000.00 200.00 4,400.00 6,000.00
3 10,000.00 200.00 4,600.00 6,000.00
4 10,000.00 200.00 4,800.00 6,000.00
5 10,000.00 200.00 5,000.00 6,000.00
6 10,000.00 200.00 5,200.00 6,000.00
7 10,000.00 200.00 5,400.00 6,000.00
8 10,000.00 200.00 5,600.00 6,000.00
9 10,000.00 200.00 5,800.00 6,000.00

Depreciation
Basis
Reserve
Depreciation
Cost
Month
10 10,000.00 200.00 6,000.00 6,000.00
11 10,000.00 200.00 6,200.00 6,000.00
12 10,000.00 200.00 6,400.00 6,000.00
Basis
1 10,000.00 166.67 6,566.67 10,000.00
2 10,000.00 166.67 6,733.33 10,000.00
3 10,000.00 166.67 6,900.00 10,000.00
4 10,000.00 166.67 7,066.67 10,000.00
5 10,000.00 166.67 7,233.33 10,000.00
6 10,000.00 166.67 7,400.00 10,000.00
7 20,000.00 1,333.33 8,733.33 20,000.00
8 20,000.00 333.33 9,066.67 20,000.00
9 20,000.00 333.33 9,400.00 20,000.00
10 20,000.00 333.33 9,733.33 20,000.00
11 20,000.00 333.33 10,066.67 20,000.00
12 20,000.00 333.33 10,400.00 20,000.00

9 – 141
System Setup
Partial Retirements
Oracle Assets does not provide any special treatment for partial
retirements on assets using one of the five Polish tax depreciation
methods. Oracle Assets calculates the new reserve, depreciation basis
and the new cost as it would for any other partial retirement
transaction.
The calculation for the new basis is the same as for a negative cost
adjustment in which the Polish Adjustment Calculation Basis check box
is unchecked, except the adjustment amount is replaced by the partial
retirement amount:
Old Basis – Old Basis * Partial Retirement Amount/Old Cost
For example, if the old cost is 20,000 and the old basis is 12,000, and the
partial retirement amount is 8,000, the new basis is calculated as
follows:
12,000 – 12,000 * 8,000/20,000 = 7,200
Example: Current Dated Partial Retirement
to Flat Rate
• Factor: 2
performed.
In this example, the partial retirement of 8,000 occurs in year 2, month
8. The new reserve is calculated as follows:
Old Reserve + Current Period Depreciation – Old Reserve *
Retirement Amount/Old Cost
Basis
Method
1 20,000.00 666.67 666.67 20,000.00 SD
2 20,000.00 666.67 1,333.33 20,000.00 SD

Method
Depreciation
Basis
Reserve
Depreciation
Cost
Month
3 20,000.00 666.67 2,000.00 20,000.00 SD
4 20,000.00 666.67 2,666.67 20,000.00 SD
5 20,000.00 666.67 3,333.33 20,000.00 SD
6 20,000.00 666.67 4,000.00 20,000.00 SD
7 20,000.00 666.67 4,666.67 20,000.00 SD
8 20,000.00 666.67 5,333.33 20,000.00 SD
9 20,000.00 666.67 6,000.00 20,000.00 SD
10 20,000.00 666.67 6,666.67 20,000.00 SD
11 20,000.00 666.67 7,333.33 20,000.00 SD
12 20,000.00 666.67 8,000.00 20,000.00 SD
Basis
Method
1 20,000.00 400.00 8,400.00 12,000.00 SD
2 20,000.00 400.00 8,800.00 12,000.00 SD
3 20,000.00 400.00 9,200.00 12,000.00 SD
4 20,000.00 400.00 9,600.00 12,000.00 SD
5 20,000.00 400.00 10,000.00 12,000.00 SD
6 20,000.00 400.00 10,400.00 12,000.00 SD
7 20,000.00 400.00 10,800.00 12,000.00 SD
8 12,000.00 240.00 6,720.00 7,200.00 SD
9 12,000.00 240.00 6,960.00 7,200.00 SD
10 12,000.00 240.00 7,200.00 7,200.00 SD

9 – 143
System Setup
Method
Depreciation
Basis
Reserve
Depreciation
Cost
Month
11 12,000.00 240.00 7,440.00 7,200.00 SD
12 12,000.00 240.00 7,680.00 7,200.00 SD
Year 3: Test performed for switch
Basis
Method
1 12,000.00 200.00 7,880.00 12,000.00 FR
2 12,000.00 200.00 8,080.00 12,000.00 FR
3 12,000.00 200.00 8,280.00 12,000.00 FR
4 12,000.00 200.00 8,480.00 12,000.00 FR
5 12,000.00 200.00 8,680.00 12,000.00 FR
6 12,000.00 200.00 8,880.00 12,000.00 FR
7 12,000.00 200.00 9,080.00 12,000.00 FR
8 12,000.00 200.00 9,280.00 12,000.00 FR
9 12,000.00 200.00 9,480.00 12,000.00 FR
10 12,000.00 200.00 9,680.00 12,000.00 FR
11 12,000.00 200.00 9,880.00 12,000.00 FR
12 12,000.00 200.00 10,080.00 12,000.00 FR
Example: Back Dated Partial Retirement
to Flat Rate
• Factor: two

performed.
In this example, the partial retirement of 8,000 occurs in year 2, month
12. Note that the depreciation amount of (400.00) shown for year 2,
month 12 includes the current period depreciation expense of 240.00
plus the excess depreciation amount of 640.00 from year 2, month 8
through year 2, month 11, that was backed out.
Basis
Method
1 20,000.00 666.67 666.67 20,000.00 SD
2 20,000.00 666.67 1,333.33 20,000.00 SD
3 20,000.00 666.67 2,000.00 20,000.00 SD
4 20,000.00 666.67 2,666.67 20,000.00 SD
5 20,000.00 666.67 3,333.33 20,000.00 SD
6 20,000.00 666.67 4,000.00 20,000.00 SD
7 20,000.00 666.67 4,666.67 20,000.00 SD
8 20,000.00 666.67 5,333.33 20,000.00 SD
9 20,000.00 666.67 6,000.00 20,000.00 SD
10 20,000.00 666.67 6,666.67 20,000.00 SD
11 20,000.00 666.67 7,333.33 20,000.00 SD
12 20,000.00 666.67 8,000.00 20,000.00 SD
Basis
Method
1 20,000.00 400.00 8,400.00 12,000.00 SD
2 20,000.00 400.00 8,800.00 12,000.00 SD

9 – 145
System Setup
Method
Depreciation
Basis
Reserve
Depreciation
Cost
Month
3 20,000.00 400.00 9,200.00 12,000.00 SD
4 20,000.00 400.00 9,600.00 12,000.00 SD
5 20,000.00 400.00 10,000.00 12,000.00 SD
6 20,000.00 400.00 10,400.00 12,000.00 SD
7 20,000.00 400.00 10,800.00 12,000.00 SD
8 20,000.00 400.00 11,200.00 12,000.00 SD
9 20,000.00 400.00 11,600.00 12,000.00 SD
10 20,000.00 400.00 12,000.00 12,000.00 SD
11 20,000.00 400.00 12,400.00 12,000.00 SD
12 12,000.00 (400.00) 7,680.00 12,000.00 SD
Basis
Method
1 12,000.00 200.00 7,880.00 12,000.00 FR
2 12,000.00 200.00 8,080.00 12,000.00 FR
3 12,000.00 200.00 8,280.00 12,000.00 FR
4 12,000.00 200.00 8,480.00 12,000.00 FR
5 12,000.00 200.00 8,680.00 12,000.00 FR
6 12,000.00 200.00 8,880.00 12,000.00 FR
7 12,000.00 200.00 9,080.00 12,000.00 FR
8 12,000.00 200.00 9,280.00 12,000.00 FR
9 12,000.00 200.00 9,480.00 12,000.00 FR
10 12,000.00 200.00 9,680.00 12,000.00 FR

Method
Depreciation
Basis
Reserve
Depreciation
Cost
Month
11 12,000.00 200.00 9,880.00 12,000.00 FR
12 12,000.00 200.00 10,080.00 12,000.00 FR

9 – 147
System Setup
Setting Up Depreciation Ceilings
You can set up or review expense, cost, and investment tax credit (ITC)
ceilings. You can associate either an expense ceiling or a cost ceiling
with an asset category. If you are subject to United States tax law, you
must set up depreciation ceilings for your luxury automobiles.
To set up cost, expense, or investment tax credit ceilings:
1. Open the Asset Ceilings window.
2. Choose the type of ceiling you want to set up: Cost, Expense, or
ITC.
3. Enter a Name and Description of the ceiling
4. Enter the Currency for which you are defining the depreciation
expense ceiling.
5. Enter Start and End dates for which the ceiling is effective. If you
leave the End Date field blank, the ceiling is effective indefinitely.
6. If you are defining a depreciation Expense ceiling, enter the fiscal
year of life of the asset to which the ceiling applies.
7. Enter a Ceiling amount:
Expense: Enter the maximum annual depreciation allowance for
each year of the asset life. Oracle Assets uses the ceiling from the
last year you set up for each year thereafter.
Cost: Enter the maximum recoverable cost Oracle Assets can use
to calculate depreciation expense.
Investment Tax Credit: Enter the maximum cost that Oracle
Assets can use to calculate ITC.
8. Save your work.
See Also
Ceiling Listing: page 11 – 46

Defining Investment Tax Credit Rates
You can set up and review your Investment Tax Credit (ITC) rates and
recapture rates. Oracle Assets displays the rates in ascending order by
year and life. Oracle Assets automatically recaptures a portion of the
investment tax credit for assets with ITC that you retire before they are
fully reserved. Once you set up your rates, you can claim ITC for an
asset.
To define ITC rates:
1. Open the Investment Tax Credit Rates window.
2. Enter the year the ITC rate is effective.
You must set up ITC recapture rates for all tax years for which ITC
recapture applies.
3. Enter the life for which this ITC rate applies.
4. Enter the ITC Amount Rate as a percentage. The ITC Basis for an
asset is the lesser of its original cost and the ITC Ceiling, if one is
used.
5. Enter the Basis Reduction Rate as a percentage. Oracle Assets uses
the basis reduction rate to reduce the recoverable cost of the asset.
6. Save your work.
To define ITC recapture rates:
1. Open the Investment Tax Credit Recapture Rates window.
2. Enter the Tax Year the recapture rate is effective.
3. Enter the Year and Month of life to which the recapture rate
applies.
4. Enter the Year of Retirement to which the rate applies. If you retire
an asset during this year of life, it is subject to this recapture rate.
5. Enter the recapture rate as a percentage. Oracle Assets uses this
rate to determine the amount of investment tax credit to recapture
upon retirement.
6. Save your work.

9 – 149
System Setup
See Also
Setting Up Depreciation (ITC) Ceilings: page 9 – 147
ITC Rates Listing: page 11 – 49

☞
Specifying Dates for Prorate Conventions
You can set up or review prorate and retirement conventions in the
Prorate Conventions window.
You must initially set up all your prorate conventions from the
convention period corresponding to the oldest date placed in service
through the end of the current fiscal year. At the end of each fiscal
year, Oracle Assets automatically sets up your prorate conventions for
the next fiscal year.
Prerequisites
❑ Set up your Oldest Date Placed in Service. See: Specifying System
❑ Set up your fiscal years. See: Creating Fiscal Years: page 9 – 61.
❑ Set up your depreciation and prorate calendars. See: Specifying
Dates for Calendar Periods: page 9 – 62.
To specify dates for prorate conventions:
1. Open the Prorate Conventions window
2. Enter a Convention name and Description.
3. Enter the Fiscal Year Name for which you want to set up this
convention.
4. Select the Depreciate When Placed in Service check box if you want
to start taking depreciation in the accounting period that
corresponds to the date placed in service, instead of the period that
corresponds to the prorate date.
This option determines over how many periods to spread the
annual depreciation amount. For assets that use a calculated
(straight–line) method, Oracle Assets ignores this option and
always starts taking depreciation in the accounting period that
corresponds to the prorate date.
5. Enter date ranges and corresponding prorate dates for assets where
the date placed in service is between the From Date and the To
Date.
Attention: Your convention must include every date in your fiscal
year; otherwise, Oracle Assets cannot calculate depreciation
properly.
6. Save your work.

☞
9 – 151
System Setup
See Also
Prorate Convention Listing: page 11 – 51
About Prorate and Retirement 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. Since assets can be acquired at any
time in a given period, there must be a convention for determining how
much depreciation to take in each instance. The prorate convention
and the date placed in service determine the prorate date.
Note: For assets to depreciate properly, prorate conventions
must account for every date in the fiscal year.
Oracle Assets uses the prorate date to determine the prorate period in
your prorate calendar. 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.
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.
Attention: Remember that the prorate convention, retirement
convention, and depreciation method work together to
produce the depreciation amounts. You must set up
depreciation rates for each prorate period.
User–Defined Conventions
Oracle Assets allows you to create your own prorate conventions.
Example 1
In this example, you create a prorate convention called Half–Quarter, in
which you divide each quarter into two periods. This prorate
convention requires you to create a total of eight prorate periods (two
per quarter):

Prorate Convention Period Prorate Date # of Prorate
Periods
Half–Quarter 01–JAN–1998 to
15–FEB–1998
15–FEB–1998 8
Half–Quarter 16–FEB–1998 to
31–MAR–1998
31–MAR–1998 8
Example 2
In this example, you create a prorate convention called Following
Half–Year, in which the prorate date is the first day of the following
period:
Periods
Following Half Year 01–JAN–1998 to
30–JUN–1998
01–JUL–1998 2
Following Half Year 01–JUL–1998 to
31–DEC–1998
01–JAN–1999 2
Example 3
In this example, you create another half–year prorate convention called
Mid–Half–Year, in which the prorate date falls at the half–way point of
the period:
Periods
Mid–Half Year 01–JAN–1998 to
30–JUN–1998
31–MAR–1998 2
Mid–Half Year 01–JUL–1998 to
31–DEC–1998
30–SEP–1999 2

9 – 153
System Setup
Prorate Convention Setup Examples
Month–to–Month
Month–to–month is the most common prorate convention and calendar
setup. In this scenario:
• The depreciation calendar and the prorate calendar are identical:
a standard 12–month calendar with each period corresponding
to a different month.
• An asset with a date placed in service any time in a given month
will have a full month of depreciation taken for that period.
1. You set up your depreciation calendar on the Asset Calendars
window. You enter one depreciation period for each month as
follows:
Depreciation Period 1 01–JAN – 31 JAN
Depreciation Period 2 01 FEB – 28 FEB
Depreciation Period 3 01 MAR – 31 MAR
Depreciation Period 4 01–APR – 30–APR
... ...
2. Next, you set up your prorate calendar. Since the prorate calendar
and the depreciation calendar are the same, you can enter the same
calendar name for both the depreciation calendar and the prorate
calendar.
3. When adding an asset, choose the Current Month prorate
convention on the Books window.
In this case, the prorate date is the last day of the period. For
example:
Period Period Dates Prorate Date
Period 1 01–JAN – 31 JAN 31–JAN
Period 2 01 FEB – 28 FEB 28–FEB
Period 3 01 MAR – 31 MAR 31–MAR
... ... ...

Mid–Month
When you use a mid–month prorate convention, half a month of
depreciation is taken in the first and last periods of an asset’s life. For a
mid–month prorate convention, you need to set up a prorate calendar
with semi–monthly periods.
1. Set up your depreciation calendar with monthly periods.
2. Set up a prorate calendar with 24 semi–monthly periods. For
example:
Prorate Period 1 01–JAN – 15–JAN
Prorate Period 2 16–JAN – 31–JAN
Prorate Period 3 01–FEB – 15–FEB
Prorate Period 4 16–FEB – 28–FEB
... ...
3. Set up a prorate convention called Mid–Month with 24
semi–monthly periods.
Select the Depreciate When Placed in Service check box if you want
to start taking depreciation in the accounting period that
corresponds to the date placed in service, instead of the period that
corresponds to the prorate date. This option determines over how
many periods to spread the annual depreciation amount. For
straight–line depreciating assets, Oracle Assets always starts taking
depreciation in the accounting period that corresponds to the
prorate date.
4. When adding an asset, you want to override the default prorate
convention for the category and use the Mid–Month prorate
convention you set up. On the Default Depreciation Rules region
of the Asset Categories window, change the prorate convention to
Mid–Month.
Period Period Dates Prorate Date
Period 1 01–JAN – 15–JAN 15–JAN
Period 2 15–JAN – 31–JAN 31–JAN
Period 3 01–FEB – 15–FEB 15–FEB
Period 4 16–FEB – 28–FEB 28–FEB
Period 5 01–MAR – 15–MAR 15–MAR
... ... ...

9 – 155
System Setup
In this example, if an asset has a date placed in service in the first half
of January (for example, 04–JAN–1998), an entire month of depreciation
is taken for the period of addition. The depreciation is charged for the
first prorate period, 01–JAN–1998 through 15–JAN–1998, as well as the
second prorate period, 16–JAN–1998.
If the asset is retired in the first half of a depreciation period, no
depreciation is taken for the last depreciation period of its life. That is,
if the asset is retired one year later on 04–JAN–1999, no depreciation is
taken during the depreciation period January 1999. If the asset is
retired in the second half of the last depreciation period of the asset’s
life, half a month of depreciation is taken. For instance, if the asset is
retired on 18–JAN–1998, depreciation is taken for the prorate period
01–JAN–1998 through 15–JAN–1998, but not for the prorate period
16–JAN–1998 through 31–JAN–1998.
If an asset is placed in service in the second half of January, for
example, 18–JAN–1998, a half month of depreciation is taken in the
period of addition (16–JAN–1998 through 31–JAN–1998).
If the asset is retired in the first half of a depreciation period, no
depreciation is taken for the last depreciation period of its life. That is,
if the asset is retired on 04–JAN–1999, no depreciation is taken for the
depreciation period January 1999. If the asset is retired in the second
half of the last depreciation period of the asset’s life, a half a month of
depreciation is taken. For instance, if the asset is retired on
18–JAN–1999, depreciation is taken for the prorate period 01–JAN–1999
through 15–JAN–1999, but not for the prorate period 16–JAN–1999
through 31–JAN–1999.
Daily
If you need to depreciate on a daily basis, you need to set up daily
depreciation and prorate calendars (365 periods).
1. Set up your daily depreciation calendar as follows:
... ...
2. Set up a daily prorate calendar.

3. On the Prorate Conventions window, set up a prorate convention
called Daily with the same daily periods as the prorate calendar
you set up.
4. When adding assets that should use this prorate convention,
choose the Daily prorate convention on the Books window.

9 – 157
System Setup
Defining Price Indexes
You must set up your price indexes before you can assign them to an
asset category and book in the Asset Categories window. You can use
one price index for several asset categories in the same or different
books. Or you can have a different price index for each asset category
in each depreciation book.
The Revalued Asset Retirement Report uses your price indexes to
determine the revalued asset cost. It then uses this cost to calculate
gains and losses for your retired assets. You can review all of the price
indexes you defined by running the Price Index Listing.
If you want to actually revalue the cost of your assets in your books,
you must revalue the asset or category.
To define price indexes:
1. Open the Price Indexes window.
2. Enter the name of the Index you want to define.
Suggestion: The name you enter appears in list of values
3. Enter the index value as a percentage.
4. Enter the dates that this index value is effective. If you leave the To
Date blank, the index is effective indefinitely.
5. Save your work.
See Also
page 3 – 32
Revalued Asset Retirements Report: page 11 – 82
Price Index Listing: page 11 – 50

Setting Up 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.
Prerequisites
❑ Set up your Account segment values and combinations. See:
Defining Accounts (Oracle General Ledger User Guide)
❑ Set up your depreciation books. See: Defining Depreciation Books:
page 9 – 71.
❑ Set up your QuickCode values. See: Entering QuickCodes: page
9 – 58.
❑ Set up your prorate conventions. See: Specifying Dates for Prorate
Conventions: page 9 – 150.
❑ Set up your depreciation methods. See: Defining Additional
Depreciation Methods: page 9 – 78.
To set up an asset category:
1. Open the Asset Categories window.
2. Enter a Category name and Description to identify the asset
category you want to set up.
Suggestion: The concatenated name you enter appears in
fields which display 20 spaces. You may want to limit your
name to 20 characters.
3. Check Enabled if you want to use this category.
4. Check Capitalize if you want to charge items in this category to an
asset account when you pay for them and if you want to depreciate
items in this category.
5. Check In Physical Inventory if you want assets in this category to
be included in physical inventory comparisons.
6. Choose Lease, Leasehold Improvement, or Non–Lease from the
Category Type poplist.

☞
9 – 159
System Setup
You can only enter lease information in the Asset Details window if
you assign the asset to a Lease category type.
7. Choose Owned or Leased from the Ownership poplist.
8. Enter the Property Type and Class to which the assets in this
category usually belong.
You set up your QuickCode values for Property Type in the
QuickCodes window. If you have assets in the United States, enter
1245 for personal property and 1250 for real property.
9. Enter general ledger accounts. See: Entering General Ledger
Accounts for the Category: page 9 – 159.
10. Enter default depreciation rules for each depreciation book for
which the category is defined. See: Entering Default Depreciation
Rules for a Category: page 9 – 161.
11. Save your work.
See Also
Adding an Asset Accepting Defaults (QuickAdditions): page 2 – 20
Adding an Asset Automatically from External Sources (Mass
Entering General Ledger Accounts for the Category
Suggestion: You may have to temporarily disable your
cross–validation rules and allow dynamic insertion for the
Account structure to be able to enter these accounts, since they
may not be valid combinations.
Attention: If you want to create journal entries using other
segments in addition to the natural account from the
combination you enter in the Asset Categories window, you

must modify the default Account Generator values to fill in
those segments from the category.
To enter general ledger accounts for a category:
1. In the Asset Categories window, enter the Book for which you
want to set up this asset category.
2. Enter the Asset Cost account for this category and book.
Oracle Assets uses this account to reconcile asset costs to your
general ledger. Oracle Assets creates journal entries for this
account to reflect additions, retirements, cost changes, revaluations,
transfers, reclassifications, and capitalizations.
3. Enter the Asset Clearing account for this category and book.
For manual asset additions and cost adjustments, Oracle Assets
uses this account to reconcile your payables system and Oracle
Assets.
For mass additions, it uses the complete Account combination that
comes over with a mass addition line to reconcile the asset addition
or cost adjustment with your payables system.
4. Enter the general ledger Depreciation Expense Segment to which
you charge depreciation for assets in this category and book. This
is the default value for the account segment of the depreciation
expense account in the Assignment window.
5. If you have set up bonus rates, enter the Bonus Expense account. If
you do not enter a value in this field, it defaults to the Depreciation
Expense account.
6. Enter the Accumulated Depreciation account for this category and
book. This account is the contra–account for the asset cost account
for this category.
7. If you have set up bonus rates, enter the Bonus Reserve account. If
you do not enter a value in this field, it defaults to the
Accumulated Depreciation account.
8. Enter the Revaluation Reserve account for this category and book.
This account is used for the change in net book value due to
revaluation, if you revalue accumulated depreciation.
9. Enter the Revaluation Amortization account for this category and
book. This account is used to amortize the revaluation reserve over
the remaining life of the asset after you revalue it, if you amortize
revaluation reserve.

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System Setup
10. Enter the CIP Cost account for this category and book. This
account is used to reconcile CIP asset costs to your general ledger.
11. Enter the CIP Clearing account for this category and book if you
entered a CIP Cost account.
12. Enter default depreciation rules for each depreciation book for
which the category is defined. See: Entering Default Depreciation
Rules for a Category: page 9 – 161.
See Also
6 – 5
Entering Default Depreciation Rules for a Category
To enter default depreciation rules for a category:
1. In the Default Depreciation Rules window, enter the date Placed in
Service range for which these category defaults are effective. When
you add an asset, the depreciation rules default according to the
date placed in service of the asset, the category, and the book.
You can specify as many ranges of default depreciation rules as you
wish. If you leave the end date blank, Oracle Assets uses that set of
depreciation rules indefinitely. To add a new range of valid
depreciation rules, terminate your current record by adding an end
date, then choose Edit, New Record from the menu to add the new
record.
2. Check Depreciate if you normally depreciate assets in this book
and category.
Note: Oracle Assets does not depreciate EXPENSED assets,
regardless of the default value you enter in this field.
3. Enter the depreciation Method that you normally use for assets in
this book and category:

• If you enter a life–based method, you must enter the asset Life
in Years and Months. The method you enter must have the same
number of periods as the prorate calendar for this book.
• If you enter a flat–rate method, you must enter default values for
the Basic Rate and Adjusted Rate that you normally use to
depreciate assets in this book and category. If you are defining
this category for a tax book, you also can enter a Bonus Rule.
• If you enter a units of production method, you must enter the
unit of measure (UOM) and production Capacity that you
normally use to depreciate assets in this book and category. If
you are defining this category a tax book, enter the UOM and
capacity you entered for the corporate book.
4. Enter the bonus rule that you normally use for assets in this book
and category. You can use bonus rules for corporate books and tax
books, using all depreciation methods except UOM.
5. Enter the Prorate Convention and Retirement Convention that you
normally assign to assets in this book and category.
6. If you chose Use Default Percent from the Salvage Value poplist in
the Book Controls window for this book, you can enter a Default
Salvage Value percentage for this category, book, and range of
dates placed in service. See: Entering Accounting Rules for a
Book: page 9 – 73 and Defaulting Asset Salvage Value as a
Percentage of Cost: page 5 – 83.
For example, if you want the salvage value to default to 10% of the
cost, enter 10 in this field. When you perform transactions affecting
asset cost, Oracle Assets uses this default percentage to calculate
the salvage value according to the following formula:
Salvage Value = Cost Default Percentage
7. If you are defining this category for a tax book, optionally enter
either a depreciation expense or cost ceiling.
8. Enter a Price Index if you want to run reports that use the revalued
asset cost to calculate gains and losses.
9. Enter a default subcomponent life Rule you want to use to
determine the default life of the subcomponent asset based on the
life of the parent asset.
Choose one of the following rules:
None (Leave field blank): There is no connection between the life
of the subcomponent asset and the parent asset life. Oracle Assets
defaults the subcomponent asset life from the asset category.

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System Setup
Same End Date (Without specifying a minimum life): The
subcomponent asset becomes fully depreciated on the same day as
the parent asset or at the end of the category default life, whichever
is sooner. The default subcomponent asset life is based on the end
of the parent asset life and the category default life. If the parent
asset is fully reserved, Oracle Assets gives the subcomponent asset
a default life of one month.
Same End Date (Specifying a minimum life): The subcomponent
asset becomes fully depreciated on the same day as the parent
asset, unless the parent asset life is shorter than the minimum life
you specify. The subcomponent asset’s life is determined based
on the end of the parent asset’s life, the category default life, and
the minimum life. If the parent asset’s remaining life and the
category default life are both less than the minimum life you enter,
Oracle Assets uses the minimum life for the subcomponent asset.
Otherwise, it uses the lesser of the parent asset’s remaining life and
the category default life.
Same Life: The subcomponent asset uses the same life as the
parent asset. It depreciates for the same total number of periods. If
the subcomponent asset is acquired after the parent asset, it
depreciates beyond the end date of the parent asset life.
10. If you choose Same End Date for the subcomponent life rule, you
also can specify a minimum life for the subcomponent asset.
If the parent asset’s remaining life and the category default life are
both less than the minimum life you enter, Oracle Assets uses the
minimum life for the subcomponent asset. Otherwise, it uses the
lesser of the parent asset’s remaining life and the category default
life.
11. Check Straight Line for Retirements if you are setting up an asset
category with a 1250 property class in a tax book. Oracle Assets
uses a straight–line depreciation method in determining the gain or
loss resulting from the retirement of 1250 (real) property.
If you check Straight Line For Retirements, enter the straight–line
depreciation Method and Life you want to use for the Gain From
Disposition of 1250 Property Report. This is the default method for
your asset in the Retirements window and in the tax book if you
use mass copy.
12. Check the Use Depreciation Limit check box if you want to
depreciate an asset beyond the recoverable cost in the years
following the useful life of the asset. You can enter the default

Depreciation Limit as a percentage or amount. See: Depreciating
Assets Beyond the Useful Life: page 5 – 88.
13. Enter the minimum time you must hold an asset for Oracle Assets
to report it as a capital gain when you retire it.
If you want Oracle Assets to report a capital gain for all assets in
this category when you retire them, enter zero. If you want to
report a capital gain for assets which you have held for at least one
year, such as for United States federal tax form 4797, enter one in
the Years field and zero in the Months field. If you need a different
capital gains threshold for different dates placed in service, such as
for United States federal tax form 4797, set up the asset category
several times for the different date placed in service ranges.
14. If you are defining this category for a tax book, indicate whether
assets in this category are eligible for Investment Tax Credit (ITC),
and whether assets in this category Use ITC Ceilings.
15. Check the Mass Property Eligible check box if you want to make
assets added to this category eligible for mass property treatment.
16. In the Group Asset field, you can enter the group asset to which all
assets added to this category will be assigned. If you enter a group
asset number in this field, all capitalized and CIP assets using this
category will be automatically assigned to the group asset entered.
17. Save your work.
See Also
Defining Units of Measure (Oracle Inventory User Guide)
Defining Depreciation Bonus Rules: page 9 – 86
Defining Price Indexes: page 9 – 157
Setting Up Depreciation Ceilings: page 9 – 147
Prorate and Retirement Conventions: page 9 – 151

9 – 165
System Setup
Parent Asset Transactions Report: page 11 – 106
Form 4797 Reports: page 11 – 76
Asset Category Listing: page 11 – 45

☞
Defining Distribution Sets
Use this window to define default distribution sets. Then, when you
add a new asset using the Detail Additions or Mass Additions process,
you can choose a predefined distribution set from a poplist in the
Assignments window to quickly assign the appropriate distributions to
a new asset.
You can define a distribution set to allocate percentages of asset units to
different depreciation expense accounts, locations, and employees. You
can define one or more distributions in a set. You can also change the
distribution information for a distribution set at any time.
Attention: If you change the distribution information for a
distribution set, note that it does not affect assets already assigned
to that distribution set.
To define a distribution set:
1. Navigate to the Distribution Sets window.
2. Enter a unique Name and a Description of the Distribution Set you
want to define.
3. Enter the corporate Book for the distribution set.
Note: You cannot assign distribution sets to assets in tax or
budget books.
4. Optionally enter the date placed in service range this distribution
set is effective. You can leave the to date blank if you want the
distribution set to be effective indefinitely.
5. For each distribution in the set, enter the Units Percent,
Depreciation Expense Account, and Location. Optionally enter the
Employee Name or Number.
Units Percent: Enter the percentage of the asset you want to assign
to this distribution. You can enter 100% for one distribution, or
break up the total percentage into several distributions. The total
percentage for the set must equal 100%.
6. Save your work.

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System Setup
See Also

Lease Analysis
Oracle Assets allows you to test leased assets in accordance with
generally accepted accounting principles to determine whether to
capitalize and depreciate your leased assets.
Note: The Financial Accounting Standards Board (FASB) has
defined certain criteria used to determine whether a lease
qualifies for capitalization. Many other countries use similar
test criteria.
In addition, Oracle Assets lets you analyze alternate leasing strategies so
you can structure your leases to best meet your business requirements.
Lease Capitalization Test
Many countries require that a leased asset be capitalized and
depreciated if any one of the following four criteria is met:
• The ownership of the asset transfers to the lessee at the end of the
lease (Test 1)
• A bargain purchase option exists (Test 2)
• The term of the lease is more than 75% of the economic life of the
leased asset (Test 3)
• The present value of the minimum lease payments exceeds 90% of
the fair market value of the asset at lease inception (Test 4)
When you set up a lease, you can enter information that Oracle Assets
uses to automatically calculate the present value of the payment
schedule, and to determine if any of the tests listed above are met. If
your lease meets one of the four tests, Oracle Assets defaults the lease
type to Capitalized, and the asset cost to the lessor of the fair value or
the present value of the payment schedule for any assets assigned to the
lease.
Payment Schedules
You can define and calculate the present value of a payment schedule.
Oracle Assets can accommodate all types of lease payment structures
and lease payment types. These include normal annuities, balloon
payments, bargain purchase options, bargain renewal options, and
guaranteed residual values, penalties, skipped payments, and
overlapping payments.

9 – 169
System Setup
Amortization Schedules
You can create amortization schedules that allocate capital lease
payments between principal and interest based on the effective interest
rate implicit in the lease contract.
Operating Leases
Oracle Assets tracks your payments under operating leases, or leases
which do not meet any of the criteria, for informational purposes. You
can use this information to create a schedule of future minimum
payments under operating leases, information that may require
disclosure in the footnotes of your financial statements.
Lease Evaluation
Oracle Assets allows you to evaluate alternate leasing strategies by
manipulating variables such as the periodic lease payment, balloon
payments, payment dates, and the fair value of the asset.
Example 1: Set Up Lease
Coastal Landscapes is entering a five year equipment lease with Marine
Technologies on March 1, 1993. The fair value of the equipment is
$100,000. The lessee’s incremental borrowing rate is 12%. The
minimum lease payments consist of monthly payments of $1,900 of
which three payments are due at lease inception. The first regular
payment is due on April 1, 1996. There is no bargain purchase option,
and the title does not transfer to Coastal Landscapes at the end of the
lease. The economic life of the asset is six years.
Before you add any of the assets to the lease, enter the following
information in the Lease Details window to set up the lease:
Lease Number 325
Description Equipment Lease
Lessor Marine Technologies
Payment Schedule Marine Lease
Currency USD
Transfer of Ownership No
Bargain Purchase Option No

Lease Type Capitalized
Lease Term 60
Asset Life 72
Fair Value 100,000
Note: You can choose a predefined payment schedule in the
Lease Details window to attach to your lease.
If you have not already defined the lease’s payment schedule, choose
the Payment Schedule button from the Lease Details window to enter
the payment schedule information for this asset and calculate the
present value of the payment schedule. Enter the following Payment
Schedule information:
Currency USD
Present Value
Lease (inception) Date 3/1/93
Interest Rate .12
Compounding Frequency Monthly
Lease Payments
Start Date Payment Amount Number Payment
Type
End Date
3/1/93 $5,700 1
4/1/93 $1,900 57 Annuity 12/1/97
You can now choose the Calculate button to determine the present value
of the payment schedule. The present value in this example is
$87,945.53. Since $87,945.53 is less than $100,000 (fair value), it is also
the cost to capitalize if one of the four tests are met.
Oracle Assets updates your lease information after calculation as
follows:

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System Setup
Present Value 87,945.53
Interest Rate .12
Lease Payments
Start Date Payment Amount Number Period End Date
3/1/93 $5,700 1
4/1/93 $5,700 57 Monthly 12/1/97
Once you calculate the present value, you can create an amortization
schedule by choosing the View Amortization button on the Lease
Payments window. In this example, the present value of the payment
schedule is $87,945.53. The total amount to be paid under the lease is
$114,000. The difference of $26,054.47 represents interest expense that
must be recognized over the life of the lease. This example is illustrated
below:
Start Date Payment Interest (12% yr.)
Portion of Payment
Reduction
of Principal
Lease
Obligation
(a) (b) (c)
3/1/93 87,945.53
3/1/93 5,700.00 0 5,700.00 82,245.53
4/1/93 1,900.00 822.46 1,077.54 81,167.99
5/1/93 1,900.00 811.68 1,088.32 80,079.67
... ... ... ... ...
11/1/97 1,900.00 37.44 1,862.56 1,881.19
12/1/97 1,900.00 18.81 1,900.00 0
Total: 114,000 26,054.47 87,945.53 0

(a) The interest rate per period (in this example, 12%/12=1%) multiplied by the
prior period lease obligation, except for the 3/1/93 payment; since no time has
elapsed, no interest has accrued.
(b) The Payment amount less (a).
(c) Prior period amount (c) less current period amount (b).
For each period you make a payment, cash would be credited for the
entire amount of the payment. The offsetting debit is split between
liability and interest expense as calculated above.
When you save the payment schedule, Oracle Assets automatically
returns to the Lease Details window, where you can attach the schedule
you just defined to your lease.
Note that Oracle Assets defaults the Present Value field in the Lease
Details window from the attached payment schedule. The 90% test has
not been met. The lease still qualifies for capitalization, however, as the
economic life test was met. The cost to capitalize is $87,945.53, since this
is the lesser of the present value of the payment schedule or the fair
value. When you attach this lease to an asset, the Books window
displays the cost to capitalize as the default value for current cost of the
leased asset. You can change this value if necessary.
Example 2: Set Up Payment Schedule
Fremont Corporation has entered a lease agreement dated January 1,
1990. The term of the lease is five years, requiring equal rental
payments of $20,000 at the beginning of each year. The equipment has a
fair value of $100,000 and an economic life of ten years. The lease
contains a bargain purchase option for $5,000. The lessee’s incremental
borrowing rate is 10%.
You would enter the following information in the Lease Payments
window:
Payment Schedule Schedule 1
Present Value
Interest Rate .10
Compounding Frequency Annually
Lease Payments

9 – 173
System Setup
Type
End Date
1/1/90 $20,000 5 Annuity 1/1/94
1/1/95 $5,000 1
The present value of the payment schedule is $86,501.92.
Example 3: Analyze Lease to Maximize Use of Existing Funds
CDI Technology has set aside $18,000 to finance the lease of chip
manufacturing equipment. CDI wants to lease the equipment for four
years. The money is currently deposited in an account that earns 10%
interest compounded semi–annually. CDI wants the lease to commence
immediately, with the first payment due six months from today
(1/1/90). What is the maximum amount that CDI can pay in
semi–annual lease payments over the next four years without
exhausting the fund until the last payment?
You would enter the following information in the Lease Payments
window:
Payment Schedule Chip costs
Currency USD
Present Value $18,000
Interest Rate .10
Compounding Frequency Semi–annually
Lease Payment:
Type
End Date
7/1/90 2,784.99 8 Annuity 1/1/94
Once Oracle Assets calculates the present value, you can create an
amortization schedule for the projection by choosing the View
Amortization button on the Lease Payments window. In this example,
the present value of the payment schedule is $18,000. The total amount

to be paid under the lease is $22,279.22. The difference of $4,279.92
represents interest expense that must be recognized over the life of the
lease. This example is illustrated below:
Start Date Payment Interest (10% yr.)
Portion of Payment
Reduction
of Principal
Lease
Obligation
(a) (b) (c)
1/1/90 18,000.00
7/1/90 2,784.99 900.00 1,884.99 16,115.01
1/1/91 2,784.99 805.75 1,979.24 14,135.77
7/1/91 2,784.99 706.79 2,078.20 12,057.57
1/1/92 2,784.99 602.88 2,182.11 9,875.46
7/1/92 2,784.99 493.77 2,291.22 7,584.24
1/1/93 2,784.99 379.21 2,405.78 5,178.46
7/1/93 2,784.99 258.92 2,526.07 2,652.39
1/1/94 2,784.99 132.60 2,652.39 0
Total: 22,279.92 4,279.92 18,000.00 0
(a) The interest rate per period (in this example, 10%/2=5%) multiplied by the
prior period lease obligation, except for the 3/1/93 payment; since no time has
elapsed, no interest has accrued.
(b) The Payment amount less (a).
(c) Prior period amount (c) less current period amount (b).
See Also
Entering Leases: page 9 – 175

9 – 175
System Setup
Entering Leases
You can use the Lease Details window and the Lease Payments window
to perform the following tasks:
• Enter a Lease
• Enter a Payment Schedule
• Create an Amortization Schedule
Enter a Lease
Use the Lease Details window and Lease Payments window to define
new leases. You cannot update or delete leases that are in use.
If you want Oracle Assets to test your lease to determine whether to
capitalize and depreciate assets assigned to it, enter information in the
Capitalization Test region of the Lease Details window. If you have
already defined a payment schedule for your lease, attach it to the lease
in the Lease Details window. Otherwise, you can navigate to the Lease
Payments window to define a payment schedule and to calculate the
present value of your lease payments. Oracle Assets depreciates
Capitalized leased assets and expenses Operating leased assets. Oracle
Assets will capitalize and depreciate leased assets if any one of the
following criteria is met:
Test 1 The ownership of the asset transfers to the lessee at the end of
the lease
Test 2 A bargain purchase option exists
Test 3 The term of the lease is more than 75% of the economic life of
the leased asset
Test 4 The present value of the minimum lease payments exceeds
90% of the fair market value of the asset at lease inception
When you add leased assets using the Detail Additions process, you can
attach the assets to leases you have previously defined. You can assign
multiple assets to the same lease.
Create a Payment Schedule
Use the Lease Payments window to enter information Oracle Assets
uses to calculate the present value of a given set of lease payments, or to
analyze alternative leasing structures. After saving a payment schedule,
you can attach it to a lease defined in the Lease Details window.

Create an Amortization Schedule
You create amortization schedules to allocate capital lease payments
between principal and interest based on the effective interest rate
implicit in the lease contract.
To define a lease:
1. Open the Lease Details window.
2. Enter the Lease Number and a Description.
3. Enter the Lessor.
4. Enter the Lessor Site, which is the location to which the payment
will be sent. This field is required if you plan to export lease
payments to Oracle Payables.
5. Choose a Lease Type of Capitalized or Operating. If you have
already performed a capitalization test on this lease, you can use
this field to manually override the test result displayed in the Test
Determination field. Only capitalized leases can be set up for
automatic lease payment to Oracle Payables.
6. You can choose from a list of predefined Payment Schedules to
attach to this lease, or leave this field blank and choose the Payment
Schedule button to define a schedule for this lease. See: To define a
payment schedule: page 9 – 177.
If, after the lease start date, you want to change existing lease
payments, you must enter a new lease, or manually adjust the
individual payment lines to change the existing lease.
7. Enter the payment account. This field is required if you plan to
export lease payments to Oracle Payables.
You must enter a lessor site before you can enter a payment account.
This is because the lessor site determines the operating unit, which
in turn determines the account structure.
8. Optionally enter a payment term.
Note: We strongly recommend that you set up an immediate
payment term in Oracle Payables, and that you apply the
Immediate payment term to any leases that will use the
Exporting Lease Payments feature in Oracle Assets. If this
payment term is not provided, then Oracle Payables defaults to
the payment term associated with the lessor site. This can cause
the payments to be issued late by Oracle Payables. See:
Payment Terms (Oracle Payables User Guide).

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System Setup
9. Enter the Currency you are using for this lease.
10. If you want to test this lease for capitalization, enter the following
information in the Capitalization Test region:
Check Transfer of Ownership if the lease transfers ownership of the
asset to the lessee at the end of the lease.
Check Bargain Purchase Option if a bargain purchase option is
included in this lease.
Enter the Lease Term and the Asset Life in months for the leased
asset. The Criterion Met check box indicates whether the term of the
lease exceeds 75% of the economic life of the leased asset.
Enter the Fair Value of the leased asset.
Optionally enter the Present Value of the leased asset if you have
previously calculated it outside of Oracle Assets. Otherwise, Oracle
Assets will automatically populate this field when you select a lease
payment schedule for the lease. The Criterion Met check box
indicates whether the present value of the minimum lease payments
exceeds 90% of the fair market value.
11. If you need to define a payment schedule for this lease, choose the
Payment Schedule button. See: To define a payment schedule: page
9 – 177.
Oracle Assets displays the result of the capitalization test in the Test
Determination field. If the lease qualifies for capitalization, Oracle
Assets automatically populates the Cost to Capitalize field with the
lesser of the fair value of the asset or the present value of the
minimum lease payments. This amount also appears as the Current
Cost for the asset in the Books window when you perform an asset
addition.
To define a payment schedule:
1. If you are defining a new lease in the Lease Details window, choose
the Payment Schedule button. Alternatively, open the Lease
Payments window directly from the Navigator window.
2. Enter the date the lease begins. This date must coincide with the
first day of the month.
3. Enter the Interest Rate. The interest rate is the lesser of the lessee’s
incremental borrowing rate or the rate implicit in the lease contract.
4. Enter the Currency you are using for this payment schedule.

5. Enter the Compounding Frequency you want to use. For annuity
events, select monthly, quarterly, semi–annual, or annual payment
periods.
If you change the Compounding Frequency, Oracle Assets
automatically recalculates the End Date for each payment line, but
does not change the Start Date.
6. Enter one or more payment lines for your payment schedule. You
can enter any combination of lump sum lease payments and
annuities (homogeneous series of lease payments).
Start Date: Enter the date of this payment.
Amount: Enter the amount of the individual lease payment.
You can leave this field blank for one of the payment lines, and
allow Oracle Assets to calculate the amount for you. If you leave
this field blank, you must specify a present value for the payment
schedule in the Present Value field.
Number: Enter the number of payments you want to make as part
of this event.
Payment Type: Choose a payment type of Annuity, Balloon
Payment, Bargain Purchase Option, or Bargain Renewal Option.
End Date: The Compounding Frequency, Start Date, and Number
of payments you enter determine the end date.
7. After you have defined the payment schedule, choose the Calculate
button. Oracle Assets calculates the present value of the payment
lines you entered.
When you save the payment schedule and return to the Lease
Details window, attach the payment schedule to the lease. Once you
attach a payment schedule to a lease, you cannot change it.
8. Save your work.
To create an amortization schedule:
H Once you have calculated a lease payment schedule, choose the
View Amortization button to create an amortization schedule for the
lease. The difference between the present value of the minimum
lease payments and the total amount to be paid under the lease
represents the interest expense that must be recognized over the life
of the asset.

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System Setup
Exporting Lease Payments to Oracle Payables
Oracle Assets allows you to send lease payments automatically to
Oracle Payables. You do this by selecting the lease payment lines to be
sent to Oracle Payables in the Export Lease Payments to Payables
window, then choosing Export to run the Export Lease Payments to
Payables concurrent process. The Export Lease Payments to Payables
process imports the lease payment data into the Oracle Payables
interface tables AP_INVOICES_INTERFACE and
AP_INVOICE_LINES_INTERFACE.
You have the option to select all lease payment lines or only certain lease
payment lines to be exported to Oracle Payables. For example, if you
have paid the first two months and would like the final payment to be
paid by another party, you can select only those lease payment lines that
you want processed by Oracle Payables.
To export lease payments to Oracle Payables:
1. Choose Setup Asset Systems Leases Lease Payments to
Payables from the Navigator window.
2. Query the lease payments you want to export to Oracle Payables.
3. In the Export Lease Payments to Payables window, check the Export
check box for each lease payment you want exported to Oracle
Payables. When the Export check box is checked, the Status field
updates to POST. If you uncheck an Export check box, the Status
field resets to NEW. To check all lease payments, choose Select All
from the Edit menu. If you have checked lease payments in error,
you can choose Deselect All from the Edit menu.
4. Verify the due date, payment amount, lease number, and lessor
name.
5. Enter, verify, or change the lessor site. The lessor site is required to
export lease payments to Oracle Payables.
6. Verify or change the invoice number. The invoice number is
required to export lease payments to Oracle Payables.
7. Enter, verify, or change the payment account. The payment account
is required to export lease payments to Oracle Payables.
8. Optionally enter or change the payment term.
Note: We strongly recommend that you set up an immediate
payment term in Oracle Payables, and that you apply the
Immediate payment term to any leases that will use the
Exporting Lease Payments feature in Oracle Assets. If this

payment term is not provided, then Oracle Payables defaults to
the payment term associated with the lessor site. This can cause
the payments to be issued late by Oracle Payables. See:
Payment Terms (Oracle Payables User Guide).
9. Optionally choose View Schedule to view the amortization schedule.
Note: You cannot make changes to an amortization schedule
from the Export Lease Payments to Payables window.
10. Optionally choose Save to save changes without exporting the lines
to Oracle Payables.
11. When you are ready to send payment lines to Oracle Payables,
choose Export to populate the Oracle Payables interface tables,
AP_INVOICES_INTERFACE and
AP_INVOICE_LINES_INTERFACE.
See Also
Lease Analysis: page 9 – 168

9 – 181
System Setup
Defining Asset Warranties
You can define and track descriptive information on manufacturer and
vendor warranties in Oracle Assets. You define the warranty
information in the Asset Warranties window. You can then assign assets
to these previously defined warranties in the Asset Details window. You
can assign any number of assets to the same warranty. If a warranty has
any assets assigned to it, you cannot update or delete the warranty. You
can attach the asset to a different warranty at any time.
To define warranties in Oracle Assets:
1. Navigate to the Asset Warranties window.
2. Enter a unique warranty number and a description of the warranty.
3. Optionally enter the start and end dates. If you enter one date, you
must also enter the other date. If you specify start and end dates,
any asset you assign to this warranty must have a date placed in
service that falls between the specified start and end dates.
4. Enter the currency code. The currency code of the warranty must be
the same as that of the asset you are assigning to the warranty.
5. Enter a cost of $0 or greater.
6. Check the Renewable check box if you want the warranty to be
renewable. The Renewable check box is unchecked by default. If
you do not specify an end date, the Renewable check box is
disabled.
7. Optionally enter employee information.
8. Enter supplier information.
9. Save your work.
To assign an asset to a previously defined warranty:
1. Navigate to the Find Assets window.
2. Query the asset you are assigning to the warranty.
3. In the Asset Details window, enter a previously defined warranty
number or select a warranty number from the list of values.
4. Save your work.

Overview of Asset Insurance
Oracle Assets provides a window and reports to help you manage
insurance values and other insurance information for your assets. You
can view and enter insurance information for an asset and assign more
than one type of insurance to an asset. Asset insurance information
includes insurance categories, current insurance value, and optional
updates that affect the insurance value, such as additions or retirements.
Calculation Methods
Oracle Assets uses three methods to calculate the insurance value of an
asset:
• Value as New – This method calculates the base insurance value
of the asset, based on acquisition/production costs. This value
can be indexed annually to give a current insurance value. It can
also incorporate the indexed value of transactions that affect the
asset value.
• Market Value – This method calculates the current market value
of the asset. Oracle Assets automatically calculates the current
value from the net book value of the asset, incorporating
indexation factors and the indexed value of any transactions that
affect the asset value.
• Manual Value – This method allows you to manually enter an
insurance value for an asset, usually in agreement with the
insurer. With this calculation method you can also manually
enter updates to the asset insurance value. Oracle Assets only
updates the current insurance value automatically if you enter an
optional maintenance date for the asset.
If an asset is partially retired, the insurance calculation process reduces
the insurance value of the asset in the same proportion as the current
cost is reduced for the partial retirement.
For certain types of assets, such as buildings, the Swiss business practice
is that the insurance value may occasionally be reassessed by the
insurance company, and manually redefined. Indexation of the
insurance value can then recommence from this point. The manual
update of an automatically calculated insurance value will only be
allowed for these special Swiss assets, which must be flagged in the
Asset Insurance window.

9 – 183
System Setup
Reports
Oracle Assets provides two reports for reviewing asset insurance
information. The Asset Insurance Data report lists all insurance policy
data for an asset. The Asset Insurance Value report lists insurance
values, current insurance amounts, and a calculation of the insurance
coverage.
Entering Asset Insurance Information
Use the Fixed Asset Insurance window to enter insurance information
for your assets, such as insurance policy information and calculation
methods. You can enter multiple insurance policies for an asset for
different categories of insurance. Oracle Assets uses the insurance
information that you enter here to calculate the current insurance value
of the asset.
Prerequisites
❑ Enter suppliers in Oracle Payables with a supplier type of Insurance
Company.
❑ Set up Asset Price Indexes, if required.
❑ Set up Insurance Category QuickCodes, such as Fire, Storm, Theft.
See: Fixed Asset Insurance Policy Lines Window Reference: page
9 – 188.
❑ Set up Hazard Class QuickCodes. See: Fixed Asset Insurance Policy
Lines Window Reference: page 9 – 188.
❑ Set the profile option FA: Allow Swiss Special Assets to Yes if you
are planning to enter Swiss special case assets, such as Swiss
buildings.
To enter insurance information for an asset:
1. Navigate to the Fixed Asset Insurance window.
2. Query the assets for which you want to enter insurance information.
3. In the Policy region, enter insurance information, such as Policy
Number and Insurance Company.
4. Enter the Calculation Method to use for this asset insurance, either
Value as New, Market Value, or Manual Value.

5. If the asset is a Swiss special–case asset, check the Special Swiss
Asset check box.
6. In the Base Index Date field, enter the date that is used as the base
date for indexation.
7. In the Insurance Index field, enter the name of the price index that is
used to calculate the annual adjusted insurance value.
8. In the Base Insurance Value field, enter the base insurance value of
the asset as defined in the insurance policy
9. If you chose the Manual Value calculation method or if you asset is
flagged as a Swiss special–case asset, enter the current insurance
value. Otherwise, this field displays the current insurance value of
the asset, calculated automatically.
10. In the Insured Amount field, enter the amount for which the asset is
insured under that policy.
To enter insurance policy information:
1. From the Fixed Asset Insurance window, choose the Lines button to
display insurance policy line information.
2. At the Fixed Asset Insurance Policy Lines window, enter insurance
policy information, such as the insurance policy line number, the
insurance category, and the hazard class..
3. Enter any additional comments in the Comments field.
4. Save your work.
To enter insurance policy maintenance information:
1. From the Fixed Asset Insurance window, choose the Maintenance
button.
2. In the Fixed Asset Insurance Policy Maintenance window, update
any information that needs to be changed.

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System Setup
Fixed Asset Insurance Window Reference
Assets Region
Asset Number. Contains the asset number of the asset on which you
queried.
Description. Contains the description of the asset on which you
queried.
Tag Number. Contains the tag number of the asset on which you
queried.
Asset Key. Contains the asset key of the asset on which you queried.
Asset Book. Contains the asset depreciation book of the asset on which
you queried.
Policy Region
Policy Number. Enter the insurance policy number.
Insurance Company. Enter a valid insurance company name. The list
of values for this field will only display suppliers that have been set up
in Oracle Payables with a supplier type of Insurance Company.
Supplier Site. Enter the supplier site for the insurance company.
Address. The company address for the supplier site displays
automatically.
Calculation Method. Enter the method of calculation to use for this
asset insurance:
• Value as New – the base insurance value, which can be indexed
annually.
• Market Value – the current market value, calculated as the base
insurance value less depreciation, which can be indexed annually.
• Manual Value – a value you enter manually. This calculation
method allows you to update the Current Value field.
Note: If you enter a duplicate policy to cover another asset with
the same policy number and insurance company as an existing
insurance record, the Calculation Method automatically defaults
to the method that was defined on the existing policy. The
Calculation Method must be the same for all occurrences of the
same insurance policy.

Special Swiss Asset. If the asset is a Swiss special–case asset, check the
Special Swiss Asset check box. This field will not be enabled unless you
have set the profile option FA: Allow Swiss Special Assets to Yes. See:
User Profiles in Oracle Assets: page C – 2.
If an asset is marked as a Swiss special asset, you will be able to update
the Current Insurance Value, Insurance Index, and Base Index Date for
the asset to reflect the reassessment of the insurance value by the
insurance company.
The insurance company may provide a new series of indexation factors
to be applied to the asset. You can record this by defining a new Price
Index and then updating the Insurance Index field.
Record the new insurance value provided by the insurance company, by
updating the Current Value field and recording the effective date for this
new valuation in the Base Index Date field. If the Base Index Date is set
to a date in the future, the insurance value will not be indexed again
until that date is reached. The period up to this date represents a
manual maintenance period for the asset. Any adjustments or
retirements affecting the asset value during this period will not be
incorporated into the new insurance value when the automatic
insurance calculations begin again.
Base Index Date. Enter the date that is used as the base date for
indexation. The Base Index Date must be one of the following:
• For new assets, enter the date the asset was placed in service.
• For assets purchased second–hand, enter the original date of
construction of the asset.
• For the Manual Value calculation method, you can enter a
maintenance date. This represents the date the optional
indexation of the manual value begins.
• For updated Swiss assets, record the date on which automatic
indexation of the insurance value will begin again. Until this
date, you should maintain the insurance value manually
Insurance Index. Enter the name of the price index that is used to
calculate the annual adjusted insurance value. If you want the
Insurance Calculation process to automatically take account of cost
adjustments, retirements, and so on, but you do not want indexation
adjustment factors to be used, then enter a value in the Base Index Date
field, but do not enter an Insurance Index.
Base Insurance Value. Enter the base insurance value of the asset as
defined in the insurance policy. Enter one of the following:

9 – 187
System Setup
• For new assets, Oracle Assets displays the current cost of the
asset. For Value as New assets, you can overwrite this default
with another value. For Current Market Value assets, the value is
shown in this field but is disabled. The value is disabled because
the Base Insurance Value is not used in this asset insurance
calculation; instead, the insurance value is derived from the asset
net book value. For Manual Value assets, the Base Insurance
Value field is disabled because the Base Insurance Value is not
used; instead, you can manually enter a Current Value.
• For assets purchased second–hand, enter the original construction
cost of the asset.
Current Value. This field displays the current insurance value of the
asset, calculated automatically, unless you chose the Manual Value
calculation method or your asset is flagged as a Swiss special–case asset.
The value displayed depends upon the calculation method:
• For Value as New, the value displayed is the indexed base
insurance value. This value will also be updated to account for
transactions, such as adjustments or retirements, that affect the
asset value.
• or Market Value, the value displayed is the indexed net book
value of the asset (original cost less depreciation). This value will
also be updated to account for transactions, such as adjustments
or retirements, that affect the asset value.
• For Manual Value, the value displayed can be updated. If you
enter a maintenance date for the asset in the Base Index Date
field, indexation of the manual value begins with this date, and
then follows the Value as New calculation method.
• For Swiss Assets with a calculation method of Value as New, the
calculated value will be the same as for all other assets. For Swiss
Assets with a calculation method of Current Market Value, the
Current Value will calculate the insurance value following the
Value as New calculation method and adjust this value using the
fraction Asset Remaining Life / Asset Total Life. Also note that
the calculated Current Value for Swiss Assets can be manually
updated.
Insured Amount. Enter the amount for which the asset is insured under
that policy. The information in this field is for reference only and is not
used in the Oracle Assets calculations.
Last Indexation Date. This field displays the end date of the closed
depreciation period for which the indexation process was last run.

Buttons
Maintenance. Use the Maintenance button to launch the Fixed Asset
Insurance Policy Maintenance window.
Lines. Use the Lines button to launch the Fixed Asset Insurance Policy
Lines window
Fixed Asset Insurance Policy Lines Window Reference
Line. Enter the insurance policy line number for the category of
insurance covered by the policy. The combination of policy number and
policy line number must be unique. You cannot enter duplicate line
numbers on the same policy, even if there are multiple occurrences of
the same policy to cover a number of assets.
Insurance Category. Enter the insurance category in the Insurance
Category field. Note that an asset can only be insured once for each
category of insurance, even if it is covered by multiple insurance
policies. You must have already defined your insurance category
lookup values for the lookup type FA_INS_CATEGORY (Application
Developer: Application Validation QuickCodes Special).
Hazard Class. Enter the hazard class assigned to this policy line. You
must have already defined your hazard class lookup values for the
lookup type FA_INS_HAZARD (Application Developer: Application
Validation QuickCodes Special).
Comments. Enter any additional comments in the Comments field.
Fixed Asset Insurance Policy Maintenance Window Reference
Use the Fixed Asset Insurance Policy Maintenance window to update
the information for an insurance policy that covers more than one asset.
The Fixed Asset Insurance Policy Maintenance window applies the
policy information changes to all the assets covered by that policy.
Policy Number. This field defaults to the policy number for the current
policy record. You can update the Insurance Company and Supplier
Site for this policy. You can also update the Calculation Method, as long
as the automatic calculation routine has not yet been run for any assets
covered by this policy.

9 – 189
System Setup
Insurance Company. This field displays the current insurance company
for the policy number. In this window, you can update the Insurance
Company.
Supplier Site. This field displays the current supplier site for the policy
number. In this window, you can update the Supplier Site for this
policy.
Calculation Method. This field displays the current calculation method
for the policy number. From this window, you can update the
Calculation Method, as long as the automatic calculation routine has not
yet been run for any assets covered by this policy.
Calculating Asset Insurance
Use the Insurance Calculation Routine program to automatically update
the current insurance values of your assets. The Insurance Calculation
Routine program takes into account indexation factors or transactions
that affect the asset value, such as cost adjustments and retirements.
Normally, you should run the Insurance Calculation Routine program
on a yearly basis to update all your asset insurance values.
If you run the program part way through a year, the calculation process
will run up to the end of the last closed period in that year (i.e. the last
period for which depreciation has been run). You can then run the
process again later in the year, when it will incorporate any new cost
adjustments, retirements, or reinstatements since the last run date, and it
will also use a new indexation factor if the factor has changed since the
last run date.
The Insurance Calculation Routine program does not produce any
output. When the program finishes, the program updates the insurance
values for all selected assets. You can review the new insurance values
in the Asset Insurance window or by running the Asset Insurance
Values report. See: Insurance Value Detail Report: page 11 – 49
Prerequisites
❑ Set up insurance policy details using the Asset Insurance window.
See: Overview of Asset Insurance: page 9 – 182.
❑ Run depreciation for at least one period of the year for which you
are running the process. See: Running Depreciation: page 5 – 2

❑ Set up indexation factors for the year for which you are running the
process. If you do not define an index factor for that year, the
process will use the latest available index factor. See: Defining Price
Indexes: page 9 – 157.
To run the Insurance Calculation Routine program:
1. Navigate to Assets Insurance Insurance Calculation Routine to
open the Submit Request window.
See: Submitting a Request (Oracle Applications User’s Guide)
2. In the Parameters window, enter the depreciation book.
3. Enter the fiscal year for the report.
If you run the process for a year where all the depreciation periods
are not yet closed, the process will run up to the end of the last
closed period within the year. Before running the insurance
calculation process, you must run depreciation for at least one
period in this year. You cannot run the process for years prior to the
current open year.
4. Optionally enter the insurance company.
If you do not enter a value, the report includes assets insured by all
insurance companies. The list of values for this field will display
suppliers that have been set up in Oracle Payables with a supplier
type of Insurance Company.
5. Optionally enter an asset number range.
Reviewing Asset Insurance Information
Oracle Assets provides two reports to help you monitor your insurance
information.
Insurance Data Report
Use the Insurance Data report to review insurance details for assets and
to verify that the assignments for insurance records are correct. The
Insurance Data report prints all insurance details for the selected assets.

9 – 191
System Setup
See Also
Insurance Data Report: page 11 – 48
Insurance Value Detail Report
Use the Insurance Value Detail Report to review calculations of
insurance coverage for selected assets. The Insurance Value Detail
Report prints all insurance amounts for the selected assets and displays
totals at Balancing Segment level, Insurance Calculation Method level,
Insurance Company level, and Insurance Policy Number level. The
insurance coverage calculation indicates the differences between insured
amounts and current insurance values.
See Also
Calculating Asset Insurance: page 9 – 189
Insurance Data Report: page 11 – 48
Insurance Value Detail Report: page 11 – 49

C H A P T E R
10
T
10 – 1
Online Inquiries
Online Inquiries
his chapter explains how to view assets and transactions online in
Oracle Assets. You can view descriptive details, financial information,
source lines, depreciation history, cost history, and transaction history
for an asset.

Viewing Assets
Use the Financial Information windows to view descriptive and
financial information for an asset. You can review the transactions,
depreciation, and cost history of the asset you select.
To view descriptive and financial information for an asset:
1. Choose Inquiry Financial Information from the Navigator
window.
2. In the Find Assets window, you can find assets by Asset, Detail,
Book, Assignment, Source Line, or Lease. You can enter any
number of search criteria into the fields.
Find by Asset Detail: Enter asset descriptive information, such as
Asset Number, Description, Tag Number, Category, Serial Number,
Asset Key, Warranty Number, Asset Type, or Group Asset as your
search criteria.
Note: For best performance, query by asset number or tag
number since they are unique values.
Find by Book: Enter book information as your search criteria.
Find by Assignment: Enter assignment information as your search
criteria. If you want to search using the Expense Account, you
must enter a Book first.
Find by Source Line: Enter source line information, such as
Supplier and/or Invoice Number, or project information, such as
Project Number and/or Task Number, as your search criteria.
Find by Lease: Enter lease information as your search criteria.
3. Choose the Find button to query the asset(s) you want to review.

10 – 3
Online Inquiries
The View Assets window shows you detail information for the
asset(s) you query.
4. To view the current assignment(s) for an asset, click on the asset
you want to review and choose the Assignments button.
5. Choose Source Lines to view source line information. If the asset
was created from capital asset lines in Oracle Projects, Oracle
Assets displays the Project Number and Task Number of the asset.
Choose the Project Details button to view detail project
information about the asset. The Asset Line Details window
includes the following project information for your asset:
expenditure type, item date, employee, supplier, quantity, CIP cost,
expenditure organization, non–labor resource, and non–labor
organization.
6. Choose the Books button to view financial information for the
asset.

The View Financial Information window includes the asset you
choose in the title, and lists, by depreciation book, financial
information for the asset.
Note: You can also view financial information directly from
the Asset Workbench by choosing the Financial Inquiry button
on the Assets window. However, when you open the View
Financial Information window from the Asset Workbench, the
Transactions button does not appear and you cannot view
transaction history.
The YTD Depreciation field totals depreciation expense and bonus
depreciation expense. The Accumulated Depr field totals the
accumulated depreciation expense and the bonus reserve. You can
also track the bonus depreciation expense and the bonus reserve
separately in the YTD Bonus Depr and LTD Bonus Depr fields.
The Depreciation tabbed region contains the depreciation history
for this asset.
Note: This tabbed region displays the depreciation expense
and the bonus depreciation expense in the Depreciation

10 – 5
Online Inquiries
Expense account, even if you have set up a specific Bonus
Depreciation account.
The Cost History tabbed region contains the cost history of this
asset.
Note: If you change any information except cost for the asset
in the period you added it, the Cost History tabbed region
shows you the ADDITION/VOID transaction, not the
ADDITION transaction.

Choose Transactions to review transaction history of this asset in
the Transaction History window. To view individual transaction
details for this asset, check a transaction and choose Details to open
the Transaction Detail window.
Note: You can view the detail accounting lines for the
transaction from the View Financial Information and
Transaction History windows. The accounting lines are in the
form of a balanced accounting entry (i.e., debits equal credits).
You can also choose to view the detail accounting as
t–accounts.
See: Viewing Accounting Lines: page 10 – 9

10 – 7
Online Inquiries
Viewing MRC Details for a Transaction
If you use Multiple Reporting Currencies (MRC) functionality, and if
you are using a responsibility associated with your primary functional
currency, then you can use the View Currency Details window to see in
a single window, transaction amounts in your primary functional
currency and in all the reporting sets of books currencies. If the
transaction currency is different from your primary functional currency
then the amounts are also displayed in the transaction currency.
The window also displays currency conversion details such as the cost,
recoverable cost, and the net book value.
For an asset the window displays:
• Cost information
• Depreciation information
• Revaluation information
• Salvage value information
• Bonus depreciation information
To view MRC details:
To open the View Currency Details window, use a responsibility
associated with your primary functional currency. Select a transaction
in one of the following windows, then either choose the View Currency
Details option from the Tools menu, or choose the View Currency
Details icon in the toolbar.
1. From a responsibility associated with your primary functional
currency, choose Inquiry–Financial Information from the menu.
2. Query an asset.
3. Choose the Books button to view financial information.
4. At the Financial Information window, choose View Currency
Details.
See Also
View Currency Details (Multiple Reporting Currencies in Oracle
Applications Guide or online help)

Performing a Transaction History Inquiry
Use the Transaction History windows to review all the transactions for
any book, accounting period, transaction type, or range of assets.
To perform a transaction history inquiry:
1. Choose Inquiry Transaction History from the Navigator window.
2. In the Find Transactions window, enter search criteria for your
inquiry. You must enter a Book and Reference Number or Asset
Numbers to query a transaction history. You can optionally enter
other search criteria, including Periods, Transaction Type, and
Category.
3. Choose Find. You can see a summary of the transactions for the
asset.
4. To view details, check an asset and then choose the Details button.
Note: You can view the detail accounting lines for the
transaction in the form of a balanced accounting entry (i.e.,
debits equal credits). You can also choose to view the detail
accounting as t–accounts.
See: Viewing Accounting Lines: page 10 – 9

10 – 9
Online Inquiries
Viewing Accounting Lines
When you query an asset in Oracle Assets, you can choose to view the
detail accounting lines for the queried transaction in the form of a
balanced accounting entry (i.e., debits equal credits). You can also
choose to view the detail accounting as t–accounts. Use these features
to see how a transaction will affect the account balances in your general
ledger.
To view accounting lines:
1. Query the asset for which you want to view accounting lines.
2. Choose View Accounting from the Tools menu.
See: View Accounting Windows, below.
3. (Optional) If your organization uses Multiple Reporting Currencies,
choose the Alternate Currency button to view the accounting using
an alternate currency. For example, if you are viewing the
accounting in your primary functional currency (e.g., BEF), you can
switch to EUR (reporting functional currency).
From the poplist that appears after you choose the Alternate
Currency button, choose the primary or reporting set of books
whose transactions you want to view. The View Invoice
Accounting window will change to reflect amounts in the
appropriate currency for the chosen set of books.
4. (Optional) To view the accounting detail as t–accounts, choose the
T–Accounts button.
See: Viewing T–Accounts, Oracle General Ledger User Guide
To view accounting lines from the Transaction History window:
1. Query the asset for which you want to view accounting lines.
2. Choose the Transactions button to view the Transaction History
window.
3. Choose View Accounting from the Tools menu.
See: View Accounting Windows, below.
Note: If the transaction you are viewing generated any
catchup depreciation expense, the catchup depreciation
expense does not appear on the View Transaction Accounting
window. To view the depreciation expense, you need to query

the financial information for the asset. See: Viewing Assets:
page 10 – 2.
View Accounting Windows
The first time you open the View Invoice Accounting window, the
following information will be displayed for the detailed accounting
lines:
Transaction Type Reference Number
Line Type Account
Debit Credit
When you select a detailed accounting line, the system displays the
following information at the bottom of the View Invoice Accounting
window:
Account Description Transaction Date
Accounting Date Comments
Transferred to GL
Customizing the View Accounting Window
The View Invoice Accounting window is a folder. You can easily
customize the information that is displayed in the window, as
described in the Oracle Applications User’s Guide.
When customizing the View Invoice Accounting window, you can hide
the columns that normally appear in the window and you can choose
to display any additional columns that are available.
Following is a list of all the hidden columns that you can choose to
display:
Account Description Currency Conversion Rate
Accounting Date Currency Conversion Type
Asset Book Currency
Asset Category Entered Debit
Asset Description Entered Credit
Asset Key Line Reference
Asset Number Transaction Date
Comments Transferred to GL
Currency Conversion Date

10 – 11
Online Inquiries
Drilling Down to Oracle Assets from Oracle General Ledger
From General Ledger, you can drill down to subledger details from the
Account Inquiry, Enter Journals, or View Journals windows for journals
that have specific journal sources assigned to them. For example, if a
journal source is Assets, you can drill down to the transaction details in
Oracle Assets.
When you drill down from General Ledger, the Assets Transaction
Accounting window will open. The first time you open this window,
the following information will be displayed:
Transaction Type Reference Number
Transaction Date Asset Number
Asset Description Debit
Credit Line Type
When you select a detailed accounting line, the system displays the
following information at the bottom of the related window:
Asset Book Asset Category
Accounting Date Comments
Customizing the Drilldown Windows
The drilldown window is a folder. You can easily customize the
information that is displayed in the window, as described in the Oracle
Applications User’s Guide.
When customizing the drilldown window, you can hide the columns
that normally appear in the window and you can choose to display any
additional columns that are available.
Following is a list of all the hidden columns that you can choose to
display:
Account Currency Conversion Date
Account Description Currency Conversion Rate
Accounting Date Currency Conversion Type
Asset Book Entered Debit
Asset Category Entered Credit
Asset Key Entered Currency
Comments Line Reference

Comments Transferred to GL
Currency Conversion Date
Drilling Down Further
From the Assets Transaction Accounting window, you can drill down
even further to view detail transactions or you can choose to view the
underlying transaction accounting.
To drill down to detail transactions or to view transaction accounting:
1. From the Assets Transaction Accounting window, select a detail
accounting line.
2. Choose the Show Transaction button to view detail transactions.
3. Choose the Show Transaction Accounting button to view the
transaction accounting.
See Also
Viewing Accounting Lines: page 10 – 9

C H A P T E R
11
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11 – 1
Standard Reports and Listings
Standard Reports and
Listings
his chapter explains how to submit a request and illustrates how
you can use Oracle Assets reports and Report eXchange reports to
reconcile to the general ledger. It also defines some report parameters
and headings common to Oracle Assets and Report eXchange reports
and listings, and describes each report and listing.

Running Standard Reports and Listings
Use Oracle Assets standard reports and listings to keep track of your
assets, and to reconcile Oracle Assets to your general ledger.
Oracle Assets standard reports and listings include both standard fixed
format reports and standard variable format reports. You run standard
reports and listings from Oracle Assets or from the Application
Desktop Integrator (ADI) Request Center.
Note: When you run reports for assets using bonus rules, the
bonus depreciation is included in the depreciation expense
column and the bonus reserve is included in the accumulated
depreciation column.
Running Standard Fixed Format Reports and Listings from Oracle Assets
You can run a single report, or submit a request set to submit several
reports as a group.
To run a standard report, listing, or request set:
1. Open the Submit Requests window.
2. Choose whether to run a request or request set, then choose the
request or request set you want to run.
3. Enter the request parameters.
4. Choose Submit to submit your request.
5. Review the status of your request.
For information on running variable format reports, see: Variable
Format Reports: page 11 – 4.
See Also
Using Reports to Reconcile to the General Ledger: page 11 – 9
Defining Request Sets (Oracle Applications User’s Guide)
Submitting a Request (Oracle Applications User’s Guide)
Common Report Parameters: page 11 – 23

11 – 3
Request Center (Oracle Applications Desktop Integrator User’s Guide)

Variable Format Reports
Many of the Oracle Assets reports are available as variable format
reports, which means you can view and manipulate the report data in
the desktop application of your choice. For example, you can
download the information into Microsoft Excel and sort, analyze, and
manipulate the report data using familiar spreadsheet features. You
can also format the report as an HTML file and place it on your Web
server or directly into the database for general access.
To create a variable format report, an attribute set that contains
formatting instructions is applied to Oracle Assets report data. You
also have a variety of options to publish your report.
In Oracle Applications, attribute sets are defined using the RXi Report
Administration Tool. In Applications Desktop Integrator, you can
apply ADI defined attribute sets to format and publish your report
from the Request Center.
Each Oracle Assets variable format report has two submission options:
• One–Step – You generate, apply an attribute set, and publish
your report, all in one step.
Note: In the list of values on the Submit Request window, for
reports you run using the one–step process, the title of the
report is followed by RXi. For example, Mass Additions
Report: RXi.
• Two–Step – You can generate your report and note the
concurrent request ID. Use this ID to apply an attribute set in:
ADI – apply an ADI defined attribute set using the Request
Center to publish your report.
Oracle Applications – apply an attribute set defined by the RXi
Report Administration Tool. Concurrent processing applies the
attribute set to your generated report. Additional parameters are
applied to publish your report.
Note: In the list of values on the Submit Request window, for
reports you run using the two–step process, the title of the
report is preceded by RX–only. For example, RX–only: Mass
Additions Report.
To generate and publish a variable format report using the one–step
process:
1. Navigate to the Submit Request window and select the variable
format report you want to run (report title is followed by RXi).

11 – 5
2. Enter the parameters in the Parameters window.
3. Choose OK.
4. Submit your request.
Your one–step report will be published automatically.
Note: Two concurrent request IDs are created: one initial ID to
generate your report and a second ID to apply formatting and
to publish your report.
To generate and publish a variable format report using the two–step
process:
format report you want to run (report title is preceded by
RX–only).
2. Enter the parameters in the Parameters window.
3. Choose OK.
4. Submit your request. Note the concurrent request ID for your
request.
5. Navigate to the Submit Request window and select Publish RXi
Report.
The Parameters window appears.
6. Enter the Request ID.
7. Specify the Attribute Set you want to apply to your report.
8. Specify the Output Format: Text, HTML, CSV, or Tab Delimited.
Your report will be published as specified.
To publish a variable format report in ADI using the two–step
process:
format report you want to run (report title is preceded by
RX–only).
2. Complete the remaining parameters and submit your request.
3. Note the Concurrent Request ID for your report.
4. Launch the Request Center and log onto the database where your
generated report is stored.

5. Select the report with your Request ID from the list under the
Completed tab.
6. From the Request Center toolbar, choose the Publishing button.
The Report Submission and Publishing window appears.
7. Apply an ADI defined attribute set and complete the remaining
fields in the Report Submission and Publishing window.
8. Choose OK to publish your report.
See Also
Oracle Applications Desktop Integrator User’s Guide
Oracle Financials RXi Report Administration Tool User’s Guide
Comparing Variable Format and Fixed Format Reports
Many of the fixed format and variable format reports contain the same
information.
The following table lists the standard variable format reports available
in Oracle Assets and the corresponding standard fixed format reports.
Note that many of the variable format reports include functionality of
two or more fixed format reports.
Variable Format Report Corresponding Fixed Format Reports
Accumulated Depreciation Balance Report Reserve Detail Report
Reserve Summary Report
Additions by Date Place in Service Report Annual Additions Report
Additions by Period Report Asset Additions Report
Additions by Responsibility Reports Asset Additions Responsibility Report
Asset Cost Balance Report Cost Detail Report
Cost Summary Report
Asset Listing by Period Report None
Capitalizations Report CIP Capitalization Report

11 – 7
Corresponding Fixed Format Reports
Variable Format Report
CIP Cost Balance Report CIP Detail Report
CIP Summary Report
Cost Adjustments Report Cost Adjustments by Source Report
Cost Adjustments Report
Financial Adjustments Report
Parent Asset Transactions Report
Cost Clearing Reconciliation Report Cost Clearing Reconciliation Report
Fixed Assets Book Report None
Hypothetical What–if Report None
Mass Additions Report Delete Mass Additions Preview Report
Mass Additions Delete Report
Mass Additions Create Report
Mass Additions Invoice Merge Report
Mass Additions Invoice Split Report
Mass Additions Posting Report
Mass Additions Purge Report
Mass Additions Status Report
Unposted Mass Additions Report
Mass Reclassification Review Report None
Physical Inventory Comparison Report None
Physical Inventory Missing Assets Report None
Property Tax Report Property Tax Report
Reclassifications Report Asset Reclassification Report
Asset Reclassification Reconciliation Re-
port
Reserve Ledger Report Journal Entry Reserve Ledger Report
Retirements Report Asset Retirements by Cost Center Report
Asset Retirements Report
Reinstated Assets Report
Revaluation Reserve Balance Report Revaluation Reserve Detail Report
Revaluation Reserve Summary Report

Corresponding Fixed Format Reports
Variable Format Report
Transfers Report Asset Transfers Report
Asset Transfer Reconciliation Report
Asset Disposals Responsibility Report
What–If Depreciation Analysis Report None
See Also
Oracle Applications Desktop Integrator User’s Guide
Oracle Financials RXi Report Administration Tool User’s Guide

11 – 9
Using Reports to Reconcile to the General Ledger
You can use reports to reconcile journal entries to your general ledger
accounts. This section illustrates the relationships among Oracle Assets
accounting reports.
Reconciling Journal Entries to General Ledger Accounts
Use the Unposted Journals Report, in Oracle Ledger, to matches GL
batch totals with the asset batch totals found in the Drill Down Report.
Use the Drill Down Report to match account and line totals with those
found in the Account Drill Down Report.

See Also
Unposted Journals Report (Oracle General Ledger User Guide)
Drill Down and Account Drill Down Reports: page 11 – 61

11 – 11
Reconciling Asset Cost Accounts
Steps to reconcile asset cost accounts:
1. In Oracle General Ledger, match the ending balances in the
Account Analysis with Payables Detail Report with the ending
balances in general ledger.
2. Match the general ledger ending balances with those of the Cost
Summary Report.
3. Match the ending balances of the Cost Summary Report with those
of the Cost Detail Report.
Match the individual source amounts of the Cost Detail Report to
the detail reports in the next steps.
4. Match additions to cost in the Asset Additions report.
5. Match adjustments to net change in the Cost Adjustment Report.
6. Match retirements to cost retired in the Asset Retirements Report.
7. Match reclasses to cost in the Asset Reclassification Reconciliation
Report.
8. Match transfers to cost in the Asset Transfer Reconciliation Report.

11 – 13
See Also
Account Analysis with Payables Detail Report (Oracle General Ledger
User Guide)
Cost Summary and Detail Reports: page 11 – 58

Reconciling CIP Cost Accounts
Steps to reconcile CIP cost accounts:
2. Match the general ledger ending balances with those of the CIP
Summary Report.
3. Match the ending balances of the CIP Summary Report with those
of the CIP Detail Report.
Match the individual source amounts of the CIP Detail Report to
the detail reports in the next steps.
4. Match additions to CIP cost in the Asset Additions report.
5. Match adjustments to CIP net change in the Cost Adjustment
Report.
6. Match retirements to CIP cost retired in the Asset Retirements
Report.
7. Match capitalized to CIP cost in the CIP Capitalization Report.
8. Match reclasses to CIP cost in the Asset Reclassification
Reconciliation Report.
9. Match transfers to CIP cost in the Asset Transfer Reconciliation
Report.
10. Match ending balances to CIP cost in the CIP Asset Report.

11 – 15

See Also
User Guide)
CIP Summary and Detail Reports: page 11 – 58

11 – 17
Reconciling Reserve Accounts
Steps to reconcile reserve accounts:
2. Match the general ledger ending balances with those of the Reserve
Summary Report.
3. Match the ending balances of the Reserve Summary Report with
those of the Reserve Detail Report.
Match the individual source amounts of the Reserve Detail Report
to the detail reports in the next steps.
4. Match additions to accumulated depreciation in the Asset
Additions report.
5. Match adjustments to reserve adjustment in the Cost Adjustment
Report.
6. Match retirements to cost retired and NBV retired in the Asset
Retirements Report.
7. Match reclasses to accumulated depreciation in the Asset
Reclassification Reconciliation Report.
8. Match depreciation to depreciation amounts in the Account
Reconciliation Reserve Ledger report.
9. Match transfers to accumulated depreciation in the Asset Transfer
Reconciliation Report.

See Also
User Guide)
Reserve Summary and Detail Reports: page 11 – 65

11 – 19
Reconciling Depreciation Expense Accounts
In Oracle General Ledger, use the Account Analysis with Payables
Detail Report to match with the ending GL balances.
Use the Journal Entry Reserve Ledger report to match the depreciation
balances with the ending GL depreciation balances.
See Also
User Guide)
Journal Entry Reserve Ledger Report: page 11 – 63

Tracking and Reconciling Mass Additions
You can use reports to track your mass additions from the time you
bring them over from your accounts payable system to the time you
post them into Oracle Assets:
Steps to reconcile Mass Additions:
1. Match asset journal amounts found in your general ledger with
those in the Cost Clearing Reconciliation Report Oracle Assets
automatically makes these journal entries for your general ledger.
2. Match amounts in the Cost Clearing Reconciliation Report with
those in the Mass Additions Posting Report. Adjusting journal
entries are necessay for account transfrers and cost adjustments to
posted invoice lines.
3. Match amounts in Mass Additions Posting Report with those of the
Mass Additions Invoice Merge Report, Mass Additions Invoice
Split Report, Unposted Mass Additions Report and Mass
Additions Delete Report. Oracle Assets posts mass additions with
a status of post.
You can also match amounts in the Mass Additions Posting Report
with those in Additions by Source Report and Cost Adjuctments
By Source Report. The Asset Additions Report includes posted
mass additions as well as manual asset additions.
4. Match amounts in the Mass Additions Invoice Merge Report, Mass
Additions Invoice Split Report, Unposted Mass Additions Report
and Mass Additions Delete Report with amounts in the Mass
Additions Create Report. Split, merge, delete, place on hold, or
prepare for posting invoice line items brought over from accounts
payable.

11 – 21
Use the Cost Clearing Reconciliation Report to match additions with
those found in the Additions By Source Report.
Use the Cost Clearing Reconciliation Report to match adjustments with
those found in the Cost Adjustment By Source Report.

11 – 23
Common Report Parameters
The following are report parameters common to many Oracle Assets
reports:
Book/ACE Book/AMT Book/Budget Book/Federal Book/Tax Book
Enter the depreciation book for which you want to run the report.
Fiscal Year Enter the fiscal year for which you want to run the report.
Fiscal Year Name Enter the fiscal year name for which you want to run
the report.
From/To Account Enter the account range for which you want to run
the report.
From/To Asset Number Enter the asset number range for which you
want to run the report.
Note: Oracle Assets sorts asset numbers alphanumerically.
Since an asset number can include characters and numbers, the
report selects assets based on how the asset numbers compare
alphanumerically, not numerically, to the range you selected.
For example, this type of comparison places the asset number
100 between 1 and 5.
The lowest and highest values in a range depend on your
operating system. The lowest value is either the character A or
the number 0. If the lowest value is character A, then the
highest value is the number 9. If the lowest value is the number
0, then the highest value is the character Z. You must determine
which combination is correct for your computer system.
From/To Cost Center Enter the cost center range for which you want to
run the report.
From/To Date Placed In Service Enter the date placed in service range
for which you want to run the report.
From/To Period Enter the period range for which you want to run the
report. For accounting reports, you must have run depreciation for this
period.
Period Enter the period for which you want to run this report. For
accounting reports, you must have run depreciation for the period.

See Also
Running Standard Reports and Listings: page 11 – 2

11 – 25
Common Report Headings
The following are report headings common to many Oracle Assets
reports:
Basis Reduction Amount: ITC Basis X Basis Reduction Rate
Comments: Some Mass Additions reports print the comments you
entered in the Prepare Mass Additions window.
Company: The balancing segment to which you assigned these assets.
Assets that you share among different companies are included in several
lines of the report.
Cost: The current cost of the asset.
Cost Retired: Total cost retired.
Date Retired: The date the retirement actually occurred, not the date
you entered the transaction into Oracle Assets.
Depreciation Amount: The depreciation taken for the period you
selected.
Depreciation Reserve: The total depreciation calculated for the asset (as
of the accounting period you selected, if you entered a Period as a
parameter for this report). Also known as accumulated depreciation.
Expense Account: The depreciation expense account number of the
asset.
Fiscal Year: The fiscal year you placed the asset in service, if you placed
the asset in service during the fiscal year you requested. For assets
placed in service in years prior to the fiscal year you selected, the Form
and Adjusted Form 4562 reports print ”Previous”.
From/To Date: The date range effective.
Gain/Loss: The gain or loss realized upon retirement. Oracle Assets
prorates the gain or loss according to the number of units disposed from
the cost center, location, and employee.
Invoice Number: The invoice number your accounts payable
department used to pay for the asset. If you created this asset from
Oracle Payables using Mass Additions, Oracle Assets prints the invoice
number.
ITC Basis: The lesser of the current cost or the applicable ITC ceiling for
the asset.
ITC Amount: ITC Basis X ITC Rate

Life: Years and Months: The life in years and months (for assets using
life–based methods). For assets using flat–rate depreciation methods,
the report prints the adjusted rate plus the bonus rate as a percentage.
Mass Transaction Number: Unique reference number of the
revaluation definition.
Net Book Value Retired: The asset’s net book value at retirement.
Net Book Value = Recoverable Cost – Accumulated Depreciation
Original Cost: Fraction of the cost assigned to this balancing segment
when you added, mass copied, or capitalized the asset. Includes any
adjustments before you depreciated the asset for the first time.
Owner: Name of the employee who is responsible for the asset.
Payables Batch Name: Invoice batch name that originated the mass
addition.
Period Name: The period to which the depreciation expense or
production amount applies.
Period Number: The number of the period. All periods within a
calendar are numbered sequentially. The first period of the fiscal year is
number 1.
Proceeds of Sale: Amount for which you sold the asset.
Transaction Number: The reference number that uniquely identifies
this transaction.
Vendor Name: The name of the vendor whose invoice originated the
asset or mass addition

11 – 27
Budget Reports
Use the budget reports to review your capital budgets.
Budget Report
Use this report to review the annual capital budget by category for each
of your cost centers. The report is sorted by company, cost center, and
category. It prints totals for each category, cost center, and company.
You must enter a budget Book when you request this report.
Selected Headings
Cost: The budget amount assigned for the period.
See Also
Common Report Headings: page 11 – 25
Budget–To–Actual Report
This report shows the difference between your budgeted purchases and
actual asset purchases. It also separately lists categories to which you
have added assets during the period, but for which you have not
allocated a budget amount.
The report is sorted by addition type, company, and cost center. It
prints totals for each cost center, company, and addition type.
You must enter a Budget Book and Corporate Period when you request
this report.

☞
Selected Headings
Type: Budgeted, for additions to cost centers and categories with
budget amounts, or Non–Budgeted, for additions without budget
amounts.
Period/Quarter/Year–To–Date Budget: The budget amount for
additions in this major category for the period, quarter, and year, if any.
Period/Quarter/Year–To–Date Actual: The total current cost of the
assets you purchased in this major category placed in service for the
period, quarter, and year.
Period/Quarter/Year–To–Date Variance (%): The percentage difference
between your purchases and your budget for this period, quarter, and
year, if you entered budget amounts. A negative number indicates that
your purchases are more than your budget.
See Also
Capital Spending Report
This report compares the cost of your additions before the date you
specify with the cost for the whole fiscal year. For actual additions, the
report lists the original cost of assets placed in service during the whole
fiscal year thus far, and compares it to the cost of assets placed in
service before the date you specify. For budgeted additions, the report
lists the cost of budget amounts for the whole fiscal year, and compares
it to the budget amounts for periods that end before the date you
specify. Notice that since the report compares the asset cost when you
originally add an asset, it does not reflect any adjustments entered after
the period you added the asset.
Attention: To list budgeted additions for each depreciation
method, you must enter budget information for the full
category flexfield combination. If you only enter major
category budget information or do not enter any budget
information, you can run this report without comparing a
budget book.

11 – 29
The report also shows what percentage of your budgeted amount the
actual additions for the fiscal year represent. The report sorts by and
prints totals for each depreciation method and balancing segment.
For the United States, you can use this report to determine the
percentage of asset cost added in the final quarter of your fiscal year.
For the Mid–Quarter Convention Rule, if that percentage is greater
than 40% of the total asset cost added in that year, all assets must use
the mid–quarter convention. Use the Mass Changes window to change
the prorate convention of the assets if necessary.
You must enter a Budget Book, Tax Book and Cut–Off Date when you
request this report. Enter a date range start date as the cut–off date to
compare the cost of assets added before this date to the cost of all
additions for the fiscal year. Enter the last day in the third quarter as
the cut–off date to determine the percentage of asset cost added in your
final quarter.
Selected Headings
Depreciation Method: The tax book depreciation method.
Actual Additions: Cost: The original cost of the assets added in the
whole fiscal year.
Actual Additions Before Date Range: Cost: The original cost of the
assets added in the fiscal year before the date you requested.
Actual Additions Before Date Range: Percent of Actual: The original
cost of assets placed in service before the date you specified as a
percentage of the cost for the whole fiscal year.
Budgeted Additions: Cost: The budgeted additions for the whole
fiscal year.
Budgeted Additions Before Date Range: Cost: The cost of budgeted
additions in the fiscal year before the date you requested.
Budgeted Additions Before Date Range: Percent of Budget: The cost
of budget assets placed in service during the date range as a percentage
of the cost budgeted for the fiscal year.
Additions to Budget (%): The percentage of actual additions for the
fiscal year compared to the total budgeted additions.

See Also
Capital Budgeting: page 8 – 2
Changing Financial and Depreciation Information (Mass Changes):
page 3 – 8

11 – 31
CIP Reports
Use the CIP reports to view your CIP assets. To review CIP account
information, see CIP Detail and Summary Reports: page 11 – 58.
Capitalizations Report
This report shows the CIP assets that you capitalized during a range of
accounting periods
The Cost column on this report matches the Capitalizations column on
the CIP Detail and CIP Cost Balance Report.
You must enter a Book and From/To Period range when you request
this report.
Note: This report is a standard variable format report See: Variable
CIP Assets Report
This report shows all the invoice line items and manually entered
source line items for your CIP assets. Use this report to review your
CIP assets at the end of each accounting period.
The report is sorted by balancing segment, CIP cost account, cost
center, and asset number. For assets with multiple invoice lines, the
report sorts by supplier number, invoice number, and invoice line
number. The report prints totals for each asset if the asset has multiple
source lines, and for each cost center, account, and balancing segment
as well.
This report provides supporting detail for the CIP Detail Report.
You must enter a Book and Period when you request this report.
Selected Headings
Cost: The Cost column on this report matches the Ending Balance
column on the CIP Detail Report.

See Also
CIP Capitalization Report: page 11 – 32
CIP Capitalization Report
This report shows the CIP assets that you capitalized during a range of
accounting periods. The report is sorted by balancing segment, CIP
cost account, cost center, and asset cost account. It prints totals for
asset cost account, cost center, CIP cost account, and balancing
segment.
The Cost column on this report matches the Capitalizations column on
the CIP Detail Report.
this report.
Selected Headings
Date Placed in Service: The date you capitalized the CIP asset. Oracle
Assets calculates depreciation using this date and the prorate
convention.
Reverse Capitalization: An asterisk (*) denotes a reverse capitalized
asset.

11 – 33
See Also
CIP Assets Report: page 11 – 31

Asset Listings
Use the asset listings to review assets and asset information. For
example, you can review all the assets in an asset category, or all the
leased assets you have entered for a book.
Fixed Assets Book Report
This report allows you to print asset information, cost information, and
depreciation information, as of a specified period, for a specified asset
book, balancing segment, asset account, cost center, and asset type.
Use this information to prepare corporate tax returns.
You can also report by minor category.
You must enter a book and period when you request this report. You
can optionally enter the balancing segment, account, cost center,
category information, and property type.
Format Reports: page 11 – 4
Selected Headings
Units: The number of units.
Depreciation Method: The depreciation method used for the asset.
Date of Acquisition: The date the asset was acquired.
NBV at Beginning of Fiscal Year: The net book value of the asset as of
the beginning of the fiscal year.
YTD Depreciation: The year to date depreciation for the asset as of the
month for which the report was run.
Asset Description Listing
Use this listing to review the descriptions assigned to your assets. This
helps you standardize your asset descriptions by helping you ensure
that similar assets have similar descriptions.

11 – 35
Asset Inventory Report
Use this report to ensure an accurate asset inventory. You can send it to
each of your managers periodically to show them the assets under their
control. Your managers can use the report as a turnaround document
to inform your fixed asset manager of additions, transfers, retirements,
and other changes. You can have your managers sign the report to
provide you and your auditors with confirmation that your asset
inventory is accurate.
The report is sorted by, and prints totals for the balancing segment, cost
center, owner, and location.
You must enter a Book when you request this report. Optionally enter
a From/To Cost Center range and a From/To Date Placed In Service
range to limit the report output.
Selected Headings
Initials: Space for your cost center managers to approve the report.
Net Book Value: The net book value of the asset as of the last time you
ran depreciation.
New: ”New” appears if you added this asset within the range of dates
you selected.
Flag:
• E: Expensed item
• C: Construction–in–process asset
Asset Listing by Period
This report lists assets according to status. Use this report to track
assets for a specific period for internal management purposes and tax
reporting purposes. You can list assets and cost information (and
where applicable, depreciation information) for these assets, as of a
specified period for a specified asset book, balancing segment, and cost
center.
You can also report by minor category.
You must enter a book, period, and attribute set when you request this
report. You can optionally enter the balancing segment, account, cost

center, category information, property type, net book value, and
whether to list only assets that are fully reserved.
Selected Headings
Depreciation Reserve: The year to date depreciation for the asset as of
the month for which the report was run.
NBV at Period End: The net book value of the asset as of the period
for which the report was run.
Asset Register Report
Use this report to get a snapshot of any asset. The report shows a line
with asset information for the corporate book you specify and for each
associated tax book. It provides information that is current as of the
day you request the report. It does not provide historical information.
The report is sorted by asset number.
You must enter a Book and From/To Asset Number range when you
request this report.
Selected Headings
Parent Asset Number/Description: Parent asset information appears if
this asset is a subcomponent of another asset.
Property Class: 1245 (personal) or 1250 (real)
Purchase Order Number: The purchase order number that your
purchasing department used to approve the purchase of this asset.
Prorate Date: The date the depreciation program uses to determine
how much depreciation to take during the first and last years of the
asset’s life.
Months of Depreciation in First Year: The number of months of
depreciation allowed for the asset in its first year of life according to
the prorate convention.
Depreciate: Indicates whether you enabled the Depreciate flag in the
Books window.

11 – 37
Depreciate When Placed In Service: Yes if Oracle Assets begins
depreciating the asset on the date you placed the asset in service, or No
if it begins depreciating on the prorate date. This is determined by the
prorate convention.
Adjusted Rate (%): The adjusted rate (for assets using flat–rate
methods). The basic rate and the adjusting rate determine the adjusted
rate. The adjusted rate is used to calculate annual depreciation expense
for flat–rate methods.
Adjusted Rate = Basic Rate X (1 + Adjusting Rate)
Depreciate in Last Year: Indicates whether the asset depreciates in the
year you retire it. This is determined by the depreciation method.
Period Reserved: The depreciation period in which the asset became
fully reserved.
Period Retired: The depreciation period in which the asset was fully
retired.
Revaluation Reserve: The change in net book value that occurred due
to revaluing the depreciation reserve. If you do not revalue
depreciation reserve, Oracle Assets prints the depreciation reserve
when you revalued the asset.
Ceiling Name/Ceiling Type: The name and type (depreciation cost,
depreciation expense, or investment tax credit) of ceiling that you
entered for the asset.
Rate Adjustment Factor: The depreciation rate adjustment factor
resulting from any amortized adjustments or revaluations. The
depreciation program uses this number to calculate depreciation for
assets with amortized adjustments or revaluations.
Cost: It reflects any cost adjustments and revaluations.
Recoverable Cost: The portion of the current cost which may be
depreciated. The recoverable cost is defined as:
Recoverable Cost = Current Cost – Salvage Value – ITC Basis
Reduction Amount
Depreciable Basis: The depreciable basis that the depreciation
program uses to calculate depreciation. The depreciable basis updates
when you adjust financial information, revalue the asset, or enter
retirements. It is also updated for assets in your tax book when you
assign investment tax credits.
Net Book Value: The recoverable cost less the depreciation reserve.

Year–To–Date Depreciation: The fiscal year–to–date depreciation
calculated through the last depreciation period.
See Also
Asset Tag Listing
Use this listing to review the tag numbers assigned to your assets.
Assets by Category Report
Use the Assets by Category Report to find and review all the assets in
an asset category. The assets are sorted by balancing segment and
category in this report. The report prints the total cost for each
category and balancing segment.
You must enter a Book when you request this report. If you do not
enter an Asset Category, all categories appear on this report.
Note: This report does not display fully retired assets.
Assets Not Assigned To Any Books Listing and Assets Not Assigned To Any
Cost Centers Listing
If you want to calculate depreciation for assets, you must add them to a
depreciation book using the Books window, and assign them to the
appropriate depreciation expense accounts using the Assignments
window.
Use the Assets Not Assigned To Any Books Listing to find assets that
you have not assigned to any depreciation books. The listing is sorted
by asset number.

11 – 39
Use the Assets Not Assigned To Any Cost Centers Listing to find
assets that you did not assign to any cost centers. The listing is sorted
by book and asset number.
See Also
Entering Financial Information: page 2 – 24
Assigning an Asset: page 2 – 28
Diminishing Value Report
This report shows all assets using a diminishing value depreciation
method, a flat–rate method that uses the net book value as the
calculation basis. This report is sorted by balancing segment, asset
account, and asset number. It prints totals for each asset account and
balancing segment.
Selected Headings
Rate (%): The adjusted rate you assigned to your asset as a percentage.
Cost: The asset cost, or zero if you retired the asset during the fiscal
year; the asset appears on this report until the end of the fiscal year.
Previous Years Depreciation: The cumulative depreciation for the
asset for all prior fiscal years, or zero if you added the asset during this
fiscal year.
Opening Net Book Value: The net book value at the beginning of the
current fiscal year, or zero if you added the asset during the fiscal year.
The net book value updates if you perform an amortized adjustment or
revaluation.
Year–To–Date Depreciation: As of the accounting period you select.
Closing Net Book Value: The net book value at the end of the current
fiscal year, or zero if you retired the asset during the fiscal year; the
asset appears on this report until the end of the fiscal year.

See Also
Defining Additional (Flat–Rate) Depreciation Methods: page 9 – 78
Expensed Property Report
Use this report to find all your expensed assets. When you added these
assets to Oracle Assets, you classified the assets under non–capitalized
asset categories. The report is sorted by balancing segment, asset
category, and asset number. It prints the current total cost for each
category and balancing segment.
You must enter a Book when you request this report.
Fully Reserved Assets Report
Use this report to find the assets that became fully depreciated in a
range of accounting periods. The report is sorted by period, balancing
segment, asset account, and asset number. It prints totals for each asset
account, balancing segment, and period.
The report prints a line for each of the periods the asset is fully
reserved which fall in the period range you requested. If you adjust a
fully reserved asset, the report only shows the asset in the period you
adjusted it if it again becomes fully reserved. If you run the report for a
range of periods an asset may appear more than once on the report.
this report.
Selected Headings
Depreciation Amount: The depreciation taken in the period the asset
became fully reserved.
Year–To–Date Depreciation: The depreciation taken during the current
fiscal year.

11 – 41
See Also
Leased Assets Report
Use this report to find all your leased assets. This report is sorted by
balancing segment, asset category, and lease number. It prints totals for
each category and balancing segment.
See Also
Non–Depreciating Property Report
Use this report to locate property that is not depreciating. For these
assets, you unchecked the Depreciate check box in the Books window.
The report is sorted by, and prints the total cost for each balancing
segment, asset type, and asset category.
See Also

Parent Asset Report
Use the Parent Asset Report to review the parent–subcomponent
relationships among your assets. You associate a parent with a
subcomponent in the Asset Details window by entering a parent asset
number for the subcomponent asset. Oracle Assets sorts the report by
parent asset number.
You must enter a Book and From/To Asset Number range when you
See Also
Physical Inventory Comparison Report
Use the Physical Inventory Comparison Report to display the results of
the Physical Inventory Comparison. The report shows discrepancies
between the physical inventory data and the Oracle Assets production
data, highlighting differences in the location and the number of units.
The information in this report is the same as the information you
receive when you choose Submit in the Physical Inventory Comparison
window. You can run this report for the entire physical inventory, or
specify only certain locations or categories.
Selected Headings
Inventory Name: The name of the physical inventory from which you
ran this report.
Status: Indicates the status of the asset after the comparison. If the
asset has a status of NEW, it indicates the asset has not been compared.
Unit Adjustment: Indicates whether you need to adjust the number of
units listed for the asset. If there is no value in this field, the entry has
not been compared.

11 – 43
Location Adjustment: Indicates whether you need to change the
location of the asset. If the value is NULL, the entry has not been
compared.
See Also
Physical Inventory: page 3 – 38
Physical Inventory Missing Assets Report
This report lists all the assets in your Oracle Assets production system
that have not been accounted for during physical inventory. Assets are
listed on this report when all of the following conditions are true:
• The asset is listed in your production system, but could not be
found during the physical inventory process.
• The In Physical Inventory check box is checked.
• The date the asset was placed in service is before the start of the
physical inventory.
You must enter the name of the physical inventory for which you want
to run this report.
Selected Headings
Inventory Name: The name of the physical inventory from which you
ran this report.
See Also
Physical Inventory: page 3 – 38

Maintenance Reports
Use the maintenance reports to view maintenance schedules, warranty,
cost, and supplier information for groups of assets.
Asset Maintenance Report
Use this listing to view assets’ maintenance schedules, warranty
information, and cost and supplier information.
You must enter a book when you request this report. Optional
parameters you can enter are the event name, maintenance date ranges,
asset number ranges, date–placed–in–service ranges, and asset
category.
Selected Headings
Event: The name of the maintenance event, for example, Service or
Inspection.
Cost: The cost of the maintenance event.
Maintenance Date: The date the maintenance event took place.
Supplier: The name of the supplier who performs the maintenance
event.
Warranty Number: The unique warranty number assigned to the
warranty when it was defined in Oracle Assets.
Maintenance Contact: The name of the person responsible for the
maintenance task.
Asset Maintenance Report (Variable Format)
Use this listing to view assets’ maintenance schedules, warranty
information, and cost and supplier information.

11 – 45
Setup Data Listings
Use the setup data listings to view your Oracle Assets setup
information. For example, you can review all the asset categories or
prorate conventions you have set up.
Asset Category Listing
Use this listing to review all your asset categories. This report prints
the following default information for each category:
• Asset, reserve, and expense accounts
• Depreciation method and life (or adjusted rate plus the bonus
rate for flat–rate methods)
• Prorate convention
• Price index name, if any
Selected Headings
Use Ceilings: Yes if you use depreciation ceilings or investment tax
credit ceilings for the asset category.
See Also
Bonus Depreciation Rule Listing
Use this listing to review the bonus rules you have set up. Bonus rules
specify additional depreciation to take in the early years of an asset’s
life.

Selected Headings
From/To Year: The fiscal year range during which the bonus rule is
effective.
Bonus Rate: The rate allowed for an asset. For example, if you are
using a flat–rate depreciation method of 20%, and you allow a 10%
bonus rate for 1994 to 1995 and a bonus rate of 15% for 1996, Oracle
Assets calculates your depreciation expense as 30% of the cost for 1994
and 1995, and 25% for 1996.
See Also
Defining Bonus Depreciation Rules: page 9 – 86
Calendar Listing
Use this listing to review your calendar periods by fiscal year. You
must enter a Fiscal Year Name and Fiscal Year when you request this
report.
See Also
Specifying Dates for Calendar Periods: page 9 – 62
Ceiling Listing
Use this listing to review the depreciation expense, cost, and
investment tax credit ceilings you have set up, sorted by ceiling type.

11 – 47
Selected Headings
Ceiling Type: Depreciation Expense, Depreciation Cost, or Investment
Tax Credit
Start/End Date: The date range the ceiling is effective.
Year of Life: For depreciation expense ceilings, Oracle Assets prints
the year of the asset’s life to which the ceiling applies.
Ceiling Amount: The ceiling amount allowed for an asset.
See Also
Database Index Listing
Use the Database Index Listing to examine indexes for each Oracle
Assets table, sorted by table name and index name. The listing
includes all predefined indexes and any new indexes you create.
Selected Headings
Created: The date the index was created.
Modified: The date the index was last modified.
Unique: Yes if the column is unique within the table, or No otherwise.
Column Name: The columns associated with the index.
Depreciation Rate Listing
Use this listing to review the rates for your life–based depreciation
methods. This listing only includes depreciation methods which have
12 prorate periods. Notice that, for methods that use a calculation
basis of Cost, the sum of each column must equal one. The listing is
sorted by depreciation method and prints the total for each period.
You must enter the short name of the depreciation Method Code and
the Life in months for which you want to run the report.

Selected Headings
Straight–Line Method: Yes if this is a straight–line depreciation
method.
Depreciate in Year Retired: Yes if it calculates depreciation in the year
you retire an asset that uses this depreciation method.
Year: The year of life for which the depreciation rate applies.
Month Placed in Service: The annual depreciation rate that applies to
the prorate period.
See Also
Insurance Data Report
Use the Insurance Data Report to review insurance details for assets
and to verify that the assignments for insurance records are correct.
The Insurance Data Report prints all insurance details for the selected
assets.
Selected Headings
Insurance Company: The name of the insurance company.
Policy Number: The insurance policy number.
Calculation Method: The calculation method for this asset’s insurance
valuation.
Insurance Base Value: The base value of the asset.
See Also
Overview of Asset Insurance: page 9 – 182

11 – 49
Insurance Value Detail Report
Use the Insurance Value report to review calculations of insurance
coverage for selected assets. The Insurance Value report prints all
insurance amounts for the selected assets and displays totals at
Balancing Segment level, Insurance Calculation Method level,
Insurance Company level, and Insurance Policy Number level. The
insurance coverage calculation indicates the differences between
insured amounts and current insurance values.
Selected Headings
Policy Number: The insurance policy number.
Date Last Indexed: The last indexation date for the asset within the
reported year.
Insurance Base Value: The base value of the asset.
Insurance Value: The current calculated insurance value.
Insurance Amount: The current insured amount.
Coverage: The value of the current insurance coverage (insured
amount less current insurance value).
See Also
Overview of Asset Insurance: page 9 – 182
ITC Rates Listing
Use this listing to review the Investment Tax Credit (ITC) rates and ITC
recapture rates you have set up. The listing is sorted by tax year and
life.
Selected Headings
Tax Year: The tax year when the ITC rate becomes effective.
ITC Rate: The ITC rate that is valid for the asset life and tax year.

Basis Reduction (%): The basis reduction rate for the ITC rate. Oracle
Assets reduces the recoverable cost of your asset by this rate.
Year of Retirement: The year of asset life for which the recapture rate
applies. If you retire the asset in this year of life, Oracle Assets
recaptures ITC using this recapture rate.
Recapture Rate: The recapture rate for the year of life that you retire
an asset. Oracle Assets uses this rate to determine the amount of
investment tax credit to recapture when you retire an asset.
See Also
Defining Investment Tax Credit Rates: page 9 – 148
Price Index Listing
Use this listing to review the price indexes you have set up. The
Revalued Asset Retirement Report uses your price indexes to
determine the revalued asset cost, which is used to calculate gains and
losses for your retired assets.
Selected Headings
From/To Date: The date range the index value is effective.
Index Value (%): The index value that applies to the date range as a
percentage.
See Also
Defining Price Indexes: page 9 – 157
Revalued Asset Retirements Report: page 11 – 82

11 – 51
Prorate Convention Listing
Use this listing to review the prorate and retirement conventions you
have set up. You must enter the Fiscal Year Name and Fiscal Year
when you request this report.
Selected Headings
Depreciate When Acquired: Yes if assets begin depreciating in the
accounting period you place them in service under this convention. No
if assets begin depreciating in the accounting period that corresponds
to the prorate date instead.
From/To Date: The date placed in service range for which this prorate
date applies.
Prorate Date: The date the depreciation program uses to determine
how much depreciation to take in the first and last year of an asset’s
life.
See Also

Depreciation Reports
Use the depreciation reports to review depreciation information for
your assets.
Depreciation Projection Report
Use this report to review projected depreciation expense for your assets
for each book you request. The report is sorted by, and prints the total
depreciation for each balancing segment, cost center, and expense
account. You can request report detail at the Cost Center and/or Asset
level.
Use the Depreciation Projections window to submit this report.
See Also
Hypothetical What–if Report
Use the Hypothetical What–if Report to display and analyze the results
of hypothetical what–if depreciation analysis. This report contains
depreciation projection data based on depreciation parameters for
hypothetical assets. This report is available for group and member
asset amounts.
You must enter a category, date in service, and cost when you submit
this report. You can optionally enter an accumulated depreciation
amount.
Note: You must submit this report using the What–If Analysis
window. You cannot submit this report using the Submit
Request window.

☞
11 – 53
See Also
Forecasting Depreciation: page 5 – 52
Hypothetical What–if Report (Variable Format)
Use the Hypothetical What–if Report to display and analyze the results
of hypothetical what–if depreciation analysis. This report contains
depreciation projection data based on depreciation parameters for
hypothetical assets.
You must enter a category, date in service, and cost when you submit
this report. You can optionally enter an accumulated depreciation
amount.
See Also
Unplanned Depreciation Report
Use the Unplanned Depreciation report to print details of the
unplanned depreciation you enter in the Unplanned Depreciation Entry
window. This report lists all unplanned depreciation entries for a
specific depreciation book, unplanned depreciation type, and
depreciation period.
Attention: You must manually adjust the life of the asset
before you run the final depreciation formula for the current
period. If you do not, the asset depreciates at the original
amount. The formula for calculating the new life is printed at
the end of the report.
If the resulting new life is the same as the original life, you still must
change the life of the asset to calculate the expected future depreciation
amount. Change the asset life to any other life, save the change, and
requery the asset to change the life back to the original life. If you do

not make a change to the asset life, the depreciation amount is the same
as before you entered unplanned depreciation.
You must enter the depreciation book name. You can optionally enter
the unplanned depreciation type, and period start and end dates.
Selected Headings
Period Effective: The current depreciation period for the asset.
Unplanned Depreciation Type: The type of unplanned depreciation as
specified in the Unplanned Depreciation Entry window. This column is
left blank for unplanned depreciation entered before the asset begins to
depreciate.
Unplanned Depreciation Amount: The amount by which the asset is
depreciated. If the unplanned depreciation is entered after the asset
begins to depreciate, this amount is followed by DR or CR to indicate
positive or negative depreciation.
Unplanned Depreciation Expense Account: The Accounting Flexfield
to which the unplanned depreciation is assigned. This column is left
blank for unplanned depreciation entered before the asset begins to
depreciate.
What–if Depreciation Report
Use the What–if Depreciation Report to display and analyze the results
of what–if depreciation analysis. This report contains depreciation data
based on depreciation parameters you entered for analysis purposes.
The report also lists depreciation projections for your current
depreciation parameters so that you can use the report to compare your
current depreciation projections with the what–if depreciation
projections.
You must enter a book, start period, and number of periods when you
submit this report.
Note: You must submit this report using the What–If Analysis
window. You cannot submit this report using the Submit
Request window.

11 – 55
Selected Headings
Current Convention: The prorate convention currently set up in your
production system for this asset.
Current Cost: The cost of the asset.
Current Method: The method currently set up in your production
system for this asset.
Current Salvage Value: The salvage value currently set up in your
production system for this asset.
New Depreciation: The hypothetical depreciation for this asset based
on what–if parameters.
See Also
What–if Depreciation Report (Variable Format)
Use the What–if Depreciation Report to display and analyze the results
of what–if depreciation analysis. This report contains depreciation data
based on depreciation parameters you entered for analysis purposes.
The report also lists depreciation projections for your current
depreciation parameters so that you can use the report to compare your
current depreciation projections with the what–if depreciation
projections.
You must enter a book, start period, and number of periods when you
submit this report.
See Also

Accounting Reports
Use the accounting reports to review accounting information for your
assets, and to reconcile to the general ledger. Refer to the following
additional accounting reports for more information:
Asset Reclassification Reconciliation Report: page 11 – 112
Asset Retirements By Cost Center Report: page 11 – 114
Asset Transfer Reconciliation Report: page 11 – 108
Account Reconciliation Reserve Ledger Report
Use this report to review how much depreciation Oracle Assets
charged to a depreciation reserve account in an accounting period. The
report is sorted by, and prints totals for each balancing segment, asset
account, reserve account, and cost center. It is not necessary to close
the period before running the report. You can run this report for the
current open period, as long as you have run depreciation before
running the report.
If you partially retire, reclassify, or transfer an asset, the report prints
the asset’s year–to–date depreciation as of the transaction date on a
separate line and marks each line on the right side of the report. These
lines show zero for cost and depreciation amount because Oracle
Assets allocates depreciation expense only to the distribution lines
which were active at the end of the report period.
This report provides supporting detail for the Reserve Detail Report.
Selected Headings
Depreciation Amount: This column matches the Depreciation Expense
column on the Reserve Detail Report.
Year–To–Date Depreciation: The cost center fiscal year–to–date
depreciation for the accounting period.
Percent: The percentage of the asset cost and depreciation allocated to
the cost center.
Flag:
• P: partial retirement

11 – 57
• F: full retirement
• N: asset is not depreciating
• T: transfer, either to a new cost center, employee, or location
See Also
Reconciling Reserve Accounts: page 11 – 17
Accumulated Depreciation Balance Report
Use the Accumulated Depreciation Balance Report to reconcile your
reserve accounts to your general ledger.
this report.
To reconcile with the general ledger, compare this report with the
Account Analysis Report in General Ledger. This report can include
group asset amounts.
Asset Cost Balance Report
Use the Asset Cost Balance Reports to reconcile your standalone and
member asset cost accounts to your general ledger.
these reports. This report can include member asset amounts.

CIP Cost Balance Report
Use the CIP Cost Balance Reports to reconcile your CIP cost accounts
to your general ledger.
these reports. This report can include member asset amounts.
Cost and CIP Detail and Summary Reports
Use the Cost Detail and Cost Summary reports to reconcile your asset
cost accounts to your general ledger. Use the CIP Detail and CIP
Summary reports to reconcile your CIP cost accounts to your general
ledger. To reconcile with Oracle General Ledger, compare the Cost or
CIP Summary report with the Account Analysis Report.
The following reports provide supporting detail for both detail reports:
Asset Additions Report, Cost Adjustments Report, Asset Retirements
Report, Asset Reclassifications Reconciliation Report, and the Asset
Transfer Reconciliation Report. In addition, the CIP Capitalization
Report and the CIP Assets Report provide supporting detail for the CIP
Detail Report. If you retired any CIP assets during the periods you
requested, the Retirements column on the CIP Detail Report matches
the Cost Retired column on the Asset Retirements Report.
The detail reports are sorted by balancing segment, asset or CIP cost
account, cost center, and asset number, and print totals for each asset or
CIP cost center, account, and balancing segment. Both summary
reports are sorted by, and print totals for each balancing segment and
asset or CIP account.
these reports.
Selected Headings
All four reports show the beginning balance, additions, adjustments,
retirements, capitalizations, reclassifications, transfers, and ending
balance for each asset or CIP account and cost center:
Beginning Balance: The asset or CIP cost account balance for each
asset as of the beginning of the period range you requested. The sum

11 – 59
of this column on the Detail Report matches the Beginning Balance
column on the Summary Report for this account and cost center.
Additions: This column on the Cost Detail Report matches the Cost
column on the Asset Additions Report for capitalized assets.
Adjustments: This column on the Detail Report matches the Net
Change column on the Cost Adjustments Report.
Retirements: This column on the Detail Report matches the sum of the
Cost Retired column on the Asset Retirements Report.
Revaluation (Cost Detail and Summary Reports): The net change to
the asset account resulting from asset revaluations made during the
period range you requested.
Capitalizations (CIP Detail and Summary Reports): The change to
the CIP cost account resulting from CIP asset capitalizations made
during the period range you requested. This column on the CIP Detail
Report matches the sum of the Cost column on the CIP Capitalization
Report.
Reclassifications: This column on the Detail Report matches the Cost
column on the Asset Reclassification Reconciliation Report.
Transfers: The net change to the asset or CIP cost account resulting
from interaccount transfers that move cost from one general ledger
number to another. This column on the Detail Report matches the Cost
column on the Asset Transfer Reconciliations Report.
Ending Balance: This column on the CIP Detail Report matches the
Cost column on the CIP Assets Report. The sum of this column on the
Detail Report matches the Ending Balance column on the Summary
Report for this account.
Out of Balance: Oracle Assets compares an asset’s actual ending
balance with a calculated ending balance, and prints an asterisk (*) in
the column if they are different. If Oracle Assets finds any differences,
your system is out of balance.
See Also
CIP Assets Report: page 11 – 31

User Guide)
Reconciling Asset Cost Accounts: page 11 – 11
Reconciling CIP Cost Accounts: page 11 – 14
Cost Clearing Reconciliation Report
This report shows all assets you created or adjusted during an
accounting period for which Oracle Assets creates journal entries to
asset clearing accounts. Use this report to reconcile your clearing
accounts between your general ledger and Oracle Assets. The report is
sorted by, and prints totals for each transaction type, balancing
segment, clearing account, cost center, and asset number.
Selected Headings
Transaction Type:
• (CIP) Additions for (CIP) assets added during the accounting
period
• (CIP) Adjustments for adjustments you made to (CIP) assets
added before the accounting period
Clearing Account: The asset clearing account for your capitalized
assets, or the CIP clearing account for your CIP assets.
Cleared Cost: The cleared cost of the asset for this cost center. This
column is the amount posted to the cost center and clearing account. If
asset costs are split among different cost centers, and if they clear to
different clearing accounts, the asset may have lines on different pages
of the report.
See Also

11 – 61
Tracking and Reconciling Mass Additions: page 11 – 20
Cost Clearing Reconciliation Report (Variable Format)
This report shows all assets you created or adjusted during an
accounting period for which Oracle Assets creates journal entries to
asset clearing accounts. Use this report to reconcile your clearing
accounts between your general ledger and Oracle Assets.
You must enter a Book and Period when you request this report. This
report can include member asset amounts.
Drill Down and Account Drill Down Reports
Use the drill down reports to reconcile journal entries to your general
ledger and review activity for your general ledger accounts. Both
reports print the total debits and credits for each line, batch, and
account number. You can reconcile account activity with Oracle
General Ledger using these reports and either the Unposted Journals
Report or the Posted Journals Report.
The Drill Down Report lists all journal entry lines and gives detailed
information on the asset transactions for a particular journal entry
batch. It is sorted by journal entry batch name, journal entry category,
account (from the lowest balancing segment value to the highest),
journal entry line number, and asset number.
The Account Drill Down Report gives you detailed information on the
asset transactions represented by a journal entry line. The report is
sorted by account (from the lowest balancing segment value to the
highest), journal entry batch name, journal entry category, journal entry
line number, and asset number.
When you request either report, you must enter the Book and Period.
If you enter a Batch Name, you must enter a journal entry Line number
as well. You can enter the Account Number when you run the Account
Drill Down Report, or leave it blank to print all accounts.

Selected Headings
JE Category: The category name helps you identify the transaction
associated with the journal.
See Also
Reconciling Journal Entries to General Ledger Accounts: page 11 – 9
Group Asset Report (Variable Format)
This report is designed to assist with the regulatory reporting
requirement of Canada and India. You can use this report if you use
group depreciation. When you run this report you can choose one of
the three seeded attribute sets. These attribute sets are formatted to
accommodate specific regulatory requirements. The attribute set and
the regulatory requirement addressed are included in the list below:
Default: This attribute set is based on the Canadian 50% rule, and
assists compliance with the Canadian capital cost allowance (CCA).
Schedule 8
Group Summary: Summary for Half Year Rule: This attribute set
provides group asset amounts. The output is based on the Indian 50%
rule, and the Indian Income Tax Authorities regulatory requirement of
summary depreciation reporting.
Group Detail: Detail for Half Year Rule: This attribute set provides
group and member asset detail amounts, and is based on the Indian
50% rule. This report is for use by management.
You must enter an Attribute Set, Output Format, Book, Start Fiscal
Year, and End Fiscal Year when you request these reports. This report
is available with group and member asset amounts

11 – 63
Journal Entry Reserve Ledger Report
Use this report to find out how much depreciation expense Oracle
Assets charged to a depreciation expense account for any accounting
period. The report lists all active (not yet retired) capitalized assets, as
well as any assets that you have retired in the period’s fiscal year. The
report is sorted by balancing segment, expense and reserve accounts,
and cost center. It prints totals for each cost center, account, and
balancing segment.
If you partially retire, reclassify, or transfer an asset, the report prints
the asset’s year–to–date depreciation as of the transaction date on a
separate line, and marks the line on the right side of the report. These
lines show zero for cost and depreciation amount because Oracle
Assets allocates depreciation expense only to the distribution lines
which were active at the end of the report period.
You can reconcile depreciation expense with your general ledger using
this report and the Account Analysis Report in Oracle General Ledger.
You must enter a Book, Currency, and Period when you request this
report.
Selected Headings
Depreciation Amount: This column matches the Debit or Credit
column of the Account Analysis With Payables Detail Report in Oracle
General Ledger.
Year–To–Date Depreciation: The cost center fiscal year–to–date
depreciation for the accounting period you select.
this general ledger account and cost center.
Flag:
• P: partial retirement
• F: full retirement
• N: asset is not depreciating
• T: transfer, either to a new cost center, employee, or location
• R: reclassification
• B: bonus depreciation amount for assets using bonus
depreciation rules

See Also
User Guide)
Reconciling Depreciation Expense Accounts: page 11 – 19
Production History Report
Use this report to review the production amounts for your units of
production assets each period. The report sorts by unit of measure,
asset number, and the production start date. It prints the total
production for each unit of measure.
Selected Headings
Production Start/End Date: The date range for which the production
amount applies.
Flag: The report prints an asterisk (*) if the production has not been
used to calculate depreciation. For example, if you enter production
for future periods for depreciation projections, the report marks the
future production with an asterisk (*).
See Also
Uploading Production to Oracle Assets: page 5 – 48

11 – 65
Reserve Detail and Summary Reports
Use the Reserve Detail and Summary reports to reconcile your reserve
accounts to your general ledger. The detail report is sorted by
balancing segment, depreciation reserve account, cost center, and asset
number. It prints totals for cost center, account, and balancing
segment. The summary report is sorted by, and prints totals for each
balancing segment and depreciation reserve account.
The following reports provide supporting detail for the detail report:
Asset Additions Report, Reserve Adjustments Report, Asset
Retirements Report, Asset Reclassification Reconciliation Report,
Account Reconciliation Reserve Ledger, and the Asset Transfers
Report.
these reports.
To reconcile with the general ledger, compare the summary report with
the Account Analysis Report in General Ledger.
Selected Headings
Both detail and summary reports show the beginning balance,
transactions, and ending balance for each depreciation reserve account:
Beginning Balance: The sum of this column for the asset account on
the detail report matches the Beginning Balance column on the
summary report.
Additions: The change to the depreciation reserve account resulting
from asset additions that you entered with a reserve during the period
range you requested. This column on the detail report matches the
Depreciation Reserve column of the Asset Additions Report. The sum
of this column for the asset account on the detail report matches the
Additions column on the summary report.
Depreciation: The change to the depreciation reserve account resulting
from depreciation expense calculated during the period range you
requested. This column on the detail report matches the Depreciation
Amount column of the Account Reconciliation Reserve Ledger. The
sum of this column for the asset account on the detail report matches
the Depreciation Expense column on the summary report.
Adjustments: The change to the depreciation reserve account resulting
from tax reserve adjustments or revaluations performed during the
period range you requested. These lines are marked on the right side
of the report to distinguish tax adjustments from revaluations. For tax

adjustments this column on the detail report matches the Reserve
Adjustment column of the Reserve Adjustments Report. The sum of
this column for the asset account on the detail report matches the
Adjustments column on the summary report.
Retirements: This column on the detail report matches the difference
between the Cost Retired and Net Book Value Retired columns of the
Asset Retirements Report. The sum of this column for the asset
account on the detail report matches the Retirements column on the
summary report.
Reclassifications: This column on the detail report matches the
Depreciation Reserve column of the Asset Reclassification
Reconciliation Report. The sum of this column for the asset account on
the detail report matches the Reclassifications column on the summary
report.
Transfers: This column on the detail report matches the Depreciation
Reserve column of the Asset Transfers Report. The sum of this column
for the asset account on the detail report matches the Transfers column
on the summary report.
Ending Balance: The sum of this column for the asset account on the
detail report matches the Ending Balance column on the summary
report.
Out of Balance: This report compares an asset’s actual ending
depreciation reserve balance with a calculated ending balance, and
prints an asterisk (*) in this column if they are different. If Oracle
Assets finds any differences, your system is out of balance.
Flag:
• R: revaluation adjustment
• T: tax reserve adjustment
• B: both tax and revaluation adjustments have been made on this
asset
See Also
User Guide)
Reconciling Reserve Accounts: page 11 – 17

11 – 67
Reserve Ledger Report
Assets charged to a depreciation expense account for any accounting
period. The report lists all active (not yet retired) capitalized assets, as
well as any assets that you have retired in the period’s fiscal year.
You must enter a Book and Period when you request this report. This
report can include group and member asset amounts.
Revaluation Reserve Balance Report
Use the Revaluation Reserve Balance Report to reconcile your asset
revaluation reserve accounts to your general ledger.
You must enter the Book and From/To Period range when you request
this report.
Revaluation Reserve Detail and Summary Reports
Use the Revaluation Reserve Detail and Summary reports to reconcile
your asset revaluation reserve accounts to your general ledger. The
detail report prints totals for cost center, revaluation reserve account,
and balancing segment. The summary report prints totals for
revaluation reserve account and balancing segment. Both reports are
sorted by balancing segment, revaluation reserve account, and cost
center.
You must enter the Book and From/To Period range when you request
this report.

Selected Headings
Both detail and summary reports show the beginning balance,
transactions, and ending balance for each revaluation reserve account:
Beginning Balance: This column in the summary report matches the
total of the Beginning Balance column on the detail report for this
account and balancing segment.
Additions: Change to the revaluation reserve account resulting from
asset additions made during the period range you requested. This
amount represents any revaluation reserve you entered when adding
the asset.
Amortization: Change to the revaluation reserve account resulting
from amortization of the revaluation reserve for this asset during the
period range you requested.
Revaluations: Change to the revaluation reserve account due to
revaluation of the asset during the period range you requested.
Out of Balance: Oracle Assets compares the asset’s actual ending
balance at the end of the period range you requested with a calculated
ending balance and prints an asterisk (*) in this column if they are
different.
See Also
Using Reports to Reconcile to the General Ledger: page 11 – 9

11 – 69
Responsibility Reports
Use the responsibility reports to view depreciation expense, asset
additions, and asset removals by balancing segment and cost center.
Refer to the following additional responsibility reports for more
information:
Asset Additions By Cost Center Report: page 11 – 94
Asset Additions Responsibility Report: page 11 – 96
Asset Disposals Responsibility Report: page 11 – 109
Responsibility Reserve Ledger Report
Assets charged to a cost center in any depreciation period. The report
is sorted by balancing segment, cost center, asset account, and asset
number. It prints totals for each asset account, cost center, and
balancing segment.
You must enter a Book and Period when you request this report. You
can optionally enter a From/To Cost Center range to limit the output.
Selected Headings
Year–To–Date Depreciation: The depreciation charged to the cost
center during the current fiscal year as of the period you selected.
the cost center and balancing segment.
Flag:
• P if you removed the asset through a partial retirement
• F if you removed the asset through a full retirement
• N if you do not depreciate the asset
• T if either you transferred the asset from the cost center, or you
assigned a new employee or location to the asset

See Also

11 – 71
Tax Reports
Use the tax reports to review tax accounting information for your
assets.
Assets Update Report
Use this report to review the information that Oracle Assets compiled
when you populated the ACE conversion table. You can also use it to
review the information you have manually loaded into the ACE
conversion table. If the Update Flag is Yes on this report, it prints the
depreciation method, life, and prorate convention Oracle Assets will
assign to your assets in the ACE book when you update the ACE book.
Selected Headings
Adjusted Cost: The depreciable basis that the depreciation program
uses to calculate depreciation. The depreciable basis is updated when
you adjust financial information, revalue the asset, enter retirements, or
assign investment tax credits.
Rate Adjustment Factor: The rate adjustment factor resulting from any
amortized adjustments or revaluations. The depreciation program uses
this number to calculate depreciation for assets with amortized
adjustments or revaluations.
ACE Depreciation Comparison Report
This report shows the difference in year–to–date depreciation between
the federal, AMT, and ACE tax books through the period you specify.
If an asset depreciates under an ACRS method, Oracle Assets lists the
difference between the federal tax book and the ACE tax book as of the
period you requested. If the asset depreciates under a MACRS
method, the report lists the difference between the AMT tax book and
the ACE tax book as of the period you requested.
The report compares year–to–date depreciation for the books through
the End Period you select. You also must enter an ACE, Federal, and
AMT Book to run this report.

The report is sorted by balancing segment, federal book depreciation
method, category, and asset number. It prints totals for each category,
depreciation method, and balancing segment.
Selected Headings
Use Book: The book used to calculate the difference in year–to–date
depreciation.
Difference: The difference in year–to–date depreciation between the
ACE tax book and the book printed in the Use Book column.
ACE Non–Depreciating Assets Exception Report
Use this report to review the assets that Oracle Assets cannot update
according to the ACE rules because you do not depreciate the asset in
the federal tax book.
ACE Unrecognized Depreciation Method Code Exception Report
Use this report to review the assets that Oracle Assets cannot update
according to ACE rules because the ACE program cannot recognize the
asset’s depreciation method code in the federal tax book. It cannot
recognize methods that do not begin with ACRS or MACRS. This
report only shows assets placed in service before the end of fiscal 1989.
See Also
Updating an ACE Book with Accumulated Depreciation: page 7 – 36
Adjusted Current Earnings (ACE): page 7 – 32

11 – 73
Form and Adjusted Form 4562 – Depreciation and Amortization Report
Use the Form 4562 – Depreciation and Amortization Report to review
the depreciation taken for the fiscal year you specify.
Alternatively, use the Adjusted Form 4562 – Depreciation and
Amortization Report to include the effects of any tax reserve
adjustments you made for the fiscal year you specify.
Both reports are sorted by balancing segment, fiscal year added,
depreciation method, asset category, and asset number. They print
totals for each category, method, fiscal year added, and balancing
segment.
To run a form 4562 report, you must enter a Book and Fiscal Year.
Selected Headings
Cost: The fraction of the current cost assigned to this balancing
segment.
Annual Special Depreciation: You can use this column to assist with
the compliance reporting requirements of the Job Creation Act of 2002
and the Jobs and Growth Tax Relief Reconciliation Act of 2003.
This column displays the first year depreciation amount of each asset
that meets all of the following criteria:
• The date placed in service of the asset must be in the same fiscal
year as the report.
• No amortized adjustments have been performed on the asset.
• The special depreciation amount calculated is less than the
amount reported in the Year–To–Date Depreciation column.
• For the Job Creation Act of 2002, this column displays the
first–year depreciation deduction that is equal to 30 percent of
the qualified asset’s depreciable basis for any depreciation
method containing 30B.
• For the Jobs and Growth Tax Relief Reconciliation Act of 2003,
this column displays the first–year depreciation deduction that is
equal to 50 percent of the qualified asset’s depreciable basis for
any depreciation method containing 50B.

See Also
Form and Adjusted Form 4626 – AMT Detail and Summary Reports
Use the Form 4626 – AMT Detail and Summary Reports to review the
difference in year–to–date depreciation between any tax book and an
alternative minimum tax (AMT) book through the period you select.
You also can run the Form 4626 reports on a corporate book and a tax
book to show the difference in depreciation between the two books if
both books use the same depreciation calendar.
Use the Adjusted Form 4626 – AMT Detail or Summary Reports to see
the effects of reserve adjustments of the period you select if you
adjusted the accumulated depreciation for the fiscal year.
When you request these reports, the Federal Book and AMT Book you
choose to compare must use the same depreciation calendar. You also
must enter the End Period for which you want to run the report. You
can optionally enter an Asset Account range to limit output.
The detail reports are sorted by balancing segment, depreciation
method, asset account, category, and asset number. They print totals
for each category, asset account, method, and balancing segment.
The summary reports are sorted by balancing segment, depreciation
method, asset account, and category. The reports show totals for each
asset account, method, and balancing segment.
Selected Headings
Difference: The difference between the year–to–date depreciation in
your tax and AMT book as of the period you selected.
Difference = Tax Book Depreciation – AMT Book Depreciation

11 – 75
See Also
Form 4684 – Casualties and Thefts Report
This report shows asset retirements which have the retirement type you
request, and whether you held this asset as a long or short term asset.
For reinstated assets, the report shows one line for the retirement, and
one for the reinstatement.
this report. Do not enter a Retirement Type if you want the report to
show all retirement types.
The report is sorted by balancing segment, term, asset category, and
asset number. It prints totals for each asset term and balancing
segment.
You define retirement types in the QuickCodes window, and then
associate a retirement type with an asset retirement in the Retirements
window.
Selected Headings
Asset Term:
• Long: for assets held more than one year
• Short: for assets held one year or less
Cost: The cost retired.
Flag: An asterisk (*) indicates the asset has been reinstated.
See Also
Entering QuickCodes: page 9 – 58

Form 4797 Reports
When you request a 4797 report, you must enter the Book and From/To
Period range.
Gain From Disposition of 1245/1250 Property Reports
These reports calculate gain or loss amounts for sales of 1245 or 1250
property held longer than the capital gain threshold you entered for the
book in the Book Controls form. Personal property is section 1245 or
1250 business property under United States tax law.
To use the 1245 or 1250 report, complete Part III of the United States
federal tax form 4797 – Sales of Business Property and enter a capital
gain threshold of one year. If you need different capital gains
thresholds for different dates placed in service, such as the six month
threshold for assets placed in service before January 1, 1988 in the
United States, set up your asset category for the different date placed in
service ranges with different thresholds.
The reports only show assets that were sold, so assets without proceeds
of sale do not appear. For items that were lost or stolen, run the Form
4684 – Casualties and Thefts Report.
The reports are sorted by balancing segment, into gains and losses, by
asset account, and by asset number. The reports print totals for each
asset account, for gains or losses, and for each balancing segment.
Selected Headings of the 1245 Report:
Capital Gain: The capital gain resulting from the sale of the asset as
the amount by which the gain exceeds the depreciation reserve. Or
zero if the gain does not exceed the depreciation reserve or if the sale
results in a loss.
You can use this amount as your section 1231 gain for the form 4797.
Ordinary Income: The ordinary income resulting from the sale of the
asset as the lesser of the gain amount or the depreciation reserve
retired. Or zero if the sale results in a loss.
Capital Loss: The loss resulting from the sale as the loss amount. Or
zero if the sale results in a gain.

11 – 77
Selected Headings of the 1250 Report:
Gain Limitation: The gain/loss amount, or zero if the sale results in a
loss.
Excess Depreciation: For assets you held for more than a year, the
excess depreciation is:
Revaluation Reserve Retired – STL Depreciation Amount
If you held the asset for less than one year, excess depreciation is the
Depreciation Reserve Retired.
Section 1231 Gain: Gain Limitation – Ordinary Income + Recapture
Gain
where:
Recapture Gain = (Reserve Retired – Excess Depreciation) x 20%
The report prints zero if the sale results in a loss.
Ordinary Income: The lesser of:
Gain Limitation + Recapture Gain
or:
Excess Depreciation + Recapture Gain
where:
Recapture Gain = (Reserve Retired – Excess Depreciation) x 20%
The report prints zero if the sale results in a loss.
Section 1231 Loss: The loss amount, or zero if the sale results in a gain.
Ordinary Gains and Losses Report and Sales or Exchanges of Property Report
The Ordinary Gains and Losses Report calculates gain or loss
amounts for sales of business property (both 1245 and 1250) held for
less time than the capital gain threshold you entered for the book in the
Book Controls form. The Sales or Exchanges of Property Report
calculates amounts for sales held longer than the capital gain threshold
you entered for the book in the Book Controls form.
Both reports are sorted by balancing segment (into gains and losses), by
property class, asset account, and asset number. The reports print
totals for each asset account, for each property class, for gains or losses,
and for each balancing segment.

To use the Ordinary Gains and Losses Report, complete Part II (Part I
for the Sales or Exchanges of Property Report) of the United States
federal tax form 4797 – Sales of Business Property, enter a capital gain
threshold of one year. If you need different capital gains thresholds for
different dates placed in service, such as the six month threshold for
assets placed in service before January 1, 1988 in the United States, you
should set up your asset category for the different date placed in
service ranges with different thresholds.
Investment Tax Credit Report
This report shows the amount of investment tax credit (ITC) you can
claim on the assets you add. The report is sorted by asset account and
asset number. It prints totals for each asset account.
You must enter a tax Book when you request this report.
Selected Headings
Recoverable Cost: Current Cost – Salvage Value – ITC Basis
Reduction Amount
ITC Ceiling: An asterisk (*) in this column indicates that the asset
has an ITC ceiling. You can review the ceiling amount in the Ceilings
form.
See Also
Mass Depreciation Adjustment Preview and Review Reports
The Mass Depreciation Adjustment Preview Report shows you the
effect the adjustment you specified will have on the year–to–date
depreciation for assets in your adjusted tax book. You must submit this

11 – 79
report to preview the effect of a mass depreciation adjustment before
you can perform it. If you modify the adjustment definition, you must
rerun the preview report before you perform the mass depreciation
adjustment. You can only run this report if the current open period in
your adjusted book is the first period of the fiscal year. Submit the
Mass Depreciation Adjustment Review Report to review the effect of a
mass depreciation adjustment after you run it.
Oracle Assets sorts the reports by, and prints totals for the reserve
account.
To submit the Preview report, choose Preview from the Mass
Depreciation Adjustment form for an adjustment definition with status
New or Updated. To submit the Review Report, choose Review from
the Mass Depreciation Adjustment form for an adjustment definition
with status Completed.
Selected Headings
Old /New Year–To–Date Depreciation: Oracle Assets prints the
year–to–date depreciation amount prior to and after the depreciation
adjustment.
Depreciation Adjustment: The amount by which the year–to–date
depreciation will be adjusted.
See Also
Property Tax Report
This report shows information for property tax forms. It lists the assets
at a particular location as of the cut–off date you specify. The report is
sorted by balancing segment, location, asset account, year acquired,
and asset number. It prints the total cost for each year acquired, asset
account, location, and balancing segment.

You must enter a Book and End Date Acquired. To ensure all assets
added for a period are included in the report, the End Date Acquired
must be the date following the period close date.
To run this report, make sure the State segment of the Location flexfield
is set to Independent. See: Location Flexfield: page 9 – 50 for additional
requirements.
Example: End Date Acquired
Description Period / Date
Period Asset Added SEP–99
Period Start Date 01–SEP–1999
Period End Date 30–SEP–1999
Depreciation is run and the period closed on 18–OCT–1999. If the
report is run with the End Date Acquired of 30–SEP–1999, it will not
show the assets added in the period SEP–99. The report will show the
assets added when run with an End Date Acquired of 19–OCT–1999.
19–OCT–1999 is one day greater than the period close date.
Property Tax Report (Variable Format)
This report shows information for property tax forms. It lists the assets
at a particular location as of the cut–off date you specify.
You must enter a Book and End Date Acquired. To ensure all assets
added for a period are included in the report, the End Date Acquired
must be the date following the period close date. See: Example: End
Date Acquired page 11 – 80.
Optionally enter the State segment of the location flexfield to limit
report output.
To run this report, make sure the State segment of the Location flexfield
is set to Independent. See: Location Flexfield: page 9 – 50 for additional
requirements.

11 – 81
Recoverable Cost Report
This report shows the recoverable cost for each asset in both the
corporate book and a tax book for a specific accounting period. Use
this report to calculate deferred depreciation. The report is sorted by
balancing segment and asset number. The report prints totals for each
balancing segment.
You must enter a Tax Book and Period when you request this report.
Selected Headings
Flag: An asterisk (*) indicates one of the following:
• The corporate recoverable cost does not equal the cost minus the
salvage value
• The tax recoverable cost is not equal to the cost minus the
salvage value minus the basis reduction amount
See Also
Determining Deferred Income Tax Liability: page 7 – 26
Reserve Adjustments Report
This report provides an audit trail of the adjustments you make to
depreciation reserve. The report is sorted by, and prints the total
reserve adjustment for each balancing segment, fiscal year, and reserve
account.
this report.
See Also

Retired Assets Without Property Classes Report and Retired Assets Without
Retirement Types Report
The Retired Assets Without Property Classes Report shows retired
assets without a 1245 or 1250 property class.
The Retired Assets Without Retirement Types Report shows retired
assets to which you did not assign retirement types.
Both reports are sorted by balancing segment and asset account.
Revalued Asset Retirements Report
This report shows asset retirements revalued according to a price
index. Use this report to report gains and losses in accordance with
Australian tax law. The report only selects assets placed in service after
September 20, 1985. The report sorts your assets by balancing segment,
asset account, and asset number and prints totals for each asset account
and balancing segment.
If you want to actually revalue the cost of your assets in your books,
use Mass Revaluation.
this report.
Selected Headings
Actual Cost: The retired cost of the asset before applying the price
index. The actual cost does not include removal costs.
Recoverable Cost: The retired recoverable cost of the asset before
applying the price index.
Index Factor: The index factor as the price index rate valid at the time
of retirement divided by the index rate valid at the date placed in
service.

11 – 83
In accordance with Australian tax law, if the ratio of price indexes is
less than one, or if you held the asset for less than one year, the index
factor defaults to one.
Indexed Cost Base: Indexed Cost Base = (Recoverable Cost X Index
Factor) + Removal Cost
Reduced Cost Base: The greater of the proceeds of sale or reduced cost
base:
Reduced Cost Base = Net Book Value + Removal Cost
However, the reduced cost base can never be greater than the actual
cost plus the removal cost.
Ordinary Income: The lesser of depreciation reserve or ordinary
income:
Ordinary Income = Proceeds of Sale – Removal Cost – Net Book Value
where
Net Book Value = Recoverable Cost – Depreciation Reserve
Or zero if the sale results in a loss.
Gain/Loss: The greater of zero or the capital gain or loss:
Capital Gain/Loss = Proceeds of Sale – Indexed Cost Base
or, if the proceeds of sale are less than the reduced cost base:
Capital Gain/Loss = Proceeds of Sale – Reduced Cost Base
See Also
Asset Management in a Highly Inflationary Economy: page 3 – 32

Tax Additions Report
This report shows your asset additions and capitalizations for the
period range you select. The report is sorted by balancing segment,
fiscal year added, asset account, and asset number. It prints totals for
asset account, fiscal year, and balancing segment.
this report.
Selected Headings
Cost: The cost you entered for the asset when you added or capitalized
it. It does not include adjustments made after the period you added or
capitalized the asset.
Depreciation Reserve: The accumulated depreciation entered when
the asset was added, if any.
See Also
Asset Additions Report: page 11 – 95
Tax Preference Report
Use this report to compare the year–to–date depreciation between your
federal and corporate books for a range of asset accounts. The report
shows the difference in year–to–date depreciation between the tax book
you specify and its associated corporate book through the period you
select. If the corporate book year–to–date depreciation is greater than
that of the tax book, the report prints zero in the Difference column.
The report compares tax depreciation as of the Tax Period you select
with corporate depreciation as of the last corporate period ending
before the end of this tax period. You must have run depreciation for
the period in your tax book.

11 – 85
The report is sorted by balancing segment, tax depreciation method,
asset account, category, and asset number. The report prints totals for
category, asset account, depreciation method, and balancing segment.
You must enter a Book and Tax Period when you request this report.
Optionally enter a From/To Account range to limit output.
Tax Reserve Ledger Report
This report shows how much depreciation expense Oracle Assets
calculated for the period you select. The report is sorted by balancing
segment, fiscal year placed in service, asset account, and asset number.
The report prints totals for asset account, year, and balancing segment.
Oracle Assets automatically runs the Tax Reserve Ledger Report when
you use the Run Depreciation form for a tax book. You can also submit
this report from the Submit Requests form.
You must enter a Book, Currency, and Period when you submit this
report.
Selected Headings
Year–To–Date Depreciation: As of the accounting period you select.
See Also
Using the Reports to Reconcile to the General Ledger: page 11 – 9
Tax Retirements Report
This report shows gain or loss and any ITC recapture for your asset
retirements. The report is sorted by balancing segment, fiscal year

placed in service, asset account, and asset number. The report prints
totals for each year and balancing segment.
this report.
Selected Headings
Net Book Value Retired: Current Cost Retired – Depreciation Reserve
Retired
See Also
Japanese Depreciable Assets Tax Reports
If you do business in Japan, refer to your country–specific
documentation for information on the Japanese Depreciable Assets Tax
Summary Report, the Japanese Detail by Asset Type (Addition/All
Assets) Report 132 Characters, the Japanese Detail by Asset Type
(Addition/All Assets) Report 180 Characters, and the Japanese Detail
by Asset Type (Decrease Assets) Report.

11 – 87
Transaction History Report
Use this report to review all the transactions that you performed on
your assets for the Book and Asset Number range you choose. To get
additional detail about any of the transactions, use the appropriate
transaction reports. The report is sorted by asset number.
Selected Headings
Reference Number: Uniquely identifies this transaction. This number
appears on the transaction reports so that you can find additional detail
about the transaction. You can also use the reference number to query
the transaction in transaction or inquiry forms.
Accounting Period: The accounting period in which the transaction
was effective. To get additional detail about any of the transactions,
use this depreciation period when you request one of the transaction
reports.
Transaction Types
Transaction types and their description are described in the following
table:

TRANSACTION
TYPE
DESCRIPTION
ADDITION The Books window, the QuickAdditions win-
dow, and the Mass Additions Post program
create this transaction type when you add an
asset. The Books window also creates this
transaction type if you make changes to an
asset’s financial information in the period you
added it. Also, the Capitalize CIP Assets
window creates this transaction type when
you capitalize a CIP asset.
If this transaction type appears without a
TRANSFER IN, you did not set up the asset’s
general ledger depreciation expense account,
location, and employee assignments.
ADDITION/VOID The Books window creates this transaction
type when you make changes to an asset’s
financial information in the period you added
it. The Mass Additions Post program creates
this transaction type when you perform a cost
adjustment by adding a mass addition line to
an asset in the period you added it.
Oracle Assets voids the original ADDITION
by changing the transaction type to ADDI-
TION/VOID and creating a new ADDITION
transaction with the updated financial in-
formation.
ADJUSTMENT The Books and Mass Change windows create
this transaction type when you make changes
to an asset’s financial information after the
period you added it. The Mass Copy pro-
gram creates this transaction type when copy-
ing adjustment transactions into a tax book.
The Mass Additions Post program creates
this transaction type when you perform cost
adjustments by adding mass additions lines
to existing assets.

11 – 89
DESCRIPTION
TRANSACTION
TYPE
CIP ADDITION The Books window, the QuickAdditions win-
dow, and the Mass Additions Post program
create this transaction type when you add a
CIP asset. The Mass Additions Post program
creates this transaction type when you per-
form cost adjustments by adding mass addi-
tions lines to new CIP assets.
CIP
ADDITIONS/VOID
The Books window creates this transaction
type when you make changes to an asset’s
financial information in the period you added
it. The Mass Additions Post program creates
this transaction type when you perform a cost
adjustment by adding a mass addition line to
an asset in the period you added it.
Oracle Assets voids the original ADDITION
by changing the transaction type to ADDI-
TION/VOID and creating a new ADDITION
transaction with the updated financial in-
formation.
CIP ADJUSTMENT The Sources window creates this transaction
type when you change the cost of a CIP asset
in a period after the period you added the
asset. The Mass Additions Post program
form a cost adjustment to a CIP asset after the
period you added it by adding mass addi-
tions lines.
CIP REVERSE The Capitalize CIP Assets form creates this
transaction type when you reverse capitalize
a CIP asset in the period you capitalized it.
FULL RETIREMENT The Retirements window creates this transac-
tion type when you fully retire an asset. The
Mass Copy program creates this transaction
type when copying retirement transactions
into a tax book.

DESCRIPTION
TRANSACTION
TYPE
PARTIAL
RETIREMENT
The Retirements window creates this transac-
tion type when you do a partial retirement by
units or cost. The Mass Copy program
creates this transaction type when copying
retirement transactions into a tax book.
RECLASS The Asset Details window creates this trans-
action type when you change the category of
an asset. The Mass Additions Post program
form a cost adjustment by adding a mass
addition line and change the asset category of
the existing asset to the category you as-
signed to the mass addition.
REINSTATEMENT The Retirements window creates this transac-
tion type when you reinstate a retired asset.
The Mass Copy program creates this transac-
tion type when copying reinstatement trans-
actions into a tax book.
RESERVE
ADJUSTMENT
The Tax Reserve Adjustments window
creates this transaction type when you change
an asset’s depreciation reserve in a tax book.
REVALUATION The Mass Revaluation program creates this
transaction type when you revalue an asset.
TRANSFER The Assignments window and Mass Trans-
fers program create this transaction type
when you transfer an asset.
TRANSFER IN The Assignments window, the QuickAddi-
tions window, and the Mass Additions Post
program create this transaction type when
you initially assign new assets to general led-
ger accounts, locations and employees.

11 – 91
DESCRIPTION
TRANSACTION
TYPE
TRANSFER
IN/VOID
The Assignments window creates this trans-
action type when you change general ledger
accounts, locations, or employees in the peri-
od you added the asset. The Asset Details
window also creates this transaction type
when there is a change in the asset category
in the period of addition.
It voids the original TRANSFER IN by chang-
ing the transaction type to TRANSFER IN/
VOID and creating a new TRANSFER IN
transaction with the updated distribution in-
formation.
TRANSFER OUT The Assignments window creates this trans-
action type when you use it to complete a
partial retirement by units.
UNIT
ADJUSTMENT
The Assignments window creates this trans-
action type when you use it to complete a
change in the number of units of an asset.
See Also
Asset Additions Report: page 11 – 95
Asset Transfers Report: page 11 – 108
Asset Retirements Report: page 11 – 114

Additions Reports
Use the additions reports to review asset additions to Oracle Assets.
To review asset additions in a tax book, see the Tax Additions Report:
page 11 – 84.
Additions by Date Placed in Service Report
This report shows all assets placed in service in the date range you
specify.
You must enter the Book and From/To Date range when you request
this report.
Additions by Period Report
The report lists all the assets you added to Oracle Assets or capitalized
during the specified accounting periods.
You must enter a Book and From/To Period when you request this
report. This report can include member asset amounts.
Additions by Responsibility Report
This report shows assets that you added to your cost centers through
additions and transfers in the accounting period you specify. The
report shows the owner and location of each unit.
Optionally enter a From/To Cost Center range to limit output.

11 – 93
Additions by Source Report
This report shows all assets added during an accounting period range
and the invoice lines associated with that asset. The report groups the
assets by source: Mass Additions or Manual Transactions.
The report is sorted by source, balancing segment, asset type, asset
account, cost center, and asset number. For assets with multiple
invoice lines, the report sorts by supplier number, invoice number, and
invoice line number. The report prints totals for each asset if the asset
has multiple invoice lines, and for each cost center, asset account, asset
type, balancing segment, and source.
report.
The Current Invoice Cost column for the assets added using Mass
Additions matches the Cost column for the addition transactions on the
Mass Additions Posting Report. This report also provides supporting
detail for the Asset Additions Report by showing which line items were
part of each addition transaction.
Selected Headings
Flag: Additional information about your assets and source lines:
• Asterisk (*): For CIP assets, if the asset cost is not equal to the
total of all the invoice line costs for that asset
• M: For invoice lines you manually added in the Sources window
• A: For invoice lines you adjusted in the period added
• T: For invoice lines you transferred in the period added
• R: For reinstated invoice lines
See Also

Annual Additions Report
This report shows all assets placed in service in the date range you
specify. The report is sorted by balancing segment, asset account, and
asset number, and prints totals for each asset account and balancing
segment. You must enter the Book and From/To Date range when you
See Also
Asset Additions by Cost Center Report
Use this report to review the assets you added to Oracle Assets or
capitalized during any depreciation period. The report is sorted by,
and prints totals for each balancing segment, asset type, cost center,
asset account, and expense account.
The Initial Cost and Initial Depreciation Reserve columns reflect the
Cost and Depreciation Reserve of the asset in the period it was added
to the system, respectively.
See Also

11 – 95
Asset Additions Report
Use this report to reconcile asset cost to your general ledger asset
accounts. The report lists all the assets you added to Oracle Assets or
capitalized during the specified accounting periods. The report is
sorted by, and prints totals for each balancing segment, asset type, asset
account, cost center, and reserve account.
report.
The Asset Additions By Source Report provides supporting detail for
this report by showing the invoicing information associated with your
asset additions.
For your asset cost accounts, this report provides supporting detail for
the Cost Detail Report and the Reserve Detail Report. For your CIP
cost accounts, this report provides supporting detail for the CIP Detail
Report.
Selected Headings
Initial Cost: This column matches the Additions column of the Cost
Detail Report for your capitalized assets, and the Additions column of
the CIP Detail report for your CIP assets. This column reflects the cost
of the asset in the period it was added to the system.
Initial Depreciation Reserve: The amounts in this column match the
Additions column of the Reserve Detail Report for your capitalized
assets. This column reflects the depreciation reserve of the asset in the
period it was added to the system.
See Also
Additions By Source Report: page 11 – 93

Asset Additions Responsibility Report
This report shows assets that you added to your cost centers through
additions, capitalizations, and transfers in the accounting period you
specify. The report shows the owner and location of each unit. The
report is sorted by balancing segment, cost center, owner, location, and
asset number. It prints totals for each cost center and balancing
segment.
Selected Headings
Cost: Prorated according to the number of units assigned to the cost
center, location, and employee. The total cost is the cost you entered
when you added the asset.
Assigned Cost = Total Cost X (Units Assigned / Total Units)
Net Book Value: Prorated according to the number of units assigned
to the cost center, location, and employee.
Net Book Value =(Recoverable Cost – Depreciation Reserve) X
(Units Assigned / Total Units)
Flag: ”T” denotes that you added the asset to the cost center as a
result of a transfer. Oracle Assets prints nothing in this column if you
added the asset as a result of an addition.
See Also
Conversion Assets Report
Use this report to review the assets you entered with a depreciation
reserve. The report is sorted by balancing segment, asset type, and
asset account. The report prints totals for each account, asset type, and
balancing segment.

11 – 97
this report.
See Also

Mass Additions Reports
Use the mass additions reports to view mass addition lines created
from external sources.
Note: The variable format version of the Mass Additions
Report is a composite of all the other reports listed in this
section.
Delete Mass Additions Preview Report
Use this report to review mass additions with a status of DELETE only
and verify that you will delete the correct mass additions before you
submit the Mass Additions Delete program. The report is sorted by,
and prints the total cost for each book, source system, and supplier.
Selected Headings
Source System: Source of the mass addition.
Updated By: Name of the last person who changed the invoice line
that originated this mass addition.
See Also
Deleting Mass Additions form Oracle Assets: page 2 – 58
Mass Additions Delete Report
This report provides an audit trail of the deleted mass additions.
Note: To submit this report, choose Mass Additions:Delete
Mass Additions from the menu and enter the Book for which
you want to run this report.

11 – 99
See Also
Deleting Mass Addition Lines form Oracle Assets: page 2 – 58
Mass Additions Create Report
Use this report to review mass additions created from invoice
distribution lines in Payables for the Book you choose. The report
provides you with a complete audit trail of the mass additions created
by Payables. Oracle Assets sorts the report by, and prints the total cost
in both the functional and foreign currency for each currency, company,
asset account, and cost center.
This report lists mass additions created for both functional and foreign
currency invoices. The mass addition line is created in the functional
currency only; however, the report lists the invoice in both the
functional currency and the foreign currency, if applicable. Since
Oracle Assets only creates journal entries in the functional currency,
you can use this report to find and clear foreign currency mass
additions in your general ledger.
This report prints automatically when you submit the Create Mass
Additions for Oracle Assets program in Payables. You also can submit
this report from the Submit Requests form; it shows the mass additions
created by your last Create Mass Additions run.
Selected Headings
Accounting Date: GL date you entered when you used the Create
Mass Additions from Oracle Assets program.
Asset Account: Asset or CIP clearing account to which you assigned
the invoice distribution line in your payables system.
AP Company: Balancing segment to which you assigned the invoice
distribution line in your accounts payable system.
Asset Description: The invoice distribution line description becomes
the asset description. If the mass addition is a discount line, the report
prints ’DISCOUNT’ as the asset description.

Cost: Mass addition cost in the functional currency.
See Also
Create Mass Additions from Invoice Distribution Lines in Oracle
Payables: page 2 – 40
Mass Additions Invoice Merge and Split Reports
Use the Mass Additions Invoice Merge Report to review mass
additions that you merged into a single asset.
Use the Mass Additions Invoice Split Report to review mass additions
that you created by splitting multi–unit mass additions.
Both reports are sorted by asset number.
The Mass Additions Invoice Merge and Split reports do not include
mass additions added to existing assets.
Any mass additions that you merged and then split only appear on the
Mass Additions Invoice Split Report.
You must enter a Book and Period when you request these reports.
Note: These reports show only split/merge invoice lines that
were posted by Post Mass Additions.
Selected Headings
Payable Account: Asset account to which you charged the asset in
your accounts payable system.
Assets Account: Asset account for the asset when you posted it to
Oracle Assets.
Payables Cost: Asset cost you entered into Oracle Payables.
Fixed Assets Cost: Asset cost when you posted the asset to Oracle
Assets.

11 – 101
See Also
Mass Additions Posting Report
For the Book you choose, this report gives you an audit trail of the
assets that Oracle Assets created from your mass additions. The report
sorts by transaction type and asset number.
The report divides your mass additions by transaction type: Additions
are mass additions that became assets; Adjustments are mass additions
that you added to existing assets. Oracle Assets prints the total cost for
each transaction type. It also prints the total number of mass addition
lines posted in the batch.
Oracle Assets automatically runs the Mass Additions Posting Report
when you create assets from mass additions using the Send Mass
Additions to Oracle Assets program. You must enter a Book if you
submit this report from the Submit Requests form.
See Also
Mass Additions Purge Report
This report provides a list of the purged mass additions. The report is
sorted by mass addition number.
Oracle Assets automatically prints this report when you run the Purge
Mass Additions program. If you run this report from the Submit
Requests form, you must enter the mass additions post Batch Number
for which you want to purge the audit trail.

Mass Additions Report
Use this report to review your mass additions by status (queue name).
Enter the Book and optionally enter the Queue Name to limit report
output. This report can include group and member asset amounts.
Mass Additions Status Report
Use this report to review your mass additions by status (queue name).
This report is sorted by asset account, accounts payable batch name,
and invoice number. It prints the total cost for each asset account.
You must enter the Book and Queue Name for which you want to run
the report.
Selected Headings
Asset Account: Asset cost account for your capitalized assets, or the
CIP cost account for your CIP assets.
See Also
Mass Additions Queues: page 2 – 32
Unposted Mass Additions Report
Use this report to review mass additions that you have not yet posted.
An unposted mass addition appears under the date that the invoice
distribution line was posted to the general ledger. Oracle Assets sorts
this report by period, asset account, and status. It prints the total cost
for each asset account and period. You must enter the Book when you

11 – 103
Selected Headings
Period: An unposted mass addition appears under the period which
includes the date that the invoice distribution line was posted to the
general ledger.
Clearing Account: Asset clearing account for your capitalized assets,
or the CIP clearing account for your CIP assets.
Status: Queue name of the unposted mass addition.

Adjustments Reports
Use the adjustments reports to review cost adjustments, financial
adjustments, and parent asset transactions.
Note: The variable format version of the Cost Adjustments
section.
See Also
Mass Change Preview and Review Reports: page 11 – 117
Cost Adjustments by Source Report
This report shows all the cost adjustments you made in the Book and
during an accounting Period range you choose. It groups them by asset
type and source: Mass Additions or Manual Transactions.
The report is sorted by source, balancing segment, asset type, asset
account, cost center, and asset number. For assets with multiple source
lines, the report sorts by supplier number, invoice number, and invoice
line number. The report prints totals for each asset if the asset has
multiple source lines, and for each cost center, asset account, asset type,
balancing segment, and source.
The Invoice Adjustment column for the Mass Additions matches the
Cost column for the adjustment transactions on the Mass Additions
Posting Report. This report also provides supporting detail for the
Cost Adjustments Report by showing which line items were part of
each adjustment transaction.
Selected Headings
Invoice Adjustment: Adjustment amount for the line item.
Asset Adjustment: Total adjustment for the asset.
Flag: Additional information about your source lines:
• M: invoice line you manually added to an asset

11 – 105
• A: invoice line adjustment
• T: invoice line transfer
• D: invoice line deletion
• R: invoice line reinstatement
• Asterisk (*): For CIP assets, if the total Invoice Adjustment does
not equal the Asset Adjustment
See Also
Cost Adjustments Report
This report provides an audit trail of the cost adjustments that you
made to your assets in the Book and during the accounting Period
range you choose. It includes changes you made to the asset itself and
changes you made to source lines. Oracle Assets sorts this report by
balancing segment, asset type, asset cost account, cost center, and asset
number. It prints totals for each cost center, account, asset type, and
balancing segment. This report can include member asset amounts.
Report.
Selected Headings
Net Change: The difference between the old cost and the new cost.
This column matches the Adjustments column of the Cost Detail
Report for your capitalized assets, and the Adjustments column of the
CIP Detail Report for your CIP assets.
Cost Adjustments Report (Variable Format)
This report provides an audit trail of the cost adjustments that you
made to your assets in the Book and during the accounting Period

range you choose. It includes changes you made to the asset itself and
changes you made to source lines.
Financial Adjustments Report
Use this report to find all the adjustments you made to the financial
information for your assets for the Book and Period you choose. The
report is sorted by asset number and by when the transaction was
effective.
Selected Headings
Transaction Type: Expensed or Amortized adjustment.
From/To: Two lines for each adjustment:
• The From line shows the financial information before the
adjustment
• The To line shows the financial information that has changed and
the effect on the cost
Depreciate: Indicates whether the asset depreciates.
See Also
Parent Asset Transactions Report
Use this report to review transactions on parent assets for the Book and
Period you choose. The report is sorted by transaction type and
transaction number.

11 – 107
See Also
Parent Asset Report: page 11 – 42

Transfers Reports
Use the transfers reports to review transfer transactions for your assets.
Note: The variable format version of the Transfers Report is a
composite of all the other reports listed in this section.
Asset Transfers Report
Use this report to review asset transfers for the Book and Period you
choose. For each transaction Oracle Assets lists the expense account,
balancing segment, cost center, and location of the asset before and
after the transfer. Oracle Assets sorts the report by asset number.
You can run this report for corporate books only. You cannot run this
report for tax or budget books.
This report provides supporting detail for the Reserve Detail Report.
Selected Headings
From/To: These lines describe where you transferred the asset from
and to.
Date of Transfer: The date the transfer actually occurred, not the date
you entered the transaction into Oracle Assets.
Assigned Cost: The fraction of asset cost allocated to this cost center.
Depreciation Reserve: The total depreciation charged to the cost
center as of the transfer date.
Units: The number of units transferred.
Asset Transfer Reconciliation Report
Run this report to view the transfer transactions for a corporate book.
This report shows the transfers you made during an accounting period
that affect a general ledger account. It shows the transfers for the Book
and From/To Period range you choose. Transfers between employees
and transfers between locations do not appear on this report since the
general ledger number does not change. Oracle Assets sorts this report
by balancing segment, asset type, asset account, and cost center. It

11 – 109
prints the total cost for each cost center, asset account, asset type, and
balancing segment.
the Cost Detail Report. For your CIP cost accounts, this report
provides supporting detail for the CIP Detail Report.
Selected Headings
Date: Date the transfer actually occurred, not the date you entered the
transaction into Oracle Assets.
In/Out: Indicates whether you transferred the asset into or out of the
asset account. Transfers out of an account have a negative assigned
cost.
Cost: The amounts in this column match the Interaccount Transfers
column on the Cost Detail Report for your capitalized assets, and the
Interaccount Transfers column on the CIP Detail report for your CIP
assets.
Asset Disposals Responsibility Report
This report shows assets that you removed from your cost centers
through retirements and transfers. It also shows the location of each
unit. The report is sorted by, and prints totals for each balancing
segment, cost center, and owner. You must enter a Book and Period
when you request this report. Optionally enter a From/To Cost Center
range to limit report output.
Selected Headings
Units: Number of units disposed from this location, cost center, and
employee.
Cost Disposed: Oracle Assets prorates the cost disposed according to
the number of units disposed from the cost center, location, and
employee.
Net Book Value: The net book value disposed prorated according to
the number of units disposed from the cost center, location, and
employee.
Type: Oracle Assets prints nothing in this column if you removed the
asset as the result of a full retirement.

T: if you transferred the asset out of the cost center
P: if you removed the asset through a partial retirement
* (Asterisk): if you reinstated the asset
See Also
Transfers Report
Use this report to review asset transfers for the Book and Period you
choose. For each transaction Oracle Assets lists the expense account,
balancing segment, cost center, and location of the asset before and
after the transfer. This report can include group and member asset
amounts.

11 – 111
Reclassification Reports
Use the reclassification reports to review reclassification transactions
for your assets.
Note: The variable format version of the Reclassifications
section.
Asset Reclassification Report
Use this report to review the assets for which you changed the asset
category. The report is sorted by balancing segment, asset account, and
asset number. It prints totals for each asset account and balancing
segment. You must enter a Book and From/To Period range when you
Selected Headings
From/To Asset Account: Asset cost account or CIP cost account for the
asset before and after reclassification.
From/To Reserve Account: Reserve account for the asset before and
after reclassification.
From/To Category: Category of the asset before and after
reclassification.
Cost: Cost transferred to the new asset account.
Depreciation Reserve: Accumulated depreciation transferred to the
new reserve account.
See Also

Asset Reclassification Reconciliation Report
Use this report to reconcile Oracle Assets to your general ledger asset
accounts. The report is sorted by, and prints totals for each balancing
segment, asset type, asset account, and cost center.
this report.
When you submit the Create Journal Entries program, Oracle Assets
creates adjusting journal entries for the appropriate asset cost and
reserve accounts in your general ledger to reflect the reclassification.
Report.
Selected Headings
In/Out: Indicates whether you reclassified the asset into or out of the
asset account.
Cost: The cost transferred to the new asset account. This column
matches the Reclassifications column on the Cost Detail Report for
capitalized assets, and the CIP Detail report for CIP assets.
Depreciation Reserve: The accumulated depreciation transferred to
the new depreciation reserve account. This column matches the
Reclassifications column on the Reserve Detail Report.
From/To Category: Category of the asset before and after
reclassification.
See Also

11 – 113
Reclassifications Report
Use this report to review the assets for which you changed the asset
category.
this report.

Retirements Reports
Use the retirements reports to review retirement transactions for your
assets. Refer to the following additional retirements reports for more
information:
Asset Disposals Responsibility Report: page 11 – 109
Retired Assets Without Property Classes Report and Retired Assets
Without Retirement Types Report: page 11 – 82
Note: The variable format version of the Retirements Report is
a composite of all the other reports listed in this section.
Asset Retirements by Cost Center Report
This report shows the asset retirements for each of your cost centers for
the Book and during the Period you select. Optionally enter a Cost
Center range to limit report output. The report is sorted by balancing
segment, cost center, employee name, location, asset account, and asset
number. It prints totals for each owner, cost center, and balancing
segment. An asterisk (*) appears on the report for reinstated assets.
See Also
Asset Retirements Report
Use this report to review the assets you retired for the Book and
accounting Period range you choose. The report is sorted by balancing
segment, asset type, asset account, cost center, and asset number. It
prints totals for each cost center, account, asset type, and balancing
segment.

11 – 115
Report. Retirements in the current period do not show up on this
report until you use the Calculate Gains and Losses form to process
retirements.
Use the Tax Retirements Report to review retirements in your tax
books.
Selected Headings
Cost Retired: This column matches the Retirements column on the
Cost Detail Report.
Net Book Value Retired: The difference between Cost Retired and this
column is the depreciation reserve retired, which matches the
Retirements column of the Reserve Detail Report.
Removal Cost: Cost of removing the asset, if any.
Flag: An asterisk (*) appears for reinstated assets.
See Also
Reinstated Assets Report
Use this report to review the retirements you reinstated for the Book
and From/To Period range you choose. This report is sorted by
balancing segment, asset type, asset account, cost center, and asset
number. It prints totals for cost center, asset account, asset type, and
balancing segment.
Selected Headings
Period Reinstated: The depreciation period when you cancelled the
retirement.

ITC Recapture Reversed: The amount of investment tax credit
recapture from the retirement.
See Also
Retirements Report
Use this report to review the assets you retired for the Book and
accounting Period range you choose. This report can include member
asset amounts.

11 – 117
Mass Transaction Reports
Use the mass transaction reports to review mass change, mass transfer,
mass retirement, and mass revaluation transactions for your assets.
Mass Change Preview and Review Reports
This Mass Change Preview Report shows you the effect the mass
change criteria you specified will have on your assets. You must run
this report to preview a mass change before you perform it. If you
modify the Mass Change definition, you must rerun the preview
report. Use the Mass Change Review Report to review the effect of
mass changes on your assets after Oracle Assets performs them. Both
reports are sorted by asset number.
Submit the Mass Change Preview Report from the Mass Change form
by choosing the Preview button for a definition with status New or
Updated. The Mass Change Review Report is automatically submitted
when you perform your mass change. You can also run this report for
any completed Mass Change by querying the definition and choosing
the Review button.
See Also
Mass Change Preview and Review Reports (Variable Format)
The variable format versions of the Mass Change Preview and Mass
Change Review Reports contain information similar to the standard
versions. See: Mass Change Preview and Review Reports: page
11 – 117.

Mass Transfers Preview Report
Use this report to preview the effect of your mass transfer definition
before you perform it. It shows you the general ledger number,
location, and employee your assets are assigned to before and after the
Mass Transfer. This report is sorted by asset number, general ledger
number, location, and employee number.
To submit the Mass Transfers Preview Report, choose the Preview
button from the Mass Transfers form.
See Also
Mass Retirements Report and Mass Retirements Exception Report
Use the Mass Retirements Report to review the effect of a mass
retirement before you process it. If necessary, you can delete or make
adjustments to an individual retirement transaction in the Retirements
window before you calculate gains and losses. You can also reinstate
the mass retirement transaction in the Mass Retirements window. This
report sorts by balancing segment, asset type, and asset account. It
prints totals for each cost center, account, asset type, and balancing
segment.
Use the Mass Retirements Exception Report to identify exception
assets that were not retired as part of the mass retirement transaction.
Oracle Assets does not retire assets added in the current period or
assets that have transactions dated after the retirement date you enter.
Oracle Assets also does not retire assets that are assigned to multiple
general ledger numbers, locations, or employees, where one or more of
the values do not meet the selection criteria you entered for the mass
retirement transaction. This report prints each exception asset,
including its multiple distributions.
For example, if you mass retire all the assets held by a particular
employee, the mass retirement might include assets shared among

11 – 119
multiple employees. Oracle Assets does not retire assets which are
multiply distributed and one or more of the values do not meet the
selection criteria. You can use the Retirements window to fully or
partially retire these exception assets.
Oracle Assets automatically runs the Mass Retirements Report and the
Mass Retirements Exception Report when you choose the Retire button
for a mass retirement transaction with a status of New or Error in the
Mass Retirements form.
See Also
Mass Revaluation Preview and Review Reports
Use the Mass Revaluation Preview Report to preview the effects of a
mass revaluation before you perform it. You must run this report to
preview the effect of a mass revaluation before you perform it. If you
modify the revaluation definition, you must run this report again
before you can run the revaluation. Use the Mass Revaluation Review
Report to review the effect of a mass revaluation on your assets.
For assets revalued separately from their category, both reports print
the revaluation rate used for the asset. For assets where you have
chosen to override the default revaluation rules for the book, the
reports print the rules you specified beneath the asset to which they
apply. The rules which appear on this line are:
• Revaluation Rate for the category as a percentage
• Whether to Revalue Fully Reserved assets in this category
• Maximum Times you allow assets to be revalued as fully
reserved in this category
• Life Extension Factor
• Life Extension Ceiling

Both reports print the Life, Revalued Cost, Depreciation Reserve, and
Revaluation Reserve before and after the revaluation. Both reports are
sorted by category and asset number. Thess reports can include group
and member asset amounts.
You can submit the Mass Revaluation Preview Report from the Mass
Revaluation form by choosing the Preview button for a revaluation
definition with status New or Updated. You can submit the Mass
Revaluation Review Report from the Mass Revaluation form by
choosing the Review button for a revaluation definition with status
Completed.
Selected Headings
Flag: An asterisk (*) appears if the new life for a fully reserved asset
is not defined for the asset’s depreciation method, and it did not create
the life.
See Also
page 3 – 32
Mass Reclassification Preview and Review Reports
The Mass Reclassification Preview Report shows you the effect the
mass reclassification criteria you specified will have on your

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