Overview to the Oracle Fixed Assets Module

Overview to the Oracle Fixed Assets Module

1. Fixed Assets 1

2. What is an Asset? An asset is a resource owned by an organization in tangible or intangible form, which provides a positive economic value to the business. 2

3. Asset to Retirement The Asset to Retirement cycle refers to the process a business implements between acquiring fixed assets and disposing them at the end of their usable life. Asset Acquisition to Retire cycle: Asset Acquisition Asset Assignment Asset Transfer Depreciation Asset Retirement 3

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6. Asset Books An asset's information ( eg. original cost, current cost, depreciation method, and accumulated depreciation cost) is typically stored in an Asset Register for reporting. In Oracle, these registers are called asset books. The minimum setup is to have a single Corporate book attached to a company's primary ledge r. All fixed assets are added and controlled in this book. Can use multiple asset books to address complex asset reporting requirements Corporate book - Internal accounting standards. Tax book - Local country tax rules. 6

7. Asset inquiry page. 7 The Asset Inquiry area is a one-stop shop that enables you to quickly review all your Asset details Financial information Descriptive details Source lines Assignments to employees Locations Cost history Transaction details Depreciation. The results of your inquiry can be easily exported to Excel for further analysis.

8. Addition 8

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10. Manual addition 10

11. Mass addition Payables Project Costing External sources. 11

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17. Adjustments 17

18. Adjustments/Transfers 18 a. Change Category b. Change Financial Details c. Transfer Asset, Transfer of units

19. Depreciation 19

20. 3.Depreciation Depreciation is methods used in accounting that split the overall cost of the capitalized assets over their useful life. Depreciation: Depreciation refers to the reduction in the cost of an asset over its useful life due to wear and tear. This term is used for tangible assets, such as machinery, furniture, buildings, and cars. 20

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22. Retirement 22

23. 23 When an asset stops giving economic value and there are no expected future benefits, it is time to derecognize it and dispose it from the Asset Books . To record the disposal, we perform the retirement activity in the Assets application. You can retire an individual asset or a number of assets using Mass Retirements. Most common reasons for retirement: The useful life of the asset is over. The asset has been sold. It has been stolen, lost, or damaged. Retirement

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26. Reinstating Reinstatements are reversals of retirements, which correct retirement errors by undoing the retirement of an asset and reinstating it. Reinstatement is done - when accountants determine that they have retired a wrong asset. - when the entered number of units or cost for a retired asset is wrong. You cannot reinstate assets retired in the previous fiscal year , so you can only retire assets within the current fiscal year. You can reinstate only the most recent or processed retirement. 26

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28. Revaluation. To adjust the value of assets due to inflation or deflation, Assets allows you to periodically do the adjustment according to the rates or amounts entered. This process of adjusting the value of asset to reflect the market value is known as revaluation. The rules for revaluation often differ from country to country. 28

29. Revaluation. When you revalue an asset, the Calculate Depreciation process calculates accumulated depreciation and accumulated impairment loss on the date of the revaluation, according to the revaluation method you select. You can revalue assets using either the Cost or the Net Book Value (NBV) method. Cost revaluation method : The system calculates the accumulated depreciation as the difference between the gross and the net carrying amounts of an asset. In the NBV revaluation method, the system eliminates the accumulated depreciation and accumulated impairment loss against the gross carrying amount of the asset. 29

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31. Account 31

32. Period closure overview 32

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34. Real time reporting 34

35. 4. Reporting In Oracle Assets, there are Standard reports that are used to verify and analyze asset transactions. Oracle Assets Predefined Reports: These predefined reports are used in the close process to verify asset transactions. These reports provide a list of assets that are added, adjusted, retired, impaired, and so on. Examples of these reports are Asset Additions Report, Additions by Source Report, Asset Retirements Report, and Asset Transfers Report. 35

36. Asset standard reports 36 Asset Additions Report Asset Register Report Cost Detail Report Journal Entry Reserve Ledger Asset Retirements Report Asset Transfers Report

37. Configurations & Roles Setup Configurations Create Value Sets for Category KFF Create Value Sets for Location KFF Create Value Sets for Asset Key KFF Create Category KFF Structure Create Location KFF Structure Create Asset Key KFF Structure Create Category KFF Structure Instance Create Location KFF Structure Instance Create Asset Key KFF Structure Instance Create Segment Values for 3 KFF segments Configure System Controls Create Fiscal Year Calendar Create Asset Calendar/ Depreciation Calendar Define Prorate Convention Create Prorate Calendar Create Asset Book/ Corporate Book Manage Asset Categories Roles and data accesses Asset Accounting Manager Asset books- Corp,Tax Business unit Asset Accountant Asset books 37

38. Thank you