Assets

[nass_kp]

Hi All

First I would like to thank Admin for their good support and maintanance and people who use this.Becase its a very good site where people can share their experiences and knowledge.Helping many people in many ways.

Here i would like to know few things in Assets module which are listed below as i am new to this.It would be a great help if
some one can answer the these..If possible with the scenarios where ever i is possible

1) How Asset Key flexfield helps Fixed Assets?

2) Diff b/w Original Cost,Salvage Cost,Net Book Value and recoverable cost?

3) What is the purpose of Production workbench?

4) How formulas can be difined whiling creating Depreciation methods?

5) Is there anylink between Assets and Invenotry.so, how the flow would be?


Thanks in Advance!!

Regards,

Praveen

[oteixeira]

Hello.
Here are some explanations to your questions:

1)How Asset Key flexfield helps Fixed Assets?
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.

2) Diff b/w Original Cost,Salvage Cost,Net Book Value and recoverable cost?

The original cost is the amount of money the asset originally costs. This amount may suffer modifications (adjustments) when, for example, you buy an asset for a certain cost but the you have to pay other expenses to put it working.

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.

The net book value is defined as:
Net Book Value = Current Cost - Total Reserve (Accumulated Depreciation + Bonus
Reserve)

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.

3) What is the purpose of Production workbench?

Assets may be depreciated according to it?s production. In some countries, the tax authorities define in how many years a certain asset, like a car, can be depreciated. However, you can define that the car, during it?s working life, can run for a certain distance. You can depreciate it according to the distance travelled in an month divided by the total expected travelled distance.

4) How formulas can be defined whiling creating Depreciation methods?
When the system supplied depreciation methods do not fill your needs you can use formulas to use more complicated methods.

Hope this helps.

Octavio

[deepu.oracle]

Is there anylink between Assets and Invenotry.so, how the flow would be?

There is no standard procedure for this. you have to build the interface between the Inventory and Assets.