Fixed Asset Queries

[Pooja]

Hi

I have got a couple of queries regarding FA module
Scenario - We have a major category called Vehicles and then minor categories like BUS, CAR, BIKE

Q.1- Do we need separate Asset, Depreciation, Accumulated Depreciation for all the minor categories
Q.2 - Details on how to upload FA data into Apps. Mainly, what are the steps to be done, any accounting to be carried out, any programs to be run etc.

Any kind of help will be HIGHLY appreciated. Please reply.

Regards
Pooja

[sree02.oracle]

Hi,

Generally we use Dep, Asset cost and Accu.Dep A/c are common based on Major Categories.
In this Case Above a/c's common Based on Vehicle.

If No of Assets are more, we use ADI to upload them. No accounting procedure is required, just make the ADI sheet Format with required info and upload then into FA.

rGDS,

[Pooja]

But if we use accounts across major category... is it possible to have breakup of asset value, depreciation across minor category values

Regards

Hi,

Generally we use Dep, Asset cost and Accu.Dep A/c are common based on Major Categories.
In this Case Above a/c's common Based on Vehicle.

If No of Assets are more, we use ADI to upload them. No accounting procedure is required, just make the ADI sheet Format with required info and upload then into FA.

rGDS,


<i><div align="right">Originally posted by sree02.oracle - Jun 18 2008 : 02:42:00 AM</div id="right"></i>

[ush]

pooja,

hoping that i have interpreted ur query correctly,

Nav: setup-->asset system--> asset category

here in the asset category form, understand the logic behind defining the asset category.

asset category is a set of major category and minor category.

the list in the minor category field is dependent on the selected major category. that means, what ever parameters (like depreciation) you define in this form and in the deafault rules form are applicable to this asset category only..ultimately the parameters are applied to minor category.

well comminng to your example;

you can define specific depreciation method and rate for a asset category, say "vehicles-->car" (major-->minor). and another depreciation method to another category, say "vehicles-->bike".

you can assign these categories to assets in books, that means, for there are two assets namely car1 and car2...for these the asset category will be vehicles-->car. accordingly the depreciation will be calculated on the respective assets as defined in the "defualt ruels" form in the asset category window.

understand that (w.r.t ur separate asset issue),,, if there are no different types of assets, then what is the need for asset categories. to that matter, if depreciation method and rates are same for all the assets in the organization, then there is no need for defininf categories.

as told by sree, use adi to upload assets into instance.
if u r using 11i, then u need to apply adi patch, which u can find it in metalink.
or else if usinf r12, adi is inbuilt and familiarly kknown as web adi.


if not adi, u can n use dataloader tool..but adi is good.
hope this will help...

it helped me revising the concepts

if anybody found anything misconceptual in the above explanition plz reply.

[Murthyoracle]

Hi Ush,

Perfect explanation. Can u explain regarding depreciation calculatin, procedure , methods , in which situations with scenarios as i am newly entrusted FA module and knowledge required in calcualtion depreciation.

Hope with possible guidence.

thanks and regards,
Murthyoracle

[mhpkokgc]

Hope it will help you. You may use meta link to get help on specific
issues.
PURPOSE
-------
This document provides guidance in populating Oracle
Assets with asset information obtained from a legacy
system (i.e., a feeder system other than Oracle Payables
or Oracle Projects) using SQL*Loader, PL/SQL and/or other
tools. The general steps apply to both 11.0 and 11i
installations of Oracle Assets.

This document does not cover the Create Assets Feature
in the Applications Desktop Integrator (ADI), which
imports data from an Excel spreadsheet. Refer to the
Oracle Applications Desktop Integrator User's Guide
(Chapter 9 - Asset Wizard: Create Assets Feature) for
information regarding loading legacy asset data via ADI.

SCOPE & APPLICATION
-------------------
Intermediate users with knowledge of SQL or SQL*Loader

USING THE MASS ADDITIONS INTERFACE TO TRANSFER ASSET
DATA FROM EXTERNAL SYSTEMS
----------------------------------------------------

Legacy asset data is loaded into a single table -- the
Mass Additions Interface table (FA_MASS_ADDITIONS).
The Mass Additions Prepare form in Oracle Assets allows
you to manually manipulate records loaded in
FA_MASS_ADDITIONS to prepare the data for import to
the application. The Mass Additions Post process populates
multiple internal tables from data in FA_MASS_ADDITIONS.

To import asset information from another Payables system,
load data into FA_MASS_ADDITIONS and use the Prepare and
Post processes to import data into Oracle Assets.

To import asset data from another Assets system, load
data into FA_MASS_ADDITIONS and use the only the Post
process to import data directly into Oracle Assets.

Since the Mass Additions Prepare and Mass Additions Post
processes are not automatically reversible processes,
the conversion must be carefully planned and executed.

DEFINE IMPORT CRITERIA
----------------------

Complete the following Oracle Assets setup steps to
define legacy asset import criteria (reference:
Oracle Assets Users Guide Release 11.i: Page 2-55):

1. Define the accounting flexfield structure, or
identify the accounting flexfield structure already
existing in Oracle General Ledger that will be used
by Oracle Assets.

2. Define the Oracle Assets location flexfield,
which typically includes the country, state, city
and building or site.

3. Define the Oracle Assets category flexfield.

4. Define your asset key flexfield. If you do not
intend to track assets using the asset key, define
a one segment asset key flexfield without validation.

5. Define in Oracle Assets the locations, cost centers
and associated expense code combinations, asset key
flexfield combinations and suppliers that exist in
your legacy system. If this information is not tracked
in your legacy system, define default values.

A. Default Location: If location is not tracked in
your legacy system, then set up a default location
to be used in the import. Assets can be transferred
from the default location to the actual location when
this information is determined by performing a physical
inventory.

B. Default Cost Center: To define the default cost
center, create a code combination in each
depreciation expense account for the default cost
center. Assets can be transferred from the default
to the actual cost center when this information
is known.

C. Default Asset Key Flexfield Combination: Define
a default combination to be used for incoming assets
and assign the default an inactive date to avoid
inadvertent use in the future. The default combination
can be changed though the asset workbench if an actual
asset key is defined.

D. Default Suppliers: Define a default supplier with
an inactive date to avoid inadvertent future use.
Again, the supplier can be changed through the Asset
Workbench. If you use Oracle Payables or Oracle
Purchasing, the suppliers defined in these applications
are shared by Oracle Assets shares the information.

6. Define first depreciation period, and whether assets
will be entered with or without accumulated depreciation
from the legacy system.

The typical choice is last period in the fiscal year
preceding the current fiscal year, since this will
provide accumulated depreciation numbers that can be
reconciled with financial statements, and will also
ensure that the year-to-date numbers on reports are
correct for the current fiscal year. If accumulated
depreciation is not specified, the application calculates
accumulated depreciation and revaluation reserve the first
time depreciation is run. In this case, the depreciation
expense is equal to the accumulated depreciation, and the
first depreciation period absorbs that one-time expense.
This expense is not posted to GL and year-to-date numbers
should be correct for the next fiscal year.

If accumulated depreciation is specified in
FA_MASS_ADDITIONS, Oracle Assets will not recalculate it
unless you make an adjustment to that asset. In this case,
the first depreciation period should be the first period
of the current fiscal year. Otherwise, year-to-date
depreciation values will not include the year-to-date
depreciation specified in FA_MASS_ADDITIONS.

7. Define the asset numbering scheme -- user-defined or
the automatic -- and the starting automatic number.
Regardless of whether automatic numbering is not used
for the conversion, Oracle Assets uses automatic
numbering internally for the ASSET_ID. The starting
number should therefore be a value larger than the
number of converted assets to insure that the application
will not try to assign an existing asset ASSET_ID to a
newly added asset after the conversion.

8. Define your depreciation methods, prorate conventions
and other depreciation rules (e.g., ceilings, ITC rates)
for all assets in all books -- including custom
depreciation methods definition.

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 tax books that were acquired under
different (past) tax laws, set up the asset category
with different depreciation rule defaults for different
DPIS ranges. The asset category and date placed in
service determine the depreciation rule defaults for
an asset. Depreciation information can be changed for
individual assets within each category, but the
objective is to define categories that require fewest
manual modifications.

10. Complete the standard Oracle Assets installation
using criteria defined in the previous steps.


BUILD AND RUN IMPORT PROGRAM TO POPULATE INTERIM TABLE
------------------------------------------------------

In most cases, legacy asset data will be exported
from a non-Oracle file system into an interim table,
then imported into Oracle tables using SQL*Loader
(reference: Oracle Assets Users Guide Release 11i:
Page 2-58):

1. Define an interim table in the Oracle database.
Since data must eventually be placed in a single
table (FA_MASS_ADDITIONS), use a single interim
table if possible. Data can be loaded directly
into FA_MASS_ADDITIONS, but this approach is more
difficult due to the complexity of the table.

2. If asset data is external to the Oracle database,
load your interim table using SQL*Loader.

A. Export asset data from the legacy system to
a variable or fixed format text file (e.g.,
with comma or space field value delimiters)
that can be parsed by SQL*Loader. If it is
not possible to export clean text data, asset
reports can be generated in the legacy system
and edited to manually format data. Alternately,
a custom program can be written to export data
from the legacy file system into a SQL*Loader-
readable text file. The SQL*Loader filter
feature can be used to ignore unnecessary data.

B. Create the SQL*Loader control file that
specifies how data will be imported to the
interim table. If SQL*Loader is used to filter
data, specify a discard file.

C. Run SQL*Loader to import legacy asset data.
SQL*Loader produces a log file with import
statistics, an error file containing records
that could not be imported, and a discard file
containing records filtered via control file
commands.

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 the Import
utility.

3. 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. Compare record
counts and check the SQL*Loader files if
SQL*Loader was used to load the interim table.
The SQL*Loader log file indicates whether
records were rejected during the load, and
the error file indicates which records were
rejected. Fix and reimport the records in the
error file.

4. Spot check the interim table to verify that
data was imported into the correct columns and
that all columns were imported. Compare interim
table rows to the corresponding records in the
original asset data file or table.


RUN SQL*LOADER TO POPULATE MASS ADDITIONS
-----------------------------------------

(Reference: Oracle Assets Users Guide Release 11i:
Page 2-72):

If you are converting asset information from a
legacy asset system, use SQL*Plus to move data
from the interim table into FA_MASS_ADDITIONS.
When the table is loaded, run the Mass Additions
Status Report and the Unposted Mass Additions
Report to verify data. Additional manual data
preparation can be accomplished in the Prepare
Mass Additions form prior to running the Mass
Additions Post process.

Note: If you are using Multiple Reporting
Currencies (MRC) and are loading data from a
legacy asset system or feeder system other than
Oracle Payables and Oracle Receivables, the
FA_MC_MASS_RATES table must be loaded in addition
to the FA_MASS_ADDITIONS table. For each mass addition
line in FA_MASS_ADDITIONS, exchange rate information
must be provided in the FA_MC_MASS_RATES table for
each reporting set of books associated with the
corporate book into which the assets will be added.

To populate the FA_MASS_ADDITIONS table:

1. Load asset data from the interim table into the
FA_MASS_ADDITIONS table using SQL*Plus. 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
to match expense account information in the
interim table with the correct segments of
the GL_CODE_COMBINATIONS table. To do this,
first determine the mapping between segment
numbers and segment names for the chart of
accounts defined for the depreciation book
in the Book Controls window. For example,
run a variant of the following script:

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_code =
'&accounting_flexfield_name'
and id_flex_code = 'GL#');

Match the information in the interim table with
the appropriate segments to determine the correct
code combination id for each asset. Ensure that
the SQL script that performs the match selects
only one code combination id for each asset.
Combinations that are required but non-existent
can be created using the Account Flexfield
combinations window.

3. Load category IDs. The asset category determines
asset accounts and, with the DPIS, determines the
default depreciation method, prorate convention,
and other depreciation rules. Unless the interim
table contains explicit information about the
category to which each asset belongs, available
asset information must be used to determine asset
category. The asset account and reserve account
are often useful for determining an asset

[hiszaki]

Hi Murthy

Each scenario for asset is depending on 3 things:
1) Category ? Major, minor.
2) Location ? The location of each asset.
3) Key ? something make this asset is different from the other (like active ? old - none) in some cases the key can be the category.

When you add asset in FA module, you define the depreciation method you will follow it. The most common depreciation method is Straight-Line method by define the life year & months for each method then assign each method for each category.

So each asset will define for any category, it will be assigned to depreciation method which assigned for this category.

The depreciation method is very simple; you take the total cost of each asset then calculate the monthly depreciation according to depreciation method.

Ex. Total asset = 45000 $ & the depreciation method is Straight-Line with 5 life years. So the monthly depreciation = 45000/5 = 9000 $ (for each year) / 12 month = 750 $ each month.

So when you running the depreciation each month, this asset will depreciate about 750$ monthly & the total cost for this asset will be less monthly 750$.

Hope I can understand your requirement & help you as my knowledge.

Thanks
Hisham Zaki

[ramsabi]

To use the Asset Category Flexfield to its fullest, its functionality needs to be understood. Using a Major and a Minor segment has become so conventional that it now seems to be accepted very much as the norm if not as a restriction.

It should be remembered that the Asset Category Flexfield permits a SEVEN SEGMENT structure. One segment needs to be specified as the MAJOR Segment.

In our implementation, we use a three segment structure to meet our BUSINESS NEED. The first segment matches the description of the GL Chart of accounts asset cost account for that category. The second is a dependent segment and codifies the corporate depreciation rate and the third segment is an independent segment codifying the tax rate of depreciation.

The primary use of the asset category flexfield is given below (extract from Asset User Guide):

QUOTE

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.

Define the category flexfield to fit the way you group your assets. Use the category flexfield to group your assets. <b>Group your assets according to depreciation rules.</b> By standardizing category names, you can more easily track your assets.

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.

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.

UNQUOTE

The important use of the segment qualified as MAJOR is for capital budgeting. You can use Oracle Assets for capital budgeting but the budgeting is done only at the segment level that has been qualified as MAJOR.

[Murthyoracle]

Hi Hisham,

Thaks for your reply. It could help for me.

Regards,
Murthyoracle