Hi
Can any one explain about the expense assets and give examples for expense assets?
regards
surya.oracle
expense assets with examples
-
surya.oracle
- Posts: 5
- Joined: Wed May 16, 2007 6:18 am
- Location: India
-
anuragagarwal1980
- Posts: 55
- Joined: Mon Oct 23, 2006 6:33 am
- Location: India
Hi Surya,
Expense assets are those assets which you do not wish to capitalize. What i mean is that in the month of creating the assets itself you charge the entire cost to the Profit and loss a/c.
Let me help you with an example.
Suppose you purchase a printer for Rs 4500 and you do not want to Capitalize in your books you can create them as expense assets and the entire value of Rs 4500 is charged/Debited to your profit and loss /ac.
How this is acheived in oracle apps.
when creating the invoice in Payables, Normally you give the asset cost clearing account in the ditribution window and also you see the the field Track as Asset enabled. This would create a normal capitalized asset in Fixed Assets.
Now for creating an expense asset, do not give the asset cost clearing a/c in Invoice distribtutions, you can give any other account to which you wish to debit your entire cost. Be sure that in this case also you check the field Track as Asset.
do the normal process in Payables and import it to FA. You will see that an expense assets gets created in FA Mass Additions window. The effect is that no accounting entry takes place in FA and the user has the flexibility tto track teh asset in future.
Hope this gives you the answer
Regards
Anurag
Expense assets are those assets which you do not wish to capitalize. What i mean is that in the month of creating the assets itself you charge the entire cost to the Profit and loss a/c.
Let me help you with an example.
Suppose you purchase a printer for Rs 4500 and you do not want to Capitalize in your books you can create them as expense assets and the entire value of Rs 4500 is charged/Debited to your profit and loss /ac.
How this is acheived in oracle apps.
when creating the invoice in Payables, Normally you give the asset cost clearing account in the ditribution window and also you see the the field Track as Asset enabled. This would create a normal capitalized asset in Fixed Assets.
Now for creating an expense asset, do not give the asset cost clearing a/c in Invoice distribtutions, you can give any other account to which you wish to debit your entire cost. Be sure that in this case also you check the field Track as Asset.
do the normal process in Payables and import it to FA. You will see that an expense assets gets created in FA Mass Additions window. The effect is that no accounting entry takes place in FA and the user has the flexibility tto track teh asset in future.
Hope this gives you the answer
Regards
Anurag
Who is online
Users browsing this forum: No registered users and 2 guests