Purchasing of New Asset

[my.tech09]

Hello every body

I am New to Oracle Apps.

Suppose we are purchasing a new asset to our organization the from which module we have to start i.e. Assets or Purchase or Inv or Payables and where we have to end.
From where we have to start entering a data for purchasing of New Asset, what are the accounting entries for the same. How will be the integration of these modules.

Very Very Thanks in Advance
Raj

[hiszaki]

Hi Raj

I think it depends on how many modules you will be used in your Organization. If we suppose you will using the Assets, Purchasing, Inv and Payable modules you can start from Inv by define the item as an asset then use the purchasing module.

After that use the payable module to pay to the supplier & final use the asset module to control the asset transaction.

This is a simple steps for purchasing an asset & the accounts for these operation will be determinate according to your business.

Hope I can help you

Thanks

Hisham

[t_dheerajsingh]

Hi,
Thanks for your answer.

Regards
Raj

[Pranavi]

Hi Raj,

Purchasing of an asset starts with the purchasing module itself. We can define items for various invetory organizations in Purchasing modules. We can define items, item categories, category sets. We call this process as Procure-to-Pay Process. If we purchase asset kind of items those will be placed as fixed assets. If we purchase goods/raw materials which we use for manufacturing will go into inventory module.

This process starts with 1. creation of items.
2. Creation of purchase requisition.
3. Auto create Purchase Order.
4. Request for quotation.
5. Quote Analysis.
6. Auto Created Purchase Order will go to Supplier.
7. Supplier will send the goods with Goods Receipt Note. Match the goods through different ways of matching with Purchase Order, Invoice, Receipt, and Accepted goods.
8. Enter invoice in Payables.
9. Make the Payment.
10. Reconcile the payment with bank statement in Cashmanagement.
11. Transfer reconciled entries to GL.
12. Add that asset into FA module (FA corporate book which acts like a asset register). Perform, Asset assignments, transfers, mass changes, asset revaluations, retirements, reinstatements, and depreciation). We can add asset into FA from AP through Mass addition program.

If you need any detail process let me know anytime.

Thanks,
Pranavi.

[t_dheerajsingh]

Hi, Pranavi

Thanks for giving the detailed explanation.

Regards
Raj

[admin]

Thanks to all of you for sharing such a nice info. Just to share a bit of info that following two can also be automated,

8. Enter invoice in Payables on the basis of receipts.
12. Add that asset into FA module from AP using Mass Addition and the request is Create Mass Additions for Oracle Assets in AP but keep in mind that,

1. The line is charged to an account set up as an Asset account
2. The account is set up for an existing asset category as either the asset clearing account or the CIP clearing account
3. The Track As Asset check box is checked. (It is automatically checked if the account is an Asset account)
4. The invoice is approved
5. The invoice line distribution is posted to Oracle General Ledger from Payables.
6. The general ledger date on the invoice line distribution is on or before the date you specify for the create program
7. 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.