INTRODUCTION

Oracle Fixed Assets is fully integrated with other modules so that data input in Purchasing, Payables and Projects will flow through Fixed Assets into the General Ledger. This also means that any asset can be queried and the source information obtained by drilling down to find details of invoices. You can perform most of your transactions in Oracle Assets using just three windows: the Assets Workbench, Mass Additions Workbench, and Tax Workbench.

ADDITIONS

The majority of assets should come via the Purchasing, Payables / Project modules using the Mass Additions / Interface Supplier Costs process. There may be a few occasions when manual additions are required. Ordinary assets can be quickly entered using Quick Additions. Detailed Additions can be used to handle more complex assets as follows:

· Assets with a salvage value.
· Assets with more than one assignment.
· Assets with more than one source line.
· Assets that Category defaults do not apply.
· Subcomponents Assets.
· Leased assets and Leasehold Improvements.

DEPRECIATION

Default depreciation rates can be set up for each asset category and also can be overridden in special cases. Before running depreciation you can change any field but after running depreciation you can only change asset cost and depreciation rate. You then can choose whether to amortize the adjustment or expense it.

RETIREMENT

You can retire an entire asset or you can partially retire an asset. You can also use Mass Retirements to retire a group of assets at one time.

TAX BOOK MAINTENANCE

Oracle Assets allows you to copy your assets and transactions from your corporate book to your tax books automatically using Initial / Periodic Mass Copy. You can create as many tax books as you need, maintain your asset information in your corporate book, and then update your tax books with assets and transactions from your corporate book.

PREPAID SERVICES

To record warranty and maintenance information into Oracle Assets, a purchase order must be created and the data input will flow into Payables with the proper prepaid account. Prepaid accounts are maintained in the general ledger and amortized over the period of coverage; however, the accounts charged are based on the designated account(s) for the prepaid services. The charges into the Fixed Assets account and asset category is based on the monthly charges from the monthly amortization of the prepaid services.

CAPITALIZED LEASES vs. OPERATING LEASES

Oracle Assets allows you to test leased assets in accordance with generally accepted accounting principles to determine whether to capitalize and depreciate your leased assets. Lease Capitalization Test: (1) the ownership of the asset transfers to the lessee at the end of the lease (2) a bargain purchase option exists (3) the term of the lease is more than 75% of the economic life of the leased asset (4) the present value of the minimum lease payment exceeds 90% of the fair market value of the asset at lease inception.

Regarding Operating leases, Fixed Assets tracks your payments under operating leases, or leases that do not meet any of the criteria, for informational purposes. You can use this information to create a schedule of future minimum payments under operating leases, information that may require disclosure in the footnotes of your financial statements.

Period-End Process

· Ensure All Assets have been Properly Assigned.
· Copy New Assets Entries into Tax Books.
· Run Depreciation for the Corporate Book.
· Create Journal Entries.
· Post Journal Entries to the General Ledger.