Asset Accounting

Release 12 Oracle Asset Management Fundamentals

Copyright 2007, Oracle. All

All rights
rights reserved.
reserved.

Objectives

After completing this module, you should be able to do

the following:
Describe the process Asset Management follows to
capture accounting information and send journal
entries to the General Ledger
Describe options for using standard reports to
reconcile asset financial data
Discuss the use of Oracle Subledger Accounting in
Asset Management

Copyright 2007, Oracle. All rights reserved.

Agenda

Set up Asset Accounting

Journal Entries Flow
Oracle Subledger Accounting
Reconciling Asset Data

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Setting Up Asset Accounting

Define Ledger

Define Additional
Journal Sources

Define Additional
Journal Categories

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Assets Journal Entries Flow

Run Create
Accounting

Set Up Subledger
Accounting
In Asset Books:
-Allow GL Posting

Perform Asset
Transactions and
Run Depreciation
(optional)
No

-GL Ledger Name

Send entries
to
Subledger
Accounting
Yes
Post entries
to General
Ledger

Copyright 2007, Oracle. All rights reserved.

Oracle Subledger Accounting

Create
Accounting
Entries

Oracle Subledger Accounting

Transaction
Drilldown

Reporting

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Accounting Event Entities and Classes

Transactions

Depreciation

Inter Asset Transactions

Deferred Depreciation

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Create Accounting Assets Program

The Create Accounting program allows you
to do the following:

Create journal entries

Transfer journal entries to

General Ledger
Post journal entries to
General Ledger

Copyright 2007, Oracle. All rights reserved.

Journal Entries Created

Oracle Assets creates journal entries for the following
general ledger accounts:
Accumulated Depreciation

Depreciation Expense

Asset Clearing

Intercompany Payables

Asset Cost

Intercompany Receivables

CIP Clearing

Net Book Value Retired

Gain and Loss

CIP Cost
Cost of Removal Gain,
Loss, and Clearing
Deferred Accumulated
Depreciation
Deferred Depreciation
Expense

Proceeds of Sale Gain,

Loss, and Clearing
Revaluation Amortization
Revaluation Reserve
Revaluation Reserve
Retired Gain and Loss

Depreciation Adjustment
Copyright 2007, Oracle. All rights reserved.

Reconciling Data in Oracle Assets

Oracle General Ledger

Oracle Assets

Oracle Payables

Oracle Projects

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Generating Reports to Reconcile to the General

Ledger
Oracle
General
Ledger

Journals - General
Report
Batch total
Debits = Credits
matches

Oracle
Assets

Batch total
Debits = Credits

Account totals
Debits = Credits

Account Analysis
Report (SLA)

Copyright 2007, Oracle. All rights reserved.

Line totals
Debits = Credits

Reconciling an Asset Cost Account

Oracle
General
Ledger

D
E
T
A
I
L

Detail Trial Balance Report

General Ledger Report

Ending balance
matches

Oracle
Assets

Ending balance
Cost Summary Report
CIP Summary Report
Reserve Summary Report

Ending balance
Ending balance subtotals
Related detail reports

Copyright 2007, Oracle. All rights reserved.

D
E
T
A
I
L

Reconciling Asset Cost Accounts

General Ledger Ending Account Balances
matches
Cost Summary Report
Ending balance subtotals

Cost Detail Report

Additions
matches

Adjustments Retirements
matches

Transfers

matches

matches

Cost retired

Cost
Asset
Additions
Report

matches

Reclasses

Net change
Cost
Adjustments
Report

Asset
Retirements
Report

Cost
Asset
Cost
Transfer
Asset
Reconciliation
Reclassification
Report
Reconciliation
Report

Copyright 2007, Oracle. All rights reserved.

Reconciling a CIP Cost Account

General Ledger Ending Account Balances
matches

CIP Summary Report

Ending balance subtotals

CIP Detail Report

Additions
Retirements
Reclasses
Balance
Adjustments
Capitalized
Transfers
Cost
Cost retired
Cost
Cost
Asset
Asset
Asset
CIP
Reclassification
Additions
Retirements
Assets
Reconciliation
Report
Report
Report
Report
Net change
Cost
Assigned cost
Asset
Cost
CIP
Transfer
Adjustments
Capitalization
Reconciliation
Report
Report
Report
Copyright 2007, Oracle. All rights reserved.

Reconciling a Reserve Account

Reserve Summary Report
Ending balance subtotals

Reserve Detail Report

Additions

Retirements
Adjustments

Reclasses

Accumulated
depreciation

Cost retired
NBV retired

Asset
Additions
Report

Asset
Retirements
Report
Reserve
adjustments
Reserve
Adjustments
Report

Depreciation
Transfers
Depreciation
amount
Asset
Reconciliation
Reserve Ledger

Accumulated
depreciation
Asset
Reclassification
Reconciliation
Report

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Accumulated
depreciation
Asset
Transfers
Report

Reconciling Depreciation Expense

Oracle
General
Ledger

Detail Trial Balance Report

D
E
T
A
I
L

General Ledger Report

or
Account Analysis Report (SLA)
Ending balance
matches

Oracle
Assets

Depreciation amount
Journal Entry
Reserve Ledger

Copyright 2007, Oracle. All rights reserved.

D
E
T
A
I
L

Reconciling Mass Additions

Additions by
Source Report

Cost Adjustments
by Source Report

Mass Additions
Posting Report

Cost Clearing
Reconciliation

2
Mass Additions
Invoice Merge

General
Ledger

Mass Additions
Invoice Split

Unposted Mass
Additions

1
Mass Additions
Create
Copyright 2007, Oracle. All rights reserved.

Mass Additions
Delete

Summary

In this module, you should have learned how to:

Describe the process Asset Management follows to
capture accounting information and send journal
entries to the General Ledger
Describe options for using standard reports to
reconcile asset financial data
Discuss the use of Oracle Subledger Accounting in
Asset Management

Copyright 2007, Oracle. All rights reserved.