Uploaded by karen.lupton

FA Discovery session

R12.2 Oracle Fixed
Assets - Discovery
At 14.09.2023
Tuesday, 19 September 2023
Fixed Assets – Current Status
• There are currently 4 Fixed Asset Registers:
Other Furniture and Equipment
• All registers are held on spreadsheets.
• Each spreadsheet has a different process to hold asset costs and
calculate depreciation
• Depreciation is calculated yearly and processed in EBS via a General
Ledger Journal
Tuesday, 19 September 2023
Fixed Assets – Business Requirement
• To migrate the 4 Fixed Asset Registers to Oracle EBS
• Benefits
• Visibility of the Fixed Assets
• A standard process for processing and reporting Fixed Assets
• Simplifies the asset management and accounting complexities
Tuesday, 19 September 2023
Fixed Asset –Discovery
• Work has been done to date to identify Asset Categories for Fixed
Assets EBS configuration
• Work will need to be done to clarify those requirements and identify
Tuesday, 19 September 2023
Fixed Assets – Pre-Requisites
• Currently Fixed Assets are depreciated differently for each Category of
• The requirement is for this to change and for assets to be depreciated
from date placed in service.
• This change triggers a financial impact for the following
• The Accounting method for reporting Fixed Assets and Depreciation in the
financial accounting notes to the accounts needs to be agreed
• Will/Can the change for some assets use the incremental approach i.e. assets
acquired after the change will be in the new method while depreciating the
old assets under the old method
• What is the materiality of the approach. If the value is over £5m this needs to
be reported.
Tuesday, 19 September 2023
Fixed Assets – Pre-Requisites
• Cleansing of the data to ensure the required fields in each of the 4
spreadsheets contain the correct information
• To agree:
• one Asset Book is required for all Fixed Assets
• The Category flexfields of Major and Minor Categories and map to
spreadsheet data
• Location Flexfield values and map to spreadsheet data
• Key Flexfield values
Tuesday, 19 September 2023
Fixed Assets - Design
• To identify requirements for Major and Minor Categories, Location and Key
• To confirm Deprecation for each Minor Category
• Agree Prorate Convention and Prorate Date to determine depreciation to take in
the first and last years of the asset life
• To agree asset accounting for cost, depreciation expense etc
• To discuss the process of:
• Mass Additions through Payables.
• Web ADI includes the ability to create assets. This allows for the import of data from Excel
• To identify requirements for
• DFFs e.g. to capture the Vehicle Reg No
• Quickcodes for Asset Description
Tuesday, 19 September 2023
Fixed Assets-Book
• Book Name: LPA CORP BOOK
• Accounting rules
• Natural Accounts
Tuesday, 19 September 2023
Fixed Asset – Quickcodes
• Quickcodes can be set up against the asset description field.
• The quickcode allows you to choose from a list of values the
description against the asset. This allows for standardisation against
the description
• The field still allows for free text
• Use example – Vehicles description
Tuesday, 19 September 2023
Fixed Assets-Major
and Minor
• Confirmation of Major and
Minor Categories
• Confirmation of all elements
for Major and Minor
Category set up
Tuesday, 19 September 2023
Fixed Assets – Additional Asset Information
• Asset Descriptive Flexfields (DFFs)
• Set up descriptive flexfields against the asset category to collect extra
information about your asset e.g Vehicle Reg Numbers
Tuesday, 19 September 2023
Fixed Assets-Locations
• Current Configuration includes
• District
• Town
• Postcode
Tuesday, 19 September 2023
Fixed Assets-Asset Key
• Purpose – The Asset Key Flexfield is used to group assets by non-financial
information. It is designed to record the information you want, and you can
assign the same asset key to many assets to easily find similar assets. Asset
Key flexfields provide a means to capture a key such as a part number, job
code, Project code or an account code. Each segment can have a meaning
• Requirements?
• Current Configuration – Review current configuration?
Note: Project code could be for CIP asset costs to enable you to view CIP
assets for the same project
Tuesday, 19 September 2023
Fixed Assets-Depn and Prorate Calendars
• Oracle Fixed Assets uses the depreciation method and life to
determine the depreciation over the life of the asset
• Prorate calendar/convention
• Determines depreciation in the first and last year of an asset’s life, based on
when the asset is placed in service. Assets can be acquired at any time in a
period. The Prorate convention determines when the asset is depreciated
from i.e. current month or next month
Tuesday, 19 September 2023
Fixed AssetsDepn and Prorate
Tuesday, September 19, 2023
Depreciation Protocol
No depreciation in the first year
of date in service. Depreciation
starts next year
Full year is charged for the first
year regardless of date in service
Other Furniture and
No depreciation in the first year
of date in service. Depreciation
starts next year
Full year is charged for the first
year regardless of date in service
Fixed Assets - Next steps
• Business to review Asset Categories spreadsheet and confirm
• list is complete.
• Any new Minor Categories.
• Remove Categories not required
• Accounting is correct for each accounting combination for posting of assets
• Review requirements for Locations and value sets. Supply details of the lists
• Review requirements for Asset Key Flexfield. Supply details of the lists
• Any DFF requirements. Supply details
• Set up next session – Data Migration, Fixed Asset Reponsibility requirements
Tuesday, 19 September 2023
Tuesday, 19 September 2023
Key Flexfield Segment – Validation not required
Not a required field with
no value set = Free text
Tuesday, 19 September 2023
Asset Category DFF
Tuesday, 19 September 2023
Data Migration – Accumulated Depreciation
• You normally enter zero accumulated depreciation for new capitalized assets.
• If you are adding an asset that you have already depreciated, you can enter the accumulated depreciation as
of the last depreciation run date for this book, or let Oracle Assets calculate it for you. If you enter a value
other than zero, Oracle Assets uses that amount as the accumulated depreciation as of the last depreciation
run date. If you have bonus reserve, the amount should be added to the accumulated depreciation and is no
longer tracked as bonus reserve.
• If you enter too little accumulated depreciation, Oracle Assets adjusts depreciation to the correct amount for
the current fiscal year. If you enter too much accumulated depreciation, the asset becomes fully reserved
before the end of its life. If you enter zero accumulated depreciation, Oracle Assets calculates the
accumulated depreciation and the bonus reserve, if any, based on the date placed in service. You can have a
different accumulated depreciation for each depreciation book. Enter the amount of depreciation taken in
the current fiscal year, if any, for the year-to-date depreciation. If the asset is placed in service in the current
fiscal year, the accumulated depreciation amount and the year-to-date depreciation amount must be the
same. For Oracle Assets to recognize an asset as fully reserved when you add it, enter an accumulated
depreciation amount equal to the recoverable cost. You cannot change the accumulated depreciation after
the period in which you added the asset. You can, however, change the depreciation taken for prior fiscal
years in your tax books using the Tax Reserve Adjustments window. You cannot enter year-to-date or life-todate depreciation when you add a units of production asset. Instead, enter the asset with zero accumulated
depreciation, and enter the total life-to-date production as production for the current period to catch up
Tuesday, 19 September 2023