Oracle Fusion Financials - Fixed Assets

In this chapter, you will be introduced about the various functions available in Assets module. Starting from acquiring an asset to depreciation/retiring it.

In the Assets module, there are essential flexfields that need to be set up for effective system usage. These key flexfields include:

• Asset Categories

• Asset Locations

• Asset Key

This chapter provides guidance on defining key flexfields in Assets, allowing users to configure and utilize the system efficiently.

System controls sets the foundation for Assets module. These are defined at instance level and is applicable for all the asset books.

In this chapter, you will learn how to define system controls.

Fiscal years are defined in Assets for generating financial statement and for for recording transactions.

In this chapter, you will learn how to define fiscal years.

The Assets module is essential for calculating depreciation of assets. One of its primary functions is to break down fiscal years into accounting periods for accurate depreciation calculations.

Key points covered in this chapter include:

• Understanding the role of the Assets module in calculating depreciation.

• Breaking down fiscal years into accounting periods for precise depreciation calculations.

• Learning how to define and set up depreciation calendars within the system.

Distribution sets serve the purpose of having predefined accounting distributions for recurring transactions, thus saving time by eliminating the need to input detailed accounting information repeatedly. By assigning a distribution set, all the accounts specified within it will be automatically defaulted to the transaction. This chapter focuses on understanding the creation and utilization of distribution sets.

• Distribution sets are employed to predefine accounting distributions for repetitive transactions.

• Assigning a distribution set automatically defaults the specified accounts to the transaction.

• The chapter navigates through the process of defining distribution sets to streamline accounting procedures.

Locations are crucial in the Asses module as they help in locating assets, which is especially beneficial during end-of-year asset inventory. Defining asset locations is essential for efficient asset management. In this chapter, you will learn how to:

• Utilize the Locations feature in the Asses module

• Define asset locations effectively

• Optimize asset tracking by assigning precise locations

Rapid implementation is a technique used to set up multiple Asset modules quickly using Spreadsheets. This method enables you to populate a spreadsheet with the necessary data and then upload it to the system. The spreadsheets can be reused across different project stages for efficiency. In this chapter, we will cover how to leverage rapid implementation to configure the Assets module swiftly.

• Rapid implementation is a method for swiftly setting up various Asset module configurations.

• You can input the required data into a spreadsheet for the setup.

• The filled spreadsheet can be uploaded to the system to implement the configurations.

• Spreadsheets can be reused for different stages of the project, enhancing efficiency.

• Learning how to use rapid implementation can streamline the setup of the Assets module.

Asset books are essential for storing details of assets related to a specific book. These details are then transmitted to the General Ledger for record-keeping. In the context of asset management, two types of asset books are commonly utilized:

• Corporate books

• Tax books

This chapter focuses on understanding the process of defining asset books within a system for effective management and maintenance of asset-related information.

Asset categories play a crucial role in categorizing assets based on their nature, such as Furniture, Computer, or Building. Here's what you need to know about asset categories:

• They are used to classify assets according to their characteristics.

• Asset categories help in linking accounts and depreciation rules.

• Defining asset categories is essential for managing assets efficiently.

• In this chapter, you will learn the process of setting up asset categories.

Assets can be loaded in the system using multiple ways:

• Manually

• Spreadsheet

• Imported from Payables etc.

In this chapter, you will learn how to add assets to the system manually.

Assets can be loaded in the system using multiple ways:

• Manually

• Spreadsheet

• Imported from Payables etc.

In this chapter, you will learn how to add assets to the system using Spreadsheet.

Assets can be loaded in the system using multiple ways:

• Manually

• Spreadsheet

• Imported from Payables etc.

In this chapter, you will learn how to add assets to the system via Payables.

Assets can be procured in two ways:

• Ready to be used

• Construction in process (CIP)

For CIP assets, costs are accumulated over a period until the product is ready to be used. Only then is it capitalized, and depreciation starts. This chapter will cover how to define CIP assets.

There can be variety of adjustments which can be applied on assets:

• Change in cost

• Salvage value

• Depreciation

• Bonus rules etc.

In this chapter, you will learn how to make adjustments to assets.

During the yearly audit process, organizations must track and account for all assets to ensure accuracy in their records. This involves conducting a physical inventory of assets to identify any missing items and make appropriate adjustments in their accounting books.

Key points covered in this chapter include:

• The importance of conducting a physical inventory of assets for auditing purposes.

• The process of tracking and accounting for all assets within an organization.

• Identifying missing assets through the inventory process.

• Making necessary adjustments in accounting records based on the findings of the asset inventory.

In this chapter, you will learn about the importance and process of generating what if analysis reports in projecting depreciation for assets for future periods.

• What if analysis reports are used to project depreciation for assets for future periods.

• This information is valuable for planning and budgeting teams to anticipate the potential depreciation expenses for current assets in the future.

• Generating what if analysis reports provides crucial insights into the expected depreciation figures, aiding teams in making informed decisions.

Assets can be transferred within a business for several key reasons:

• From one employee to another employee

• From one location to another location

• From one depreciation account to another depreciation account

This chapter will teach you how to effectively transfer assets.

In this chapter, you will learn how to use the mass copy feature, which is a convenient way to copy assets from the Corporate book to the Tax book:

• The mass copy feature facilitates the replication of assets from the Corporate book to the Tax book.

• Once the assets are replicated, you can make any necessary changes in the Tax book.

Retiring assets is a necessary process when assets reach the end of their useful life or cannot be located during physical inventory. This action is crucial to remove these assets from the company's financial records. In the following chapter, you will discover how to effectively retire assets in the system.

• Asset retirement is required for assets that are no longer in use or cannot be found during physical inventory.

• Retiring assets ensures accurate financial records by removing obsolete or missing assets.

• By learning how to retire assets, you can maintain the integrity of your organization's asset management system.

As part of the asset period close process, the following functions are performed:

• Calculate depreciation

• Generate journal entry reserve ledger report

• Close assets period

• Transfer details from Corporate book to Tax book

• Run depreciation for Tax book

This chapter focuses on teaching you how to calculate depreciation and close the assets period effectively.

IFRS16 - Asset Leases is used to account for leases based on regulatory requirements defined in IFRS16.

In this chapter, you will learn how to account for Right of use assets.