Step

No. Required Step

Step 1 Required Define Your Ledgers
Step 2 Optional Define Your Unit of Measure Classes
Step 3 Optional Define Your Units of Measure
Step 4 Optional Define Your Employees
Step 5 Optional Define Your Descriptive Flexfields
Step 6 Optional Set Up Oracle Subledger Accounting
Step 7 Optional Decide How to Use the Account Generator
Step 8 Required with Define Additional Journal Entry Sources
defaults
Step 9 Required with Define Additional Journal Entry Categories
defaults
Step 10 Optional Define Your Supplier and Employee Numbering
Schemes
Step 11 Optional Define Your Suppliers
Step 12 Required Define Your Asset Key Flexfield
Step 13 Required Define Your Asset Category Flexfield
Step 14 Required Define Your Location Flexfield
Step 15 Required Define Your System Controls
Step 16 Optional Define Your Locations
Step 17 Optional Define Your Asset Keys
Step 18 Required with Define Your Standard Asset Descriptions and
defaults Other QuickCode Values
Step 19 Required Define Your Fiscal Years
Step 20 Required Define Your Calendars
Step 21 Optional Set Up Security by Book
Step 22 Required Define Your Book Controls
Step 23 Required with Define Additional Depreciation Methods and
defaults Rates
Step 24 Optional Define Your Depreciation Ceilings
Step 25 Optional Define Your Investment Tax Credits
 Step 26 Required Define Your Prorate and Retirement
Conventions
Step 27 Optional Define Your Price Indexes
Step 28 Required Define Your Asset Categories
Step 29 Optional Define Distribution Sets
Step 30 Optional Enter Leases
Step 31 Optional Define Warranties
Step 32 Optional Set Profile Options
Step 33 Optional Define Asset Insurance

Setup Steps
1. Define Your Ledger

You need to define at least one ledger before you can implement and use Oracle
Assets.

A ledger includes an accounting calendar, a ledger currency, and an account

structure. The account defines the structure of your general ledger accounts. If
you have not defined your account while setting up a ledger, you need to set the
account to match your accounting structure and provide valid values for
expense, cash, and accounts payable liability accounts.

If you previously defined your ledger while setting up a different Oracle

Financials product, proceed to the next step.

You can use Oracle Assets with multiple ledgers within a single installation.
See: Oracle Assets with Multiple Ledgers.

Default - This is a required step. If you skip this step, you will not be able to
use Oracle Assets.

Context: You need to perform this step only once per installation.

See: Defining Ledgers., Oracle General Ledger Implementation Guide

2. Define Your Unit of Measure Classes (optional)

If you do not install Oracle Inventory or Oracle Purchasing, use the Unit of
Measure Classes window in Oracle Assets to define your unit of measure classes.
 You can define classes for the units you use to measure production for your units
of production assets.

If you previously defined your unit of measure classes while setting up a

different Oracle Applications product, proceed to the next step.

Important: You must set up an organization before you can define units of
measure classes. See: Creating an Organization., Oracle Human Resources
Management System User Guide

Important: You must define the profile option HR:User Type before you can set
up an organization. See: Setting User Profile Options, Oracle Applications System
Administrator's Guide

Default - If you skip this step, Oracle Assets will use the defaults set up in
Oracle Inventory or Oracle Purchasing. If neither Oracle Inventory nor Oracle
Purchasing are installed, you will not be able to use unit of measure classes.

Context: Perform this step once for each Inventory organization.

See: Defining Units of Measure Classes., Oracle Inventory User Guide

3. Define Your Units of Measure (optional)

If you do not install Oracle Inventory or Oracle Purchasing, use the Units of
Measure window in Oracle Assets to define your units of measure. You can
define the units you use to measure production for your units of production
assets.

Important: You must set up an organization before you can define units of
measure. See: Creating an Organization, Oracle Human Resources Management
System User Guide

Important: You must define the profile option HR:User Type before you can set
up an organization. See: Setting User Profile Options, Oracle Applications System
Administrator's Guide.

If you previously defined your units of measure while setting up a different

Oracle Applications product, proceed to the next step.

Default - If you skip this step, Oracle Assets will use the defaults set up in
Oracle Inventory or Oracle Purchasing. If neither Oracle Inventory nor Oracle
Purchasing are installed, you will not be able to use units of measure.

Context: Perform this step once for each Inventory organization.

 See: Defining Units of Measure., Oracle Inventory User Guide

4. Define Your Employees (optional)

If you do not install Oracle Personnel, Oracle Payroll, Oracle Purchasing, or

Oracle Payables, use the Enter Person window in Oracle Assets to define
employees. You must enter an employee before you can assign an asset to the
employee. Oracle Assets only uses the employee name, number, and termination
date.

If you previously defined your employees while setting up a different Oracle

Applications product, proceed to the next step.

Default - If you skip this step, you will not be able to track assets by employee
name.

Context: Perform this step once for each business group.

See: Entering a New Person., Managing Your Workforce Using Oracle HRMS

5. Define Your Descriptive Flexfields (optional)

You can set up descriptive flexfields to track additional information. For example,
you can set up a descriptive flexfield for each asset category to collect
information relevant to your business. For example, you might want to track the
license number for cars, but the square footage for buildings. Then, when you
assign a new asset to a category, you can enter the additional information.

There are many other descriptive flexfields in Oracle Assets. For example, you
can set up a descriptive flexfield to store additional information about your
transactions.

Note: To set up the Leases GUI descriptive flexfield or the Retirements GUI
descriptive flexfield, see: Defining Descriptive Flexfield Structures, Oracle
Applications Flexfields Guide.

Default - If you skip this step, you will not be able to enter additional
descriptive information to track assets.

Context: You need to perform this step only once per installation.

See: Defining the Asset Category Descriptive Flexfield and

6. Set Up Oracle Subledger Accounting (conditionally required)

 Note: This step is required if the FA: Use Workflow Account Generation profile
option is set to No.

Oracle Assets uses Oracle Subledger Accounting to create journal entries.

Default - If you skip this step, Oracle Assets will use the default value of No for
the FA Use Workflow Account Generation and will use Subledger Accounting to
create journal entries.

Context: Perform this step once for each ledger.

See: Subledger Accounting Options Setup Overview, Oracle Subledger

Accounting Implementation Guide

7. Decide How to Use the Account Generator (conditionally required)

Oracle Assets uses the Account Generator to generate accounting flexfield

combinations for journal entries. You must review the default process that Oracle
Assets uses to see if it meets your accounting requirements. You can optionally
customize the Account Generator for each ledger that you have defined. Note
that you must set up Oracle Workflow in order to use the Account Generator.

Default - If you skip this step, Oracle Assets will use the default Account
Generator settings to build accounting flexfield code combinations.

Context: Perform this step once for each (entity) i.e. organization operating
unit, business group, or legal entity.

See: Using the Account Generator in Oracle Assets

8. Define Additional Journal Entry Sources (required with defaults)

If you do not install Oracle General Ledger, use the Journal Entry Sources
window in Oracle Assets to define additional journal entry sources. Journal entry
sources are used to identify the origin of your journal entry transactions.

If you previously defined your journal entry sources while setting up Oracle
General Ledger, proceed to the next step.

Default - If you skip this step, Oracle Assets will use the journal entry sources
set up in Oracle General Ledger.

Context: Perform this step once for each operating unit.

See: Defining Journal Sources., Oracle General Ledger User Guide

9. Define Additional Journal Entry Categories (required with defaults)

If you do not install Oracle General Ledger, use the Journal Entry Categories
window in Oracle Assets to define additional journal entry categories. Journal
entry categories describe the purpose or type of your journal entries.

If you previously defined your journal entry categories while setting up Oracle
General Ledger, proceed to the next step.

Default - If you skip this step, Oracle Assets will use the journal entry
categories set up in Oracle General Ledger.

Context: Perform this step once for each operating unit.

See: Defining Journal Categories., Oracle General Ledger User Guide

10. Define Your Supplier and Employee Numbering Schemes (optional)

If you do not install Oracle Purchasing or Oracle Payables, use the Financials
Options window in Oracle Assets to define your supplier and employee
numbering schemes. You need to specify how to number your suppliers and
employees before you can enter suppliers or employees.

If you previously defined your supplier and employee numbering schemes while
setting up a different Oracle Applications product, proceed to the next step.

Default - If you skip this step, you will not be able to track asset assignments
against employees and assignments.

Context: Perform this step once for each operating unit.

See: Defining Financials Options., Oracle Payables User Guide

11. Define Your Suppliers (optional)

If you do not install Oracle iSupplier, use Setup > Assets System > Financials >
Suppliers in Oracle Assets to define your suppliers. You must enter a supplier
before you can enter assets or bring over mass additions purchased from that
supplier. Oracle Assets only uses the supplier name, number, and inactive date.

If you previously defined your suppliers while setting up a different Oracle

Applications product, proceed to the next step.

Default - If you skip this step, you will not be able to track assets assigned to
specific suppliers.
 Context: Perform this step once for each operating unit.

See: Entering Suppliers., iSupplier Portal Implementation Guide

12. Define Your Asset Key Flexfield

The asset key flexfield allows you to define asset keys that let you name and
group your assets so you do not need an asset number to find them. The asset
key is similar to the asset category in that it allows you to group assets.
However, the asset key has no financial impact.

This flexfield lets you assign the same name to many assets so you can find
similar assets. You can provide additional descriptive data to group assets by
project or other functional group. You can use this flexfield to track your CIP
assets. You use the same setup windows to create your asset key flexfield as you
do for your other key flexfields.

Default - This is a required step. If you skip this step, you will not be able to
use Oracle Assets.

Context: You need to perform this step only once per installation.

See: Asset Key Flexfield.

13. Define Your Asset Category Flexfield

The asset category flexfield allows you to define asset categories and
subcategories. For example, you can create an asset category for your computer
equipment. You can then create subcategories for personal computers,
terminals, printers, and software. You must assign the major category segment
qualifier to one segment of your category flexfield. The major category segment
facilitates capital budgeting. All other segments are optional. You use the same
setup windows to create your asset category flexfield as you do for your other
key flexfields.

Default - This is a required step. If you skip this step, you will not be able to
use Oracle Assets.

Context: You need to perform this step only once per installation.

See: Category Flexfield

14. Define Your Location Flexfield

 The location flexfield allows you to specify and track the exact location of your
assets. You must assign the state segment qualifier to one segment of your
location flexfield. The state segment facilitates property tax reporting. All other
segments are optional. You use the same setup windows to create your location
flexfield as you do for your other key flexfields.

Default - This is a required step. If you skip this step, you will not be able to
use Oracle Assets.

Context: You need to perform this step only once per installation.

See: Location Flexfield

15. Define Your System Controls

Set up your system controls. You specify your enterprise name, asset numbering
scheme, and key flexfield structures in the System Controls window. You also
specify the oldest date placed in service of your assets.

Default - This is a required step. If you skip this step, you will not be able to
use Oracle Assets.

Context: You need to perform this step only once per installation.

See: Specifying System Controls.

16. Define Your Locations (optional)

Define valid locations. Your location flexfield combinations tell Oracle Assets what
locations are valid for your company. Oracle Assets uses location for tracking
assets and for property tax reporting.

If your location flexfield has dynamic insertion turned off, this is the only place
you can define valid combinations. If dynamic insertion is turned on, Oracle
Assets automatically updates the Locations window with the values you enter in
the Assignments window.

Default - This is a required step. If you skip this step, you will not be able to
use Oracle Assets.

Context: Perform this step once per ledger.

See: Defining Locations.

17. Define Your Asset Keys (optional)

 Define valid asset keys. You can use the list of values to choose these
combinations for your assets when you enter them.

If dynamic insertion is disabled for your asset key flexfield, Asset Keys is the only
window where you can define valid combinations. If dynamic insertion is
enabled, Oracle Assets automatically updates the Define Asset Keys window with
the values you enter when you add assets.

Default - This is a required step. If you skip this step, you will not be able to
use Oracle Assets.

Context: Perform this step once per ledger.

See: Defining Asset Keys.

18. Define Your Standard Asset Descriptions and Other QuickCode Values
(required with defaults)

QuickCode values are values that you can choose from a list of values when you
enter and maintain assets. You can define the QuickCode values that you want
for the following items:

o Standard Asset Descriptions

o Journal Entries
o Mass Additions Queue Names
o Property Type
o Retirement
o Asset Category
o Asset Subcategory

Default - If you skip this step, the list of values you receive for maintaining
assets will be the seeded defaults.

Context: Perform this step once per ledger.

See: Entering QuickCodes.

19. Define Your Fiscal Years

Use the Fiscal Years window to define the beginning and end of each fiscal year
since the start of your company.

Your fiscal year groups your accounting periods. You must define the start and
end date of each fiscal year since the oldest date placed in service. If you are
 using a 4-4-5 calendar, your start and end dates change every year. Create fiscal
years from the oldest date placed in service through at least one fiscal year
beyond the current fiscal year. Depreciation will fail if the current fiscal year is
the last fiscal year.

Default - This is a required step. If you skip this step, you will not be able to
use Oracle Assets.

Context: Perform this step once per ledger.

See: Creating Fiscal Years.

20. Define Your Calendars

Use the Calendars window to set up as many depreciation and prorate calendars
as you need. Calendars break down your fiscal year into accounting periods.
Define your calendars with as many periods as you need.

Define a prorate calendar and a depreciation calendar for each depreciation

book. Depreciation books can share a calendar, and you can use the same
calendar for your depreciation calendar and prorate calendar if appropriate.

o Depreciation Calendar: Determines, with the divide depreciation flag,

what fraction of the annual depreciation amount to take each period.
o Prorate Calendar: Determines, with the date placed in service, which
depreciation rate to select from the rate table.

You can set up different calendars for each depreciation book. For example, you
might set up a monthly calendar for financial reporting and a quarterly calendar
for tax reporting.

Default - This is a required step. If you skip this step, you will not be able to
use Oracle Assets.

Context: Perform this step once per ledger.

See: Specifying Dates for Calendar Periods.

21. Set Up Security by Book (optional)

If you have multiple depreciation books, you may need to set up security for
each book. For example, you may have operations in the U.S., Europe, and Asia,
and may have ledgers and associated depreciation books set up for each
country, according to that country's currency and tax laws. For a variety of
 reasons, you may prefer that the staff at the different sites are unable to view
depreciation information for another site.

Oracle Assets allows you to limit access to each book so that only certain
individuals can view the information. You do this by creating asset organizations
and organization hierarchies that determine which organizations have access to a
specific depreciation book.

Default - If you skip this step, all asset depreciation books will be accessible to
all users.

Context: Perform this step once per ledger.

See: Setting Up Security by Book.

22. Define Your Book Controls

Use the Book Controls window to set up your depreciation books. You can set up
an unlimited number of independent depreciation books. Each book has its own
set of accounting rules and accounts so you can organize and implement your
fixed assets accounting policies.

When you define a tax book, you must specify an associated corporate book.
You can mass copy assets and transactions from the source book into your tax
book. You specify the current open period, and Initial Mass Copy copies each
asset into the tax book from the corporate book as of the end of that fiscal year
in the corporate book.

Default - This is a required step. If you skip this step, you will not be able to
use Oracle Assets.

Context: Perform this step once per ledger.

To set up security for your ledgers, you need to complete the following steps:

o Define organizations. See: Asset Organizations Overview

o Define organizations hierarchies. See: Organization Hierarchies in Oracle
Assets
o Define security profiles. See: Security Profiles
o Run the Security List Maintenance process. See: Security List Maintenance
Process
o Define responsibilities. See: Defining Responsibilities. See: Defining
Responsibilities
o Assign responsibilities to users. See: Assigning Responsibilities to Users
 o Set up the FA: Security Profile profile option. See: Setting Up FA: Security
Profile

See: Defining Depreciation Books.

23. Define Additional Depreciation Methods and Rates (required with

defaults)

Depreciation methods specify how to spread the asset cost. Oracle Assets
includes many standard depreciation methods, and you can define additional
methods in the Methods window, if necessary.

o Life_Based Depreciation Method: Oracle Assets includes standard life-

based depreciation methods and rates. However, you can define
additional life-based methods.
o Flat-Rate Depreciation Method: You can define additional flat-rate
methods, such as Diminishing Value. You can define your methods to
calculate depreciation using either the net book value or the cost of the
asset.
o Bonus Depreciation Rules: Use the Bonus Depreciation Rules window
to enter bonus rates for your flat-rate depreciation methods. Bonus rules
allow you to take additional depreciation in the early years of an asset's
life.
o Units of Production: You can define a units of production method so
you can calculate depreciation for an asset based on actual production or
use for the period.
o Formula-Based Depreciation: You can define specific formulas to
derive annual depreciation rates for your assets. You can use these user-
defined depreciation formulas in lieu of table-based, flat rate, calculated,
or units of measure depreciation methods.

Default - If you skip this step, you will be able to use only the standard
depreciation methods included in Oracle Assets.

Context: Perform this step once per ledger.

See: Defining Additional Depreciation Methods, Defining Formula-Based

Depreciation Methods and Defining Bonus Depreciation Rules.

24. Define Your Depreciation Ceilings (optional)

Depreciation ceilings limit the depreciation expense you can take for an asset.
Set up depreciation expense ceilings to limit the annual amount of depreciation
 expense you can take on an asset. Or set up depreciation cost ceilings to limit
the recoverable cost of an asset.

o Depreciation Expense Ceilings: Use the Ceilings window to define

your depreciation expense ceilings. If you are subject to United States tax
law, you must set up depreciation ceilings for luxury automobiles.
o Depreciation Cost Ceilings: If you do business in a country which
requires cost ceilings, such as Australia, you can limit the cost Oracle
Assets uses to calculate depreciation. When you use a cost ceiling, Oracle
Assets bases depreciation expense on the lesser of the cost ceiling and
the asset cost.

Default - If you skip this step, depreciation expense will not be limited by
depreciation ceilings.

Context: Perform this step once per ledger.

See: Setting Up Depreciation Ceilings.

25. Define Your Investment Tax Credits (optional)

Set up your Investment Tax Credit (ITC) rates, recapture rates, and ceilings.
Investment tax credits (ITC) allow you to reduce the recoverable cost of an
asset.

o ITC Rates: Oracle Assets allows you to set up ITC rates for assets that
are eligible for Investment Tax Credit. ITC rates determine the amount of
ITC for an asset.
o ITC Recapture Rates: Oracle Assets allows you to set up ITC recapture
rates for assets with Investment Tax Credits. ITC recapture rates
determine the portion of the investment tax credit that must be
recaptured if you retire the asset prematurely.

See: Defining Investment Tax Credit Rates.

o ITC Ceilings: Oracle Assets allows you to define Investment Tax Credit
(ITC) ceilings. ITC ceilings limit the amount of ITC for an asset. If you are
subject to United States tax law, you must set up ITC ceilings for luxury
automobiles.

Default - If you skip this step, you will not be able to use investment tax
credits.

Context: Perform this step once per ledger.

 See: Setting Up Depreciation Ceilings.

26. Define Your Prorate and Retirement Conventions

Use the Prorate Conventions window to set up your prorate and retirement
conventions. Prorate and retirement conventions determine how much
depreciation expense to take in the first and last year of life, based on when you
place the asset in service. Oracle Assets lets you set up as many prorate and
retirement conventions as you need.

o Prorate Conventions: Determines how much depreciation expense to

take in the first year of life.
o Retirement Conventions: If you do business in a country that requires
you to use a different prorate convention for retirements than for
additions, set up retirement conventions to determine how much
depreciation to take in the last year of life, based on the retirement date.

You must set up your prorate conventions for the entire year. When you run the
depreciation program for the last period in your fiscal year, Oracle Assets
automatically generates the dates for your next fiscal year.

Default - This is a required step. If you skip this step, you will not be able to
use Oracle Assets.

Context: Perform this step once per ledger.

See: Specifying Dates for Prorate Conventions.

27. Define Your Price Indexes (optional)

A price index lets you calculate gains and losses for retirements using current
value rather than historical cost. If you do business in a country that requires
you to base gains and losses on current value rather than historical cost, Oracle
Assets lets you set up price indexes to calculate the gains and losses for your
asset upon retirement. When you retire an asset assigned to a category and
book for which you have defined a price index, you can run the Revalued Asset
Retirements Report which uses the revalued asset cost in calculating gains and
losses.

You can use a different index for each asset category or the same index for all
categories. You associate an index with an asset category by entering the name
of the price index in the Price Index field on the Asset Categories window.

Default - If you skip this step, you will not be able to use price indexes with
features such as retirements and insurance.
 Context: Perform this step once per ledger.

See: Defining Price Indexes.

28. Define Your Asset Categories

Asset categories let you define information that is common to all assets in a
category, such as depreciation method and prorate convention. Oracle Assets
uses this information to provide default values to help speed asset entry.

Default - This is a required step. If you skip this step, you will not be able to
use Oracle Assets.

Context: Perform this step once per ledger.

See: Setting Up Asset Categories.

29. Define Distribution Sets (optional)

Distribution sets let you automatically assign distributions to a new asset or mass
addition quickly and accurately by using a predefined distribution set. Default
distribution sets appear in the Distribution Set poplist in the Assignments
window.

Default - If you skip this step, you will not be able to use distribution sets to
automatically assign distributions to new asset additions.

Context: Perform this step once per ledger.

See: Defining Distribution Sets.

30. Enter Leases (optional)

Define leases in the Lease Details window. You can assign leases to one or more
assets in the Asset Details window. You can also test your leases in accordance
with generally accepted accounting principles in the Lease Details window, and
you can analyze alternate leasing strategies using the Lease Payments window.

Default - If you skip this step, you will not be able to assign a lease to an asset.

Context: Perform this step once per ledger.

See: Entering Leases and Lease Analysis.

31. Define Warranties (optional)

 Define and track descriptive information on manufacturer and vendor warranties.
You define the warranty information in the Asset Warranties window. You can
then assign assets to these previously defined warranties in the Asset Details
window. You can assign any number of assets to the same warranty.

Default - If you skip this step, you will not be able to track descriptive
information on manufacturer and vendor warranties.

Context: Perform this step once per ledger.

See: Defining Asset Warranties.

32. Set Profile Options (optional)

Profile options specify how Oracle Assets controls access to and processes data.
In general, profile options can be set at one or more of the following levels: site,
application, responsibility, and user.

Oracle Assets users use the Personal Profile Values window to set profile options
only at the user level. System administrators use the Update System Profile
Options window to set profile options at the site, application, responsibility, and
user levels.

You can set or view the following profile options in Oracle Assets. The table also
includes profile options from other applications that are used by Oracle Assets.

Default - If you skip this step, you will not be able to control access to and
process data optimally in Oracle Assets.

Context: Perform this step once per ledger.

See: Overview of User Profiles, Oracle Applications System Administrator's

Guide and Setting User Profile Options, Oracle Applications System
Administrator's Guide.

33. Define Asset Insurance (optional)

You can use the Fixed Asset Insurance window to define insurance information
for your assets, such as insurance policy information and calculation methods.
You can enter multiple insurance policies for an asset for different categories of
insurance. Oracle Assets uses the insurance information that you enter here to
calculate the current insurance value of the asset.

Default - If you skip this step, you will not be able to track insurance
information for assets.
 Context: Perform this step once per ledger.

See: Overview of Asset Insurance.

Oracle Fixed Assets Setup Document

Posted on July 24, 2020 by santosh kumar adda oracleapps

Oracle Fixed Assets Setup Document

FA_setup steps

1. Introduction 3
2. System Setup Steps and Details 3
ll-1. Setup FA
Responsibilities
3
II-2. Assign
Responsibility
3
II-3. Define Asset Category Flexfield
Structure 3
ll-4. Define Location Flexfield
Structure 4
II-5. Define Asset Key Flexfield
Structure 4
II-6. Define System
Controls 5
II-7. Define Asset Categories (Part
I) 5
II-8. Define Locations (Part
1) 5
II-9. Define Asset Keys (Part
1) 5
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II-10. Define Standard Asset Descriptions/Quickcode Values

(Optional) 6
II-11. Define Fiscal
Years 6
II-12. Define
Calendars
6
II-13. Define Journal Entry
Sources 7
II-14. Define Journal Entry
Categories 7
II-15. Define Depreciation Book
Controls 7
II-16. Additional Depreciation Methods & Rates
(Optional) 7
II-17. Define Depreciation Ceilings
(Optional) 8
II-18. Investment Tax Credits
(Optional) 8
II-19. Define Prorate and Retirement
Conventions 8
II-20. Define Price Indexes
(Optional) 9
II-21. Define UOM Classes
(Optional) 9
II-22. Define UOM
(Optional) 9
II-23. Define Asset Categories (Part
II) 9
II-24. Define Location Combinations (Part
2) 10
II-25. Define Asset Keys (Part
2) 10
II-26. Define Distribution Sets
(Optional) 10
II-27. Enter Leases
(Optional) 10
II-28. Define Warranties
(Optional) 11
II-29. Define Suppliers
(Optional) 11
II-30. Define Employees
(Optional) 11
II-31. Set Profile
Options 11
Appendix A 13

I. Introduction
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This document describes how to setup Oracle Fixed Assets. The setup steps are listed in
the order that they are to be accomplished. This is a generic document that can be used
to implement any site. Site specific data is not included in this document. This setup
document also assumes that the GL is implemented, therefore the necessary setup steps
of the GL (needed for FA) are not included. See the GL setup document. Also, see
Appendix A, which gives the Oracle setup instructions for FA.

II. System Setup Steps and Details

Note: You should be under the System Admin Responsibility
ll-1. Setup FA Responsibilities
In setting up the FA responsibilities it is necessary to specify localizations in the
Application field (if applicable).

Tim
e Navigation to Form Actions
1. Enter Responsibility Name,
Application (specify localizations– if
applicable otherwise specify Oracle
Assets), Key, Description, Data Group
Name (Standard), Application (Oracle
Assets), Request Group Name (specify
country FA Globalization or All
10 Security – Responsibilities – Reports), Menu (FA_MAIN), Function
min Define & Menu Exclusions (if applicable)
Be sure to assign the responsibility to
the Security Rules to prevent posting
to the wrong company code. Note:
The responsibility will be tied to the
localization application if localizations
NOTE are enabled.
You may need to modify or create a
new a New Request Group – if the
site localization request group does not
contain the standard application reports
NOTE (Security – Responsibilities – Request)
II-2. Assign Responsibility
Assign responsibility to a user.

Tim
e Navigation to Form Actions
5 1. Pull up User and add responsibility
min Security – User – Define to bottom of Form

II-3. Define Asset Category Flexfield Structure

This may already be done if Fixed Assets is installed on the implementation instance.
The flexfield allows you to define asset categories and subcategories. You must assign a
major category qualifier to one of the segments. The major category segment facilitates
capital budgeting.

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Tim
e Navigation to Form Actions
1. Define Value Sets – one for each
segment
2. Define Segments – one segment
needs to be assigned the major
category qualifier.

3. Do not check Allow Dynamic

Inserts, Cross-Validate Segments.
See GL Setup Guide for detail 4. Enable, Freeze and Compile
1 setup instructions for new Flexfield definition.
hour flexfields(steps 11-2 and 11-3)
Enter Flexfield Values 1. Enter Application (Oracle
(Application – Flexfield-Key- Assets) and Segment for which the
Values) value is to be added
2. Press Find

3. Insert New Value and

 Description

4. Enabled should be checked

5. Enter Effective Dates (if

applicable – otherwise leave blank)

ll-4. Define Location Flexfield Structure

This may already be done if Fixed Assets is installed on the implementation instance.
The location flexfield allows you to specify and track the exact location of your assets. A
state segment qualifier needs be assigned to one segment of the flexfield if you are using
Oracle’s property tax reporting.

Tim
e Navigation to Form Actions
1 Define Value Sets – one for each
segment
2. Define Segments – one segment
needs to be assigned the state qualifier
if using property tax reporting.

3. Dynamic Inserts Allowed (if

desired), Do not check Cross-Validate
Segments.

See GL Setup Guide for detail 4. Enable, Freeze and Compile

1 setup instructions for new Flexfield definition.
hour flexfields(steps 11-2 and 11-3)
Enter Flexfield Values 1. Enter Application (Oracle
(Application – Flexfield-Key- Assets) and Segment for which the
Values) value is to be added
2. Press Find

3. Insert New Value and

Description
 4. Enabled should be checked

5. Enter Effective Dates (if

applicable – otherwise leave blank)

II-5. Define Asset Key Flexfield Structure

This may already be done if Fixed Assets is installed on the implementation instance.
The asset key flexfield allows you to define asset keys that let you name and group your
assets so you do not need an asset number to find them. The asset key has no financial
impact.

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Tim
e Navigation to Form Actions
1. Define Value Sets – one for each
segment (if applicable)
2. Define Segments

6. Dynamic Inserts Allowed (if

desired), Do not check Cross-Validate
Segments.

See GL Setup Guide for detail 3. Enable, Freeze and Compile

1 setup instructions for new Flexfield definition.
hour flexfields(steps 11-2 and 11-3)
1. Enter Application (Oracle
Assets) and Segment for which the
value is to be added
2. Press Find

3. Insert New Value and

Description

4. Enabled should be checked

(Only do If value set is
used) Enter Flexfield Values 5. Enter Effective Dates (if
(Application – Flexfield-Key- applicable – otherwise leave blank)
Values)
Note: You now need to switch responsibilities to FA User
II-6. Define System Controls
This is only done once per Oracle instance. If Assets is already installed for another site
on your instance, you can skip this step.

Tim
e Navigation to Form Actions
1. Enter Enterprise Name
2. Enter Oldest Date Placed in
Service

3. Enter the Category, Location and

Asset Key Flexfield you will be using

4. Enter the Starting Asset Number

(Oracle uses this for automatically
5 Setup – Asset System – System numbering your assets)
min Controls
II-7. Define Asset Categories (Part I)
Define the Valid Values for the Asset Category Segments

Tim
e Navigation to Form Actions
1. Enter Application (Oracle
Assets) and Segment for which value is
to be added
2. Press Find

3. Insert New Value and

20 Setup – Financials – Flexfield – Description
min Key – Values
II-8. Define Locations (Part 1)
Define the Valid Values for the Location Segments.
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Tim
e Navigation to Form Actions
1. Enter Application (Oracle
Assets) and Segment for which value is
to be added
2. Press Find

3. Insert New Value and

20 Setup – Financials – Flexfield – Description
min Key – Values
II-9. Define Asset Keys (Part 1)
Define the Valid Values for Asset Key Segments.

Tim
e Navigation to Form Actions
1. Enter Application (Oracle
Assets) and Segment for which value is
to be added
2. Press Find

3. Insert New Value and

20 Setup – Financials – Flexfield – Description
min Key – Values
II-10. Define Standard Asset
Descriptions/Quickcode Values (Optional)
QuickCode values are values that you can choose from a list of values when you enter
and maintain assets. Sites share quickcode values. Oracle delivers some quickcode
values, which only the descriptions may be changed.

Tim
e Navigation to Form Actions
 1. Query the Quickcode Name for
which you want to define values (see
below)
20 Setup – Asset System – 2. Enter Value and Description
min QuickCodes
Quickcode Name: Asset Description,
Journal Entries, Queue Name, Property
Type, Retirement, Asset Category,
Asset Subcategory, Unplanned
Depreciation Type, Lease Frequency,
Lease Payment Type.

Note: If you create hierarchical asset

category values, you do not need to
enter category and subcategory
QuickCode values.

Note: The values you enter appear in

List of Values windows which allow no
more than 12 spaces.

II-11. Define Fiscal Years

Define beginning and end of each fiscal year from the oldest date placed in service
through the current fiscal year. Sites can share Fiscal Years.

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Tim
e Navigation to Form Actions
5 Setup – Asset System – Fiscal 1. Enter Name and Description
min Years 2. Enter Start and End Date of each
fiscal year.

3. Enter Fiscal year you are

defining
 Note: The first fiscal year must be the
year of the oldest date placed in
service.

Note: At the end of each fiscal year, the

depreciation program automatically
generates the dates for the following
fiscal year and calendars.

II-12. Define Calendars

Setup as many depreciation and prorate calendars as needed. A depreciation calendar
determines the number of accounting periods in your fiscal year. The prorate calendar
determine the number of prorate periods in your fiscal year. One calendar can serve
both functions and sites can share calendars. For the first calendar you must set up all
calendar periods from the period corresponding to the oldest date placed in service to
the current period. At the end of each fiscal year, Oracle Assets automatically sets up the
periods for the next fiscal year.

Tim
e Navigation to Form Actions
1. Enter Calendar Name,
Description, Fiscal Year Name, Periods
per Year.
2. Click appropriate Period Suffix
(Fiscal)

3. Enter Period name and From and

5 Setup – Asset System – To Dates
min Calendars

II-13. Define Journal Entry Sources

THIS SHOULD ALREADY HAVE BEEN DONE SETUP DURING THE GL SETUP. Need
Journal source SYSFA0XX for Fixed Assets. Note: The source/category options should
not be added to the GL conversion options, as Assets is different from AP and AR.
Currently the Assets journals will be need to be manually entered into the RSOB, until
we determine the MRC strategy for Assets.
 Tim
e Navigation to Form Actions
5 Setup – Financials – General 1. Enter Name and Description
min Ledger – Journal Sources (Assets)
II-14. Define Journal Entry Categories
THIS SHOULD ALREADY HAVE BEEN DONE SETUP DURING THE GL SETUP.
Oracle provides predefined categories.

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Tim
e Navigation to Form Actions
5 Setup – Financials – General 1. Enter Name and Description
min Ledger – Journal Sources (Addition)
II-15. Define Depreciation Book Controls
You can setup an unlimited number of depreciation books. Each book has its own set of
accounting rules and accounts. When you define a tax book, you must specify an
associated corporate book. You can use Mass Copy to copy assets and transactions
from the source book into the tax book.

Time Navigation to Form Actions

1. Enter Name of Book and
Description
2. Enter Class (Corporate, Tax or
Budget)

3. Under Calendar: Select GL Set

of Books, Depr. Calendar, Fiscal Year
Name, Prorate Calendar, Current
Setup – Asset System – Book Period
varies Controls
Switch to 4. Natural Accounts: Enter
accounts, full account code structure is
 need for Account Generator Defaults
5. Journal Categories: Enter Journal
Category for each item.

6. Accounting Rules: Verify

Defaults are correct

II-16. Additional Depreciation Methods & Rates

(Optional)
Oracle provides many standard depreciation methods – sites share these methods. Only
new methods and rates need to be added.

Tim
e Navigation to Form Actions
1. Enter Method Name,
Description, Type, Calculation Basis
2. Check Depreciate in Year
Retired and other options if applicable.

3. Enter Number of Life

Years/Months, Prorate Periods Per
1 Setup – Depreciation – Year (if applicable)
hour Methods
4. Enter Year, Period and Annual
Click Rates Rate

II-17. Define Depreciation Ceilings (Optional)

Depreciation ceilings limit the depreciation expense you can take for an asset. If you are
subject to US tax law, you must set up depreciation ITC ceilings for luxury automobiles.
If you use a Cost Ceiling, Oracle Assets bases depreciation expense on the lesser of the
cost ceiling and the asset cost. Expense ceilings indicate the maximum annual
depreciation allowance for each year of the asset life.
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 Tim
e Navigation to Form Actions
1. Enter Ceiling Name and
Description
2. Enter Currency
3. Enter From/To Date for Dates
Placed in Service

10 4. Enter Ceiling Amount

min Setup –Depreciation – Ceilings

II-18. Investment Tax Credits (Optional)

Oracle provides defaults– verify that they are correct. Sites all share these values. ITC
credits allow you to reduce the recoverable cost of an asset. ITC rates determine the
amount of ITC for an asset. ITC Recapture Rates determine the portion of the
investment tax credit that must be recaptured if you retire the asset prematurely.

Tim
e Navigation to Form Actions
1. Enter year the ITC rate is
effective
2. Enter asset life (Year/Month) for
which ITC rate applies

3. Enter ITC Rate (%)

10 Setup –Depreciation – ITC 4. Enter Basis Reduction Rate (%)

min Rates
Setup – Depreciation – ITC 1. Enter year the recapture rate is
Recapture Rates effective
2. Enter asset life (Year/Month) for
which recapture rate applies

3. Enter Year of Retirement to

which the rate applies
 4. Enter Recapture Rate (%)

II-19. Define Prorate and Retirement

Conventions
This determines how much depreciation expense to take in the first (prorate) and last
(retirement) year of life, based on when you place the asset in service. You must set up
conventions corresponding to oldest date placed in service through the end of the
current fiscal year. At the end of each fiscal year, Oracle automatically sets up your
prorate conventions for the next fiscal year. Sites can share conventions.

Tim
e Navigation to Form Actions
1. Enter Convention Name and
Description
2. Select Fiscal Year Name

3. Check Depreciate when placed in

Service checkbox (if applicable). This
option does not apply to calculated
methods (straight-line), period that
corresponds to prorate date is used.

4. Enter first To Date and Prorate

Date. Once you enter the first entry,
simply tab through rest of fields and
Oracle will populate.

Note: From Date is supplied by Oracle

– it starts with first period of oldest
5 Setup – Asset System – Prorate date placed in service.
min Conventions

II-20. Define Price Indexes (Optional)

A price index lets you calculate gains and losses for retirements using the current value
rather than historical cost. This is based on country requirements. When you retire an
asset which is associated with a price index, you can run the Revalued Asset Retirements
Report to determine the revalued asset cost and recalculate gain/loss for retired assets.
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Tim
e Navigation to Form Actions
1. Enter Name
2. Enter Index Value %

3. Enter From/To Date that Index is

5 Setup – Asset System – Prices effective
min Indexes

II-21. Define UOM Classes (Optional)

You can define classes for the units you use to measure production for your units of
production assets. This will already be done if Oracle Purchasing or Inventory are
installed. You will only need to define UOM Classes and Values if you utilize the units
of production depreciation method.

Tim
e Navigation to Form Actions
1. Select Organization
2. Enter Name and Description

10 Setup – Financials – Units of 3. Enter Base Unit and UOM

min Measure – Classes
4. You can define UOM measures for
the classes here or as in Step 21 below
Click Unit of Measure (see below for data entry details)

II-22. Define UOM (Optional)

Tim
e Navigation to Form Actions
10 Setup – Financials – Units of 1. Select Organization
 2. Enter Name, UOM and
Description

3. Check if Base Unit

4. Select UOM Class

min Measure – Unit of Measure

II-23. Define Asset Categories (Part II)

This window creates the valid asset category combinations and their associated
accounting and default rules. Categories are used to provide default values to help speed
asset entry. Sites can share asset categories as long as each site’s book is assigned to the
category. One Category can be assigned to multiple books.

Tim
e Navigation to Form Actions
1. Press F9 on Category Field –
Enter major and minor category
combination (Select a value which was
defined in 11-7 Part I)
2. Enter Description

3. Select Category Type and

Ownership

4. Check Enabled, Capitalize, In

Physical Inventory

5. Select Book

6. Enter GL Account Codes for

30 Setup – Asset System – Asset applicable fields
min Categories
Click Default Rules 7. Enter Date Placed in Service
Range for which these category
defaults are effective.
8. Click Depreciate box (if
 applicable)

9. Select Depreciation Method and

Life (Years/Months)

10. Select Prorate and Retirement

Convention

11. Enter Minimum time to hold an

asset for Oracle Assets to report it as a
capital gain when the asset is retired.
(Default is US standard of 1 year)

12. Enter other fields if applicable

II-24. Define Location Combinations (Part 2)

Valid location segment combinations must be entered here if Dynamic Insert = N. If
dynamic insert is turned on, Oracle Assets automatically updates the Locations window
with the values you enter in the Assignments window when you assign assets to any
Assignment.

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Tim
e Navigation to Form Actions
1. Press F9 on Location Field –
Enter segment combination (Select a
value which was defined in 11-8 Part I)
2. Enter Effective Dates (if
applicable)

30 Setup – Asset System – 3. Check Enabled

min Locations

II-25. Define Asset Keys (Part 2)

Valid asset key segment combinations must be entered here if Dynamic Insert = N. If
dynamic insert is turned on, Oracle Assets automatically updates the Locations window
with the values you enter in the Assignments window when you assign assets to any
Assignment.

Tim
e Navigation to Form Actions
1. Press F9 on Asset Key Field –
Enter segment combination (Select a
value which was defined in 11-9 Part I)
2. Enter Effective Dates (if
applicable)

30 Setup – Asset System – Asset 3. Check Enabled

min Keys

II-26. Define Distribution Sets (Optional)

Distribution sets are used to automatically enter the account codes for a new asset or
mass addition. A default distribution set can be assigned to a supplier site. Distribution
codes are typically setup for expense and tax accounting lines. They are site/book
specific.

Tim
e Navigation to Form Actions
20 Setup – Asset System – 1. Enter Name, Description
min Distribution Sets 2. Select Corporate Book (Cannot
assign DS to tax or budget books)

3. Enter Date Placed in Service

Range

4. Enter Units % (should be 100

unless you want to break up the total
into several distributions)

5. Enter Expense Account and

 Location

II-27. Enter Leases (Optional)

Leases can then be assigned to assets which have an asset category type of lease.

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Time Navigation to Form Actions

1. Enter Number and Description
2. Enter Lessor

3. Enter Type (Capitalized or

Operating – Oracle can determine if
necessary)

4. Select a Payment Schedule or

create a new one by Clicking on
Payment Schedule button.

Setup – Asset System – Leases 5. Enter Currency

20min – Lease Details
6. Enter Begin Date (First day of
month that lease began)
7. Enter Interest Rate (Lesser or
lessee’s incremental borrowing rate or
rate implicit in lease contract)

8. Enter Compounding Frequency

9. Enter Payment Lines

Click Payment Schedule
10. Oracle calculates the present
Click Calculate value of the payment lines entered
Click View Amortization 11. Creates an Amortization schedule
(The difference between the PV of the
 minimum lease payments and the total
amount to be paid under the lease
presents the interest expense that must
be recognized over the life of the
asset).

II-28. Define Warranties (Optional)

This form is used to define and track descriptive information on manufacturer and
vendor warranties. Assets can be assigned a warranty in the Asset Details window.

Tim
e Navigation to Form Actions
1. Enter Warranty number and
Description
2. Start/End Dates, Currency Code

3. Cost

10 Setup – Asset System – 4. Enter Supplier information

min Warranties
II-29. Define Suppliers (Optional)

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SHOULD ALREADY BE DONE – if Payables is installed.

II-30. Define Employees (Optional)

SHOULD ALREADY BE DONE – The HR department should load the employee
information. If HR is not installed, the data is still populated to the Oracle tables for use
in assigning assets to employees.

Time Navigation to Form Actions

10min HRMS – UK – People – Enter 1. Enter Name, Type (Employee) and
 & Maintain Employee Number

Note: You should be under the System Admin Responsibility

II-31. Set Profile Options
This assigns the Set of Books to the FA responsibility.

Tim
e Navigation to Form Actions
1. Enter Application (Oracle Assets)
2. Responsibility

3. Enter Partial search in Profile

field for info. in step 5 to limit the
amount of information returned

4. Click Find

5. Enter the appropriate Profile

information under the responsibility
column:

– JG: Country Code

– JG: Product Code (Code for

country’s localizations)

– JG: Application Short Name

10 – GL: Set of Books Name

min Profile – System

Appendix A
This following steps are provided by Oracle in their Fixed Assets Users Guide. It
includes the necessary GL setup needed for an FA implementation. Refer to the Oracle
Users Guide Chapter 9 for details. The referenced pages are the pages in the Oracle
Users Guide available online. Some steps are not applicable for GEAE installations or
are part of the GL/AP setup, this is indicated after the page number.

q Step 1: Define Your Set of Books: page 9 – 5 (GL)

q Step 2: Define Your Asset Category Flexfield : page 9 – 5

q Step 3: Define Your Location Flexfield Structure: page 9 – 6

q Step 4: Define Your Asset Key Flexfield: page 9 – 6

q Step 5: Define Your System Controls: page 9 – 6

q Step 6: Define Your Locations (Optional): page 9 – 6

q Step 7: Define Your Asset Keys (Optional): page 9 – 7

q Step 8: Define Your Standard Asset Descriptions and Other QuickCode Values
(Optional): page 9 – 7

q Step 9: Define Your Fiscal Years: page 9 – 7

q Step 10: Define Your Calendars: page 9 – 8

q Step 11: Define Additional Journal Entry Sources (Optional): page 9 – 8 (GL)
q Step 12: Define Additional Journal Entry Categories (Optional): page 9 – 8 (GL)
q Step 13: Define Your Book Controls: page 9 – 9

q Step 14: Decide How to Use the Account Generator: page 9 – 9 (Use Oracle default)

q Step 15: Define Additional Depreciation Methods and Rates (Optional): page 9 – 9

q Step 16: Define Your Depreciation Ceilings (Optional): page 9 – 10

q Step 17: Define Your Investment Tax Credits (Optional): page 9 – 10

q Step 18: Define Your Prorate and Retirement Conventions: page 9 – 11

q Step 19: Define Your Price Indexes (Optional): page 9 –11

q Step 20: Define Your Unit of Measure Classes (Optional): page 9 – 11 (INV/PO)
q Step 21: Define Your Unit of Measure (Optional): page 9 – 12 (INV/PO)
q Step 22: Define Your Asset Categories: page 9 – 12

q Step 23: Define Distribution Sets (Optional): page 9 – 12

q Step 24: Enter Leases (Optional): page 9 – 13

q Step 25: Define Warranties: page 9 – 13

q Step 26: Define Your Supplier and Employee Numbering Schemes (Optional): page 9
– 13 (AP)
q Step 27: Define Your Suppliers (Optional): page 9 – 13 (AP)
q Step 28: Define Your Employees (Optional): page 9 – 14 (AP)
q Step 29: Define Your Descriptive Flexfields (Optional): page 9 – 14 (not applicable)
q Step 30: Set Profile Options: page 9 – 14