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Below is a comprehensive and detailed document for the Oracle Fusion

Fixed Assets (FA) module. This document is structured to cover all aspects of its
functionality, configuration, integration, and advanced features.

Detailed Overview of Oracle Fusion Fixed Assets (FA) Module

1. Introduction to Oracle Fusion Fixed Assets (FA) Module
Oracle Fusion Fixed Assets (FA) is a comprehensive asset management solution that
enables organizations to track, manage, and account for their physical and
intangible assets. It streamlines the asset lifecycle from acquisition and
capitalization to depreciation, revaluation, disposal, and reporting. Integration with
other Oracle Fusion Financials modules, such as General Ledger (GL), Accounts
Payable (AP), and Procurement, provides a unified approach to managing asset
data.
The core functionality of the Oracle Fusion FA module ensures accurate asset
tracking, seamless financial reporting, compliance with accounting standards (such
as IFRS and GAAP), and efficient lifecycle management of all asset classes—tangible
or intangible. Additionally, it provides advanced features for asset depreciation,
revaluation, and reporting, which are critical for organizations managing large
volumes of assets.
Key Features of Oracle Fusion Fixed Assets:
 Asset Acquisition: Capture asset acquisitions through purchase orders,
invoices, or manual entries.
 Asset Depreciation: Support for multiple depreciation methods, including
straight-line, declining balance, and user-defined methods.
 Asset Tracking: Keep track of asset locations, conditions, and custodians.
 Asset Retirement/Disposal: Handle asset disposal, sale, or retirement,
ensuring proper accounting.
 Asset Revaluation: Perform revaluation of assets, updating their value
according to market conditions or organizational policies.
 Integration: Seamless integration with Oracle Fusion General Ledger (GL),
Accounts Payable (AP), and Procurement.

2. Key Functional Areas of Oracle Fusion Fixed Assets

2.1 Asset Acquisition and Setup
In Oracle Fusion FA, asset acquisition involves capturing detailed information about
the asset, including its cost, acquisition date, and associated accounting entries.
This can be done automatically through integration with Accounts Payable or
manually through asset entry forms.
Key Features:
 Asset Class Definition: Define asset categories (e.g., buildings, machinery,
computers) and the corresponding accounting rules (e.g., asset capitalization
threshold, depreciation methods).
 Asset Source and Description: Record information such as asset
description, model numbers, and serial numbers for better tracking and
reporting.
 Purchase Order Integration: Assets can be acquired directly through
procurement processes, where purchase orders or invoices automatically
create assets in the system.
 Manual Asset Creation: Assets can also be manually created, including
those from asset transfers or internal construction projects.
 Capitalization: Set up capitalization thresholds to automatically capitalize
assets once the cost is above a specified value.
2.2 Asset Depreciation
Oracle Fusion FA provides a powerful framework for calculating depreciation
according to various methods and rules. Depreciation is essential for asset
accounting, as it allocates the cost of an asset over its useful life.
Key Features:
 Depreciation Methods: Support for multiple depreciation methods,
including:
o Straight-Line (SL): Allocates equal depreciation expense over the
asset's useful life.
o Declining Balance (DB): Depreciates more in the earlier years,
reducing over time.
o Sum of the Years’ Digits (SYD): Accelerated depreciation method
that allocates depreciation more in the earlier years.
o Units of Production: Depreciation is based on the asset’s usage or
production output.
 Flexible Depreciation Calendars: Use different calendars for various asset
classes or legal entities, ensuring compliance with tax and accounting
regulations.
 Depreciation Calculation Frequency: Calculate depreciation daily,
monthly, quarterly, or yearly, depending on organizational needs.
  Multiple Depreciation Books: Maintain separate depreciation books for
tax, book, and other reporting purposes, ensuring compliance with regulatory
standards like GAAP, IFRS, and local tax laws.
 Depreciation Adjustment: Adjust depreciation calculations in case of asset
improvements, disposals, or revaluations.
2.3 Asset Tracking
Effective tracking of assets is critical for proper accounting, compliance, and asset
management. Oracle Fusion FA provides comprehensive features for asset location,
status, and custodianship tracking.
Key Features:
 Asset Location: Record where each asset is physically located (e.g., office,
warehouse, plant).
 Custodianship: Assign responsible individuals (custodians) to each asset for
better accountability and management.
 Asset Condition Tracking: Track the physical condition of assets, including
whether they are in service, under maintenance, or retired.
 Barcoding and RFID Integration: Track assets using barcodes or RFID for
easy scanning and identification. Integration with barcode scanners simplifies
asset verification and reporting.
 Asset Tags: Assign unique asset tags to each asset for identification and
tracking purposes.
2.4 Asset Revaluation
Oracle Fusion FA allows organizations to perform asset revaluation to reflect the
current market value of an asset. Revaluation can be triggered by changes in
market conditions or as part of regular accounting reviews.
Key Features:
 Revaluation Methods: Support for various revaluation methods, including
fair value revaluation, cost model, and indexed revaluation.
 Revaluation Date: Perform revaluation as of a specific date, ensuring
accurate financial reporting.
 Automatic Adjustments: The system automatically adjusts the asset’s
book value and calculates depreciation for the newly revalued asset.
 Revaluation Journals: Generate accounting journals automatically for
revaluation adjustments, ensuring accurate ledger entries.
2.5 Asset Retirement and Disposal
Oracle Fusion FA enables the efficient handling of asset retirement or disposal,
ensuring proper accounting for asset write-offs and related transactions.
Key Features:
 Asset Disposal: Record asset disposals due to sale, donation, destruction, or
transfer. Include details such as sale proceeds and disposal costs.
 Retirement Reasons: Classify asset retirements by reason, such as
damaged, obsolete, or sold.
 Gain/Loss on Disposal: Automatically calculate and record the gain or loss
on asset disposals based on the difference between the asset's book value
and disposal proceeds.
 Asset Transfer: Manage asset transfers between different locations or legal
entities while keeping track of depreciation and asset histories.
 Depreciation Reset: Automatically reset depreciation to reflect any
changes in the asset's status (e.g., after transfer or retirement).
2.6 Asset Reporting and Analytics
Oracle Fusion FA offers comprehensive reporting and analytics capabilities to help
organizations maintain visibility over their assets, depreciation, and financial
impact.
Key Features:
 Standard Asset Reports: Includes reports such as asset listings,
depreciation schedules, asset acquisitions, disposals, and revaluations.
 Depreciation Reports: Provides detailed reports on depreciation by asset
class, asset book, and accounting period.
 Asset Aging Reports: Track assets by age, such as the number of years
since acquisition, to assist with decision-making regarding maintenance or
replacement.
 Custom Reports: Use Oracle BI Publisher or Oracle Financial Reporting
Studio (FRS) to create custom reports based on specific business
requirements.
 Asset Analytics Dashboard: Visualize key metrics such as asset age,
remaining useful life, and total depreciation expense through interactive
dashboards.

3. Configuration and Setup

3.1 Asset Class Setup
  Asset Categories: Define asset categories that align with the organization's
asset types (e.g., machinery, furniture, vehicles).
 Depreciation Rules: For each asset class, define the depreciation methods,
useful life, and capitalization thresholds.
 Asset Books: Set up asset books (e.g., Tax Book, Corporate Book) with
specific rules for each (e.g., different depreciation methods for tax purposes).
3.2 Acquisition Configuration
 Purchase Order Integration: Configure integration with the Oracle Fusion
Procurement module to create assets from purchase orders and invoices.
 Manual Asset Entry: Define templates for manually entering asset data
such as cost, asset type, and location.
3.3 Depreciation Configuration
 Depreciation Methods: Configure different depreciation methods for each
asset class, allowing flexibility in accounting for different types of assets.
 Depreciation Calendar: Set up depreciation calendars with specific start
and end dates to align with the organization’s fiscal periods.
3.4 Asset Retirement/Disposal Configuration
 Retirement Types: Set up various reasons for asset retirement (e.g., sold,
scrapped, donated) to categorize disposals.
 Accounting Entries: Define accounting rules for asset disposals, including
treatment of gains/losses on disposal.

4. Integration with Other Modules

Oracle Fusion FA integrates seamlessly with other Oracle Fusion Financials modules,
such as General Ledger (GL), Accounts Payable (AP), and Procurement, ensuring
that asset transactions flow smoothly across the organization.
4.1 General Ledger (GL)
 Automatic Journal Entries: Oracle Fusion FA automatically generates
journal entries for asset acquisitions, depreciation, revaluations, and
disposals, ensuring accurate financial reporting.
 Depreciation Posting: Depreciation expense is posted to the GL on a
periodic basis, ensuring accurate expense recognition.
 Revaluation and Disposal Entries: Integration with GL ensures that asset
revaluations and disposals are reflected in the company’s financial
statements.
4.2 Accounts Payable (AP)
  Asset Acquisition Integration: AP invoices that correspond to asset
purchases are automatically integrated into the FA module, creating assets in
the system.
 Invoice Matching: Invoices related to asset purchases can be matched
against purchase orders, ensuring accurate asset cost recording.
4.3 Procurement
 Procurement and Asset Tracking: Asset purchases made through the
Procurement module automatically create asset records in
the FA module, linking assets to procurement processes.
 Receiving Integration: Upon receiving goods, assets are automatically
created in the FA module, streamlining asset management.

5. Advanced Features of Oracle Fusion FA

5.1 Asset Tracking with Barcode and RFID
Oracle Fusion FA supports asset tracking via barcode or RFID, ensuring that assets
are easily scanned and tracked throughout their lifecycle. This helps in quick
verification during audits and regular asset management tasks.
5.2 Bulk Depreciation and Adjustments
For large asset portfolios, Oracle Fusion FA supports bulk depreciation processing
and adjustments, reducing manual effort when dealing with large volumes of asset
data.
5.3 Asset Revaluation with IFRS/GAAP Compliance
Oracle Fusion FA ensures that assets can be revalued based on fair market value,
complying with IFRS, GAAP, or local regulations. Revaluation can be done
automatically or manually based on business requirements.
5.4 Multi-Currency and Multi-Book Support
Oracle Fusion FA supports multi-currency accounting, enabling businesses to
manage assets in different currencies. It also supports multiple asset books,
ensuring compliance with both local tax laws and international accounting
standards.
5.5 Cloud-Based Accessibility
As part of Oracle Cloud, the FA module is accessible anytime, anywhere, ensuring
that asset data is readily available for decision-making, audits, and reporting.

6. Audit and Compliance

6.1 Audit Trail
Oracle Fusion FA maintains a complete audit trail for all asset-related transactions,
including acquisitions, revaluations, retirements, and adjustments. This ensures
compliance with internal controls and external regulations.
6.2 Segregation of Duties (SoD)
Role-based access control ensures that only authorized personnel can perform
specific actions (e.g., asset acquisitions, disposals, or depreciation adjustments),
reducing the risk of fraud.