Oracle Cloud ERP – Fixed Assets

Oracle Cloud ERP Implementation – TASL, Ki Mobility

Agenda:-
1. FUNCTIONALITY OVERVIEW
2. ACCESSING THE FIXED ASSET MODULE
3. CREATION OF ASSETS
3.1. Creating a single asset directly in fa
3.2. Creating multiple assets in fa through spreadsheet
3.3. Creating assets through mass addition from ap invoice
4. SPLIT AND MERGE ASSET LINES
4.1. Split asset lines
4.2. Merge asset lines
5. CIP ASSETS AND THEIR CAPITALIZATION
5.1. Creating a CIP asset
5.2. Capitalizing CIP asset
6. ADJUSTMENT OF ASSETS
7. TRANSFER OF ASSETS
8. ASSET RETIREMENT
8.1. Retire cost
8.2. Retire units
9. REINSTATE RETIRED ASSET
10. MANAGE LEASES
11. DEPRECIATION RUN
12. FIXED ASSET REGISTER
13. PERFORM PERIODIC MASS COPY
1. Functionality overview :-
Oracle Fixed Assets automates asset management and simplifies accounting tasks. Using a unified source
of asset data (with data from your Oracle applications as well as external feeder systems), Oracle Assets
gives you visibility into your assets in an organized manner.

The major functionalities that will be performed in Fixed Assets module will be as follows:
∙ Creation of Assets – manually in FA, as well as from AP module
∙ Capitalization of Assets
∙ Depreciation of Assets
∙ Transfer of Assets
∙ Adjustment of Assets
∙ Retirement of Assets
∙ Reinstating of retired Assets
∙ Managing Lease Assets
A Walkthrough Into Fixed Assets Module
2. Accessing the Fixed Asset Module

Navigation Input Values Action Expected

Outcome
Navigation: None Click on Fixed Asset Icon → Asset dashboard is
→Welcome Click on Asset icon displayed
Dashboard
→Fixed Asset
→ Assets
3. Creation of Assets

To add acquired assets to Oracle Fusion Assets, they can be recorded in Oracle using one of the below
methods:
1) Manual additions
2) Mass additions

3.1 Creating a single asset directly in FA

Navigation: Fixed Assets → Task Button → Add Assets

Click the Add Asset button from the Tasks menu and the form will pop-up as shown below for
entering all the details related to the asset
Enter all the details in the above form as shown in the screenshot above. Each of the fields is a mandatory
field
∙ Select the appropriate Asset Book from the LOV for which the asset is acquired
∙ Select the Asset Type – CIP, Capitalized and Expensed
∙ Select the Asset Category from the LOV (Asset Category is a sub-master and the values can be updated
as and when required)
∙ Enter the description of the asset
∙ Enter the cost of the asset
∙ Enter the number of units of the asset acquired
∙ Select the appropriate expense account ( the natural account will default as per the asset category, but
the other segments can be selected appropriately)
∙ Select the Asset Location from the LOV (Asset location is also a sub-master)
Click on Submit if you want to create the asset in the system with all these details. In case you want to
enter additional information for the asset like Employee Name, Tag Number, In Service Date etc. click on
Next and the below form will open where you can enter all such information
Click on Submit after entering additional details and the asset will be created
You can use the ‘Inquire Assets’ form in the task menu to search the assets using multiple selection criteria.
Click on the Inquire Assets button as shown in the screenshot below:
Click on Advanced
In the below search form, you can enter multiple fields to search any asset that you want. There is also a
‘Add Fields’ button in the bottom of the form to use additional filter criteria
3.2. Creating multiple assets in FA through spreadsheet

Navigation: Fixed Assets → Task Button → Add Assets in Spreadsheet

Note: Pre-requisite: The Desktop Integration Installer should be downloaded in your

system to use this feature
In Oracle fusion, there is also a functionality to use excel to add multiple assets into FA module
directly
Once you click on the ‘Add Assets in Spreadsheet’ tab, a pop-up will ask for the Asset Book and Asset Type
and then an excel will be downloaded in your system with a pre-defined template

Enter the below information for all the assets that you want to create in the downloaded
spreadsheet :

∙ Description
∙ Asset Category
∙ Date placed in service
∙ Cost
∙ Units
∙ Asset Location
∙ Depreciation Expense Account
Once all the details are entered, click on Submit. The Status field will provide information whether the
record is inserted successfully into Oracle or not.
3.3. Creating assets through mass addition from AP invoice

Once an AP invoice is created for a CapEx item in Oracle Payables module, then there is a Mass Addition
process which is used to transfer the same into FA and subsequently, an asset is created for the same.
Step 1 – Run the Create Mass Addition program from Oracle Payables ( Users having access to AP module
will be running this)
Navigation : Payables -> Invoices -> Task -> Create Mass Additions
This program will also be scheduled at regular frequency as required by the business
There are only 2 parameters for running the program:
• Accounting Date – The date up to which all the transactions should be picked up from AP and
transferred to FA
• Asset Book

Step 2 – Prepare Source Lines

Navigation : Fixed Assets -> Assets -> Task -> Prepare Source Lines
Once the Create Mass Addition process is completed successfully, it will transfer to FA dashboard. The
same can be queried by clicking on ‘Prepare Source Lines’ tab and queue field as New.
Click on the description hyperlink, and enter the below details :
∙ Asset Category
∙ In Service Date
∙ Asset Type ( Capitalized / CIP )

Enter the depreciation expense account and the asset location:

Change the queue status to Post as shown in the screenshot below and click on Save and Close.
Step 3 – Post the Asset
After completing the above step, the assets will appear in the FA dashboard screen under ‘Ready to Post’
tab as shown in the screenshot below:

Click on the ‘Ready to Post’ tab and all the assets which are ready for posting for this particular book will be
displayed here
Click on the button ‘Post All’. A background program will run and once it completes, you will get a
notification under the bell icon on the top

As explained before, the ‘Inquire Assets’ form can be used to search the asset created using the In-service
date field
On clicking search, we can see that the asset has been created in the system
4. Split and Merge Asset lines
4.1. Split Asset lines

If a single Invoice is to be split into multiple assets, then split functionality can be used. This section
describes the process for splitting of single mass asset line into multiple asset lines
[Note : Enter the category, depreciation expense account, and location before splitting the asset. This
information will get defaulted on each asset after splitting. Otherwise, this information will have to be
entered manually]
Navigation: Fixed Assets> Assets> Tasks > Prepare Source Lines
Search for the Asset Book and the appropriate queue to find the asset that needs to be split.
Split lines can be done only if the units are more than 1. Also, split will divide amount equally basis the cost
and number of lines.
Select the source line and click on Split. Once you click on Split, a warning message will pop-up which will
mention the number of assets that will be created. Click on Yes to continue

A confirmation message will appear. Click on OK

The original source line will be split, and 10 new assets are created with 1 unit each
4.2. Merge Asset Lines

You can merge separate mass addition lines into a single mass addition line with a single cost. The mass
addition line becomes a single asset when you Post Mass Additions to Oracle Assets.
Navigation: Home -> Fixed Asset -> Task -> Prepare Source Lines

Search for the Asset Book and the appropriate queue field to find the source lines which need to be
merged
Select all the lines that you want to merge and click on the ‘Merge’ button

Once you click on Merge, a pop-up form will appear where you can review the total cost of the merged asset
that will be created. You can select the parent asset into which the other assets will be merged. There’s also a
flag ‘Sum merged units’ to total the number of units of all assets being merged.
5. CIP Assets and their capitalization
A construction-in-process (CIP) asset is an asset you construct over
a period of time. CIP asset is created as zero amount asset initially
and you can create and add expenses to your CIP assets as and
when you incur expenses for construction costs including raw
materials and labor. Since the CIP assets are not in use, you do not
depreciate them.

•Capitalize CIP assets when you are ready to place them in service.
•Navigation: Home -> Fixed Asset -> Task -> Add Asset
5.1. Creating a CIP Asset
To create a 0 amount CIP asset, navigate to the Add Asset form and select Asset Type as CIP. The cost
would default to Zero and would be non-editable
Enter all the details in the form and click Submit. A zero amount CIP asset will be created

When expenses are incurred for this asset, AP invoices will be created and transferred to FA. These
invoices will be sitting in the FA dashboard and can be added to the CIP Asset.
Navigation: Home -> Fixed Asset dashboard
Select the invoice to add, and click on ‘Add to Asset’ as shown in the screenshot below:

On clicking, Oracle will ask the asset to which the invoice needs to be added. Mention the asset number or
user other selection criteria to find the asset to which invoice needs to be added.
Once the asset is filtered, click on Preview Add to Asset

A pop-up form will appear where you can review all the details before final addition and mention any
comments. Once confirmed, click on Add to Asset and the invoice addition will complete
After this, the source line status for the invoice will change to Ready to Post in the FA dashboard. Select the
source line and click on Post All

Once it is posted, query the CIP asset and you can see the cost is updated to Rs. 35000 (the amount of
the invoice )
5.2. Capitalizing CIP Asset
Capitalize CIP assets when you are ready to place them in service.
Navigation: Fixed Assets → Assets→ Capitalize CIP Assets
Search the asset that you want to capitalize

Select the asset line and click on Capitalize. A pop-up will appear asking the date when this asset
should be placed in service
Once you click on OK, you can query the asset and the asset type would be updated to Capitalized. The
depreciation of the asset will start now from the date entered in the ‘Date placed in service’ field in the
previous form.
6. Adjustment of Assets

If you want to change the category of a particular asset, or just change the financial details of the asset like
cost, life in years, depreciation method etc., then Oracle provides the functionality to achieve that through
the ‘Adjust Assets’ form.
When you change the category of an asset in a period which is after the period of its in-service date, Oracle
Fusion Assets creates journal entries to transfer the cost and accumulated depreciation to the asset cost
and accumulated depreciation accounts of the new asset category.
Navigation: Home -> Fixed Asset -> Task -> Adjust Assets
Click on the Adjust Assets form and query the asset for which you want to adjust the details

Select the asset and you can any of the below 2 functions using the appropriate buttons from the form
∙ Change Financial details
∙ Change Asset Category
Change Financial Details
Through this form, you can change the details like cost, depreciation method, life in years etc. as shown in
the screenshot below
Change Asset Category
Through this form, you can select a new asset category for the asset. When an asset category is changed,
life of an asset or depreciation rules are not changed to that of the new asset category. These can be
changed from the Change Financial details form as explained earlier, if needed.

As shown in the screenshot above, you can also enter Comments in the form explaining the reasons of
changing the asset category
If the asset categories or financial details need to be changed for multiple assets, then the same can be
achieved with ‘Adjust Assets in Spreadsheet’ form

The process of updating details in spreadsheet remain the same for every function which has already been
explained before in the document.
7. Transfer of Assets

Sometimes, a situation may arise where there is a requirement that an asset has to be transferred from 1
location to another or the asset has to be assigned to new person if the person handling the asset is leaving
the company or moving to any other role .
These requirements can be fulfilled using the ‘Transfer Asset’ form in Oracle Fixed Assets.
Navigation: Home -> Fixed Asset -> Task -> Transfer Assets
After clicking on the Transfer Assets menu, query the asset for which the transfer needs to be initiated

The asset will be displayed on the form. Select the Asset and click on ‘Transfer Asset’
The below form will open which will have the details like employee name, depreciation expense account,
and the asset location
To initiate the transfer, follow the below 2 steps:
• Change the new units from 2 to 0 in the original line
• Click the + button and add the new details as required. You can change the employee name, depreciation
expense account and the asset location

You can also add details like Transfer date, and comments for reference. Click on Submit and the asset will
be updated with the new details.
8. Asset Retirement
Retire an asset when it's no longer in service i.e., if it was stolen, lost, damaged, sold, or returned etc. You
can retire assets fully as well as partially.
There are 2 retirement types:
• Unit retirement – Retire assets by unit, either all units or some units of a multiple-unit asset. The cost
retired is automatically calculated for each unit retired.
• Cost retirement – Retire assets by cost. The units remain unchanged, and the retired cost is spread
evenly among the units.

Navigation: Home -> Fixed Asset -> Task -> Retire Assets
Enter Book Name and Asset number to search asset that needs to be retired. Click search to display the
results

Once you click on Search, there will be 2 buttons :

∙ Retire Cost
∙ Retire Units
8.1. Retire Cost
On clicking the Retire Cost button, you will be redirected to the form. You can retire the full cost or partial
cost of the asset
Full retirement
The cost of the asset is 2000, so for full retirement , put the ‘Cost Retired’ as 2000
Once you Submit, the current cost of the asset would be updated as Zero.
In case the asset was sold, then the ‘Proceeds of sale’ value can be mentioned in the same form in the field
highlighted below:
Partial Retirement
In case of partial retirement, the cost of the asset will come down to Original Cost – Cost Retired.
In case of below asset, the cost of the asset is Rs. 2000, and the cost retired is Rs. 800.
After clicking Submit and querying the asset again, we can see the cost of the asset is re-calculated as Rs.
1200
8.2. Retire Units
Navigation: Home -> Fixed Asset -> Task -> Retire Assets
Enter Book Name and Asset number to search asset that needs to be retired. Click search button to display
the results
Click on the ‘Retire Units’ button

Enter Following Retirement Details:

∙ Retire Date: Asset Retirement Date

∙ Retired Units: No. of Asset Units to be Retired.
∙ Proceeds of Sale: It denotes amount received from the sale of assets.
∙ Cost of Removal: It denotes how much cost is incurred during asset sale.
∙ Retirement Reason: Reason for which the asset is retired.
Click the invoice Actions menu. Click on Edit Distributions

Click on Submit and the entered number of units will be retired

9. Reinstate Retired Asset

You can reinstate a disposed asset and restore it to a normal asset

Navigation: Home -> Fixed Asset -> Task -> Reinstate Assets

Click on the Reinstate Assets form and you can search the asset to be reinstated using the selection
criteria like Asset Book, Asset Number, retirement date etc.
Click on Search and the retired assets will be displayed

Select the asset to be reinstated and click the ‘Reinstate’ button

You will get a Warning message for confirmation. Click on Yes and the asset will be reinstated
10. Manage Leases
Oracle Fixed Assets Many organizations lease assets such as real estate, airplanes, trucks, ships, and
construction and manufacturing equipment. Leasing assets allows an organization to gain access to assets,
while reducing the organization's exposure to the risks of asset ownership.
Oracle provides the provision to create asset leases to comply with the IFRS 16 Leases and FASB
Leases (Topic 842) accounting standards.
In order to create lease assets, a pre-requisite is that there must be an asset category of Category type –
Leased defined
Navigation: Home -> Fixed Asset -> Task -> Manage Leases
Under the tab Leases, click on the + button to create a new lease

Enter all the details in the lease header form like

∙ Category
∙ Lessor
∙ Lease start date
∙ Payment frequency
∙ Asset Book
∙ Lease Term
Enter the one-time payment and the recurring payments and the interest rate

Once all the information has been entered, click on the Generate Schedules button
After the Generate Schedules is clicked, the lease will appear in the Pending Transactions tab on the
Manage leases page

Click on the Lease and then click on Submit. After that, the lease asset will be visible in the Asset
Dashboard
Follow the usual process – select the asset and click Edit. Change the queue status to Post and enter the
depreciation expense account and the asset location and click Save and Close
The asset will come and sit under the ‘Ready to Post’ tab. Select the asset and click on Post All
Once the Asset is posted, run the Calculate Lease Expenses program.
Navigation : Home -> Fixed Asset -> Depreciation tab -> Arrow on right of Calculate Depreciation
The program will start running and you can query the progress from Scheduled Processes tab\
Navigation : Home -> Navigator -> Tools -> Scheduled Processes
In the Scheduled Processes page, you can see the status of the program.
Once the program is completed, run Create Accounting for Assets to post all the lease asset entries to GL
Navigation: Home -> Fixed Asset -> Task -> Create Accounting
Enter the book for which the create accounting needs to be run and Submit
To generate AP invoices for the lease, navigate to the Manage Leases Page and click on Generate Invoices
and put the relevant parameters.
Once this program completes, run the Import Payables Invoices program from Scheduled processes to
import the invoices into AP module
Note : This program will be scheduled at regular intervals, so it’s not necessary to run the program
manually
In the Scheduled Processes page, click on Schedule New Process and enter Program name as Import
Payables Invoices
Enter the parameters (Source – Assets) and click Submit.
Once the program completes, you can view the output of the program to verify the AP invoice which got
created for this lease
View the output and you will get the AP invoice created for the lease

The interest expenses will directly hit the GL. The same can be viewed in General Ledger module by
searching for journals with Source – Assets and Category – Lease Expenses.
11. Depreciation Run
Run the Calculate Depreciation process to calculate depreciation for all assets in a book for a period.
If depreciation is not calculated successfully for any assets, the log file created by Oracle Fusion
Assets for the depreciation process request lists these assets and the reason that depreciation failed.
When you run depreciation, Assets gives you the option to close the current period automatically after
running depreciation. If all of your assets depreciate successfully, Assets closes the period and opens
the next period. If you do not choose the close period option, the period remains open.
Ensure that you have entered all transactions for the period before you run depreciation. Once the
process closes the period, you cannot reopen it.
Navigation: Fixed assets -- > Assets -- > Calculate Depreciation

Don’t click on Close Period unless you

want to close the period
Once the Depreciation program is
completed, the depreciation is calculated
accordingly on all the assets as per their
financial details
12. Fixed Asset Register
The Fixed Asset Register report has been developed as per the business requirements and will show all the
details related to the assets as per the parameters entered while running the reports
Navigation: Home -> Tools -> Report and Analytics -> Browse Catalog -> Shared Folder -> Custom ->
Custom Reports -> Fixed Assets -> Reports
Select the FA Register Report and click on Open

Enter the parameters and click on Apply

The report will get downloaded in an excel sheet. Open the excel sheet to view the report
13. Perform Periodic Mass Copy
Use the concurrent program Periodic Mass Copy each period to keep your tax book up to date with your
corporate book. This program transfers all the assets in the corporate book to the tax book wherever
defined

⮚ Block Asset
Block asset is a Group of assets for which same rate of depreciation is prescribed under the Income tax Act,
1961
⮚ Depreciation Calculation
Assets acquired in the current fiscal year and put to use for less than 180 days eligible for only 50% of
annual depreciation for this year
Oracle Fusion provides the functionality of Block Asset (or Group Asset) as well. Under the Asset category,
the configuration would be done to enable group assets for that category and group depreciation will be
enabled as well
Create group asset to which individual assets in this category are belongs to and then assign it as default
group asset for the category. When capitalized assets are copied from corporate book, they will be
automatically become the member of this group asset
Running the Program
Navigation: Home -> Navigator -> Tools -> Scheduled Processes
Click on Schedule New Process and enter program Name – Perform Periodic Mass Copy
Enter the parameters of the program
and click Submit. Once the program
completes, the required assets will be
transferred in the tax book as well
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