R 12 - FIXED ASSETS

R 12 - FIXED ASSETS

ORACLE2011R 12 - FIXED ASSETSR 12FunctionalHyderabad

Introduction:

Fixed Assets is a standalone application.

This will come at SOB/PL level.

Key Flex Fields in Fixed Assets:1. Category KFF2. Asset Location KFF3. Asset Key KFF

We can create only one structure by using the above KFF

Based on the asset life we have to create Fiscal Calendar. For example 1976 to 2030.

Depreciation calendar is used to calculate depreciation.

Prorate convention calendar is used to prorate the depreciation from which date to which date we have to consider.

Mass additions: Process of transferring fixed assets related data from Accounts Payables to Fixed Assets is called Mass additions. After transferring data from AP, data will store in interface tables.

AP -- FA Mass additions interface tables ---- FA

The data which is there in FA Mass additions interface tables we can see from FA application.If you want to convert the invoices information to Assets, we can add necessary data at interface tables, then the data will store in FA base tables.

For Quick addition of Assets, only basic information is required.

For detailed additions: list of information is required like: Asset category, Asset name, cost of asset and depreciation of Asset.

Depreciation calculation is in 3 methods:1. Straight line method2. Diminution method3. Production based

Straight line method: We will set a fixed amount for a fixed period as depreciation. For example: Asset cost 1 Lac, asset life 5 years, so depreciation per year 1 Lac / 5 = 20000

Diminution method: depreciation will be calculated on written down value of asset. For example:Year 1Asset value500000Depreciation 10%50000Balance450000

Year 2Depreciation 10%45000Balance405000

Year 3Depreciation 10%40500Balance355000

Production base: Depreciation will be calculated on the production units

Asset transfer can be done between Locations, Employees, and Accounts.

Asset Changes: through this changes we can change the: Depreciation Prorate Convention Cost Adjustment Life time of Assets

Asset reclassification is used to reclassify the assets from one category to another category.

Projection: Through the projections we can have an idea of the future depreciation. We can see the depreciation of a asset for the future period also.

What if analysis: with if analysis we can analyze the differences between two different depreciation methods.

Over ride depreciation:Example: A plant is running in 2 shifts in a month producing 2000 units. If one month they used the plant per day 3 shifts then the production is 3000 units. As per the regular calculation system will consider depreciation only for 2000 units.

But if you want to consider depreciation for 3000 units we have to over ride the depreciation. Over ride the depreciation where there is unplanned activity takes place. System will consider first over ride depreciation and then original depreciation.

Retirement: For every asset there will be a useful life of period. Once this period completed every asset should me retired. Some other reasons for retirement: Sale of Asset, Theft, Life of asset and Damage of asset.

Roll back depreciation: If we run the depreciation without period close, then we cannot make any modifications. Then if we want to do any modifications we have to do Roll back depreciation.

Calendars: FA depreciation calendar & GL Accounting Calendar. While transferring the information from FA to GL, the period name should be same in the both calendars; otherwise data cannot be transferred.

Types of Books:In Fixed Assets we have 3 types of books:1. Corporate Book2. Tax Book3. Budget Book

Corporate Book: This is also called Depreciation book, Asset book and Asset Register. Corporate book is used to maintain the Asset information and to maintain Depreciation information. Depreciation information will be maintained by following The Companies Act.

Tax Book: We will maintain the depreciation information by following the Income tax Act. We will copy the Asset information from the corporate book to Tax book. We maintain companies Act and IT Act for depreciation, if the % of depreciation is different for companies act and IT act.

Budget book: We will maintain capital Budget information. The Asset information also required in the tax book. It is an automatic activity We will copy the asset information from the corporate book to the tax book. We have 2 options to copy the information:1. Initial mass copy2. Periodic mass copy

Type of Assets:Assets are again 3 types as per Fixed Assets1. Capitalized2. CIP3. Group Assets

Capitalized: Which Asset is started for using and Assets placed for service.CIP: Construction in process: An asset which is under construction, for example building under construction. CIP asset will changed to capitalized when it starts service.Group Assets: Grouping the assets related to same group.

Accumulated Depreciation: Total depreciation from beginning of the asset to till date. YTD depreciation: For particular year Depreciation: For particular period.

Physical Inventory: Process of verification assets information in the Oracle system with the Physical assets.

Split: Split is dividing the Assets into individual units of assets.Example:

We purchased 5 plants at a time for Rs 5 Lakhs. We received only one invoice for all the plants. We enter this invoice through Accounts payables. Now we are sending this information to FA through Mass Additions. Now we want that 5 plants information differently. So we will split that into 5 plants.

Merge: Merge is a process of adding multiple assets to a single Asset.Example:We have one asset like Computer. Now we are purchasing first monitor and then CPU.Now we are having 2 invoices I AP.Now this will be transfer to FA through Mass addition.These two invoices should be merged because they are single Asset.

Define Fixed Assets Responsibility

Navigation:System AdministratorSecurity Responsibility Define

Application:AssetsData Group:Standard AssetsMenu:FA _ MainRequest Group:All Reports - Assets

Assign Profile options to Assets Responsibility

Navigation:System AdministratorProfile System

ProfileResponsibility1. HR: Business GroupBG2. HR: Security ProfileBG3. HR: User TypeHR: User4. GL Ledger NameLedger5. MO: Operating unitOU

Key Flex Fields in Fixed Assets

Category KFF and Asset Location KFF are mandatory We can create only one structure by using above KFF

I. Category Flex Field: Category Flex field is used to categorize the assets. It is mandatory flex field. We can define minimum 2 segments and Maximum up to 7 Segments. One is Major segment another one is Minor Segment.

Navigation:Fixed AssetsSetup Financials Flex fields Key Segments

Click on Segments

We have 2 Flex field qualifiers:1. Major Category FFQ2. Minor Category FFQ

Click on Flex Field Qualifiers

Compile Category Flex Field structureCategory Flex Field structure will store FA _ Categories _ B _ KFVEnsure program completed Normal

II. Location Flex Field:It is mandatory flex field which is used to track assets are located in which place and to identify what are all assets located in a particular place.We cannot define new location structure, we can use standard one available.We can add up to 7 segments.

Navigation:Fixed AssetsSetup Financials Flex fields Key Segments

Unfreeze your flex field definitionClick on Segments

Choose State segmentClick on Flex Field QualifiersWe have only one FFQ: State Segment FFQ.

Enable state segment flex field qualifier Compile Location Structure

Say OKDefinition will store FA _ Location _ KFVEnsure concurrent program completed normal.III. Asset key Flex Field: It is optional Flex field, which is used to group the Assets based on the Organization requirement. We cannot define new structure but we can add up to 10 segments. No FFQ to Asset Key Flex Field Segment

Define Asset Key Flex FieldNavigation:Fixed AssetsSetup Financials Flex fields Key SegmentsQuery Asset key flex field structure

Unfreeze your structureClick on Segments

There is no Flex field qualifier here to assignFreeze Flex field definitionCompile

Definition will store at FA _ Asset _ Keywords _ KFVEnsure program completed normal

Define Segment values

Step: 1Define Segment values for Category Flex FieldNavigation:AssetsSetup Financials Flex Fields Key Values

Step: 1.1Define Major Category Segment values

Application:AssetsTitle:Category Flex FieldStructure:Vision Category StructureSegment:Major Category

Click on Find

Say New

Enter new values for Major Category flex fieldsSave your work

Step: 1.2Define Minor Category Segment valuesApplication:AssetsTitle:Category Flex FieldStructure:Vision Category StructureSegment:Minor CategoryIndependent value:Choose Major Category value as per step 1.1

Click on Find button

Enter values for Minor CategorySave your work

Step: 2Define Segment values for Location Flex FieldNavigation:AssetsSetup Financials Flex Fields Key Values

Step: 2.1Define Country Segment valuesApplication:AssetsTitle:Location Flex FieldStructure:Vision Ops Location Flex FieldSegment:Country

Say Find

Enter Value for Country SegmentSave.

Step: 2.2Define State Segment values

Place cursor on the Title, say view Find to go main menu

Choose segment: StateSay Find

Say NewEnter value for State SegmentSave

Step: 2.3Define City Segment valuesPlace cursor on the Title, say view Find to go main menu

Choose Segment: CitySay FindSay New

Enter values for CitySave

Step: 2.4Define Building Segment valuesPlace cursor on the Title, say view Find to go main menu

Choose Segment: BuildingSay FindSay NewEnter vales for Building

Save.

Step: 3Define Asset key flex field segment valueNavigation:AssetsSetup Financials Flex Fields Key Values

Application:AssetsTitle:Asset key flex fieldStructure:Asset key flex fieldSegment:Asset key

Say FindEnter values for Asset keySaveClose this window

Say OKEnsure concurrent program completed normal

SYSTEM CONTROLS

Use this form to specify your :- Company name,- Asset numbering scheme - Key Flex field structures- Oldest date of asset placed in service as 01- Jan- 1850.

Navigation:Setup Asset System System Controls Change your enterprise name No other Changes Required in the Screen

Save.

FISCAL YEARS

Define Fiscal YearNavigation:Setup Asset System Fiscal Years

Enter Name for your Fiscal year Specify the start and end dates of each fiscal year for a fiscal year name. 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. You can set up multiple fiscal years in this window. You can assign different fiscal years to your different corporate books. The calendar for a tax book must use the same fiscal year name as the calendar for the associated tax book. Place cursor on from date and press down arrow System will be creating fiscal years automatically

Save and close this window.

ASSET CALENDAR (DEPRECIATION CALENDAR)

Navigation:Setup Asset System Calendars

Name your Asset Calendar Choose Fiscal year name Select Calendar Enter periods per year Enter period nameNotes: You can set up as many calendars as you need. Each book you set up requires a depreciation calendar and a prorate calendar. The depreciation calendar determines the number of accounting periods in a fiscal year. The prorate calendar determines the number of prorate periods in your fiscal year. You can use one calendar for multiple depreciation books and as both the depreciation and prorate calendar for a book. Period name as per Accounting Calendar in GL should be same as in the FA otherwise we cannot transfer information from FA to GL.

Specifying the dates for Calendar periods Your corporate books can share the same calendar. A tax book can have a different calendar than its associated corporate book. The depreciation program uses the prorate calendar to determine the prorate period which is used to choose the depreciation rate. You must initially set up all calendar periods from the period corresponding to the oldest date placed in service to the current period. You must set up at least one period before the current period. At the end of each fiscal year, Oracle Assets automatically sets up the periods for the next fiscal year.

PRORATE CONVENTION CALENDAR

Navigation:Setup Asset system Prorate Conventions

Prorate convention Calendar is used to determine the depreciation starting date for asset in first year. Divide the year in to 2 parts and enter from date to dates and enter each period beginning date as prorated date. (Below 180 days & Above 180 days). If you enable Depreciate when place in service system will not consider the dates mentioned in Prorated Calendar.

Name your Prorate convention calendar Choose fiscal year name Enter from date and to date Enter prorate date for depreciationSave.DEPRECIATION METHODS Reducing or diminishing the asset value periodically based on usage is called Depreciation. There are 5 standard depreciation methods in Oracle.1. Flat 2. Calculated3. Production4. Table5. Formula

1. Define Flat rate depreciation methodNavigation:Setup Depreciation Methods

Name depreciation method Choose method type: Flat Calculation basis: Cost Depreciable basis rule: Use recoverable costEnable check box: Depreciate in the year retained Exclude salvage valueClick on Rates

Enter basic rate and adjusting rate for additional depreciationSave

2. Define Calculated depreciation = Straight Line methodNavigation:Setup Depreciation methods

Enter the Method Name Choose method type as Calculated Then system will automatically enable straight line Method. Calculation Basis : Cost The calculation basis automatically defaults to Cost (NBV is not valid for calculated methods) Enter the number of Years and Months of asset life. Based on the number of Life years depreciation will be calculated.

3. Define Production depreciation methodUnder this method depreciation will be calculated based on the units produced.Navigation:Setup Depreciation methods

Enter the Method Name Choose method type as Production The calculation basis automatically defaults to Cost (NBV is not valid for units of production methods). Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis.

Define Production Capacity for machineryNavigation:Production Enter4. Define Formula depreciation method

Enter Method name Method type: Formula Calculation basis: NBV Select Depreciate in year retired Enter life yearsGo to FormulaDefine FormulaTest FormulaSay Calculate

5. Define Table depreciation method

Name the MethodMethod type:TableCalculation basis: NBV

Enter Life years and Prorate periods per yearEnter Rates.

ASSET BOOK

For Assets, Journals will be created based on the asset book. This Asset book will be associated with the particular Ledger. Asset book will determine the:-Calendar-Accounting Rules-Natural Accounts-Ledger for various Fixed Assets.

Pre requisites to create Asset Book: Specify System Controls Define Calendars Set up your Account segment values and combinations Set up your journal entry formats.

Asset books are 3 Types:-Corporate -Tax-Budget

I. Corporate Book: This is also called Depreciation Book / Asset Book / Asset Register. Corporate book is used to maintain Assets information & Depreciation information. We will maintain the depreciation information as per The Companies Act.

II. Tax Book: We will maintain the depreciation information as per The Income Tax Act. We will Copy the Asset information from the corporate book to Tax book. III. Budget Book: We will maintain Capital Budget information. The Asset information is also required from the Tax Book. It is an automatic activity. We will copy the asset information from the corporate book to the tax book. We have 2 options to copy the information:1. Initial Mass copy2. Periodic Mass copy.

Define Asset Book CorporateSetup Asset System Book Controls

This window has 3 Tabs:1. Calendar2. Accounting Rules3. Natural Accounts

Enter the name of the book you want to define. Choose Class as Corporate

Step: 1 Calendar: Choose your Ledger Choose your Depreciation Calendar & Prorate Convention Calendar Choose Fiscal year name & Current fiscal year Choose Divide Depreciation: Evenly or by days. Select: Depreciate if retired in the first year

Save your workStatus: Completed

Step: 2Accounting RulesEnable check boxes: Allow Amortized Changes** Difference in depreciation of revalued assetsIf disable, difference will go to expenses accountIf enable, closing balance of asset will distribute to the initial months depreciation before revaluation of the assets Allow mass changes (To change for bulk assets)

Allow Revaluation: Revalue Accumulated depreciation Revalue accumulated depreciation Revalue revaluation reserve Amortize revaluation reserve Revalue fully reserved assets Maximum revaluations: 1 Life extension factor: 1

Natural Accounts:

Enter the appropriate GL accountsEnter Account generator defaults: This is a program, will generate other 3 code combinations for the above natural accounts.Save.

ASSET CATEGORIESSetup Asset System Asset Categories

Asset Category is used to group the Assets based on the Depreciation method and Rate, and also building a relationship with the Asset book. Category information is common for a group of assets. Oracle Assets defaults these depreciation rules when you add an asset, to help you add assets quickly. The default depreciation rules that you set up for a category also depend upon the date placed in service ranges you specify.

Pre requisites to set up Asset categories: Set up Category Flex Field Set up depreciation Book Setup Depreciation Calendar & Prorate Convention Calendar Setup Depreciation Methods

Category Types: 31. Lease2. Non Lease3. Lease holds Improvements

Owner ship is 2 types: i) Owned ii) Leased

Property Types: 61. Personal2. Residential3. Real4. Intangible5. Property6. Other

Step: 1Define Asset CategoryNavigation:Setup Asset System Asset Categories

Enter a Category name and Description to identify the asset category you want to set up. Category type:Non lease Ownership:Owned Choose Property type & Property class

Enable check boxes: Enabled Capitalize In physical inventory

Step: 2Choose appropriate General ledger Accounts

Step: 3Setup default rules Choose Depreciation Method & Rate Choose Prorate Convention Calendar & Retirement Convention Calendar

Save

ASSET ADDITIONS

Creation of assets information in the oracle Assets application is called Assets additions.

There are 3 types of Asset additions1. Detailed Addition2. Quick Addition3. Mass addition

Type of Assets: 41. Expensed2. Capitalized3. CIP - Construction in Process4. Group

ASSET ADDITIONS DETAILEDNav:Assets Asset work bench

Step: 1Create Asset

Click on AdditionsChoose: Description of the Asset Category (Major & Minor) Asset Key Asset type Ownership & Bought Manufacturer details

Say ContinueStep: 2Books InformationChoose: Asset book Asset Cost Depreciation Method Prorate Convention Calendar

Say ContinueStep: 3Assignments Enter unit change Employee name whom to this asset assigned Expenditure Account (Depreciation) Location details

Say Done - System will generate asset number.

Say OK

Difference between: Detailed addition and Quick addition: As mentioned above for Detailed additions we have to navigate several windows to enter an asset. (Additions, Book and Assignments)

Whereas through quick addition button asset information will be maintained by navigating single window only. Latter detailed information would be updated.

ASSET ADDITIONS QUICKNav:Assets Asset work bench

Click on Quick AdditionsChoose: Description Category Asset type: Capitalized Supplier Name Invoice Number

Book: Choose Book Enter Cost Depreciation method Depreciation Rate Prorate Convention

Assignment: Enter Units Employee Name Expenses Account LocationSay Done

Query the Asset to enter more detailsAssets Asset work bench

Choose BookSay Find

RUN DEPRECIATION

Step: 1Run depreciation programNav:Depreciation Run depreciation

Choose Book nameEnable Close periodSay RunEnsure Program completed normal

Step: 2Inquiry the financial transactionsNav:Inquiry Financial Information

Say Find

Click on Books

Place the cursor on periodClick on Transactions

MASS ADDITION OF ASSETS

Mass addition process is used to convert the AP invoice information as a fixed asset.

Step: 1Create Standard Invoice in Accounts PayablesNavigation:Invoices Entry Invoices

Enter all the information as it is for standard invoice Choose Account as Asset clearing Account in the distribution *** (Asset clearing Account in the Asset category & Invoice distribution account should be same)

Place the Cursor on Account fieldGo to Folder Show field

Track as asset

Say OK Save your work. Validate, Create accounting from Actions button

Step: 2Transfer the data to GLNavigationView RequestProgram Name:Transfer Journal Entries to GL

Ensure program completed Normal

Step: 3Run Journal Import program from GLNavigation:Journal Import RunSource:PayablesChoose your Ledger.System will import AP data as un posted journalsReview unposted journals and post them

Say ImportEnsure program completed normalQuery the AP transactions in GLPost the Journal Entries

Step: 4Run mass Additions create in APMass additions create program will run to transfer AP data to FA.Navigation:View RequestProgram Name:Mass Additions Create Choose Asset Book

Say OK

Ensure program completed normal

Step: 5Prepare Mass additions in F.A.Navigation:Mass Additions Prepare mass Additions Choose your Book

Say Find

say Open

Change Queue New to:Post Invoice number Choose Asset Category & Location Go to Asset details Enter Description

Say Done Step: 6Run Post mass additions programNavigation: Mass Additions Post Mass additionsProgram Name:Mass additions postParameters:Choose your asset book and say Submit

Ensure program completed Normal

View output

Step: 7Query the Asset in the Asset work benchNavigation:Assets Asset work benchChoose your asset book and say Find.

CONVERSION OF CIP TO CAPITALIZE ASSET

Asset which is there under construction is called a CIP Asset.Step: 1Create a CIP AssetNavigation:Assets Assets work bench

Click on Additions button Choose Asset type:CIP

Say Continue choose your asset book

Say ContinueChoose expenses account and location

Done

Step: 2Convert CIP Asset to Capitalize AssetNavigation:Assets Capitalize CIP AssetsQuery your CIP Asset and say Capitalize

Say Find

Say Capitalize

Step: 3Query the Asset and enter detailed informationNavigation:Assets Assets work bench Query your Asset

Place the cursor on Asset number say Books Choose your Asset books Enter Asset cost details Say Done.

ASSET TRANSFER

Asset transfer refers to changes in the assignment of: Employee Expenses Account Location

Asset transfer can be done in 2 ways.1. Individual Asset transfer2. Mass Asset transfer ASSET TRANSFER - INDIVIDUAL

Navigation:Assets Asset work benchQuery asset which you wish to transfer

Place cursor on the asset numberClick on Assignments

Enter -1 in unit change

Enter the unit number and make changes in the below line

Say OKRe query your asset number to view changes

ASSET TRANSFER MASS TRANSFER

Mass transfer means: transferring or changing the Group of Asset information is called Mass Transfer.

Step: 1Create Mass TransferNavigation: Mass Transactions Transfers

Choose Asset book Choose Category Choose transfer from and Transfer toSay Preview

Say OKEnsure program completed normal

System will generate Mass Transaction NumberGo to View Request

Click on View output

You will see the list of assets transferred from to

Step: 2Run Final Mass TransfersNavigationMass Transactions Transfer

F11Query your Mass Transaction number

Say Run

Say OK

Say OKGo to View RequestEnsure Mass Transfer program completed normal

Go to View outputYou can see in output, number of Success and number of failures

Step: 3Query the Assets to view the statusNavigation:Assets Assets work benchChoose your Asset bookSay FindPlace the cursor on the asset numberSay AssignmentsYou can see the changes in location

ASSET CHANGES

Changes can be made to the Assets for the following fields: Asset Cost Life of the Asset Depreciation Method and Rate

It can be done in 2 ways:1. Individual Changes2. Mass Changes

ASSET CHANGES INDIVIDUAL CHANGES

Step: 1Query the Asset for which you want to make changesNavigation:Assets Assets work bench

Key in Asset number in Find window and Say Find

Place the cursor on the asset number and Click on BooksChoose Corporate Book and press tab then other fields will displayed

In this window you can make changesFor Example: Depreciation Method changeChoose different Depreciation methodSay Done

ASSET CHANGES MASS CHANGES

Through Mass changes window we can make changes to group of Assets.Step: 1Create mass changesNavigation:Mass Transactions ChangesChoose BookYou can select the following for to choose assets: Asset number Date placed in service Category Asset type

Under changes fieldsChoose the fields which you want to make changes that can be: Prorate convention Depreciation method Depreciation rate Bonus rule

Say PreviewGo to View RequestEnsure program completed normal

Go to View output

Step: 2Run final Mass changes programNavigation:Mass Transactions Changes

F11Query Mass changes transaction number

Now the Status is PreviewedSay Run

Now Status is changed to RunningClose this windowGo to View RequestEnsure program completed normal

Go to view output

Query mass changes transaction number again to see the status

Now status is completed

Step: 3Query the assets to check the mass changes resultNavigation:Assets Asset work bench

ASSET REVALUATION

In Oracle revaluation can be carried out only for the asset cost.Revaluation can be done in 2 ways:1. Individual Asset2. Mass revaluation

REVALUATION INDIVIDUAL ASSET

Step: 1Query the Asset for which you want to make changesNavigation:Assets Assets work bench

Key in Asset number in Find window and Say Find

Place the cursor on the asset number and Click on BooksChoose Corporate Book and press tab then other fields will displayed

In this window you can make changesChange the Asset current CostSay Done

REVALUATION MASS ASSETSStep: 1Create and Preview revaluationNavigation:Mass transactions Revaluations

Choose Book Enter Comments Choose Asset category Enter Revaluation % rate(You can not choose category and asset number both)Say preview

Say OK

Say OK

System generate Mass transaction numberGo to View RequestEnsure Mass revaluation program completed normal

View output

Step: 2run final Mass RevaluationNavigation:Mass transactions Revaluations

Query mass transaction number

Say RunEnsure program completed NormalRe query mass transaction number

Status: CompletedGo to view Request to see output

Step: 3Query the assets in the Asset work bench to check the revaluation statusNavigation:Assets Assets work bench

Choose Book Say Find Place cursor on the asset Say Books Choose Book Press tabYou will see the changed or revalued asset cost. Depreciation also changed as per the revalued cost of the asset.

RECLASSIFICATION OF ASSETS

Make changes for Asset Category is called Reclassification. In Oracle reclassification can be carried out only for Asset Category.It can be done in 2 ways.1. Individual Asset reclassification2. Mass Assets reclassification

RECLASSIFICATION - INDIVIDUAL ASSETSQuery the asset and change the Category Navigation:Asset Asset work benchQuery Asset number

Select Asset numberSay Open

Change the category

Say OKSay Done

RECLASSIFICATION - MASS ASSETS

Step: 1Create Mass ReclassificationNavigation:Mass transactions Reclassification

Choose Book Choose category for Assets to re class Choose new category Select Copy Category Descriptive Flex Field to new Category Say Preview

Go to View requestEnsure program completed normal

View output

Step:2run Final mass reclassificationNavigation:Mass transactions ReclassificationQuery mass transaction numberSay RunGo to View requestEnsure program completed normal

Step: 3Query the asset to view re classificationNavigation:Assets Assets work benchRETIREMENT OF ASSETS

Removing the asset from service is called Retirement.Run depreciation before retire an asset.It can be done in 2 ways: Individual & Mass retirement.

RETIREMENT INDIVIDUAL ASSETS

Navigation:Assets Assets work bench

Select the AssetsSay Retirements

Choose Book Choose retirement date Enter units retired Cost of retired Say Done

RETIREMENT MASS ASSETSWe need to run depreciation program as on date before performing retirement. DO NOT CLOSE PERIOD.Depreciation Run Depreciation

Step: 1Create Mass retirementNavigation:Mass Transactions Retirements Create and Reinstate

Choose Book Enter retire date Retirement type: RetirementGo to Retirement Criteria tab Choose CategoryNow Status is NewSay Create

Now Status is PendingSystem generate mass transaction numberGo to View RequestEnsure program completed normal

View output

Step: 2Run final mass retirementNavigation:Mass transactions Retirements create and reinstate

Query mass transaction numberNow status is created

Say Retire

Now status is PendingGo to View RequestEnsure program completed normal

PROJECTIONSNavigation:Depreciation Projections Choose Calendar Enter number of periods Choose Starting period Choose Books

Say Run

Say OKEnsure program completed Normal

View output

CALCULATE GAINS AND LOSSESNavigation:Depreciation Calculate Gains and losses Program name: Calculate Gains and Losses

Choose the Asset Book Say Submit

Ensure program completed NormalView Output

WHAT IF ANALYSISNavigation:Depreciation What if analysis Choose Book Currency: INR Start period Number of periods Category

Say Run

Say OK

Ensure program completed normalView Output

OVER RIDE DEPRECIATIONNavigation:Depreciation over Ride

Choose: Book Period Asset NumberSay New

Choose Book Asset Number Period Depreciation amount Status: postSave your work

To view result

Choose BookSay Find

PHYSICAL INVENTORYNavigation:Physical Inventory Enter

Say Open

Enter Asset number and description Choose Location Enter units Status: New SaveStep: 2Run comparisonsNavigation:Physical Inventory comparison Run comparisons

Say Run

Say OK

Ensure program completed normal

Step: 3view comparisonNavigation:Physical Inventory comparison view

Say Find

SPLITStep: 1Enter one standard invoice in payablesNavigation:Invoices Entry InvoiceEnter standard invoice with distribution Account as Asset clearing

Step: 2Run Mass additions create from APNavigation:View Request

Say Submit

Step: 3Transfer Journal Entries to GLNavigation:View request (from AP)

Say SubmitEnsure program completed normal

Step: 4Prepare mass additions from FANavigation:Mass additions Prepare mass additions

Choose bookSay Find

Select the asset and say openGo to Asset details tab

Change the unit numbers to split

Say Assignments

Enter the unit numberChoose Employee nameChoose Expenses AccountChoose LocationSay Done

Now Queue status is On HoldSelect the AssetSay Split

Say OK

Say OKSelect the Asset which status is on holdChange the status to postChoose CategoryChoose DescriptionSay Done

Step: 5Post Mass AdditionsNavigation:Mass Additions Post Mass Additions

Choose BookSay SubmitEnsure program completed normal

Step: 6Query the Asset in Asset work bench Navigation:Asset Asset work bench

TRANSFER TO GLStep: 1Run Create Accounting programNavigation:Fixed AssetsCreate Accounting

Choose book type Enter end date Accounting mode: Final Errors only: No Transfer to General ledger: Yes Post in General ledger: No Include user transaction identifiers: NoSay OK

Go to View request

Ensure program completed normal

Step: 2Run journal import program in GLNavigation:General LedgerJournals Import Run

Step: 3Query the journals in the GLNavigation:Journals EnterChoose LedgerSource: AssetsSay findReview unposted journals and post the journals.

1. Copy from Corporate book to tax book2. Initial mass copy3. Periodic mass copy

IMPORTANT REPORTS IN FIXED ASSETS

1. Asset Additions by cost center report2. Asset transfers report3. Asset retirement report4. Asset retirement by cost center report5. Property Tax report6. Transaction history report7. Mass additions posting report8. Delete mass additions posting report9. Delete mass additions preview report10. Asset reclassification report11. Asset by category report12. Mass additions validity report13. Cost adjustment report14. CIP Asset report15. CIP capitalization report16. Unplanned depreciation

Fixed Asset period closing procedures

1. Create all transactions (mass additions, retirements etc) before running the Depreciation Program. Check for the Mass Additions with the Status of NEW. 2. Before running the depreciation, Project the depreciation by running the Projections. Select the projection calendar, number of periods, Starting period, the corporate book and click on the Run button. Total Depreciation for the period will be shown as the output in the concurrent request output. 3. Run the depreciation program without closing the period. 4. Module: Fixed Assets. 5. Navigation: Depreciation Depreciation. Select the corporate book and the period. Do Not Check the Check Box Close Period 6. Verify The Journal Entry Reserve Report for the calculation of Depreciation and whether depreciation is calculated for all the assets. After checking the results go to next step. 7. Now run the Depreciation program with the check box Close Period Checked. 8. Transfer information from fixed assets to General Ledger. (Module: Fixed Assets. Navigation: Submit RequestCreate Journal Entries in Fixed Asset. Choose the Corporate Book and period for parameters as shown below.

9. This process creates the Journal Entries Automatically in the General Ledger. Journal import from general Ledger need not be run both for Primary as well as Reporting Set of Books. 10.Verify the Unposted Entries in the journal Entry Screen. 11. Post the journal Entries. 2.1 Opening / Closing the Period in Fixed Assets: 1. If the Depreciation is run with the Check Box Close Period Checked, the period will be closed and the next period will be opened automatically. Note: In Fixed Assets, once a period is closed, it cannot be reopened.

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