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Oracle Assets - FA SIG – Oct 2011
Gary Chen
Development Manager
The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any
features or functionality described for Oracle‟s
products remains at the sole discretion of Oracle.
Oracle Assets
Enhancements since 12.0.3
Agenda
• Summary of New/Changed FA Features
• Description of Each Feature
• Wrap Up/Q&A
New and Changed Features for Assets
U.S. Statutory Requirements
1)100% Bonus Depreciation Method for US Tax Law
2)Enhanced reporting for Bonus / Regular Depreciation Splits
3)Asset Impairments functionality (IAS36)
Japanese Statutory Requirements
1)Additional Migration Features for Japan 2007 Tax Reform
2)Revised Japanese Depreciable Assets Tax Reports
3)Enhanced What-if Analysis Extension
4)Impairments For Japanese Requirements
New and Changed Features for Assets
Worldwide Statutory Requirements
1)United Kingdom: Support for Revaluation and Impairments for
Local Accounting Authority (SORP I and II)
2)Germany: Revised Asset Summary report
3)Russia: Depreciation for Member Retirements
Group Depreciation Enhancements
1)Conversion of Energy UOP w/ Reserve & Non-Depreciating
2)Allow Backdated Energy Assets w/ Pos Cost & Neg Reserve
3)Allow Mass Additions of Cost Sign Changes in Members
4)Enhancements for Method Change for Energy UOP Assets
5)Mass Change Reports Display Group Related Changes
6)Ability to Expense Member Adjustments in Tax Books
New and Changed Features for Assets
Usability Enhancements
1)Allow Tax Books w/ Different Chart of Accounts /
Currency than Corporate Book
2)Drilldown from GL to SLA for Depreciation Entries
3)Product Based SLA On-Demand Upgrade
4)Ability to Project Over Closed Periods
5)Flexibility in Book Names
6)Additional Fields in Mass Additions
U.S. Statutory Requirements
100% Bonus Depreciation Method
Requirement
President Obama signed new US tax legislation into law 17-Dec-2010 which
allows qualified property 100% bonus depreciation in year acquired, similar
to the previous 30% and 50% bonus methods.
Solution
Fifteen new methods. FAS771 report also modified.
NOTE: we are not providing the 330/468 STL MACRS methods since they exceed the 30 year
threshold for the 100% bonus legislation.
Availability
12.0.X: 11701485:R12.FA.A
12.1.X: 11701485:R12.FA.B
NOTE: Must be applied as standalone patches. Not available in dot releases.
100% Bonus Depreciation Method
Code Name Life In Months
MACRS 100B HY HY MACRS: Half-Year Convention - 100% Bonus 36
MACRS 100B MQ MACRS: Mid-Quarter Convention - 100% Bonus 36
MACRS 100B HY MACRS: Half-Year Convention - 100% Bonus 60
MACRS 100B MQ MACRS: Mid-Quarter Convention - 100% Bonus 60
MACRS 100B HY MACRS: Half-Year Convention - 100% Bonus 84
MACRS 100B MQ MACRS: Mid-Quarter Convention - 100% Bonus 84
MACRS 100B HY MACRS: Half-Year Convention - 100% Bonus 120
MACRS 100B MQ MACRS: Mid-Quarter Convention - 100% Bonus 120
MACRS 100B HY MACRS: Half-Year Convention - 100% Bonus 180
MACRS 100B MQ MACRS: Mid-Quarter Convention - 100% Bonus 180
MACRS 100B HY MACRS: Half-Year Convention - 100% Bonus 240
MACRS 100B MQ MACRS: Mid-Quarter Convention - 100% Bonus 240
STL 100B Straight-Line with 100% Bonus Depreciation 36
STL 100B HY Straight-Line Half-Year Convention with 100% Bonus 180
STL 100B MQ Straight-Line Mid-Quarter Convention with 100% Bonus 180
Bonus / Regular Depreciation Splits
Requirement
The 4562 report separately reports regular depreciation and bonus
depreciation. Although the report can be ran throughout the year, the
bonus amounts (Special Depreciation) do not show until year end.
Solution
The 4562 report now displays the split of bonus and regular depreciation
amounts throughout the year (i.e., bonus to show throughout the year and
not only at year end).
Availability
12.0.X: 8613202:R12.FA.A
12.1.X: 11701485:R12.FA.B
NOTE: Fix also included in rollup patch Assets Consolidated Patch for 12.0.6 October 2009
(8706840:R12.FA.A)
Asset Impairments functionality (IAS36)
Requirement
Support for IAS 36, which addresses financial accounting and reporting for
impairment of assets. The provisions provide that assets should not be
carried at more than their recoverable amounts and for entities to carry out
impairment tests for their tangible and intangible assets.
Solution
The product can now calculate and generate asset impairments and
impairment journal entries in accordance with the IAS 36 guidelines.
Availability
12.0.X: 8706840:R12.FA.A (Assets Consolidated Patch for 12.0.6 October 2009)
12.1.X: 8706842:R12.FA.B (Assets Consolidated Patch for 12.1.1 September 2009)
NOTE: Fix also included in base 12.1.2 and later.
Japanese Statutory Requirements
Migration Features for Japan 2007 Tax Reform
Requirement
Prior 2007 Japan Tax Reform product enhancements allowed assets
added into the system to be assigned new depreciation methods.
However, the ability to assign existing assets to the new methods was
needed.
Solution
The Asset Workbench, Mass Additions, and WebADI now allow addition of
assets already in Extended Depreciation.
Availability
12.0.X: 8706840:R12.FA.A (Assets Consolidated Patch for 12.0.6 October 2009)
12.1.X: 8706842:R12.FA.B (Assets Consolidated Patch for 12.1.1 September 2009)
NOTE: Fix also included in base 12.1.2 and later.
Revised Japanese Depreciable Assets Tax Reports
Requirement
Previously, users of the Japan Depreciable Assets Tax Report could only
register and provide descriptive information for a single company.
Solution
The report has now been enhanced to cater for multiple companies. Also,
additional reference information is enterable in the report, and the report
layout format conforms to the legal standard.
Availability
12.0.X: 8978869:R12.FA.A (Japan Tax Reforms 2007 and 2008 Rollup Patch for 12.0.6
November 2009)
12.1.X: 8946711:R12.FA.B (Japan Tax Reforms 2007 and 2008 Rollup Patch for 12.1.1
September 2009 )
NOTE: Fix also included in base 12.1.2 and later.
Enhanced What-if Analysis Extension
Requirement
Users need to be able to use the new Japan 2007 Tax Reform methods
with What If Analysis.
Solution
What If Analysis now supports the new JP-250 DB methods and Extended
Depreciation for Japanese assets.
Availability
12.0.X: 8706840:R12.FA.A (Assets Consolidated Patch for 12.0.6 October 2009)
12.1.X: 8706842:R12.FA.B (Assets Consolidated Patch for 12.1.1 September 2009)
NOTE: Fix also included in base 12.1.2 and later.
Impairments For Japanese Requirements Requirement
Customers need the ability to impair assets using Japanese methods.
Solution
As defined by previous regulatory initiatives and the Japan Tax Reform of
2007, impairment functionality has been extended in compliance with
the Japanese accounting regulations. The following impairment feature
functionality is now available for Japan depreciation methods.
• Japan specific impairment loss calculations
• Assignment and impairment of assets within Cash Generating Units
• Impairment of fully reserve and non-depreciating assets
• Impairment of assets exceeding depreciation limits
Availability
12.1.2: 9509399:R12.FA.B
NOTE: Fix also included in base 12.1.3
Worldwide Statutory Requirements
United Kingdom: Support for Revaluation and
Impairments for Local Accounting Authority (SORP I)
•
Requirement
CIPFA/LASAAC Joint Committee produced, in accordance with the
Accounting Standards Boards code of practice, a Code of Practice on
Local Authority Accounting in the United Kingdom 2006 on proper
accounting practice released A Statement of Recommended
Accounting Practice (SORP) 2006. The SORP includes
recommendations on how fixed assets are to be revalued from April 1,
2007 onwards for UK Local Authorities.
Solution
Oracle Assets revaluation and impairment functionality now addresses the
fixed asset revaluation requirements as per SORP that apply to UK local
authorities.
United Kingdom: Support for Revaluation and
Impairments for Local Accounting Authority (SORP I)
•
Solution (continued)
The revaluation and impairment functionality provides the following:
1. Revaluation Reserve Accounting Net Book Value
2. Generating Depreciation Neutralizing Entries
3. Revaluation of Donated and Discounted Assets
4. Impairment Classification Types
5. Reason and Purpose Descriptions
6. Generating Impairment Loss Neutralizing Accounting Entries
7. Revaluations Directly Related to Prior Impairments
8. Generate Asset Decommission and Disposal Entries
Availability
12.0.X: 8706840:R12.FA.A (Assets Consolidated Patch for 12.0.6 October 2009)
12.1.X: 8706842:R12.FA.B (Assets Consolidated Patch for 12.1.1 September 2009)
NOTE: Fix also included in base 12.1.2 and later.
United Kingdom: Support for Revaluation and
Impairments for Local Accounting Authority (SORP II)
•
Requirement
By March 31, 2011 UK local authorities are to account for their fixed
assets in accordance with guidelines as detailed in the Code of practice
on local authority accounting in the United Kingdom 2010/11 based on
International Reporting Standards, released by CIPFA in December
2009, also referred to as the 'Code„. The move to the IFRS-based Code
from the UK GAAP-based SORP resulted in changes to the accounting
entries related to revaluations and impairments for property, plant and
equipment assets.
United Kingdom: Support for Revaluation and
Impairments for Local Accounting Authority (SORP II)
•
Solution
The following UK local authorities revaluation and impairment changes
were completed to address the fixed asset revaluation and impairment
requirements for tangible property, plant and equipment assets:
• Revaluation Loss (new feature)
• Reversal of Revaluation Loss (new feature)
• Consumption of Economic Benefit (CEB) Impairment (changed feature)
Availability
12.1.1 - 12.1.2: 12810804:R12.FA.B (Assets Consolidated Patch For 12.1.1/12.1.2
May 2011)
12.1.3: 11853930:R12.FA.B (Assets Consolidated Patch for 12.1.3 May 2011)
NOTE: Fix also included in base 12.2
Germany: Revised Asset Summary report
•
Requirement
The Asset Summary report for Germany did not display assets that were
capitalized in the correct column.
Solution
The German Asset Summary report now tracks recently capitalized assets
correctly.
Availability
12.0.X: 8230524:R12.FA.A
12.1.X: 9888070:R12.FA.B
NOTE: Fix also included in base 12.1.2 and later.
Russia: Depreciation for Member Retirements
•
Requirement
According to Russian Legal requirements, non-zero depreciation should
be charged in the period of retirement and this amount should be
included into reserve during "Calculate Gain/Loss" process. For Russia,
this behavior is expected for both standalone assets and member
assets belonging to a group asset. Core functionality works fine for
standalone assets, but it does not work as expected for member assets.
Solution
Retirements now work as expected for member retirements.
Availability
12.1.X: 11886090:R12.FA.B
Group Depreciation Enhancements
Conversion of Energy UOP w/ Reserve
& Non-Depreciating
Requirement
In order for customers to be able to convert from a legacy or existing
system, users need to be able to add Energy UOP assets with reserve,
but with the Depreciate Flag set to No.
Solution
Energy UOP assets can now be added with reserve and with the
Depreciate Flag set to No.
Availability
12.0.X: 8563703:R12.FA.A
12.1.X: 8797810:R12.FA.B
NOTE: Fix also included in base 12.1.2 and later.
Allow Backdated Energy Assets w/
Positive Cost & Negative Reserve
Requirement
Allow ability to add Energy UOP assets with Positive Cost and Negative
Accumulated Depreciation.
Solution
Users are now able to create Energy UOP assets with Positive Cost and
Negative Reserve.
Availability
12.0.X: 8563703:R12.FA.A
12.1.X: 8797810:R12.FA.B
NOTE: Fix also included in base 12.1.2 and later.
Allow Mass Additions of Cost Sign
Changes in Members
Requirement
Allow ability to setup Group / Member assets to have Over Depreciate
Option flag set to “Allow and Depreciate” for UOP assets. This would
subsequently allow a cost sign change for a member asset being added
via Mass Additions.
Solution
Cost adjustments on Energy UOP assets can flip the sign on the cost as
long as the asset is not over depreciated.
Availability
12.0.X: 8563703:R12.FA.A
12.1.X: 8797810:R12.FA.B
NOTE: Fix also included in base 12.1.2 and later.
Enhancements for Method Change for
Energy UOP Assets
Requirement
Allow method change for Energy UOP assets.
Solution
1. Method change from Energy UOP to any other method is allowed for
capitalized standalone assets.
2. Method change from any other method to Energy UOP is allowed for
capitalized standalone assets.
3. Method change from and to other methods of Energy UOP group and
member assets is NOT allowed.
4. Method change from Energy UOP to any other method for capitalized
standalone asset is not allowed if current reserve is of the opposite
sign of recoverable cost (i.e., NBV more than recoverable cost).
Enhancements for Method Change for
Energy UOP Assets
Solution (continued)
5. New flag “Prevent Previous Period Amortized Changes" at the Book
Control level. Backdated adjustment and retirements are not allowed if
this flag is set to Yes at the book level. However, this flag does not
impact expensed assets.
Availability
12.1.X: 10125011:R12.FA.B
Mass Change Reports Display Group
Related Changes
Requirement
Any changes made via Mass Change that effect a Group asset cannot be
seen in the Mass Change Preview or Review Reports accurately. The
reports should display all changes to both member and group assets.
Solution
The Mass Change Preview and Review reports now display group and
member changes accurately.
Availability
12.0.X: 8563703:R12.FA.A
12.1.X: 8797810:R12.FA.B
NOTE: Fix also included in base 12.1.2 and later.
Ability to Expense Member Adjustments in
Tax Books
Requirement
When member adjustments are mass copied from the Corporate Book to
the Tax Book, they are amortized. However, the ability for these to be
expensed is needed to meet MACRS HY type requirements.
Solution
A new flag to copy amortized additions and adjustments as expensed has
been added at the Book Controls level. When this flag is enabled,
amortized additions and adjustments are Mass Copied as expensed.
Availability
12.0.X: 8706840:R12.FA.A (Assets Consolidated Patch for 12.0.6 October 2009)
12.1.X: 8706842:R12.FA.B (Assets Consolidated Patch for 12.1.1 September 2009)
NOTE: Fix also included in base 12.1.2 and later.
Usability Enhancements
Allow Tax Books w/ Different Chart of
Accounts / Currency than Corporate Book
Requirement
Allow Tax books to be associated with Secondary Ledgers having a different
Chart of Account and/or Currency than the Corporate Book.
Solution
Requirement has now been enabled. However, users must still create their
own custom reporting to extract data.
Availability
12.1.X: 12599545:R12.FA.B
NOTE: Fix also included in base 12.2.
Drilldown from GL to SLA for Depreciation Entries
Requirement
Allow drilldown from General Ledger to Subledger Accounting for
Depreciation Entries. (Previously, this was only enabled for
Transactional Entries.)
Solution
Users can now drilldown from General Ledger to SLA for Depreciation
Entries in Fixed Assets.
Availability
12.1.X: 12.1.3 or later
Product Based SLA On-Demand Upgrade
Requirement
Previously, customers needed to use the SLA Hot Patch to upgrade
additional historical entries for SLA, and the upgrade would affect all
products.
Solution
Through a concurrent process in the subledger responsibility, customers
can upgrade that subledger only.
Availability
12.1.X: 12.1.2 or later
Ability to Project Over Closed Periods
Requirement
Previously, when customers used Projections over Closed Periods, these
values were incorrect.
Solution
The Projection report now uses actuals for periods that are already closed,
and for assets in an open period for which depreciation has run.
Availability
12.0.X: 9777127:R12.FA.A
12.1.X: 11843140:R12.FA.B
Additional Fields in Mass Additions
Requirement
Allow depreciation method fields to be enabled in Mass Additions.
Solution
These fields are now in the Mass Additions form and interface table: • Depreciation Method Code
• Life in Months
• Basic Rate
• Adjusted Rate
• Prorate Convention Code
• Bonus Rule
Availability
12.0.X: 8706840:R12.FA.A (Assets Consolidated Patch for 12.0.6 October 2009)
12.1.X: 8706842:R12.FA.B (Assets Consolidated Patch for 12.1.1 September 2009)
NOTE: Fix also included in base 12.1.2 and later.
Flexibility in Book Names
Requirement
Ability to add books that begin with numbers.
Solution
Users are now able to create books with names that begin with numbers.
Availability
12.0.X: 8706840:R12.FA.A (Assets Consolidated Patch for 12.0.6 October 2009)
12.1.X: 8706842:R12.FA.B (Assets Consolidated Patch for 12.1.1 September 2009)
NOTE: Fix also included in base 12.1.2 and later.
Wrap Up/ Q&A
Thank You