1. System Controls2. Define Fiscal Years3. Define Calendars4. Account Generator5. Define Prorate Conventions6. Define QuickCodes7. Define Category Key Flexfield Value Sets8. Define Location Key Flexfield Value Sets9. Define Asset Key Flexfield Value Set10. Define Category Key Flexfield Segments11. Define Location Key Flexfield Segments12. Define Asset Key Flexfield Segments13. Define Category Key Flexfield Segment Values14. Define Location Key Flexfield Segment Values15. Define Asset Key Flexfield Segment Values16. Establish Security by Book – Create Assets Hierarchy17. Define Book Controls using Security by Book18. Establish Security by Book – Add site specific OU to Assets Hierarchy19. Establish Security by Book – Security Profile20. Establish Security by Book – Run Security List Maintenance program21. Assign Profile Option Values22. Define Value Set Security23. Assign Value Set Security24. Define Asset Categories25. Define Location Codes26. Define Asset Keys27. Define Descriptive Flexfields28. Define Depreciation Methods 29. Define Depreciation Ceilings30. Define Investment Tax Credit Rates31. Define Investment Tax Credit Recapture Rates32. Define Price Indexes33. Define Leases/Lease Payment Schedules34. Define Warranties35. Define Distribution Sets36. Define Bonus Depreciation Rules

Navigation:Setup-> Financial->Flexifield->Segment

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Define Your Asset Category FlexfieldThe asset category flexfield allows you to define asset categories andsubcategories. For example, you can create an asset category for yourcomputer equipment. You can then create subcategories for personalcomputers, terminals, printers, and software. You must assign themajor category segment qualifier to one segment of your categoryflexfield. The major category segment facilitates capital budgeting. Allother segments are optional. You use the same setup windows to create your asset category flexfield as you do for your other keyflexfields

Default – This is a required step. If you skip this step, you will not beable to use Oracle Assets.Context: You need to perform this step only once per installation.

Create the segments

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Create the major category values:

Create Location Flexifield:

Location:

Enter the physical location of the asset. Oracle Assets uses location

information for Property Tax reports.

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Click on Segment and create the segment

Create Value set :

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Enter the location values into value set .

Defining Additional Depreciation Method

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Use a flat–rate method to depreciate the asset over time using a fixedrate.Oracle Assets uses a flat–rate and either the recoverable cost or therecoverable net book value as of the beginning of the fiscal year tocalculate depreciation using a flat–rate depreciation method. The assetcontinues to depreciate until its recoverable cost and accumulateddepreciation are the same.

Depreciation in the First Year of LifeAn asset’s prorate convention and depreciation method control whenOracle Assets starts to depreciate new assets. For assets using flat–ratemethods, depreciation starts in the accounting period that either thedate placed in service or the prorate date falls into, depending on thedepreciate when placed in service flag. Oracle Assets allocates the firstyear’s depreciation to the accounting periods remaining in the fiscal year.

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ExampleSuppose your fiscal year ends in May, you have a monthly (12 period)depreciation calendar, and you want to allocate depreciation evenly toeach period in the year. You place a $10,000 asset in service in the thirdperiod of your fiscal year (AUG–12) using a half–year prorateconvention. The rate for the diminishing value (calculation basis ofNBV) depreciation method is 20%.Since the asset is using a half–year prorate convention, the prorate dateis in December––the mid–point of your fiscal year. For assets that havea prorate date at the mid–point of the fiscal year, depreciation expensefor the first fiscal year of life is 50% of the amount for a full fiscal year.For the asset in our example, a full fiscal year depreciation amount is$2,000 (20% of $10,000), so the depreciation for the first year (fiscal1913) is $1,000.You can specify whether to start taking depreciation in the period of thedate placed in service or the prorate date using the depreciate whenplaced in service flag for the prorate convention. If you elect to startdepreciation in the accounting period corresponding to the date placedin service, Oracle Assets starts to depreciate the asset in AUG–12, andthe depreciation for each period is $100 ($1000 divided by 10––thenumber of periods from August to May).

If you elect to start depreciation on the prorate date, Oracle Assets doesnot start to depreciate the asset until December. The depreciation foreach period from DEC–12 to MAY–13 is $166.67 ($1,000 divided by6––the number of periods from December to May).

To define a calculated depreciation method:

Navigate to the Depreciation Methods window.

Enter a depreciation Method name and Description.

Select Calculated from the Method Type poplist.

The calculation basis automatically defaults to Cost (NBV is not valid for calculated methods).

Choose whether this depreciation method allows you to depreciate an asset in the year it is retired.

Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis.

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Enter the number of Years and Months of asset life.

Save your work.

To define a table-based depreciation method:

Navigate to the Depreciation Methods window.

Enter a depreciation Method name and Description.

Select Table from the Method Type poplist.

Choose whether to use Cost or NBV as the basis for calculating depreciation from the Calculation Basis poplist.

Choose whether this depreciation method allows you to depreciate an asset in the year it is retired.

Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis.

Choose whether this method is a straight-line method.

Enter the number of Years and Months of asset life.

Enter the number of Prorate Periods Per Year this method uses.

Choose the Rates button to enter rates in the Depreciation Rates window.

Enter annual depreciation rates.

You must enter rates that fully depreciate an asset over its life. If you specify a calculation basis rule of Cost, the sum of all the years' rates for each period must be one. If you specify a calculation basis rule of NBV, the rate for the last year of life for each period must be one and all the other rates must be between zero and one.

Attention: For table methods, the annual rate you enter for each prorate period must reflect the fraction of the fiscal year the asset was in service. The rate must be prorated based on the number of periods in the year and on the prorate convention.

To define a units of production depreciation method:

Navigate to the Depreciation Methods window.

Enter a depreciation Method name and Description.

Select Production from the Method Type poplist.

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.

Save your work.

To define a flat-rate depreciation method:

Navigate to the Depreciation Methods window.

Enter a depreciation Method name and Description.8

Select Flat from the Method Type poplist.

Choose whether to use Cost or NBV as the basis for calculating depreciation from the Calculation Basis poplist.

Choose whether this depreciation method allows you to depreciate an asset in the year it is retired.

In the Depreciable Basis Rule field, select a depreciable basis rule from the poplist.

Choose the Exclude Salvage Value check box if you want this method to exclude the salvage value from the depreciable basis. You can exclude salvage value only if you have a flat-rate method that uses NBV as the calculation basis.

Check the Polish Adjustment Calculation Basis check box, if applicable. This check box affects the calculation when creating negative cost adjustments to assets depreciating under Polish tax depreciation.

This check box is available only if you have selected one of the Polish tax depreciable basis rules as your depreciable basis rule.

Choose the Rates button to enter rates in the Depreciation Rates window.

Enter basic rates.

Enter the adjusting rate, or loading factor.

Defining Bonus Depreciation Rules

A bonus rule can have a different bonus rate for each year of the asset's life. You can modify the rate at any time for current and future fiscal years.

You can use bonus rules with corporate books as well as tax books. Bonus rates let you increase the annual depreciation expense for assets using flat-rate, straight-line, table-based, and formula-based depreciation methods. Oracle Assets also allows you to set up negative bonus rates to amortize bonus reserve.

For reporting purposes, you can set the bonus year and rate to 0. Oracle Assets does not calculate any bonus expense.

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To define your bonus rules: Open the Bonus Depreciation Rules window. Enter a Bonus Rule name and description. Check the One-Time Depreciation check box, if applicable. Enter the fiscal year range of the asset life to which the bonus rate applies. Enter the bonus rate for each fiscal year range.

If you are setting up a bonus rule for use with Polish tax depreciation, enter a depreciation factor and an alternate depreciation factor. When you enter either a depreciation factor or an alternate depreciation factor, the value in the Rate % field is automatically set to 0%.

Note: You need to ensure the depreciation factor and alternate depreciation factor are set up appropriately. Oracle Assets does not validate that the factor is between a predetermined range.

Setting Up Asset Categories

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. If the default does not apply, you can override many of the defaults for an individual asset in the Asset Details or Books windows. You set up default values for each category in each book. The default depreciation rules that you set up for a category also depend upon the date placed in service ranges you specify

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Next click on Default Rules

And give the depreciation details.

Flat rate method:

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Straight line method.

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Creating Fiscal Years

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.

Specifying Dates for Calendar Periods

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, and 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.

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Specifying Dates for Prorate Conventions

You can set up or review prorate and retirement conventions in the Prorate Conventions window.

You must initially set up all your prorate conventions from the convention period corresponding to the oldest date placed in service through the end of the current fiscal year. At the end of each fiscal year, Oracle Assets automatically sets up your prorate conventions for the next fiscal year.

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Prorate Convention and Prorate Date

Oracle Assets uses the prorate convention to determine how much

depreciation to take in the first and last years of asset life.

Oracle Assets determines the prorate date from the date placed in

service and the prorate convention. It uses this date to determine how

much depreciation to take during the first and last years of asset life.

Specifying System Controls

Use this form to specify your company name, asset numbering scheme, and key flexfield structures.

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Defining Depreciation Books

You can define corporate, tax, and budget depreciation books. You must set up your depreciation books before you can add assets to them. You can set up multiple corporate books that create journal entries for different ledger, or to the same ledger. In either case, you must both run depreciation and create journal entries for each depreciation book. For each corporate book, you can set up multiple tax and budget books that are associated with it.

Book

An asset can belong to any number of depreciation books, but must

belong to only one corporate depreciation book. You must assign a

new asset to a corporate depreciation book before you can assign it toany tax books. You can only assign the asset to a book for which you

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defined the asset category. Oracle Assets defaults financial information

from the asset category, book, and date placed in service.

Each book can have independent accounts, an independent calendar,

and independent depreciation rules. You can specify for which general

ledger set of books a depreciation book creates journal entries.

The asset can also have different financial information in each book.

For example, you can make the asset cost in your tax book different

from the cost in your financial reporting book. The depreciation books

are independent, so you can run depreciation for each book on adifferent schedule

Cost

Current Cost

The current cost can be positive, zero, or negative. Oracle Assets

defaults a cost of zero for construction–in–process (CIP) assets and you

cannot change it. Oracle Assets automatically updates the cost to the

sum of the invoice line costs after you add invoice lines to a CIP asset

using the Mass Additions process. You can also change the cost of a

CIP asset manually by entering non–invoiced items or transferring

invoice lines between assets in the Source Lines window.

If this is a capitalized leased asset, and you previously calculated the

cost to capitalize for the lease in the Lease Payments window and you

have not override the result of the capitalization test, Oracle Assets

automatically enters the Cost to Capitalize amount in the Current Cost

field, and you can change it.

Original Cost

Oracle Assets displays the original cost of the asset and updates it if

you make a cost adjustment in the period you added the asset. After

the first period, Oracle Assets does not update the original cost.

Recoverable Cost

The recoverable cost is the portion of the current cost that can be

depreciated. It is the current cost less the salvage value less the

Investment Tax Credit basis reduction amount. If you specify a

depreciation cost ceiling, and if the recoverable cost is greater than that

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ceiling, Oracle Assets uses the cost ceiling instead

Depreciation Amounts

Depreciation

You normally enter zero accumulated depreciation for new capitalized

assets. If you are adding an asset that you have already depreciated,

you can enter the accumulated depreciation as of the last depreciation

run date for this book, or let Oracle Assets calculate it for you. If you

enter a value other than zero, Oracle Assets uses that amount as the

accumulated depreciation as of the last depreciation run date. If you

have bonus reserve, the amount should be added to the accumulated

depreciation and is no longer tracked as bonus reserve.

If you enter too little accumulated depreciation, Oracle Assets adjusts

depreciation to the correct amount for the current fiscal year. If you

enter too much accumulated depreciation, the asset becomes fully

reserved before the end of its life.

If you enter zero accumulated depreciation, Oracle Assets calculates

the accumulated depreciation and the bonus reserve, if any, based on

the date placed in service. You can have a different accumulated

depreciation for each depreciation book.

Enter the amount of depreciation taken in the current fiscal year, if any,

for the year–to–date depreciation. If the asset is placed in service in the

current fiscal year, the accumulated depreciation amount and the

year–to–date depreciation amount must be the same.

For Oracle Assets to recognize an asset as fully reserved when you add

it, enter an accumulated depreciation amount equal to the recoverable

cost.

You cannot change the accumulated depreciation after the period in

which you added the asset. You can, however, change the depreciation

taken for prior fiscal years in your tax books using the Tax Reserve

Adjustments window.

You cannot enter year–to–date or life–to–date depreciation when you

add a units of production asset. Instead, enter the asset with zero

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accumulated depreciation, and enter the total life–to–date production

as production for the current period to catch up depreciation.

Salvage Value

The salvage value cannot exceed the asset cost, and you cannot enter a

salvage value for credit (negative cost) assets.

Net Book Value

The net book value is defined as:

Net Book Value = Current Cost – Total Reserve (Accumulated

Depreciation + Bonus Reserve)

Revaluation Amounts

You can only enter revaluation amounts if you allow revaluation in the

Book Controls window.

Revaluation Reserve

If you are adding an asset, enter the revaluation reserve, if any. You

cannot update the revaluation reserve after the period you added the

asset. After that, Oracle Assets updates the revaluation reserve when

you perform revaluations.

Revaluation Reserve = Existing Revaluation Reserve + Change in Net

Book Value due to current revaluation

Depreciation Method

The depreciation method you choose determines the way in which

Oracle Assets spreads the cost of the asset over the time it is in use.

You specify default depreciation rules for a category and book in the

Asset Categories window. You can use predefined Calculated, Table,

units of Production, or Flat–rate type methods, or define your own in

the Methods window.

Depending on the type of depreciation method you enter in the Books

window, Oracle Assets provides additional fields so you can enter

related depreciation information. For example, if you enter a

Calculated or Table depreciation method, you must also enter a life for

the asset. In contrast, for a units of production depreciation method,

you must enter a unit of measure and capacity. The table below

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illustrates information related to the depreciation types:

Method Type Related Fields

Calculated or Table Life in Years and Months

Calculated or Table Bonus Rule

Flat–Rate Basic Rate

Flat–Rate Adjusted Rate

Flat–Rate Bonus Rule

Units of Production Unit of Measure

Units of Production Capacity

Units of Production Year–to–Date Production – display only

Units of Production Life–to–Date Production – display only

Table 2 – 1 (Page 1 of 1)

Calculated and table methods must be set up with the same number of

prorate periods per year as the prorate calendar for the book. The

depreciation method must already be defined for the life you enter.

Assets Workbench

Use the Assets Workbench windows to add new assets to the system, and to perform transactions, such as retirements, adjustments, source line adjustments, and transfers

Oracle Assets workbenches let you find critical information in a flexible way, see the results in your defined format, and selectively take appropriate action. For example, in the Assets Workbench, you can findyour assets based on asset detail, assignment, invoice, or lease information. Then, for that asset, you can review financial, assignment, and other detailed asset information, perform transfers, review thepurchasing or other source information, or retire the asset. All the windows you need are accessible from just one form; you can query an asset then perform several transactions without having to find it again.

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Click the Addition button

Click on continue button

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Next click on continue and give the details

Next click on Done.

Asset Number

An asset number uniquely identifies each asset. When you add an

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asset, you can enter the asset number, or leave the field blank to use

automatic asset numbering. If you enter an asset number, it must be

unique and not in the range of numbers reserved for automatic asset

numbering. You can enter any number that is less than the number in

the Starting Asset Number field in the System Controls window, or you

can enter any non–numeric value.

Description

Use list of values to choose a standard description you defined in the

QuickCodes window, or enter your own.

Tag Number

If you enter a tag number, it must be unique. A tag number uniquely

identifies each asset. For example, use the tag number to track asset

barcodes, if you use them.

Asset Category

Oracle Assets defaults depreciation rules based on the category, book,

and date placed in service. All assets in a category share the same asset

cost accounts and depreciation accounts for each depreciation book.

Category Descriptive Flexfield

Descriptive flexfields allow you to collect and store additional

information about your assets. For each asset category, you can set up

a descriptive flexfield to prompt you for additional information based

on the asset category you enter. For example, you might want to track

the license number for automobiles, but the square footage for

buildings. When you specify a category for a new asset, you can enter

your information in a descriptive flexfield.

Units

The number of units represents the number of components included as

part of an asset. Use units to group together identical assets. For

example, you might add an asset that is composed of ten separate but

identical chairs. If you are adding an asset, accept the default value of

one, or enter a different number of units.

Asset Type24

Valid asset types are:

Capitalized: Assets included on the company balance sheet.

Capitalized assets usually depreciate. Charged to an asset cost

clearing account.

CIP (Construction–In–Process): Unfinished assets being built,

not yet in use and not yet depreciating. Once you capitalize a

CIP asset, Oracle Assets begins depreciating it. Charged to a

construction–in–process clearing account.

Expensed: Items that do NOT depreciate; the entire cost is

charged in a single period to an expense account. Oracle Assets

tracks expensed items, but does not create journal entries for

them. Oracle Assets does not depreciate expensed assets, even if

the Depreciate check box in the Books and Mass Additions

Prepare windows is checked for that asset.

Warranty Number

You can set up and track manufacturer and supplier warranties online.

Each warranty has a unique warranty number. Use the list of values or

enter a previously defined warranty number to assign the asset to the

coinciding warranty

Lease Information

You can enter lease information only for an asset assigned to a leased

asset category. You must define the lessor as a valid supplier in the

Suppliers window, and define leases in the Lease Details window,

before you can attach a lease to an asset you are adding in the Asset

Details window.

If you are entering a leasehold improvement and you completed the

Parent Asset field in the Asset Details window, Oracle Assets displays

the related lease information from the parent asset. You cannot provide

separate lease information for the leasehold improvement.

Source Lines

You can track information about where assets came from, including

sources such as invoice lines from your accounts payable system and

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capital assets from Oracle Projects.

Each source line that came from another system through Mass

Additions may include the following information:

Invoice Number

Line

Description

Supplier

Purchase Order Number

Source Batch

Cost

Project Number

Task Number

You change invoice information for a line using the Source Lines

window only if you manually added the source line. For example, you can manually add a line, adjust the cost of an existing line, or delete a

line for a CIP asset. You also can transfer lines between assets.

You cannot change invoice information if the line came from another

system through Mass Additions.

If the source of the line is Oracle Projects, choose the Project Details

button to view detail project information for the line in the Asset Line

Details window

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