R12 x Oracle Asset Management Fundamentals Student Guide Vol 2

R12.x Oracle Asset
Management Fundamentals
Volume 2 - Student Guide

D59987GC10
Edition 1.0
March 2010
D64876


Copyright © 2008, 2010, Oracle and /or its affiliates All rights reserved.
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Author
Gail D’Aloisio, Brent A. Bosin, Paul Scott, Assad Akhavan
Technical Contributors and Reviewers
Kathy Wohnoutka, Ruth Kukla, Jan Quist, JongSung Ahn, Chris Rudd, Som Viswapathy, Bruce
Isner, Ivy Farren, Bruce Ingram
This book was published using:

oracletutor


Table of Contents
Overview of Oracle Asset Management.........................................................................................................1-1
Overview of Oracle Asset Management........................................................................................................1-3
Objectives ......................................................................................................................................................1-4
Agenda...........................................................................................................................................................1-5
Overview of Oracle Assets ............................................................................................................................1-6
E-Business Suite Integration..........................................................................................................................1-7
Implementation Considerations for Oracle Financials...................................................................................1-8
The Best Project Team for the Job ................................................................................................................1-9
Critical Implementation Issues ......................................................................................................................1-10
Oracle Assets Setup Steps .............................................................................................................................1-12
Oracle Assets Key Flexfields.........................................................................................................................1-13
Implementing Oracle Assets..........................................................................................................................1-14
Asset Books Positioning................................................................................................................................1-15
Asset Categories Positioning .........................................................................................................................1-17
Asset Life Cycle ............................................................................................................................................1-18
Adding Assets Manually ...............................................................................................................................1-19
Mass Asset Additions Process .......................................................................................................................1-21
Quiz ...............................................................................................................................................................1-23
Adding and Capitalizing a CIP Asset ............................................................................................................1-24

Acquire and Build CIP Assets .......................................................................................................................1-25
Asset Adjustments .........................................................................................................................................1-26
Asset Adjustment Overview ..........................................................................................................................1-27
Performing Physical Inventory ......................................................................................................................1-28
Elements of Depreciation ..............................................................................................................................1-30
Basic Depreciation Calculation .....................................................................................................................1-32
Tracking Asset Retirements...........................................................................................................................1-34
Assets Journal Entries Flow...........................................................................................................................1-35
Default Account Generator Process for Oracle Assets ..................................................................................1-37
Reconciling Data in Oracle Assets ................................................................................................................1-38
Viewing Asset Information Online................................................................................................................1-39
Oracle Assets Reporting ................................................................................................................................1-40
Assets Reports Groupings..............................................................................................................................1-41
Creating a Tax Book......................................................................................................................................1-42
Entering Information in Tax Books ...............................................................................................................1-43
Transaction APIs ...........................................................................................................................................1-45
Business Events .............................................................................................................................................1-47
Asset Business Event Triggers ......................................................................................................................1-48
Quiz ...............................................................................................................................................................1-49
Summary........................................................................................................................................................1-50
Asset Controls Setup .......................................................................................................................................2-1
Asset Controls Setup .....................................................................................................................................2-3
Objectives ......................................................................................................................................................2-4
Agenda...........................................................................................................................................................2-6
Oracle Assets Setup Steps .............................................................................................................................2-7
Setup Steps Flow ...........................................................................................................................................2-8
Quiz ...............................................................................................................................................................2-11
Setup Steps Flow ...........................................................................................................................................2-12
Oracle Assets Key Flexfields.........................................................................................................................2-16
Setting Up Key Flexfields .............................................................................................................................2-17

Asset Category Key Flexfield........................................................................................................................2-18
Location Key Flexfield..................................................................................................................................2-19
Asset Key Key Flexfield................................................................................................................................2-20
Copyright © Oracle, 2010. All rights reserved.

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Creating Key Flexfield Combinations ...........................................................................................................2-21
Specifying System Controls ..........................................................................................................................2-22
QuickCodes ...................................................................................................................................................2-24
Available QuickCodes...................................................................................................................................2-27
Defining Fiscal Years and Calendars.............................................................................................................2-35
Setting Up Fiscal Years .................................................................................................................................2-36
Setting Up Asset Calendars ...........................................................................................................................2-37
Sharing Calendars..........................................................................................................................................2-38
Defining Price Indexes ..................................................................................................................................2-39
Profile Options...............................................................................................................................................2-41
Asset Insurance..............................................................................................................................................2-47
Entering Asset Insurance Information ...........................................................................................................2-49
Implementing Oracle Assets..........................................................................................................................2-50
Planning Implementation...............................................................................................................................2-51
Key Flexfields Planning Considerations........................................................................................................2-53
The Key Flexfields Planning Phase ...............................................................................................................2-55
Implementing Oracle Assets..........................................................................................................................2-57
Convert Existing Asset Information ..............................................................................................................2-59
Using the FA_MASS_ADDITIONS Table for Conversion ..........................................................................2-61
Implementing Oracle Assets..........................................................................................................................2-63
Post Conversion Reconciliation.....................................................................................................................2-64

Other Conversion Issues................................................................................................................................2-65
Maintaining an Audit Trail ............................................................................................................................2-66
Maintaining Audit Trails ...............................................................................................................................2-67
Defining Asset Warranties.............................................................................................................................2-69
Creating Leases .............................................................................................................................................2-70
Quiz ...............................................................................................................................................................2-71
Summary........................................................................................................................................................2-72
Asset Books.......................................................................................................................................................3-1
Asset Books ...................................................................................................................................................3-3
Objectives ......................................................................................................................................................3-4
Agenda...........................................................................................................................................................3-5
Asset Books Positioning................................................................................................................................3-6
Quiz ...............................................................................................................................................................3-8
Asset Books Regions .....................................................................................................................................3-9
Calendar Region ............................................................................................................................................3-11
Accounting Rules Region ..............................................................................................................................3-13
Natural Accounts Region...............................................................................................................................3-15
Security by Book ...........................................................................................................................................3-17
Organizations and Security by Book .............................................................................................................3-18
How Security by Book Is Used within Process Flow ....................................................................................3-19
Security by Book Setup Steps........................................................................................................................3-20
Quiz ...............................................................................................................................................................3-24
Troubleshooting Security by Book ................................................................................................................3-25
Implementation Considerations for Security by Book...................................................................................3-27
Summary........................................................................................................................................................3-28
Asset Categories...............................................................................................................................................4-1
Asset Categories ............................................................................................................................................4-3
Objectives ......................................................................................................................................................4-4
Agenda...........................................................................................................................................................4-5
Asset Categories Positioning .........................................................................................................................4-6

Quiz ...............................................................................................................................................................4-7
Asset Categories Regions ..............................................................................................................................4-8
Asset Categories Setup ..................................................................................................................................4-9
Summary........................................................................................................................................................4-17

Copyright © Oracle, 2010. All rights reserved.

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Manual Asset Additions ..................................................................................................................................5-1
Manual Asset Additions ................................................................................................................................5-3
Objectives ......................................................................................................................................................5-4
Agenda...........................................................................................................................................................5-6
Asset Life Cycle ............................................................................................................................................5-7
Adding Assets Manually ...............................................................................................................................5-8
Quiz ...............................................................................................................................................................5-10
Asset Additions Required Data .....................................................................................................................5-11
QuickAdditions..............................................................................................................................................5-12
Quiz ...............................................................................................................................................................5-15
Detail Asset Additions...................................................................................................................................5-16
Detail Additions - Asset Details Window......................................................................................................5-18
Quiz ...............................................................................................................................................................5-20
Detail Additions - Books Window.................................................................................................................5-21
Asset Cost Terminology ................................................................................................................................5-23
Accumulated Depreciation Considerations....................................................................................................5-24
Depreciate Checkbox Actions .......................................................................................................................5-26
Detail Additions - Assignments Window ......................................................................................................5-27
Detail Additions - Source Lines Window......................................................................................................5-28

Manual Asset Additions Journal Entries .......................................................................................................5-29
Group Depreciation .......................................................................................................................................5-30
Group Depreciation in the Global Market .....................................................................................................5-32
Group and Member Asset Rules....................................................................................................................5-33
Set Up Group Assets......................................................................................................................................5-35
Assigning Member Assets to Group Assets ..................................................................................................5-37
Group Asset Reserve Transfer.......................................................................................................................5-39
Quiz ...............................................................................................................................................................5-40
Energy Assets ................................................................................................................................................5-41
Summary........................................................................................................................................................5-43
Mass Asset Additions.......................................................................................................................................6-1
Mass Asset Additions ....................................................................................................................................6-3
Objectives ......................................................................................................................................................6-4
Agenda...........................................................................................................................................................6-6
Mass Asset Additions Process .......................................................................................................................6-7
Using the Mass Additions Interface Table ....................................................................................................6-9
Adding Assets from Invoice Distribution Lines ............................................................................................6-10
Quiz ...............................................................................................................................................................6-11
The Mass Additions Process..........................................................................................................................6-12
Step 1 Mass Additions Create........................................................................................................................6-14
Requirements to Create Mass Addition Lines ...............................................................................................6-16
Tracking Expensed Items in Oracle Assets ...................................................................................................6-18
Other Mass Additions Considerations ...........................................................................................................6-19
Quiz ...............................................................................................................................................................6-21
Step 2 Prepare Mass Additions......................................................................................................................6-22
Required Fields and Mass Additions .............................................................................................................6-23
Automatic Preparation of Mass Additions.....................................................................................................6-24
Automatic Preparation of Mass Additions Process .......................................................................................6-25
Mass Addition Queues...................................................................................................................................6-27
Changing Asset Information..........................................................................................................................6-28

Merging Mass Addition Lines .......................................................................................................................6-29
Splitting Mass Addition Lines .......................................................................................................................6-30
Merging Then Splitting Functionality ...........................................................................................................6-31
Adding a Mass Addition Line to an Existing Asset.......................................................................................6-32
Accounting for Cost Adjustments Example ..................................................................................................6-33
Step 3 Post Mass Additions ...........................................................................................................................6-34
Effect of Post Mass Additions on Queue Names...........................................................................................6-35
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Step 4 Delete Mass Additions........................................................................................................................6-36
Purge Mass Additions....................................................................................................................................6-37
Future Transactions .......................................................................................................................................6-38
Quiz ...............................................................................................................................................................6-41
View Pending Transactions ...........................................................................................................................6-42
Quiz ...............................................................................................................................................................6-43
Creating Assets Using Web ADI...................................................................................................................6-44
Web ADI Upload to Oracle Assets................................................................................................................6-46
Summary........................................................................................................................................................6-48
CIP Asset Additions.........................................................................................................................................7-1
CIP Asset Additions ......................................................................................................................................7-3
Objectives ......................................................................................................................................................7-4
Agenda...........................................................................................................................................................7-5
Adding and Capitalizing a CIP Asset ............................................................................................................7-6
Acquire and Build CIP Assets .......................................................................................................................7-7
Automatically Adding CIP Assets to Tax Books .........................................................................................7-8
Quiz ...............................................................................................................................................................7-10

Modifying the Cost of CIP Assets .................................................................................................................7-11
Recording a CIP Asset Addition....................................................................................................................7-13
Capitalizing a CIP Asset................................................................................................................................7-14
Quiz ...............................................................................................................................................................7-15
Reversing a Capitalized Asset .......................................................................................................................7-16
Updating Asset Fields When Capitalizing CIP Assets ..................................................................................7-17
Updating Transaction Types When Capitalizing CIP Assets ........................................................................7-18
Recording a Capitalization - Adding and Capitalizing in the Same Period ...................................................7-19
Recording a Capitalization - Adding and Capitalizing in Different Periods..................................................7-20
CIP Assets and Oracle Projects .....................................................................................................................7-22
Tracking Capital Projects in Oracle Projects .................................................................................................7-23
Capital Projects Flow Integration ..................................................................................................................7-24
Creating Mass Additions from Oracle Projects .............................................................................................7-25
Integrating Oracle Projects with Oracle Assets .............................................................................................7-27
Summary........................................................................................................................................................7-29
Asset Adjustments and Maintenance.............................................................................................................8-1
Asset Adjustments and Maintenance.............................................................................................................8-3
Objectives ......................................................................................................................................................8-4
Agenda...........................................................................................................................................................8-6
Asset Adjustments .........................................................................................................................................8-7
Quiz ...............................................................................................................................................................8-8
Asset Adjustment Overview ..........................................................................................................................8-9
Single Asset Reclassification.........................................................................................................................8-10
Mass Reclassification ....................................................................................................................................8-11
Quiz ...............................................................................................................................................................8-12
Inheriting Depreciation Rules........................................................................................................................8-13
Copying Category Descriptive Flexfield Information ..................................................................................8-15
Mass Transactions Process ............................................................................................................................8-16
Recording a Reclassification .........................................................................................................................8-17
Adjusting Units..............................................................................................................................................8-18

Adjusting Financial Information....................................................................................................................8-19
Choosing to Expense or Amortize Depreciation Adjustments ......................................................................8-20
Amortizing Adjustments Using a Retroactive Start Date ..............................................................................8-22
Using Mass Changes .....................................................................................................................................8-23
Single Asset Transfers ...................................................................................................................................8-24
Mass Asset Transfers.....................................................................................................................................8-26
Asset Revaluation ..........................................................................................................................................8-28
Quiz ...............................................................................................................................................................8-30
Scheduling Asset Maintenance......................................................................................................................8-31
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Performing Physical Inventory ......................................................................................................................8-32
Entering Physical Inventory ..........................................................................................................................8-34
Physical Inventory Comparison.....................................................................................................................8-35
Physical Inventory Reconciliation .................................................................................................................8-37
Integrating Web ADI with Physical Inventory ..............................................................................................8-38
Summary........................................................................................................................................................8-40
Depreciation .....................................................................................................................................................9-1
Depreciation ..................................................................................................................................................9-3
Objectives ......................................................................................................................................................9-4
Agenda...........................................................................................................................................................9-5
Elements of Depreciation ..............................................................................................................................9-6
Depreciation Setup Areas ..............................................................................................................................9-8
Basic Depreciation Calculation .....................................................................................................................9-9
Depreciation Methods....................................................................................................................................9-11
Using the Life-Based Method........................................................................................................................9-12

Life-Based Method Terms.............................................................................................................................9-13
Life-Based Method Example.........................................................................................................................9-14
Using the Flat-Rate Method...........................................................................................................................9-15
Flat-Rate Method Example............................................................................................................................9-17
Using the Units-of-Production Method .........................................................................................................9-19
Quiz ...............................................................................................................................................................9-20
Units-of-Production Method Example...........................................................................................................9-21
Entering Production Information...................................................................................................................9-22
Units-of-Production Method Production Amount Restrictions .....................................................................9-24
Units-of-Production Method Restrictions......................................................................................................9-25
Units-of-Production Capacity Restrictions ....................................................................................................9-26
Prorate Conventions ......................................................................................................................................9-27
Run Depreciation Process..............................................................................................................................9-28
Quiz ...............................................................................................................................................................9-30
Depreciation Program Processes ...................................................................................................................9-31
Projecting Depreciation for an Asset ............................................................................................................9-32
Defining a Projection.....................................................................................................................................9-33
Quiz ...............................................................................................................................................................9-34
Depreciation Forecasts ..................................................................................................................................9-35
Using Depreciation Override.........................................................................................................................9-36
Useful Depreciation Reports..........................................................................................................................9-38
Summary........................................................................................................................................................9-40
Asset Retirements ............................................................................................................................................10-1
Asset Retirements ..........................................................................................................................................10-3
Objectives ......................................................................................................................................................10-4
Agenda...........................................................................................................................................................10-5
Tracking Asset Retirements...........................................................................................................................10-6
Overview of Retiring an Asset ......................................................................................................................10-7
Restrictions on Retirements and Reinstatements...........................................................................................10-8
Quiz ...............................................................................................................................................................10-10

Fully Retiring Assets .....................................................................................................................................10-11
Partially Retiring Assets ................................................................................................................................10-12
Mass Asset Retirements.................................................................................................................................10-14
Quiz ...............................................................................................................................................................10-16
External Retirements .....................................................................................................................................10-17
Reinstating Retired Assets.............................................................................................................................10-19
Calculate Gains and Losses Program.............................................................................................................10-20
Retirement Processing Flow ..........................................................................................................................10-21
Processing a Pending Retirement and Reinstatement ....................................................................................10-22
Calculating Depreciation for the Period Retired............................................................................................10-23
Recording Retirements and Reinstatements ..................................................................................................10-24
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Recording Retirements ..................................................................................................................................10-25
Recording a Retirement on Multiple Accounts ............................................................................................10-27
Retirement Journal Entries Example .............................................................................................................10-28
Recording Prior Period Reinstatement Entries ..............................................................................................10-29
Retirement Reports ........................................................................................................................................10-30
Summary........................................................................................................................................................10-33
Asset Accounting..............................................................................................................................................11-1
Asset Accounting...........................................................................................................................................11-3
Objectives ......................................................................................................................................................11-4
Agenda...........................................................................................................................................................11-5
Setting Up Asset Accounting.........................................................................................................................11-6
Assets Journal Entries Flow...........................................................................................................................11-8
Oracle Subledger Accounting........................................................................................................................11-10

Accounting Event Entities and Classes .........................................................................................................11-11
Create Accounting – Assets Program ............................................................................................................11-13
Journal Entries Created..................................................................................................................................11-14
Quiz ...............................................................................................................................................................11-16
Reconciling Data in Oracle Assets ................................................................................................................11-17
Generating Reports to Reconcile to the General Ledger ...............................................................................11-18
Reconciling an Asset Cost Account...............................................................................................................11-19
Reconciling Asset Cost Accounts..................................................................................................................11-20
Reconciling a CIP Cost Account ...................................................................................................................11-21
Reconciling a Reserve Account.....................................................................................................................11-22
Reconciling Depreciation Expense................................................................................................................11-24
Reconciling Mass Additions..........................................................................................................................11-25
Quiz ...............................................................................................................................................................11-27
Summary........................................................................................................................................................11-28
Asset Inquiry & Reporting .............................................................................................................................12-1
Asset Inquiry & Reporting.............................................................................................................................12-3
Objectives ......................................................................................................................................................12-4
Agenda...........................................................................................................................................................12-5
Viewing Asset Information Online................................................................................................................12-6
Types of Asset Inquiries ................................................................................................................................12-7
Asset Inquiry Options....................................................................................................................................12-8
iAssets Search for Assets...............................................................................................................................12-9
Viewing Financial Information......................................................................................................................12-11
Viewing Transaction History.........................................................................................................................12-13
Viewing Transaction Accounting ..................................................................................................................12-14
Quiz ...............................................................................................................................................................12-15
Viewing Subledger Accounting Transactions ...............................................................................................12-16
iAssets ...........................................................................................................................................................12-17
iAssets Setup Steps........................................................................................................................................12-18
Oracle Assets Reporting ................................................................................................................................12-20

Assets Reports Groupings..............................................................................................................................12-22
Variable Format Reports ...............................................................................................................................12-23
Assets Reports Using XML Publisher ...........................................................................................................12-24
Summary........................................................................................................................................................12-25
Tax Accounting ................................................................................................................................................13-1
Tax Accounting .............................................................................................................................................13-3
Objectives ......................................................................................................................................................13-4
Agenda...........................................................................................................................................................13-6
Creating a Tax Book......................................................................................................................................13-7
Asset Books Regions .....................................................................................................................................13-8
Prerequisites for Setting Up Tax Book Asset Categories ..............................................................................13-10
Quiz ...............................................................................................................................................................13-11
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Entering Information in Tax Books ...............................................................................................................13-12
Quiz ...............................................................................................................................................................13-14
Populating the Tax Book by Initial Mass Copy.............................................................................................13-15
Populating the Tax Book ...............................................................................................................................13-17
Populating the Tax Book by Periodic Mass Copy ........................................................................................13-18
Updating a Tax Book Manually ....................................................................................................................13-20
Quiz ...............................................................................................................................................................13-21
Tax Book Upload Interface ...........................................................................................................................13-22
Discussing Tax Rules ....................................................................................................................................13-24
Deferred Depreciation ...................................................................................................................................13-26
Calculating Deferred Depreciation ................................................................................................................13-27
Adjusting Accumulated Depreciation............................................................................................................13-28

Adjusting Depreciation Reserve for a Single Asset.......................................................................................13-29
Adjusting Depreciation Reserve for All Assets .............................................................................................13-31
Controlling Mass Depreciation Adjustment ..................................................................................................13-32
Calculating Mass Depreciation Adjustment ..................................................................................................13-33
Automatically Adding CIP Assets to Tax Books .........................................................................................13-34
General Tax Reports......................................................................................................................................13-36
Special Tax Reports.......................................................................................................................................13-37
Depreciation Adjustment Reports..................................................................................................................13-38
Summary........................................................................................................................................................13-39

Copyright © Oracle, 2010. All rights reserved.

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Preface
Profile
Before You Begin This Course
•

Basic knowledge of business accounting concepts

•

Familiarity with data processing concepts and techniques

Prerequisites
•

R12 Navigate Oracle Applications

•

R12 eBusiness Suite Essentials for Implementers

How This Course Is Organized
This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations
and written practice sessions reinforce the concepts and skills introduced.

Copyright © Oracle, 2010. All rights reserved.

R12.x Oracle Asset Management Fundamentals Table of Contents
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Related Publications
Oracle Publications
Title

Part Number

Oracle Assets User Guide

E13586-03

Oracle iAssets User Guide

E13435-02

Additional Publications
•

System release bulletins

•

Installation and user’s guides

•

Read-me files

•

International Oracle User’s Group (IOUG) articles

•

Oracle Magazine

Copyright © Oracle, 2010. All rights reserved.

R12.x Oracle Asset Management Fundamentals Table of Contents
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Typographic Conventions
Typographic Conventions in Text

Convention
Bold italic
Caps and
lowercase

Courier new,
case sensitive
(default is
lowercase)

Initial cap

Element
Glossary term (if
there is a glossary)
Buttons,
check boxes,
triggers,
windows
Code output,
directory names,
filenames,
passwords,
pathnames,
URLs,
user input,
usernames

Arrow
Brackets

Commas

Graphics labels
(unless the term is a
proper noun)
Emphasized words
and phrases,
titles of books and
courses,
variables
Interface elements
with long names
that have only
initial caps;
lesson and chapter
titles in crossreferences
SQL column
names, commands,
functions, schemas,
table names
Menu paths
Key names
Key sequences

Plus signs

Key combinations

Italic

Quotation
marks

Uppercase

Example
The algorithm inserts the new key.
Click the Executable button.
Select the Can’t Delete Card check box.
Assign a When-Validate-Item trigger to the ORD block.
Open the Master Schedule window.
Code output: debug.set (‘I”, 300);
Directory: bin (DOS), $FMHOME (UNIX)
Filename: Locate the init.ora file.
Password: User tiger as your password.
Pathname: Open c:\my_docs\projects
URL: Go to
User input: Enter 300
Username: Log on as scott
Customer address (but Oracle Payables)

Do not save changes to the database.
For further information, see Oracle7 Server SQL Language
Reference Manual.
Enter , where user_id is the
name of the user.
Select “Include a reusable module component” and click Finish.
This subject is covered in Unit II, Lesson 3, “Working with
Objects.”

Use the SELECT command to view information stored in the
LAST_NAME
column of the EMP table.
Select File > Save.
Press [Enter].
Press and release keys one at a time:
[Alternate], [F], [D]
Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

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Typographic Conventions in Code
Convention
Caps and
lowercase
Lowercase

Element
Oracle Forms
triggers
Column names,
table names

Example
When-Validate-Item

Passwords

DROP USER scott
IDENTIFIED BY tiger;
OG_ACTIVATE_LAYER
(OG_GET_LAYER (‘prod_pie_layer’))

SELECT last_name
FROM s_emp;

PL/SQL objects

Lowercase
italic
Uppercase

CREATE ROLE role

Syntax variables

SQL commands and SELECT userid
FROM emp;
functions

Typographic Conventions in Oracle Application Navigation Paths
This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
This simplified path translates to the following:

1.

(N) From the Navigator window, select Invoice then Entry then Invoice Batches
Summary.

2.

(M) From the menu, select Query then Find.

3.

(B) Click the Approve button.

Notations:
(N) = Navigator
(M) = Menu
(T) = Tab
(B) = Button
(I) = Icon
(H) = Hyperlink
(ST) = Sub Tab
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Typographical Conventions in Oracle Application Help System Paths
This course uses a “navigation path” convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.

The following help navigation path, for example—
(Help) General Ledger > Journals > Enter Journals
—represents the following sequence of actions:
1.

In the navigation frame of the help system window, expand the General Ledger entry.

2.

Under the General Ledger entry, expand Journals.

3.

Under Journals, select Enter Journals.

4.

Review the Enter Journals topic that appears in the document frame of the help system
window.

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R12.x Oracle Asset Management Fundamentals Table of Contents
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R12.x Oracle Asset Management Fundamentals Table of Contents
xiv

CIP Asset Additions
Chapter 7

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CIP Asset Additions
Chapter 7 - Page 1


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CIP Asset Additions
Chapter 7 - Page 2


CIP Asset Additions

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CIP Asset Additions
Chapter 7 - Page 3


Objectives

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CIP Asset Additions

Chapter 7 - Page 4


Agenda

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CIP Asset Additions
Chapter 7 - Page 5


Adding and Capitalizing a CIP Asset

Adding and Capitalizing a CIP Asset
A construction–in–process (CIP) asset is an asset you construct over a period of time. You
create and maintain your CIP assets as you spend money for raw materials and labor to
construct them. Since a CIP asset is not yet in use, it does not depreciate. When you finish
building the CIP asset, you can place it in service and begin depreciating it.
You can track CIP assets in Oracle Assets, or you can track detailed information about your
CIP assets in Oracle Projects. If you use Oracle Projects to track CIP assets, you do not need to
track them prior to capitalization in Oracle Assets.

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CIP Asset Additions
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Acquire and Build CIP Assets

Acquire and Build CIP Assets
Create CIP assets using mass additions or manual additions. Oracle Assets identifies invoices
with distributions to CIP clearing accounts in Oracle Payables, and creates mass additions from
them. You can create new CIP assets from your mass additions, or add them to existing assets.
You can also add non–invoiced expenses, such as labor cost, to your CIP assets. You can
perform transfers or adjustments on your CIP assets if necessary.
• Initially, CIP assets have zero costs. They act as shells for the costs that make up the
assets.
• Adding source lines to the new CIP assets will increase the costs.
• Since CIP assets are not ready for use, they are non-depreciable assets.
• For costs that originate in Oracle Payables, you can send CIP costs to Oracle Projects,
and then send capitalized costs to Oracle Assets.
• Consider using the asset key flexfield to group CIP assets from the same project if you
are not using Oracle Projects.
• You cannot add production amounts to a CIP asset.

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CIP Asset Additions
Chapter 7 - Page 7


Automatically Adding CIP Assets to Tax Books

Automatically Adding CIP Assets to Tax Books
• After you set up Oracle Assets to automatically add CIP assets to your tax book, all CIP
assets you add to your corporate book will automatically be added to your tax book at the
same time.
• When you capitalize these CIP assets in your corporate book, the same assets will
automatically be capitalized in your tax book, even if the corporate and tax books are in

different periods.
• If you checked Allow CIP Assets and later you uncheck it, you may have CIP assets that
were automatically added to the tax book while Allow CIP Assets was checked. Although
Allow CIP Assets is no longer checked, those CIP assets in the tax book will be
automatically capitalized when the same assets are capitalized in the corporate book.
• You cannot perform any transactions directly to CIP assets in tax books. You can only
perform transactions on CIP assets in your corporate book, and these transactions will
automatically be replicated to the tax book.
- Adjustments, retirements, reinstatements, and capitalizations must be performed on
CIP assets in the corporate book.

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CIP Asset Additions
Chapter 7 - Page 8


-

•

These transactions are copied automatically to the related tax book. Cost
adjustments are copied as actual adjustment amounts, not as a percentage of the
cost.
- Example: The cost of Asset A in the corporate book is $1000. In the tax book, the
cost of Asset A is $1500 due to inflationary revaluation. If the cost of Asset A in the
corporate book changes by 30% to $1300, the actual adjustment is $300. In the tax
book, the cost adjustment amount of $300 will be copied, not the rate of the
adjustment (30% of $1500). The adjusted cost for Asset A in the tax book will be
$1800, not $1950.

You cannot view CIP assets in tax books from the Asset Workbench. You can view this
information in the View Financial Information window.

Copyright © Oracle, 2010. All rights reserved.

CIP Asset Additions
Chapter 7 - Page 9