Tuesday Apr 05, 2016

Depreciation Override in Fixed Assets

Depreciation override can override the system-calculated depreciation amount when the calculated amount does not meet business requirements.  Override is a way to have a different periodic depreciation charged than what is calculated by the depreciation program.  Override amounts are still subject to all standard validations.

One prerequisite to using depreciation override is to set the profile option ‘FA: Enable Depreciation Override’ to Yes.

Depreciation override can be entered in two ways:  
  1. Via the depreciation override form.
  2. Via the FA_DEPRN_OVERRIDE table.
Depreciation override works in two different ways:
  • Used by Depreciation - used to override the system-calculated periodic depreciation amounts.
The steps to perform this override and to see its effects:
  1. Insert a record for the override with the book, asset number, current open period, override amount, used by depreciation, etc.  Set the status to POST.
  2. Run depreciation with or without closing the period.
  3. The status will be changed to POSTED from POST.  In the Asset Workbench form, the amounts entered for override will override the periodic system-calculated depreciation amount. 
OverrideFor example, the usual system-calculated monthly amount for Apr-16 is 500 for an asset.  An override of 800 is entered for Apr-16.  The monthly depreciation charged for Apr-16 is 800, visible when querying in the Asset Workbench.
  • Used by Adjustment - will be processed by performing an adjustment to incorporate the override data.  In this case, a transaction type of ADJUSTMENT will be created, much like a depreciation catch-up.  But, when depreciation is run for this period, the normal depreciation amount will also be calculated.
The steps to perform this override and to see its effects:
  1. Insert a record for override with the book, asset number, a closed period, override amount, and used by adjustment, with status set to POST.
  2. Perform an asset adjustment such as an increase in the cost of an asset. 
  3. After the cost adjustment, you see the line set to POSTED from POST.
  4. Run depreciation with or without closing the period.
For example, if the cost adjustment done in Apr-16 caused a system-calculated catch-up of 3000 and an override is entered with the period of Mar-16 for 2000, the system-calculated monthly depreciation amount for Apr-16, post cost adjustment, would be 500.  After the adjustment, the depreciation catch-up booked in Apr-16 would be 4500, i.e. 3000 system-calculated catch-up and 1500 entered via override, as 500 will be charged in periodic depreciation for Apr-16.  To get the desired adjustments to the catch-up amounts, periodic depreciation needs to be kept in mind.  If the additional catch-up needed is 2000 and the system-calculated catch-up is 500, the deprecation override entered should be 2500.
There are some rules for override to be successfully processed:
  • Override amounts are not picked up if depreciation is already run for the book.  Perform a manual override using an API or perform a transaction like a penny cost adjustment.  Re-run depreciation to have it picked up in the depreciation run.
  • Override amounts are not picked up in the period of retirement.
  • Backdated retirements overlapping depreciation/bonus override are not allowed.
  • Depreciation override of zero is not allowed for an MRC/ALC enabled book.
  • Depreciation override amount has to be less than or equal to the NBV of the asset.
  • Depreciation override amount should not cause the reserve to exceed the depreciation limit.
  • There is no API for depreciation override.
  • Override depreciation is not picked up in the last period of an asset's life for life-based methods.
Points to keep in mind while working with override records:
  • If depreciation is run for the period and an override is missed, enter an override and rollback depreciation via API or by performing a penny cost adjustment.  Re-run depreciation to pick up override amounts.
  • Override has been processed and you see the status as POSTED, but it is incorrect and the period is not closed yet.  Go back to the override form and set the status POSTED back to POST and correct the amounts.  This automatically rolls back depreciation for the asset.  Depreciation can now be re-run to get the correct override amounts picked up.
  • Depreciation run has ended in error due to a validation failure after an override.  Delete the line and enter the correct amount.  Re-run depreciation to get the correct amounts picked up.

With credit to Anshu Malhotra, Oracle Assets Support

Thursday Mar 10, 2016

Financial Information Discovery Integration with Oracle Assets

In today’s world, organizations own huge numbers of assets, which are in different locations spread across the world and assigned to different employees.  In these kinds of situations, data analysis and controlling investments on fixed assets becomes a real time challenge.  Financial Information Discovery Integration (Endeca) can assist with these challenges.

Information Discovery for Oracle E-Business Suite is an integrated application that allows enterprises to leverage information-driven navigation to discover and act on their most pressing business challenges.  The key benefits of Endeca in Oracle Assets are:

  • Increase asset utilization
    • Track assets' remaining life and depreciated values
    • Maintain, replace or sell assets based on financial metrics
  • Reduce asset cost
    • Monitor asset values and relevant additions
    • Gain visibility into asset lifecycle, value increase/decrease, movement, and resale value
  • Improve asset accounting, tracking and assignment
    • Detect and resolve GL reconciliation issues
    • Optimize asset categorization and assignment details


Enabling Endeca integration in Fixed Assets provides search capability and answers basic queries related to asset cost, remaining life, locations, and mass transactions.  Using this, users will be able to query data across multiple asset books within a single ledger.  It also provides direct integration to Purchasing, Enterprise Asset Management, Payables, and General Ledger.

The graphical interpretation of this information helps management analyze the data quickly and helps in quick decision-making.

Pre-Requisites:

  • E-Business Suite Financials Release 12.1.3 or 12.2.5
  • Financials Information Discovery V6

Business Flow:
Here is a glimpse of the business process followed by Endeca:


Endeca1

Features:
Endeca offers powerful and robust capabilities across the entire Oracle Assets process flow through:

  • Available refinements and Selected Refinements
  • Drillable graphs
  • Metrics, alerts, tag clouds
  • Actionable information pushed to users
  • Ability to review details of relevant transactions prior to taking action

Currently, it provides solutions for four main business requirements:



Asset Cost and Accumulated Depreciation – This feature provides an overview and visibility into all financial transactions affecting asset value.  Graphs in the asset cost page will enable drill-down to data to review discrepancies, analyze a root cause and take corrective action.  You can also see account balances for Oracle Assets and Oracle General Ledger side by side, which smooths the reconciliation process.

Asset Aging – Provides insight into the remaining life of assets with an easy overview of asset cost, accumulated depreciation, and net book value.  This page also provides the top 10 categories by remaining life along with metrics, pie charts and graphs on asset remaining life.

Asset Location – Provides an overview of assets across all locations and gives the opportunity to explore assignment to employees.  It also provides an actionable link to the Asset Workbench to correct employee or cost center assignment discrepancies.

Mass Transactions – Tag clouds, graphs and charts give an overview of pending transactions to be processed.  An actionable link to the mass transactions page helps to process pending transactions quickly.

For more information on what is being provided in each of the above solutions, and how to extract or refine data, refer to the Information Discovery Integration Guide.

With credit to Vaishali Karanth, Oracle Assets Support

Monday Feb 15, 2016

How Does the 2016 Leap Year Impact Fixed Assets?

A leap year affects calendar setups as well as depreciation calculations in Fixed Assets.  Leap year for a monthly calendar means just having February end on the 29th rather than the usual 28th.  However, for a daily calendar, the additional day will need to be added to any period in the calendar, since the maximum number of periods a calendar can have is 365.  Therefore, one period in the calendar will have two days in it.  For example, the 28th of February could be from the 28th of February to the 29th of February, or the 30th of December could be from the 30th of December to the 31st of December.

Usually calendars for the next fiscal year get set automatically by the depreciation run when the last period of the fiscal year is closed.  In the case of a leap year, it is recommended that the calendar be set in advance so that the additional day shows up in the correct period and in the correct way for your business requirements.  If the calendar was not set up in advance and you find it is not set correctly for your business requirements, the following steps may be used to re-set the dates correctly (for unused periods):

1.  Query the calendar in the calendars form

2.  Go to the last recordFeb 29

3.  Delete the last record

4.  Save

5.  Delete the new last record

6.  Save

7.  Repeat until you arrive at the currently open period, which you cannot delete

8.  Add new periods back in with your amended dates

Leap year does not affect depreciation calculations for books with even allocation and monthly calendars.   However, books with allocation by days and daily calendars, will show a change in the depreciation expense amounts.

Here is an example of an asset with a cost of $3000, depreciating at 33.33%.
Depreciation for Feb-2015 would be calculated as follows:
= (3000*33.33%) / 365*28
=76.71

In a leap year, the same asset has depreciation for Feb-2016 calculated as follows:
= (3000*33.33%) / 366*29
=79.23

To extend the example ahead, look at the Mar-2016 depreciation calculation:
= (3000*33.33%) / 366*31
= 84.70

Basically, the yearly depreciation remains the same but the allocation between periods changes.  So, where an earlier yearly depreciation was divided by 365 days, for a leap year it is divided by 366 to calculate a day’s depreciation.  The depreciation for each calendar period is calculated based on the date function counting the number of days between the from- and to-dates, i.e., between the 1st of February and the 29th of February there are 29 days and between the 1st of March and the 31st of March there are 31 days.

Some additional examples can be found in Doc ID 564999.1 - R11i Depreciation Program (FADEPR) Calculates Wrong Depreciation For Leap Year.

With credit to Anshu Malhotra, Oracle Assets Support

Tuesday Jan 12, 2016

Unplanned Depreciation in Fixed Assets

Unplanned depreciation is used in Fixed Assets to handle unusual accounting situations in which the net book value (NBV) and accumulated depreciation amounts for an asset need to be adjusted without affecting the asset cost.

There are some rules for using unplanned depreciation.  These include:

  • You cannot allocate unplanned depreciation amounts to specific distributions, as you can in a distribution set.
  • You cannot make expensed adjustments to assets for which you have previously entered unplanned depreciation and have since amortized the amount.Calculator
  • You can apply unplanned depreciation to assets using flat rate or units of production methods, in addition to straight line methods.
  • You cannot perform a mass change or prior period retirement for assets that have unplanned depreciation.
  • If you have run preliminary depreciation and then enter unplanned depreciation, the unplanned transaction functions as a rollback event.  Therefore, you cannot use unplanned depreciation as a negative adjustment of depreciation in the period of addition.
  • Unplanned depreciation can only be entered if you are using a table based or flat rate method.  For an asset using some other type of method, you will have to change the method first.

To enter an unplanned depreciation, navigate to the Asset Workbench:

1.  Select the asset for which you want to enter unplanned depreciation and click the Books button.

2.  In the Books window, enter a book.

3.  Enter a reason for the unplanned depreciation in the Comments field as needed.

4.  When you navigate to the Depreciation zone, you will see that the amounts will pop up. Click the Unplanned Depreciation button.

5.  In the Unplanned Depreciation window, select the unplanned depreciation type.

6.  Enter the unplanned amount as a positive or negative currency.

7.  Enter the unplanned depreciation expense account.

8.  Select the Amortize From Current Period check box. Leave this box clear if you want to amortize the remaining net book value in a subsequent period.  [The value of this check box overrides the value of the Amortize Adjustments check box in the Books window.]

9.  Click Done to save your work.

For additional information, view the document:  Unplanned Depreciation In Oracle Assets (Doc ID 114298.1).


Tuesday Oct 06, 2015

Which Transactions Are Copied Via Fixed Assets Mass Copy?

Which transactions does Fixed Assets copy from the corporate book to the tax book via the Mass Copy process?  Which kinds of transactions do not get copied?  How can you determine which transactions were not copied using the warning messages found in the Mass Copy logfile? 

Let's take a sample message indicating that a transaction could not be copied using Mass Copy:

Asset number 123456
Transaction header id 789789
This adjustment cannot be mass copied.

Cause: Only cost adjustments, salvage value, production capacity or group asset changes can be copied.
Action: Manually adjust this asset in the Tax Book.

Use this data to review the transaction that is NOT Mass Copied from the corporate book.  Note that the transaction header id is used for the Reference Number.

  1.  Login to FA
  2.  Navigate to:  Inquiry > Transaction History
  3.  Select the corporate book from the LOV
  4.  Enter the transaction header id from the logfile into the Reference Number field
  5.  Click FIND


The form will show the transaction type that was not Mass Copied.
Click DETAILS and the Before and After data is shown for the transaction.

Book-specific changes are intentionally NOT Mass Copied such as depreciation method, life, prorate convention, etc.  These fields are not Mass Copied because it is expected functionality that the tax books can have depreciation different from the corporate book.

Refer to the Oracle Assets Users Guide
Chapter:  Tax Accounting > Tax Book Maintenance


So, what does get copied?

The following basic financial information comes from the corporate book:

  •  Cost
  •  Original Cost
  •  Units
  •  Date Placed in Service
  •  Capacity and unit of measure, for units of production assets
  •  Salvage Value, if you choose to Copy Salvage Value for the tax book in the Book Controls window


The remaining depreciation information comes from the default category information for your tax book according to the asset category and the date placed in service.

With credit to Kathleen Herd, Oracle Assets Support


Friday Aug 07, 2015

Overview of Physical Inventory in Oracle Assets

Physical inventory is a critical business process through which a successful enterprise periodically inspects its assets to protect its large capital investments and to comply with auditing requirements.  Physical inventory is the process of ensuring that the assets a company has listed in its production system match the assets it actually has in inventory.  It also ensures that capital assets recorded in the Fixed Assets Accounting and Control System physically exist, determines if unrecorded or improperly recorded transactions have occurred, and identifies any excess, defective or obsolete assets on hand.  An effective inventory results in an accurate accounting of capital assets, and indicates the reliability of the system of accountability for the acquisition, use, and disposal of those assets.

How this works in Oracle Assets:flowchart

Oracle Assets is a worldwide best practice tool which automates the physical inventory process to minimize administrative costs.  The Physical Inventory feature in Oracle Assets assists you in comparing and reconciling your physical inventory data with the data loaded in Oracle Applications.  This flow chart gives an overall picture of how physical inventory functionality works in Oracle Assets. 

The standard steps are:

  1. Collect the actual asset details like asset tag number, asset number, units, etc. owned by each department.  This is normally done by the physical inspection of the assets owned by each department.
  2. The second step would be to load the physical inventory details / actual asset details collected through the physical inspection into the FA_INV_INTERFACE table.
  3. Run the physical inventory Comparison Report which compares the actual asset details with the data loaded in the FA_INV_INTERFACE table.
  4. View the comparison details which will provide the details of assets which are different and the assets which match between the application and the physical inventory.
  5. Take the necessary actions to match the data in the application to the actual data.

A detailed discussion of the physical inventory functionality in Oracle Assets, the required setups, the different ways physical inventory details can be loaded to the interface table (FA_INV_INTERFACE), and how reconciliation happens can all be found in the document:   Physical Inventory Overview in Oracle Fixed Assets (Doc ID 2003290.1)

With credit to Vaishali Karanth, Oracle Assets.

Wednesday Jul 01, 2015

Revaluation in Fixed Assets

Oracle Assets allows you to periodically adjust the value of your assets due to inflation or deflation, according to rates you enter.  This process is known as revaluation.  The rules for revaluation often differ from country to country.  Oracle Assets has the flexibility to handle your specific requirements.

Revalue assets to adjust the value of your capitalized assets in a highly inflationary economy.  You can revalue all categories in a book, all assets in a category, or individual assets.  You can revalue all assets using the Mass Revaluation process.  The Mass Revaluation process does not use price indexes to revalue assets.

Reval Flow Oracle Assets multiplies the asset cost by the revaluation rate you enter in the Mass Revaluations window to determine the adjustment to the asset cost. 

Revaluations are not processed for:

  • Fully retired assets
  • Assets with pending retirements

Since Oracle Assets does not Mass Copy revaluations, when you perform a revaluation in your corporate book, also perform it in each tax book associated with that corporate book.

To process revaluations, revaluation accounts and revaluation rules must be set up.  The default revaluation rules that are set up for a book can be overridden when creating a revaluation definition in the Mass Revaluations window.

You will need to consider whether or not to revalue accumulated depreciation.  You can revalue fully reserved assets that are depreciating under a life-based method.  If you choose to revalue fully reserved assets, you would need to enter a life extension factor to extend the asset life.  To revalue a retired asset, you would need to first reinstate it.  You can also revalue CIP assets, but only for a tax book.  A ceiling can be set to prevent revaluation above the fair market value.

To assist in these, and other revaluation considerations and setups, there is a new white paper available.  In addition to setup steps, this white paper provides the steps for performing revaluations as well as sample calculations for different scenarios.  You can review the document to understand how different book control settings might affect the revaluation calculations.  What might be expected if you decide to revalue accumulated depreciation?  Or, perhaps you only want to revalue year-to-date (YTD) depreciation?  Or, what might the revaluation amounts look like if you amortize the revaluation reserve?

The Revaluation in Oracle Assets White Paper can be found in Doc ID 2018027.1.


Friday May 29, 2015

Depreciation Calculation Considerations in Fixed Assets

There are many variables that can affect the depreciation calculation for an asset.  Some of the basic variables include: 

  • Cost Financial Inquiry
  • Depreciation method
  • Date Placed in Service (DPIS)
  • Prorate convention
  • Prorate date

You can view these variables for an asset via the Financial Inquiry form and make changes to these via the Asset Workbench / Books form.

Additional factors in the calculation of depreciation for an asset include:

  • Specifics of the depreciation method
  • Depreciation calendar
  • Depreciate when placed in service flag
  • Dividing depreciation evenly or by days
  • Other specifics of the prorate convention
  • Prorate calendar

Some of the factors that seem to cause more confusion than others surround the allocation (divide evenly or by days) setting on the Book Controls form and the the prorate information.

If the book is set to divide depreciation evenly, the annual depreciation for the assets will be divided evenly over the number of periods in the fiscal year.  If the book is set to divide daily, the annual depreciation will be divided based on the number of days of the periods in the fiscal year, with the amount of depreciation varying in each period.  For sample calculations of depreciation using "Divide Depreciation By Days" (the less common scenario), review the Depreciation Methods White Paper found in Fixed Assets Depreciation Methods and Calculations With Examples (Doc ID 1179655.1).  There are a number of examples using different parameters, starting on page 25.  Look for those that use "Depreciation Allocation" = "Daily."

For prorates, the prorate calendar determines the number of prorate periods in your fiscal year.  The depreciation program uses the prorate calendar to determine the prorate period, which is used to determine the annual depreciation amount.  The prorate convention is used to determine how much depreciation to take in the first and last years of the asset's life.  Together with the date placed in service (DPIS), the prorate convention helps to determine the prorate date.  For example, if you use a prorate convention with a defined period of 1-JUN-2015 to 30-JUN-2015 and a corresponding prorate date of 30-JUN-2015, an asset with a DPIS of 16-JUN-2015 will start depreciating in the current month of June.  If the prorate convention, instead, is set to a defined period of 1-JUN-2015 to 30-JUN-2015 with a prorate date of 01-JUL-2015, an asset with a DPIS of 16-JUN-2015 will start depreciating in the following month of July.  Thus, the prorate date is tied to the DPIS, but the DPIS might not be when the asset starts depreciating.  Examples of varying prorate setups can be found in the white paper in The Wonderful World of Prorate Conventions White Paper (Doc ID 115323.1) 

Monday Apr 13, 2015

A Brief Discussion of Globalization Profile Options

If you are setting up country-specific globalizations and you use custom responsibilities, then you may need to know about the profile options you would set upGlobe for a non-multi-org product such as Fixed Assets.  For each custom responsibility that uses windows with country-specific or regional features that belongs to a non-multi-org product, you must set the JG: Application, JG: Territory, and JG: Product profile options.  Note:  You do not need to set these profile options for multi-org products such as Payables and Receivables, which make use of the organization field.

These globalization profile options are:

  • JG: Application:

Used to determine which Oracle Applications product the responsibility is associated with.  The list of values for this profile option consists of a complete list of Oracle Applications products.

  • JG: Territory:

Used to determine which country the responsibility is associated with.  The list of values for this profile option consists of a list of countries.

  • JG: Product:

Used to determine which Global Financials product the responsibility is associated with.  The list of values for this profile option consists of a list of Global Financials products.

You will find additional information about globalization setups in the Oracle® Financials Country-Specific Installation Supplement.

Monday Mar 09, 2015

Mandatory Post Patch Required for Fixed Assets Feb 2015 RPC

UPDATE 3/23/2015: Fixed Assets Development has now combined the two patches (the former RPC and the mandatory post-RPC) into one patch. They have re-released the Feb 2015 FA RPC under this new, combined patch.  The new RPC patch number is 20687418:R12.FA.B.

IMPORTANT UPDATE 3/13/2015: Fixed Assets Development will be combining these two patches (the RPC and the mandatory post-RPC) into one patch. They will re-release the Feb 2015 FA RPC under this new patch number. Watch this blog for the announcement of that new RPC patch number, when released. Thanks!

There is now a mandatory post-RPC patch (Patch 20530852 - Do Not Allow Changes To Other Financial Details Along With Depreciate Flag) for Fixed Assets that has to be applied after the Fixed Assets Feb 2015 RPC.  Development discovered an issue due to the fix made in 19933377:R12.FA.B, which has now been obsoleted, but was included in the RPC.  The issue in that bug was certain valid transactions were not allowed to go through.  However, after the fix, transactions that should be prevented also got through.  These transactions will cause data corruption in the product.  The issue typically occurs when customers change multiple fields when performing an adjustment such as depreciate flag and cost, but this could be any combination of multiple changes during a single adjustment transaction.

The Readme for the RPC - R12.1: Fixed Assets Recommended Patch Collection, Feb 2015  (Doc ID 1983884.1) has been updated to reflect this mandatory patch.  If you have downloaded the Fixed Assets Feb RPC Patch 20183189, please also download, test and apply the post-requisite Patch 20530852.

Thursday Jan 22, 2015

Obtaining Bonus Depreciation Methods for Oracle Fixed Assets

Are you looking for bonus depreciation methods for Release 12?  These could be depreciation methods used for the Jobs and Growth Tax Relief Reconciliation Act of 2003 or for the American Jobs Creation Act of 2004

Bonus depreciation methods are generally made available via a patch after the enactment of new laws.  In R12, bonus depreciation methods were made available for R12.0 (R12.FA.A) via Patch 6511705:R12.FA.A.  These methods were made available for R12.1 (R12.FA.B) via Patch 6511705:R12.FA.B.

As R12.2 was released well after the enactment of these laws, a later patch was created for delivery of these bonus depreciation methods.  For R12.2 (R12.FA.C), apply Patch 20012197:R12.FA.C.

 For reference, please review the documents:

  • R12 and R12.1 Seeded 30% 50% Bonus Depreciation Methods Missing In New Install (Doc ID 561517.1) and 
  • How To Obtain The 30%, 50% and 100% Bonus Depreciation Methods For Release 12.2.3 Of Oracle Assets? (Doc ID 1955574.1).

Wednesday Dec 17, 2014

An Insight Into Asset Impairment

Why would you have an asset impairment? 

An asset impairment is a situation in which the usefulness of an asset suddenly declines, making it so expensive to maintain that it can no longer be expected that it will pay for itself through future cash flows.  A company can choose to maintain the asset on its books but write down the value to more accurately reflect its value, or it can list the asset for sale and dispose of it.  Once an asset is impaired, it cannot be recovered.  Therefore, companies should test assets before placing them in this category.

IAS 36 Impairment of Assets seeks to ensure that an entity's assets are not carried at more than their recoverable amount (i.e. the higher of fair value less costs of disposal and value in use).  With the exception of goodwill and certain intangible assets for which an annual impairment test is required, entities are required to conduct impairment tests where there is an indication of impairment of an asset.  The test may be conducted at the asset level or for a 'cash-generating unit.'

What is an impairment?

If the recoverable amount of an asset is less than the asset’s carrying amount:
•  The asset is impaired
•  The asset’s carrying amount should be reduced to the recoverable amount
                                             
What is the recoverable amount of an asset?

The recoverable amount of an asset is the greater of:

1.  The net selling price of the asset or
2.  The asset’s value in use

An example:

   Asset A  Asset B
 Cost  1000  1000
 Accumulated Reserve  400  400
 Carrying Amount  600  600
 Recoverable Amount  900  400
   Asset not impaired

 Asset is impaired - reduce the carrying amount

 
 When does an asset need to be impaired?

There are several circumstances under which an asset can become impaired. 

There can be external sources such as:

•  Market value declines
•  Negative changes in technology, markets, economy, or laws
•  Increases in market interest rates

Or internal sources:

•  Obsolescence or physical damage
•  Asset is idle, part of a restructuring or held for disposal
•  Poorer economic performance than expected

Which assets can be impaired?

IAS 36 applies to:

•  Land
•  Buildings
•  Machinery and equipment
•  Investment property carried at cost
•  Intangible assets
•  Goodwill
•  Assets carried at revalued amounts under IAS 16 and IAS 38

How does impairment work in Oracle Assets?

These are the processes for creating, posting and managing asset impairments in Oracle Assets:

•  Assigning Cash-Generating Units to Assets (optional)
•  Entering and Uploading Asset Impairments
•  Updating Asset Impairments
•  Reviewing Asset Impairment Reports
•  Posting Asset Impairments
•  Viewing Asset Impairments
•  Rolling Back Asset Impairments
•  Deleting Asset Impairments

For details on each of the above steps, reference the Impairments White Paper in Doc ID 461834.1.

With credit to Vaishali Karanth, Oracle Assets

Monday Nov 17, 2014

How FA and GL Calendars Work Together in R12 Versus R11i

Both FA and GL have calendar setups.  How do these setups work together?  In R11i, Assets maps the calendar period to GL using an exact match of period name.  If your GL period is SEP-14 for September 2014 (as an example), then your FA September 2014 period has to be called SEP-14 as well.  Any variance, even Sep-14 rather than SEP-14, will cause the posting from Assets to GL to fail.  Then you have to log a Service Request (SR) to get that data mismatch fixed.calendar

One data mismatch you don’t have to worry about in 11i, though, is if you have set the actual period of September 2014 to have different dates in FA and GL.  For example, say your FA September 2014 period runs from 01-Sep-2014 to 30-Sep-2014, but in GL it runs from 31-Aug-2014 to 27-Sep-2014.  Since FA doesn’t check those dates, there is no issue posting depreciation amounts dated in FA on 30-Sep-2014 into the GL September period.  As long as the period names are the same, the dates don’t matter.

Now you upgrade to R12.  Assets no longer maps by period name.  In fact, it does not control the selection of the GL period at all.  SubLedger Accounting (SLA) does.  Now it no longer matters if the period names are the same or not, but the calendars matter a lot. 

Take this example:

1.  You run depreciation on September 30th.  Assets creates the rows in the depreciation tables and also inserts a row in xla_events with an event_date of September 30th.  That row is in U/U (Unprocessed / Unposted) status.
2.  You then run Create Accounting.  It picks up that row in xla_events with the September 30th event_date and it maps that date to the GL calendar.  It finds that September 30th is in the October period in GL, and it then sets the field xla_ae_headers.period_name to OCT-14.
3.  You review your postings in GL after Create Accounting has completed, and you find September’s depreciation in October’s period.

This is why it is highly recommended that you consider aligning your FA and GL calendars in R12.  

Here are the basic rules you will encounter for Assets' choice of event_date:

a.  If the event is added in period A and has a DPIS or other effective date of earlier (ex:  a backdated addition or backdated retirement), the event_date will be the first day of the open period.
b.  If the event has an effective date within the period, that date is normally used.  For example, an asset added in September with a DPIS of September 10th will have an event_date of September 10th for the addition’s accounting.
c.  Depreciation works a bit differently since it doesn’t really have an effective “date” so much as a period.  You will find:

  • If you run depreciation on a sysdate later than the last day of the period, you will get the last day of the period as the event_date.
  • If you run depreciation on a sysdate that falls within the period, you will get the sysdate as the event_date.
  • If you run depreciation before the first day of the period, you will get the first day of the period as the event_date.  That scenario is normally only encountered in testing, as when you want to test closing and close a number of periods so that the open period is now sometime in the future when compared to sysdate.

This is why we recommend you take steps to synch up your FA to GL calendars if you have not been running the same dates in 11i, as part of your upgrade to R12.  It is not required, but it does normally reduce the heartburn associated with when and how things post from FA.  

If you do synch up those periods, are there any implications?  In most cases, there is only the pain of the one-time setup work (see below).  However, you do need to think this over if you use Divide by Days, and/or Daily Prorate Conventions, as it will move some depreciation from one period to another.  Straight Line with Even Distribution won’t do that, as it allocates annual depreciation by period regardless of the dates of the period.  Depending on your setup, you could see some depreciation changes periods.  Over the life of the asset, depreciation will still take the full amount, and normally the annual amount is the same as well.  However, some customers using Divide by Days might see the amounts distributed within a year will be slightly different from period to period than they were in 11i.

How do you actually synch up those calendars?  The critical limitation is that you can only modify periods that are not open.  You must retain whatever your current depreciation period is and whatever your current prorate convention periods are.  Thus, the first recommendation is, if possible, make the changes in 11i before you upgrade.  This is because 11i is indifferent to the dates and, since you can’t modify the open periods, you don’t want to find you have mismatched dates after upgrade, and have to manage that for the upgrade period.

The basic plan is (taking the depreciation calendar as an example):

1.  Query up the calendar in the calendars form.
2.  Go to the last record.
3.  Delete the last record.
4.  Save.
5.  Delete the new last record.
6.  Save.
7.  Repeat until you arrive at the currently open period, which you cannot delete.
8.  Add new periods back with your amended dates.

Remember that this must be done for prorate conventions as well.

With credit to Kathy White, Oracle Assets

Friday Oct 24, 2014

Using the Concurrent Request "Transfer Journals to GL - Assets"

PreventMost users transfer journals to GL via the transfer parameter within Create Accounting.  If you set that parameter to yes, Create Accounting will transfer everything it accounts within that batch to GL as part of the Create Accounting process.  However, what if you accidentally set that parameter to No?  Create Accounting, when next run, will not pick up the items accounted in the earlier run.  It handles ONLY those items accounted within the specific run.  To move those earlier items, you have to run the concurrent request Transfer Journals to GL – Assets.

Another normal use of the Transfer concurrent process is immediately after an upgrade from 11i to R12.  If you upgrade with some transactions already completed in the open period, those will be accounted by the upgrade (not by Create Accounting – but by the upgrade process itself).  They will have their xla_ae_headers.gl_transfer_status set to ‘N’ (No), so that you can move them to GL by running the Transfer concurrent.

Transfer Journals to GL – Assets is an “all or nothing” process.  That is, it has to move everything available to transferred, or it will rollback everything it attempted.  This is important because there is a known upgrade issue which can cause some items from very old periods (sometimes from years earlier) to have xla_ae_headers.gl_transfer_status set to ‘N’ (No), thus indicating – incorrectly – that they still need to be transferred.  Thus, this scenario can be encountered:

  • You upgrade from 11i to any version of R12 with some additions and retirements already done in the open period.
  • The upgrade accounts for these additions and retirements and, since they do actually need to be transferred, it leaves xla_ae_headers.gl_transfer_status set to ‘N’ (No).
  • You run Transfer Journals to GL – Assets after upgrading with the aim of moving those open period pre-upgrade items to GL.
  • It fails with an error message relating to musty old data from years ago.  You know this data is already transferred.
  • However, there is no reference in the log file to the open period data, which is the data you really want in GL, and which continues to not be in GL.

Since the Transfer is an all or nothing process, it failed everything because of the old data.  Since the open period data does not actually have an issue, there is no mention of it in the log file at all.  This does not mean it was not transferred, just that due to the other unwanted data failure, the open period data got rolled back, too.

Another common way to encounter this:

  • You  upgraded from 11i to R12 with no transactions entered into 11i in the period open at the time of upgrade.
  • You have successfully closed a number of periods while using Create Accounting with Transfer parameter as ‘Y’ (Yes).  You have, in fact, never run the Transfer concurrent.
  • Your user accidentally sets the Create Accounting transfer parameter to ‘N’ (No) or you have some type of database issue that causes Create Accounting to complete normally but not submit the transfer.
  • Many users who are unfamiliar with Transfer Journals to GL – Assets open an SR at this point to find out how to transfer data outside of Create Accounting.
  • Once you run the process, though, you encounter the same set of errors on old pre-upgrade data as in the earlier scenario.

How does that open period data actually get posted?  You are going to have to get a data fix to mark the old musty data as transferred to GL, so that the Transfer concurrent can run without failure and move the open period data.  To get that data fix, open a Service Request with Oracle Support and tell the analyst you have the issue in Transfer Journals to GL - Assets Attempts to Transfer Old Pre-Upgrade Data and Will Not Transfer Open Period Data (Doc ID 1347364.1).  The analyst will be able to provide a data fix that cleanly marks the old data transferred and allows you to post your open period data.

With credit to Kathy White, Oracle Assets

Tuesday Oct 14, 2014

An Explanation of Automatic Asset Numbering and Skipped Numbers

What is an asset number?

An asset number uniquely identifies each asset.  If you enter an asset number in Fixed Assets, it must be unique and not in the range of numbers reserved for automatic asset numbering. 

What is automatic asset numbering?

When you add an asset, you can enter the asset number, or you can leave the field blank and the system will use automatic asset numbering.  Automatic asset numbering uses the database sequence FA_ADDITIONS_S, which assigns a number to asset_id and asset_number.  The asset_id is the internal asset number and cannot be modified or updated.  The asset number is the public number and can be assigned by the user.  By default, the same number is assigned to asset_id and asset_number, which is then incremented by one after each asset addition.

The system skipped asset numbers.  Why?

A user entered an asset and the asset number of the last asset added was 16450.  Later, the user resumed entering assets and noticed that the next asset number was 16471 rather than 16451 as expected.

Oracle Applications requires space to execute stored packages and functions.  If that space is fragmented, there may not be enough space for a package or function, so the system pre-allocates space for packages, functions, and sequences by "pinning" them.  The asset number (asset_id) values created by the sequence FA_ADDITIONS_S are cached for performance reasons. 

What happens is that the sequence FA_ADDITIONS_S will be aged out of the cache.  The applications' perspective is that the next value of sequences will increment to the next multiple of the sequence cache value.  This is generally set to 20 by default.

How can I change how many values are being cached?

The easiest option is to set the nocache value to zero, but do realize there could be a performance issue when adding a larger number of assets.

Another solution is to prevent sequences from aging out of the library cache by pinning them using dbms_shared_pool.keep().  Pinning the sequence will prevent the sequence values from being aged out of the cache.

For more information on either option, please review Automatic Asset Numbering Skips Numbers (Doc ID 1036833.6).  An additional resource for this topic is the FAQ: Automatic Asset Numbering (Doc ID 469359.1).

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