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) 

Friday Jan 10, 2014

Troubleshooting Asset Tracking Pending Transactions

If you use Oracle Asset Tracking then you'll know that sometimes transactions can get stuck in Pending status.  Why does that happen?   When Oracle Asset Tracking creates a transaction that has a financial, asset-related impact, the transaction is stored in transactional table with an Oracle Install Base status of 'Pending'.  Later, concurrent programs read the transaction log and process all the transactions in sequence; each transaction goes through a number of processes.  If any of these processes fail, then the transaction status remains at the Pending stage.

A new comprehensive troubleshooting note has been written to help you identify root pending transactions, process pending transactions and check your installation.  Take a look at 'Guidelines For Processing Pending Transactions in Oracle Asset Tracking' (Doc ID 1608224.1) for all the details.

If you have any comments on this note, maybe you have improvement suggestions or have some issue when trying out the suggested steps, remember that you can post your questions or comments to the My Oracle Support Install Base community.

Monday Jul 15, 2013

Oracle Asset Tracking Business Flows

A comprehensive library of test cases for the major OAT business flows has been published. If you are implementing or using Oracle Asset Tracking you will find these new business flows documents invaluable.  Each test case document outlines a business flow with the required setup and each step in the flow is detailed and illustrated with screenshots.

Doc ID 1550977.1:  Master Note For Oracle Asset Tracking Test Case Documents is the index note which cross-references each individual test case document.  The detailed documents are listed below.

Business Flow

Document ID

Complete Mandatory Setups For Oracle Asset Tracking


Create a Normal or Depreciable Item For Use in Oracle Asset Tracking


PO Receipt to Projects For a Normal Item


Inventory Issue to Projects For a Normal Item


PO Receipt to Inventory For a Normal Item



PO Receipt to Inventory For a Depreciable Item




Miscellaneous Receipt to Inventory For a Depreciable Item


Miscellaneous Issue of Items For a Depreciable Item


Move Transaction for a Depreciable Item


Invoice Price Variance (IPV) for a Depreciable Item


Invoice Price Variance (IPV) for a Normal Item


Asset Retirement





Take a look at these documents and remember, if you have questions about any of the content, you can ask the experts in the MOS Install Base Community.

Monday Sep 10, 2012

Oracle E-Business Financials Recommended Patch Collections (RPCs) for R12.1.3 Have Been Released for August 2012

What is a Recommended Patch Collection (RPC)? An RPC is a collection of recommended patches consolidated into a single, downloadable patch, ready to be applied. The RPCs are created with the following goals in mind:

  • Stability: Address issues that occur often and interfere with the normal completion of crucial business processes, such as period close--as observed by Oracle Development and Global Customer Support.
  • Root Cause Fixes: Deliver a root cause fix for data corruption issues that delay period close, normal transaction flow actions, performance, and other issues.
  • Compact: While bundling a large number of important corrections, we have kept the file footprint as small as possible to facilitate uptake and minimize testing.
  • Reliable: Reliable code with multiple customer downloads and comprehensive testing by QA, Support and Proactive Support.

RPCs are available for the following products:

  • Cash Management
  • Collections
  • E-Business Tax
  • Financials for India
  • Fixed Assets
  • General Ledger
  • Internet Expenses
  • iReceivables
  • Loans
  • Payables
  • Payments
  • Receivables
  • Subledger Accounting

For the latest Financials Recommended Patch Collections (RPCs), please view: EBS: R12.1 Oracle Financials Recommended Patches [Doc ID 954704.1].

Friday Aug 17, 2012

Received An Error In Fixed Assets? One Of These New Error Message Documents Might Have Your Solution.

Have you encountered an error in your Fixed Assets application? We know that you would like to have the resolution to the error as quickly as possible. We have created four new documents that consolidate the most commonly-encountered FA errors and provide the solutions.

Sometimes there is more than one solution for an error. These documents outline each possible solution. If the resolution of the error message varies by release, the document also outlines the solution appropriate for each release. These four error message documents consolidate FRM, ORA, APP-OFA and APP-FND errors and solutions. Take a look at these notes to find known causes and fixes for your FA errors.

· R11i to R12 Assets Error Listings for: APP-FND-01436, APP-FND-01564, APP-FND-01388, APP-FND-00668, APP-FND-00806 and APP-FND-1079 (Doc ID 1439918.1)

· R11i to R12 Assets Error Listings for: APP-OFA-48392, APP-OFA-48393, APP-OFA-48397 and APP-OFA-48676 (Doc ID 1460268.1)

· R11i to R12 Assets Error Listings for: FRM-41050, FRM-40501, FRM-41316, FRM-92100, FRM-40723, FRM-40105 and FRM-40815 (Doc ID 1465860.1)

· R11i to R12 Assets Error Listings for: ORA-01438, ORA-01406, ORA-01403, ORA-00054, ORA-02289, ORA-01652, ORA-06550, ORA-01476, ORA-0000, ORA-04063 and other ORA-xxxxx (Doc ID 1474752.1)

Tuesday Mar 27, 2012

New and Noteworthy Fixed Assets Notes

  • A new white paper for Integrating Oracle Inventory Transactions Into Oracle Projects To Generate Asset Lines & Interface Assets To Fixed Assets (Doc ID 1392743.1)

  • A listing of available Oracle E-Business Fixed Assets Diagnostics (Doc ID 1362875.1)

  • Information on the knowledge management enhancements made in My Oracle Support Knowledge Management Version 6.0 Release (Doc ID 1393516.1)

  • The new Period Close Advisor for the Release 12 E-Business Suite (Doc ID 335.1).  What is the Period Close Advisor?  The Period Close Advisor provides guidance on recommended period end procedures for E-Business Release 12.x.  It is intended to be generic and does not relate to a specific organization or industry.  Step by step best practices with tips and troubleshooting references are provided to assist you through each phase.  The EBS R12 Period Close Advisor for Assets data can also be found in a standalone note (Doc ID 1359475.1)

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