By Cindy A B-Oracle on Sep 09, 2014
If you are contemplating the use of the insurance policy feature of Fixed Assets, you may be interested in a new document: White Paper – Insurance Calculations in Oracle Assets (Doc ID 1913774.1). Setup steps and insurance calculation methods are included in this new white paper.
With this insurance feature, you can check if assets are under- or over-insured based on the annual index provided by your insurance company. You can enter, view and maintain the insurance policies as well as the calculation methods. There are three different calculation methods that can be used to obtain the current insurance value, which is then compared to the actual insurance coverage for an asset.
The three calculation methods are:
- Value as New (VAN) - This method calculates the base insurance value of the asset, based on acquisition or production costs. This value can be indexed annually to give a current insurance value. It can also incorporate the indexed value of transactions that affect the asset value.
- Market Value (CMV) - This method calculates the current market value of the asset. Assets automatically calculates the current value from the net book value of the asset, incorporating index factors and the indexed value of any transactions affecting the asset value.
- Manual Value - This method allows you to manually enter an insurance value for an asset. With this method you can also manually enter updates to the asset insurance calculations in the insurance value. Assets updates the current insurance value automatically only if you enter an optional maintenance date.
Additionally, there are two associated reports:
Insurance Data Report - Used to review insurance details for assets and to verify that the assignments for insurance records are correct.
Insurance Value Detail Report - Used to review calculations of insurance coverage for selected assets. The Insurance Value Detail Report prints all insurance amounts for the selected assets and displays totals at the Balancing Segment level, Insurance Calculation Method level, Insurance Company level, and Insurance Policy Number level. The insurance coverage calculation indicates the differences between insured amounts and current insurance values.
For more details on the Fixed Assets' insurance feature, take a look at the white paper. It also includes example cases with sample calculations and comparisons.