Asset Clearing Account and link with PO/AP
From: On Behalf Of Bill Keenan
Sent: Tuesday, September 28, 1999 10:05 AM
Subject: Fixed Asset/Purchasing Question
Hi All,
I am working on version 11.03. I am currently setting up the fixed
asset
module, and have found that I need to set up an Asset Clearing
Account and a
CIP Clearing Account. This will allow me to flag a Purchase Order in
the
Purchasing module so that it can flow thru and be picked up in the
Fixed
Assets Mass Additions.
Can someone please tell me where I register these two accounts and/or
combinations so purchasing recognizes them as needing to be
capitalized and
picked up by mass additions?
Also, on those same lines, I am reading that you can tie
purchasing/inventory types to asset categories so when you pick
these items
when creating a PO it will automatically flag the PO as a capitalized
expense, and will be picked up when Mass additions are run. Where do
you
tie the asset category to the Inventory/PO item, as I don't see
this option
when defining an item?
Your help is greatly appreciated.
Thank you,
Bill
From: "Mohan Iyer" miyer@fortuna.com
Reply-To: oraapps-l@cpa.qc.ca
To: Multiple recipients of list oraapps-l@cpa.qc.ca
Subject: RE: Fixed Asset/Purchasing Question
Date: Thu, 30 Sep 1999 07:37:49 -0400 (EDT)
Hi Bill,
The acctual connection is not in the PO module. Though it can be done form
the PO setup for the item you are purchasing.
However, the way that the flow to FA from AP works is when the
Distribution
line in an Ap invoice has an Account that is an Asset. The way that this
Account becomes a Clearing Account is the way it is defined in the Asset
Categories. Each Asset has to be assigned a category and the link between
the Clearing Account and the Asset Accounts is done.
It is truly the Clearing Account (which is just any asset account) that
identifies that the transaction should flow through AP to FA when the
Create
MassAddition process is run. In fact any Asset account in a distribution
line in an AP Invoice will get pulled into FA when MassAddition gets run.
But truly if these Asset accounts are not assigned in an Asset Category
they
will not be pulled in because the system will not know what to do with
these
transactions unless there is a Category that links this Clearing Account
to
an Asset Account.
The reason for this is that when you create an asset from the transactions
pulled in by the Creat MassAdditions a journal entry is created clearing
the
Clearing Account and effecting the Asset Account.
I am quite sure that you can however specify the Asset Category in the
Item
definition for an item in Purcahsing. Item MAster would normally not
contain
items that you would capitalize! I may be wrong but this is my
understanding.
I hope this clears a few doubts, but in case you need assisitance I am
sure
we are all there to help.
Thanks,
Mohan Iyer
Financials Consultant
Sunnyvale, CA
From: Ananth Swaminath ananth999@hotmail.com
To: Multiple recipients of list oraapps-l@cpa.qc.ca
Sent: Friday, October 01, 1999 3:28 AM
Subject: Reply: Fixed Asset/Purchasing Question
Hi Bill
To define a capital asset as an Inventory Item is obviously incorrect. One
is a Capital Asset while the other is a Current Asset. The basic
difference
is this: (I am NOT delving into the aspects of what or what not a Fixed or
a
Current Asset is).
For an inventory item you can have multiple quantities. For example: Pens
can be many. But the item Pen is unique. There is no need to create a
unique
identity for every single unit of Pen that you possess.
In Fixed Assets, every unit of an item (say Computer) will have a unique
ID.
And then they are GROUPED under logical categories. It is this category
that
determines the financial implications that an Asset may possess. For
example
- the method of depreciation etc.
I have put forth the difference in a very simplistic form. However, the
difference is evident.
When you raise a PO for pruchase of a capital asset, you will have to
perform a category based purchase. Since the Asset is not defined as an
Item
in inventory - you simply have to navigate out of this field on the form.
The destination type will default to expense.
The accounting distribution for this transaction should be an account that
has been named as an Asset Clearing account (Asset Type) in your Asset
Categories definition within FA.
When you enter the invoice that has been received from your vendor for the
PO, and later match this invoice to the PO, the accounting distributions
that you have provided in the PO will flow through to AP and hence the
expense (Debit) accounting distributions are automatically created.
The accounting entry that will be created in AP is this:
DR Asset Clearing A/c
CR AP Liability A/c
When you transfer invoice information to GL the above journal entry flows
into GL.
The next step will be to create Mass Additions. The Mass Additions process
does not create any journal entries at all. All it does is to transfer all
those Distribution lines in AP that have the "Track as Asset" check box
enabled into the FA_MASS_ADDITIONS table (the interface table for FA).
You will view these lines that have come in from AP in the FA module
through
the Prepare Mass Additions form. Categorise the assets here and then post
them into your Corporate Book (the Fixed Asset Register).
After the period end processing is completed in FA (such as Depreciation
etc.,) you will now have to transfer the journal entries created to GL.
Infact, with each transaction that is conducted in FA, a journal is
created
and is also categorised on the basis of the journal categories you have
defined in the Book Control Form.
Now for the above transaction, the journal that flows to GL is this:
DR Asset A/c (From the Asset Category to which the Asset belongs)
CR Asset Clearing A/c
The Asset Clearing A/c is now "cleared" in GL - but only after you have
transferred FA information to GL. Herein lies the importance of
reconciling
FA with AP and GL.
Hope this helped. In case you need any further clarifications, do get in
touch.
Ananth
Associate Principal Consultant
Oracle Applications
Date: Fri, 1 Oct 1999 10:19:34 -0700
From: "Bill Keenan" billek@ccai.net
To: oraapps-l@cpa.qc.ca
Subject: Re: Reply: Fixed Asset/Purchasing Question
Hi Ananth,
You cleared several things up for me, thank you for taking the time to
explain as you did.
Thanks again,
Bill
Depreciation Run error Query 3
Date: Mon, 4 Oct 1999 09:46:40 +0200
From: Craig Riffel CraigR@langeberg.co.za
Subject: FA - Depreciation Run
Hi all,
We are on version 10.7 NCA
We've encountered a problem on running our
depreciation for the financial year end period, the request log briefly
reads as follows:
Depreciation Program Exception Report
At beginning of End of Fiscal Year Program
Date: 04-OCT-1999 09:13:57
Fiscal Year: 1999
Fiscal Year 1999 is shorter than calendar year
Fiscal Year 2000 is shorter than calendar year
Inserted o calendar period records
Inserted o convention records
APP-48152 Program End of Fiscal Year completed
successfully
Cost Initial Journal Entry program completed
APP-00969 Program was terminated by signal 11
On reporting the problem to Oracle, they supplied a
patch. A did not solve the problem!
What I cannot understand is that the depreciation
run for the four months prior completed without any problems.
Any help would be much appreciated, as this has
become a very urgent problem.
Thanks Much
Craig Riffel
Tiger Oats Ltd
South Africa
Depreciation Methods for expensive cars
Date: Thu, 07 Oct 1999 12:07:19 +0100
From: c073 c073.bbs@btinternet.com
To: Oracle Forum OraApps-L@cpa.qc.ca
Subject: FA: Depreciation of expensive cars
Dear all,
We have a problem in FA with the depreciation of expensive cars due to
the current tax laws. Because for expensive cars (over £12,000) we
cannot depreciate by more than £3,000 until the value falls to £12,000
we are having problems setting this up in Oracle Fixed Assets,
especially where the value of the car is close to £12,000.
Have any of you out there met this problem and found a solution. If you
have then could you please share it with me.
We are on 10.7NCA OPSF12 GL, PO, AP, CM, and FA
Regards
Ian Gardner
Britannia Building Society
C073.BBS@btinternet.com
01538 393058
Date: Mon, 18 Oct 1999 09:08:29 +0000
From: Patrick_Trinkwon@baa.co.uk
To: oraapps-l@cpa.qc.ca
Subject: Re: FA: Depreciation of expensive cars
We came across somethiing similar when using a tax book to calculate capital
allowances. We set up a new depreciation method as follows:
Please click here for the Depreciation Methods
We used depreciation ceilings to cap the amount of depreciation to A33,000. This
method depriates at a fixed rate of A33,000 until teh NBV / TWDV A33,000. I'm
not sure that this helps you but it mighht give you some ideas.
Mass Revaluation Program errors Query 2
From: oraapps-l@cpa.qc.ca [mailto:oraapps-l@cpa.qc.ca]On Behalf Of
satyam@sri.lanka.net
Sent: 15 October 1999 12:40
To: Multiple recipients of list
Subject: FA- Mass Revaluation
Hi All,
I have set up Oracle Fixed Assets in a Test Database. The Mass Revaluation
Preview Program is not executing sucessfully. It is showing the following
error in the log file:
"REP-1416: 'new_costformula' : User exit 'OFA' . APP-48208: life_comp_flag
has the value of 0.
Concurrent Manager encountered an error while running Oracle*Report for
your concurrent request."
Please tell me what could possibly be wrong.
Awaiting your reply ASAP.
Thanks in anticipation.
Alok.
Date: Fri, 15 Oct 1999 15:01:13 +0100
From: "Mark Smith" mark.smith@pdg-consulting.com
To: oraapps-l@cpa.qc.ca
Subject: RE: FA- Mass Revaluation
Alok,
You need to set the FA Print Debug and FA Time Diagnostics profile options
to NO at the user level.
Hope this helps !
Mark Smith
PDG Consulting Ltd
5 St. Johns Lane
London
EC1M 4BH
Tel: 0171-250-4736
Fax: 0171-250-4737
http://www.pdg-consulting.com
Life of asset - change
From: Rebecca Enonchong
[mailto:renonchong@fintechgroup.com]
Sent: Tuesday, October 19, 1999 1:26 AM
To: Multiple recipients of list
Subject: FA: Change useful life of
Asset
Have any of you ever tried changing the
useful life of a group of assets
midway through their useful life with the
change being retroactive to a date
in a previous period?
The company just decided to change its
depreciation rules from 5 to 7 years
effective Jan. 1998. This is a new
implementation and assets were added with
no accumulated depreciation amount. As far
as we have been able to tell so
far, the system will allow you to make life
changes effective only within
the current period and it then adjusts the
accumulated depreciation by
recalculating from the very beginning.
Any ideas?
Rebecca Enonchong
The Financial Technologies Group, Inc
Date: Tue, 19 Oct 1999 08:54:34 +0200
From: Craig Riffel CraigR@langeberg.co.za
To: "'oraapps-l@cpa.qc.ca'" oraapps-l@cpa.qc.ca
Subject: RE: Change useful life of Asset
Rebecca,
As far as I am aware, Assets will only effect the
current open period, since all prior periods have to be closed before the
journals can be created. In release 10.7 anyway. As a work around, why not
let assets post as normal and then use manual journal entries in the general
ledger to effect you requirements???
Thanks Much
Craig Riffel
Tiger Oats Ltd.
South Africa
Adding assets to Tax Book
Date: Thu, 28 Oct 1999 07:41:09 -0700 (PDT)
From: fierosrcul@yahoo.com
To: oraapps-l@cpa.qc.ca
Subject: FA: Adding assets to Tax book
We have what seems like a not so unusual accounting
problem, but I'm not sure how to address it thru the
fixed assets module of Oracle 10.7SC.
We have assets that must be carried at Fair Market
Value in our Corporate Book and at Historical Cost in
our Tax books.
Right now we have only FMV assets loaded because the
Internal Book has traditionally been the most
important. I am pretty sure I can just retire these
assets directly from the TAX book without effecting
the Corprate book and that will be an accceptable
solution, assuming that works.
The problem is: HOW DO I LOAD ASSETS DIRECTLY TO THE
TAX BOOK?? These assets must NOT appear in the
Corporate book. And, if they must absolutely be
loaded in corp book first, when I retire them from the
corp book.... HOW DO I KEEP THOSE RETIREMENTS FROM
COPYING TO THE TAX BOOK??
Thanks for your help.
Date: Thu, 28 Oct 1999 16:01:52 +0000
From: Patrick_Trinkwon@baa.co.uk
To: oraapps-l@cpa.qc.ca
Subject: Re: FA: Adding assets to Tax book
I think you will find that you have to add them via your Corp Book however
provided that in setting up the tax book you did not select the copy retirements
flag then you can retire them from your Corp Book without effecting the tax
book.
If you find away to load directly to a tax book using standard supported
functionality please could you let me know.
Regards
PT
Date: Fri, 29 Oct 1999 05:43:15 -0700 (PDT)
From: fierosrcul@yahoo.com
To: oraapps-l@cpa.qc.ca
Subject: Re: FA: Adding assets to Tax book
We have the copy retirement flag set to YES. Can this
be turned on and off so we can stop these specific
retirements from coming over and then allow all other
retirements to come over as usual.
Date: Fri, 29 Oct 1999 14:00:47 +0000
From: Patrick_Trinkwon@baa.co.uk
To: oraapps-l@cpa.qc.ca
Subject: Re: FA: Adding assets to Tax book
I doubt it. If you can, it would be worth trying if you have a play area,
bare
in mind that periodic mass copy is the means to update tax books so you will
have to turn it off / on over a complete financial period.
The above throws up another possibility.
Perform disposals in one period but no other transactions and never apply a
periodic mass copy for that period. As periodic mass copies are performed by
period this would have the effect of retiring the assets in your Corp Book
but
never updating the Tax Book. Again worth trying in your 'play area'.
Regards
PT
Retirement in same Tax period not copying
From: fierosrcul@yahoo.com [mailto:fierosrcul@yahoo.com]
Sent: Friday, October 29, 1999 10:58 AM
To: Multiple recipients of list
Subject: FA: Periodic Mass Copy
After being live for about a year, we are finally
discovering our Mass Copy program is failing to copy
RETIREMENTS that were retired in the same tax period
they were added. For example, for an Asset added in
March-98 and Retired in June-98 in the corporate book,
the retirement will not copy to the tax book because
both periods fall within QTR2-98.
We maintain five tax different tax books and retire
hundreds of assets. It is not practical to manually
retire these assets in each tax book in the following
period.
HOW CAN I FORCE THE APPLICATION TO COPY THESE
RETIREMENTS???
Thanks.
Date: Fri, 29 Oct 1999 13:34:28 -0600
From: tom prado-irwin tprado-irwin@Quark.Com
To: "'oraapps-l@cpa.qc.ca'" oraapps-l@cpa.qc.ca
Subject: RE: Periodic Mass Copy
There is a patch # 730536 server / 776877 client for 10.7 that had something
to do with allowing retirements with an adjustment on the same day as the
retirement day. You might contact support or metalink to see if this patch
will fix your problem also?
Date: Mon, 1 Nov 1999 12:35:32 -0800 (PST)
From: fierosrcul@yahoo.com
To: oraapps-l@cpa.qc.ca
Subject: RE: Periodic Mass Copy
Tom, I just spoke with support. They claim what I am
experiencing is standard functionality and that the
patches you referenced will not affect my situation.
They said my situation is very unusual in that we have
MONTHLY periods in our Corporate book and QUARTERLY
periods in the tax book, and herein lies my problem.
It doesnt seem that unusual to me.
But..... I appreciate hearing from anyone that has
some thoughts on a work around, or back end update.
As we have 4 different tax books with this problem and
several hundred assets being effected.
Thanks
Depreciation error due to Account Generator
Date: Wed, 3 Nov 1999 16:33:30 -0600
From: Zeto Mike Mike.Zeto@sbt.siemens.com
Cc: "'mzeto@fulcrumsolutions.com'" mzeto@fulcrumsolutions.com
Subject: depreciation errors - tax book
Has anyone experienced problems with running tax book depreciation with a
customized account generator definition?
We are attempting to complete our conversion. So far we have loaded 4300
assets with ADI, ran depreciation for that Corp book and Initial Mass Copy
successfully. The Generate Accounts program failed. Have attempted to run
depreciation for that Tax book multiple times and have received a variety of
errors including;
Error: function fafbgcc returned failure (called from fadoflx)
APP-48376: This asset has not been assigned to a category.
Error: function fadoflx returned failure (called from fadosgl)
Error: function fadosgl returned failure (called from faxinaj)
Error: function faxinaj returned failure (called from faddaju)
Error: function faddaju returned failure (called from faddaj)
Error: function faddaj returned failure (called from fadppa)
Error: function fadppa returned failure (called from fadadp)
Error: function fadadp returned failure (called from fadmlp)
Error: function fadmlp returned failure (called from faddep)
Asset ID 10004275 (8160001) -> ** FAILED **
Error: function fachkfar returned failure (called from faddep)
Generator Accounts has never successfully completed and often terminates
with 'segment too small' errors. The tablespace issues are being addressed
with patch 897214. Other patches applied are 811093 and 870841. We are on
r11.0.2. Our FA account generator definition was slightly modified but
appears to be correct. It has been reviewed by several analysts at Oracle
support.
Help from anyone that has experienced similar issues would be greatly
appreciated.
Thank you in advance.
Mike Zeto
Fulcrum Solutions Inc
Cell: 201.665.1342
Client: 973.593.2717
Date: Wed, 3 Nov 1999 16:39:25 -0800 (PST)
From: Ajay Alur ajayall@yahoo.com
To: oraapps-l@cpa.qc.ca
Subject: Re: depreciation errors - tax book
Hi Zeto,
We had a similar situation with the account generator
and we were asked to apply these following patches
770538
787065
814666
969990
We have not applied them yet. But you can call Oracle
support and ask them about these. I believe the
account generator + workflow have a lot of problems in
Rel 11.02
Ajay