AP to Fixed Asset flow
1.Asset Invoice Creation within AP
For assets to be transferred to Assets, it must be approved and posted in the GL and charged the distribution to a clearing account that is already assigned to an asset category or charge directly to the asset cost account.
The track as asset flag will be automatically checked if the accounts have been set up as Asset within the GL.
Invoice can be posted either to the asset clearing account or directly to the asset cost account.
Having a clearing account provides more control particularly if an asset does not get added in the correct period. That would therefore make the reconciliation between GL and FA easier.
Typical steps are herewith:
1. Navigate to the Submit a New Request Window and select REQUEST SET.
2. Select the Mass Additions Create Request Set. This set contains two programs:
- Mass Additions Create
- Mass Additions Create Report
2.Mass Addition Create
Following the successful creation of invoice in AP,the Mass Addition Create program is ran from the Account Payables.
Mass Addition Create lets you send Mass Addition lines from Oracle Payables as cost adjustments or as potential new assets. Create Mass Additions sends valid invoice line distributions and associated discounts from Payables to an interface table in Oracle Assets.
The Mass Addition Create process generates a Mass Addition Execution Report which shows the number of records inserted, Invoice ID and the asset account.
We can download the Mass Addition Create Report , it shows assets that have been successfully created from the process which will aid the reconciliation between Asset created and Asset Purchased (entered in AP). The report contains such information as legal entity name, asset account(as indicated on AP) , cost centre (as indicated on AP), Supplier name, Invoice Number & Date, the asset description and the cost of the asset.
Also to ensure that assets created matches assets purchased, if the prepare mass addition form is queried for all assets, a queue name other than POSTED indicates that the asset invoice has not yet been successfully created as an asset on Fixed Asset.
3.Mass Addition Post
The posting process creates assets from mass addition lines in the POST queue using the data you entered. It also adds mass additions in the COST ADJUSTMENT queue to existing assets. You can run this program as often as you want during a period.
At this state, they become an asset and available on the Asset Workbench. The queue name at this point changes to POSTED .Mass Additions Posting Report FAS824 is the output of this process.
Navigation > Mass Additions > Post Mass Additions
4.Depreciation & Transfer to GL
Depreciation computations depend on such factors as the type of depreciation (Life, units of production, or flat rate), the depreciation life and the depreciation method.
The asset category specifies a default depreciation method to be used with an asset. You will usually want to set up categories in such a way that you do not need to override the defaults they establish.
Here is underline data flow diagram based out of the above discussed sub processes.