Introduction

The procedures for performing period-end processing in Oracle Assets Release 11i.

[edit]

Business Requirements

In Oracle Assets, at period end, we require to run depreciation for each set of depreciation
books set up for the organisation, and to create journal entries for Oracle General Ledger.
Oracle Assets has only a single open depreciation period in each depreciation book.

[edit]
Steps
[edit]

Procedures

The following steps are taken in performing period-end processing for Oracle Assets:

[edit]

Complete All Transactions for the Period Being Closed

Ensure that all transactions have been entered for the period being closed. Once a
depreciation period in Oracle Assets has been closed, it cannot be re-opened. Check that
no-one is entering transactions as Oracle Assets prevents transaction data entry while the
Depreciation Run Process is running.

Completing all transactions for Oracle Assets:

1. Prepare and Post Mass Additions

2. Complete Manual Additions
3. Complete Adjustments
4. Complete Retirements
5. Complete Transfers
6. Complete Reinstatements

[edit]

Assign All Assets to Distribution Lines

If an asset has not been assigned to a distribution line, the period end Depreciation
Process will not complete, and will not close the period. Determine which assets have not
been assigned to a distribution line by running the following report:

Assets Not Assigned to Any Cost Centers Listing

[edit]

Run Calculate Gains and Losses (Optional)

The Calculate Gains and Losses program for retirements can be submitted prior to
running depreciation. The Calculate Gains and Losses process is performed
independently for each depreciation book. The book and depreciation period are
nominated on the Submit Request window.

For books with a large volume of assets, the retirements process can be run several times
during the period to reduce the time for the depreciation process.

Alternatively, the Calculate Gains and Losses program will be submitted as part of the
Run Depreciation process.

[edit]

Run Depreciation

When you Run Depreciation, Oracle Assets gives you the option of closing the current
period if you check the Close Period check box on the Run Depreciation window. If all of
your assets depreciate successfully, Oracle Assets automatically closes the period and
opens the next period for the book. If you do not check the Close Period check box when
you run depreciation, Oracle Assets does not close the period.

Once depreciation has been processed for an asset in the current open period, you cannot
perform any transactions on those assets unless depreciation is rolled back or the current
period is closed.

Attention: Ensure that you have entered all transactions for the period before you run
depreciation. Once the program closes the period, you cannot reopen it.

The Run Depreciation process is performed independently for each depreciation book.
The book and depreciation period are nominated on the Run Depreciation window.

When the process is run, Oracle Assets automatically calculates depreciation for all
assets, calculates gains and losses for all retirements, and then runs the appropriate
Reserve Ledger Report.
If an asset has not been assigned to a distribution line, the Run Depreciation process will
end with an error status. By using the depreciation log file, you can determine which
assets were unassigned, or you can review the Depreciation Program Report via the
Requests window. The unassigned assets can then be assigned to distribution lines and
the Depreciation process resubmitted. The Depreciation process only processes assets that
have not already been processed.

The Run Depreciation process will close the current depreciation period and open the
next only if the Close Period checkbox is selected.

This process submits concurrent requests to run the calculate gains and losses,
depreciation, and reporting programs off-line.

When the depreciation program is run for a Corporate Book, the Journal Entry Reserve
Ledger Report will be generated. However, if the depreciation program is run for a Tax
book, then the Tax Reserve Ledger Report is generated. Both Reserve Ledger Reports can
also be run at any time, using the Submit Requests window.

[edit]

Create Journal Entries

Select Journal Entries > Standard to submit the Create Journal Entries process for a
nominated book and depreciation period.

The depreciation expense journal entries can be created from a Corporate or Tax book
and transferred to the General Ledger.

Before using this form, ensure that the Run Depreciation program for the specified
depreciation book and depreciation period has completed successfully. For every
transaction entered, Oracle Assets automatically creates adjusting journal entries for the
General Ledger, if the journal entry category has been set up for that transaction type for
that book.

Warning: Journal entries cannot be created from budgeting books.

Journal entries can be created for any period in the current fiscal year for which journal
entries have not already been created. The General Ledger period for which journal
entries are to be created must be open.

Oracle Assets uses the default FA Account Generator Workflow to derive Accounting
Flexfield combinations for the different classes of asset transactions. These Accounting
Flexfield combinations are then utilised when creating journal entries in the General
Ledger.
For example, the default FA Account Generator Workflow for Oracle Assets creates full
detail journal entries for depreciation expense. Oracle Assets creates journal entries for
depreciation expense using all the segments from the distribution line nominated for the
asset in the Transfers form.

Attention: The FA Account Generator Workflow can be modified for a specific customer
site to derived Accounting Flexfield combinations for the different classes of asset
transactions based on specific business rules.

The modified FA Account Generator Workflow is then called if it is nominated in the

Account Generator Process window.

[edit]

Rollback Depreciation and / or Rollback Journal Entries (Optional)

If depreciation has been run for a particular period, the Rollback Depreciation
functionality can be used to restore assets to their state prior to running depreciation. For
example, if there are outstanding adjustments or transactions that need to be processed for
the current period.

Roll back depreciation reverses the depreciation calculation for the current period, only if
the Close Period check box was not checked when depreciation was initially run. It does
not reverse any transactions performed in the period.

Depreciation must be run with the Close Period check box checked to open the next
period.

Upon completion of the additional transactions, the Run Depreciation process needs to be
re-done.

If the Create Journal Entries process had also been run for a particular period, then the
Rollback Journal Entries process will also need to actioned.

[edit]

Create Deferred Depreciation Journal Entries (Optional)

Deferred depreciation is the difference in depreciation expense taken for an asset between
a tax book and its associated corporate book. This difference results from the use of
accelerated depreciation methods in the tax book.

Choose Journal Entries > Deferred from the Navigator window.

[edit]
Depreciation Projections (Optional)

You can project depreciation expense for any number of future periods, on as many as
five depreciation books at once. Results can be summarised by year, quarter, month, or
any specified interval. The results can be summarised also by cost centre or depreciation
expense account.

[edit]

Review and Post Journal EntriesL

Review the unposted journal entries in the Enter Journals window, in Oracle General
Ledger. Post each journal entry batch using the Post Journals window in Oracle General
Ledger to update the account balances.

Optionally, use the More Actions button to Post each Journal individually or in the source
of Assets has been included in the AutoPost options, the Assets Journals will be posted
automatically in the next scheduled posting run.

[edit]

Reconcile Oracle Assets to the General Ledger Using Reports

[edit]

Reserve Ledger Reports

• Journal Entry Reserve Ledger - reconcile with the Account Analysis with
Payables Details Report.
• Tax Reserve Ledger Report
• Additionally, the Account Reconciliation Reserve Ledger Report can be run.

[edit]

Balances Reports

• Cost Detail and Cost Summary Reports

• CIP Detail and CIP Summary Reports
• Reserve Detail and Reserve Summary Reports
• Revaluation Reserve Detail and Revaluation Reserve Summary Reports

[edit]

Transaction Reports

• Asset Additions Report

• Cost Adjustments Report
 • Asset Reclassification Report
• Asset Transfers Report
• Asset Retirements Report
• Reinstated Assets Report
• Cost Clearing Reconciliation Report

[edit]

Drill Down Reports

• Drill Down Report - Reconcile the batch totals from this report with those of the
General Journals Report in Oracle General Ledger run for posting status =
‘Unposted’.
• Account Drill Down Report - Reconcile journal entries to the General Ledger. The
report enables detailed review of the account activity on a specific general ledger
account. The report gives detailed information of the asset transactions represents
by a journal entry line.

[edit]

General Ledger Reports

• Unposted Journals Report - run the General Journals Report for Posting Status =
Unposted to reconcile with the Drill Down reports.
• Posted Journals Report - run the General Journals Report for Posting Status =
Posted.
• Account Analysis Report with Payables Detail - The ending balance of this report
reconciles with the Reserve Summary Report ending balance.
• Financial Statements Generator - It is recommended that you create a detailed
FSG for all asset accounts. This can be done at cost centre level for direct
comparison with the Asset Cost Summary and Reserve Summary reports.

[edit]

Run Responsibility Reports (Optional)

It is also important to ensure that your asset inventory is accurate. If the asset inventory is
inaccurate, then your financial statements will also be inaccurate. The following reports
can be reviewed when assessing the accuracy of the asset inventory:

• Asset Additions By Cost Centre Report

• Asset Additions Responsibility Report
• Asset Disposals Responsibility Report
• Asset Inventory Report
• Asset Retirements by Cost Centre Report
• Responsibility Reserve Ledger Report
[edit]

Archive and Purge Transactions (Optional)

If you no longer need to run reports for previous fiscal years, you can archive and purge
historical data to free hardware resources. You can only restore the most recently purged
fiscal year, so you must restore fiscal years in reverse chronological order. Prerequisites

• If necessary, update the FA:Archive Table Sizing Factor profile option. See:
FA:Archive Table Sizing Factor.

• Allow Purge for the book in the Book Controls window before you perform the
purge. See: Defining Depreciation Books.

To archive and purge transaction and depreciation data:

1. Change Responsibilities to Fixed Assets Administrator.

2. Open the Archive and Purge window.
3. Enter the Book and Fiscal Year you want to archive. You must archive and purge
in chronological order.
4. Choose Archive to submit a concurrent request that changes the status from New
to Archived and creates temporary archive tables with the data to be purged.
1. Oracle Assets automatically assigns an Archive Number when you save
your work.
2. Note: The temporary table name includes a five-digit archive number.
5. Export the archive tables to a storage device.
6. Return to the Archive and Purge window and use the Archive Number to find the
archive you want to purge.
7. Choose Purge to submit a concurrent request that changes the status from
Archived to Purged and removes the archived data from Oracle Assets tables.
Now your database administrator can drop the temporary archive tables.

You can only purge definitions with a status of Archived or Restored.