PowerPoint PresentationAsset Books
Objectives
After completing this module, you should be able to do the
following:
Explain where defining asset books fits into the Oracle Assets
process
Discuss the three types of asset books – corporate, tax and
budget
Explain the setup options and implementation issues concerning the
regions of the defining asset books window
Set up Group Assets
Discuss energy assets
Explain the set up and use of the Security by Book feature within
Oracle Assets
Discuss the process flow required to create Security by Book
Copyright © 2007, Oracle. All rights reserved.
Agenda
Asset Books Positioning
Assigned to
Assigned to
New assets are assigned to a Category then to a Book
Asset Books Positioning
Define asset books to store financial information for a group of
assets.
There are 3 types of asset books:
Corporate > A book that you use to track financial information
for your balance sheet.
Tax > A book that you use to track financial information for
your tax reporting authorities.
Budget > A book that you use to track planned capital
expenditures.
Define corporate books first and then tax and budget books.
For each corporate book, you can set up multiple tax and budget
books that are associated with it.
You can set up multiple corporate books that create journal entries
for different general ledger sets of books, or to the same ledger.
In either case, you must run depreciation and create journal
entries for each asset book.
All assets must be added to a corporate book first. They then can
be copied to tax books as required.
Asset Calendars are assigned to asset books for purposes of
calculating and allocating depreciation expense.
Asset Categories are assigned for use with asset books. All assets
are assigned to an asset category which designates accounting
information and default depreciation rules for the assets.
Depreciation methods are assigned to asset categories.
Copyright © 2007, Oracle. All rights reserved.
Asset Books Regions
(N) Setup > Asset System > Book Controls
Before you can define an asset book, the following items must be
completed:
In Oracle Assets, specify System Controls
Define your asset calendars.
Set up your General Ledger Account segment values and
combinations.
Set up your General Ledger journal entry sources and
categories.
To define an Asset Book:
Enter a book name and description.
Choose a Corporate, Tax, or Budget book class.
If defining a Tax or Budget book, you must associate those books
with a Corporate book. If the book you are defining is a Corporate
book, it will automatically be associated with itself.
Enter calendar information for your book.
Enter accounting rules for your book.
Enter natural accounts for your book.
Enter journal categories for your book.
You must complete each region for every book you define regardless
of whether the information will be used or not. For example, in
defining a tax book, you must complete the natural accounts and
journal categories regions even if you do not intend to generate
journal entries for the book.
Copyright © 2007, Oracle. All rights reserved.
Calendar Region
Calendar Region
Allow Purge
GL Ledger
Depreciation Calendar
Prorate Calendar
Current Period
Divide Depreciation
Allow GL Posting
Allow Purge
You must check the Allow Purge checkbox in order to purge
information from this asset book. It is recommended that you leave
the checkbox unchecked until you are ready to purge data from the
book. You can then enable the Allow Purge option, purge your data,
then again disable the checkbox. This helps to ensure against
unwanted purges of data from this book.
GL Ledger
Enter the ledger for which you want to create journal
entries.
Allow GL Posting
Enable if you want to create journal entries for this book. You
cannot allow general ledger posting for your budget books.
Prorate Calendar
Use the prorate calendar with the smallest period size or
resolution you need for determining your depreciation rate. For
example, you may want to use a monthly prorate calendar in a tax
book that uses a quarterly depreciation calendar to allow finer
control of the annual depreciation amount for some monthly
prorate/method combinations.
Current Period
The Oracle Assets system will update the current period field each
time the current period is closed and the next period is opened.
Keep in mind there can be only one open period at a time for each
asset book. You must set up the depreciation calendar for at least
one period before the current period.
Divide Depreciation
Choose the method for dividing the annual depreciation amount over
the periods in your fiscal year for this book.
Choose Evenly to divide depreciation evenly to each period
Choose By Days to divide it proportionally based on the number of
days in each period
Depreciate if Retired in the First Year
Choose whether to depreciate assets in this book that are retired
in their first year of life.
Last Depreciation Run
Initially defaults to the current date. Oracle Assets updates this
date when you run depreciation.
Copyright © 2007, Oracle. All rights reserved.
Accounting Rules Region
Accounting Rules Region
Allow Amortized Changes
Allow Mass Changes
Capital Gain Threshold
The minimum time you must hold an asset for Oracle Assets to report
it as a capital gain when you retire it. If you want Oracle Assets
to report a capital gain for all assets when you retire them, enter
zero for the threshold.
Allow Amortized Changes, Allow Mass Changes
If you want to allow amortized changes and mass changes in the
asset book, make sure these check boxes are enabled. The default
when defining a new asset book has these checkboxes disabled and it
is often overlooked to enabled them when defining a new asset
book.
Create Intercompany Balancing Segments
Check this check box if you want Oracle Assets to create
intercompany journal entries when you run the Create Accounting
program.
Allow Cost Sign Changes
Check this check box if you want to allow the cost amount to change
from a positive to a negative amount, or from a negative to a
positive amount.
Allow Revaluation
Select Allow Revaluation, if necessary, and specify the applicable
default revaluation rules.
Allow Group Depreciation
Select Allow Group Depreciation if you plan to use group
depreciation for the book and select the applicable group
depreciation rules.
Copyright © 2007, Oracle. All rights reserved.
Natural Accounts Region
Natural Accounts Region
Account Generator Defaults
Natural Accounts Region
These accounts represent values for the Natural Account segment
from the accounting flexfield associated with the ledger assigned
to this Asset Book.
Implementation considerations for the Natural Accounts
region:
Retirement Accounts
You can set up your gain and loss accounts so that Oracle Assets
creates individual journal entries for each component of the
gain/loss amount to separate accounts, or to a single account for
the net gain or loss. To use a single Gain or Loss account, enter
the same account value in each field. The net effect is a single
journal entry.
Other Natural Account Defaults
Enter Deferred Depreciation Reserve and Deferred Depreciation
Expense accounts.
Enter the general ledger account that you want to use as an offset
account for the entry against accumulated depreciation when you
perform reserve adjustments.
Account Generator Defaults
By default, Oracle Assets creates journal entries without cost
center level detail for all accounts except the depreciation
expense account. Using the default assignments, it creates journal
entries using the balancing segment from the expense account in the
Assignments window and the account segment from the asset category
or book, depending on the account type. The default Subledger
Accounting rules use the other segments from the default segment
values you enter for the book in this field.
Subledger Accounting is discussed in more detail in the Asset
Accounting module of Release 12 Oracle Asset Management
Fundamentals.
Refer to Guided Demonstrations – Define an Asset Book
[LAB0350Y]
Copyright © 2007, Oracle. All rights reserved.
Group Depreciation
Member Asset 2
Member Asset 3
Member Asset 4
Group Assets Overview
The Group Depreciation feature lets you easily manage financial and
tax accounting on groups of assets and handle complex transactions
for group assets and their member assets by:
Setting up logical groupings of assets (group assets) based on
regulatory requirements and your own business needs.
Reducing data entry requirements by defining depreciation
parameters for group assets rather than at the individual asset
level.
Background
Communications companies typically own and maintain a large network
infrastructure enabling them to offer communication services to
their many customers.
Networks are constructed of many thousands of individual pieces of
equipment, such as switches, routers, cables, transmitters,
etc.
These assets often require a large capital investment and must be
depreciated over their serviceable lives.
Collections of similar assets are often pooled together into group
assets for the ease of financial reporting.
A group may contain many individual assets that were placed into
service in different years, but only one depreciation account is
maintained for the group.
Depreciation is computed and stored at the group level, known as
group depreciation.
Group Assets
A group asset is a collection of member assets
Member assets are individual assets that belong to a group
asset
You can add member assets to a group asset, or delete member assets
from a group asset
You can transfer member assets in or out of a group asset, as well
as transfer member assets between group assets
The group asset cost is equal to the sum of all the member asset
costs
Assets are depreciated at the group level
Copyright © 2007, Oracle. All rights reserved.
Group Depreciation in the Global Market
Group Depreciation in the Global Market
Companies operating across various global markets are now subject
to multiple accounting rules and tax regulations across
geographical boundaries.
In many countries, the local tax regulations require companies to
depreciate assets in a composite or aggregate form as group
depreciation, rather than on an individual asset basis.
Group depreciation aids accommodating many of the composite or
aggregate depreciation requirements imposed by the following global
regulatory requirements:
United States Telecomm (FCC) and Utility (FERC) compliance
reporting
United Kingdom Writing Down Allowance (WDA) compliance
reporting
Canada Capital Cost Allowance (CCA) compliance reporting
Japanese group asset financial and compliance reporting
Indian group asset management and compliance reporting
Copyright © 2007, Oracle. All rights reserved.
Group and Member Asset Rules
Group and Member Asset Rules provide:
Predefined rules, which help to simplify asset management across
your business, by ensuring tight control across capital investments
and providing real-time access to asset information.
Group and Member Asset Rules
In Oracle Assets, the predefined Group and Member asset rules help
to simplify asset management across your business. As such, these
rules ensure tight control across capital investments and provide
real-time access to asset information, ensuring correctness of
information.
The following represent specific Asset Rules:
A group asset and the associated member assets must belong to the
same corporate book.
The depreciation rules defined for the group asset generally
supersede those of the associated member assets. Depreciation is
generally calculated and stored for the group asset only.
The addition of a member asset will be treated as an amortized cost
adjustment to the group asset.
Member asset transactions, such as additions, adjustments and group
reclassifications, are treated as amortized adjustments. Expensed
adjustments are not allowed for group assets.
The group asset date placed in service is used to determine when
depreciation starts for the group asset. This date cannot be
updated after depreciation has started for the group asset.
Member assets can be added with a date placed in service that is
different than that of its group asset, but a member asset date
placed in service may not be older than the date placed in service
of the group asset.
If a member asset is added with a prior period date placed in
service, the system will treat the member asset addition as an
amortized cost adjustment to the group asset from the date placed
in service of the member asset. Also, Oracle Assets automatically
submits the Process Group Adjustments concurrent program to
calculate the prior period depreciation expense for the group
asset. You must acknowledge the message containing the request
number of the program submission.
When you add a CIP member asset to a group asset, the CIP member
asset cost is not added to the group asset until the CIP member
asset is capitalized, with one important exception. The exception
occurs when you check the Allow CIP Depreciation in the Group
Assets check box on the Book Controls window. You may add the CIP
member asset cost to the group asset by setting the Depreciate in
Group option on the Source Lines window.
Unplanned depreciation is only available for member assets with the
Member Asset Tracking option set up for the associated group
asset.
Cost is stored and tracked at the member asset level and summarized
to the group asset.
Accumulated depreciation is generally stored and tracked for the
group asset only.
The asset cost is posted to General Ledger in the period the member
asset is added. Depreciation expense is posted to General Ledger
from the group asset only, even when member asset tracking is
enabled.
Copyright © 2007, Oracle. All rights reserved.
Set Up Group Assets
Field
Class
To set up group assets in the Book Controls window:
1. Open the Book Controls window.
2. In the Class field, select Corporate. You can only create group
assets in a corporate book.
3. Select the Accounting Rules tabbed region.
4. You must check the Allow Amortized Changes check box before
creating group assets in the book.
5. You must check the Allow Group Depreciation check box before
creating group assets in the book.
If group assets are not allowed in the tax book, mass copy results
in the following:
If you allow group assets in the associated corporate book: The
group asset will not be copied to the tax book. All member assets
will be copied to the tax book as standalone assets.
If you do not allow group assets in the associated corporate book:
No group asset is allowed in either the corporate or tax
books.
If group assets are allowed in a tax book, mass copy results in the
following:
If you allow group assets in the associated corporate book: The
group and member assets will be copied to the tax book based on the
mass copy options in the Tax Rule tabbed region.
If you do not allow group assets in the associated corporate book:
No group asset is allowed in either the corporate or tax books. In
Oracle Assets, any asset must exist in the corporate book before
being added to the tax book. A group asset is no exception to this
rule. Therefore, a group asset must be allowed in the corporate
book in order to be copied to the tax book.
Note: Mass Copy does not copy group reclassification transactions
that are performed when changing member assets' group assignment.
Mass Copy does not copy an type of group adjustment, including
group reserve transfer, group retirement adjustments, and group
unplanned depreciation.
6. Optionally check the Allow CIP Members in Group Assets check box
to enable adding CIP assets to group assets. If this check box is
not checked, you will not be able to add a CIP asset to a group
asset, even if you have set the default group asset on the Default
Depreciation Rules window on the Categories form. If the Allow CIP
Members in Group Assets check box is unchecked, the Allow CIP
Depreciation in Group Assets check box is disabled. Once the Allow
CIP Members in Group Assets check box is checked and saved, you
cannot uncheck it.
7. You must check the Allow CIP Depreciation in Group Assets check
box to depreciate the CIP asset cost for member assets.
8. Optionally check the Allow Member Asset Tracking check box to
enable member asset tracking for the depreciation book. Once the
check box is checked and saved, you cannot uncheck it.
9. You must check the Allow Intercompany Member Asset Assignments
check box if you want to allow member assets to have balancing
segment values that are different than the balancing segment value
of the group asset. If the check box is unchecked for a particular
depreciation book, you cannot set up member asset tracking for that
book.
Copyright © 2007, Oracle. All rights reserved.
Assigning Member Assets to Group Assets
Group Asset
Member Assets
Assigning Member Assets to Group Assets
You can assign a member asset to a group asset using the following
three options:
The Asset Workbench to assign an asset to a group asset.
An asset category that is assigned to a group asset.
The Prepare Mass Additions process to assign an asset to a group
asset.
Detail Additions:
(N) Assets > Asset Workbench
Query the member asset you want to assign to a group asset.
In the Books window, enter the book.
On the Group Asset tabbed region, enter the group asset number in
the Group Asset field.
Save your work.
Note: The Reduction Rate field is enabled for the member asset
whenever it is enabled for the group asset, and it defaults to the
reduction rate setup of the group asset. You can override the
default reduction rate for each transaction.
Mass Additions
(N) Mass Additions > Prepare Mass Additions
Query the member asset you want to assign to a group asset.
In the Mass Additions window, enter the group asset number in the
Group Asset field.
(B) Done.
Asset Category
You can also enter the group asset number in the category default
rules when setting up a new category. All new assets for this
category will be member assets of the group asset entered in the
category.
Copyright © 2007, Oracle. All rights reserved.
Group Asset Reserve Transfer
Group Asset Reserve Transfer
You can use a reserve transfer to transfer all or part of the
reserve from one group asset to another.
(N) Assets > Asset Workbench
1. Query the group asset from which you are transferring a reserve
amount.
2. Choose the Transfer Reserve button.
3. Enter the transfer amount and the destination group asset
number.
Refer to Practice – Set Up Group Assets [LAB3E88Y]
Copyright © 2007, Oracle. All rights reserved.
Energy Assets
Energy Assets
Oracle Energy Assets addresses the financial and reporting
requirements of the oil and gas industry. The oil and gas industry
accounts and reports asset information based on a two-level parent
(field) and child (wells) structure.
Asset information is:
Captured at the lower level.
Summarized to a higher level at which operations, queries and
reporting are done.
Operations include:
Depreciation calculation
Transfer of costs and reserve
Impairment
Depreciation Methods
Oil and gas companies use unit-of-production and life-based methods
based on a depreciation basis defined as Net Book Value (NBV) over
the net remaining reserves for the Energy Units of Production
method, or the net remaining life for the Energy Straight-Line
method. The assets in a hierarchy are transferred along with its
reserve to another hierarchy. When an asset is transferred, the
source asset hierarchy is decreased by the transferred amount(s),
and the target asset hierarchy is increased by the transferred
amount(s).
Energy companies also recognize impairment expense at the parent
level.
Energy Assets uses the following two methods to calculate energy
depreciation:
Energy units of production
Security by Book
Co 1 User
Co 2 User
Co 3 User
Co 4 User
Absolutely Something!
Security by Book
Prior to Security by Book, unless your Oracle Assets installation
was Multi-Org enabled, there was no way to restrict user access to
query and update information pertaining only to those users' asset
books. Users could access any asset book on the system. Thus, the
power and flexibility of having each department in a large
organization have its own asset books was mitigated because each
departments' staff could still query and update possibly sensitive
data in other departments.
Oracle Assets's Security by Book feature makes use of a Security
Profile that is attached to a responsibility to determine which
records are available to holders of that responsibility. The
Security Profile acts as the 'glue' between an organization and a
responsibility. To set up a security profile that permits access to
asset books of certain organizations only, you make use of
organizational hierarchies.
Copyright © 2007, Oracle. All rights reserved.
Organizations and Security by Book
UK User
Oracle UK
Organizations and Security by Book
An organization hierarchy can have more levels than are represented
in the example above. Oracle UK could be a subordinate of another
organization or other organizations could be assigned as
subordinate to either of the divisions.
Organization hierarchies show reporting lines and other
hierarchical relationships among the organizations in your
business.
A security profile allows you to control access to Oracle Assets
through responsibilities that you create and assign to users of the
system. Users can sign on to Oracle Assets only through the
responsibilities that you give them. Their responsibilities control
what they can see and do in the system. A responsibility always
includes a security profile, which you associate with a work
structure such as an organization hierarchy.
Copyright © 2007, Oracle. All rights reserved.
How Security by Book Is Used
within Process Flow
View reports
How Security by Book Is Used within Process Flow
Users can view and update information based on the responsibility
to which they are assigned.
You can have individual corporate books and their associated tax
and budget books accessible only by one responsibility or by
several responsibilities.
You can also construct a hierarchical structure in your security
model, in which a given responsibility can access all books
belonging to one or more responsibilities.
Copyright © 2007, Oracle. All rights reserved.
Security by Book Setup Steps
Specify the Hierarchy
Setup Security Profiles
Create Responsibilities
From Oracle Assets, N > Setup > Security > Organization
> Description
From HR, N > Work Structures > Organization >
Description
Define your Organizations
If you are creating a fresh installation, you will need to define
your organizations from the beginning. However, if you are working
on a migration to 11i or above, organizations may already exist.
Thus, the question is whether or not you want to use the existing
organizations as your asset organizations or create completely new
and different organizational hierarchies.
Oracle Human Resources includes a predefined organization named
Setup Business Group. We recommend that you modify the definition
of this predefined business group rather than defining a new one.
If you define a new business group instead of modifying the
predefined Setup Business Group, you need to set the HR: Security
Profile profile option to point to the security profile for the new
business group. Oracle Human Resources automatically creates a
security profile with the business group name when you define a new
business group. Oracle Human Resources incorporates all other
organizations you specify into the business group you define.
Oracle Human Resources uses organization classifications to
determine the type of organizations being set up. To flag an
organization for use in Oracle Assets, you enable the Asset
Organization classification. An asset organization is an
organization that allows you to perform asset–related activities
for specific Oracle Assets books. Oracle Assets uses only
organizations designated as asset organizations. To set up these
asset organizations (or modify existing organizations and convert
them into asset organizations), you will need to use the
Organization form. The organization form can be accessed via Oracle
Assets or, if you are an Oracle Human Resources customer as well,
via the Oracle Human Resources responsibility.
Note: You cannot assign one book to two different organizations.
For example, if you assign Tax Book A to the Oracle Manchester
organization, you cannot assign it to the Oracle London
organization as well. When you attempt to assign Tax Book A to
Oracle London, the book will be saved as expected, but the Oracle
Manchester organization will no longer be able to access Tax Book
A!
Note: You can assign a corporate book and its associated tax book
to two different organizations. However, if you want to perform a
Mass Copy, the user must access the organization that is assigned
to the tax book.
Specify the Hierarchy
The hierarchy specifies the relationships between each of the asset
organizations. From the Hierarchy form, you can create your
organizational hierarchy. You need to define the top organization
in the hierarchy and at least one organization subordinate to
it.
Set Up Security Profiles
Once the organizations have been created and assembled into a
hierarchy, you are prepared to set up the Security Profiles. The
Security Profile is linked to the user's responsibility and
business group and determines which asset books are available to
holders of the responsibility. If you do not set up the Security
Profiles correctly, Security by Book will not function. Why?
Because a Security Profile holds together the responsibilities and
the organizations. Without the security profile, all
responsibilities can access all organizations.
Copyright © 2007, Oracle. All rights reserved.
Security by Book Setup Steps
Specify the Hierarchy
Setup Security Profiles
Create Responsibilities
Run the Security List Maintenance Program
Once you have defined all of the Security Profiles, you must run
the Security List Maintenance program. This program is not a
report, so there should not be any output expected. The Security
List Maintenance program updates the List of Values with the
appropriate books. This is a critical step, as it completes the
organization and security profile setup.
You should schedule it to run every night to take account of
changes made during the day.
Create Responsibilities
Once you have created your organizations, assembled them into
hierarchies and created their appropriate Security Profiles, you
are prepared to create the Responsibilities. A responsibility
determines if the user accesses certain Oracle Applications, which
applications functions a user can use, which reports and concurrent
programs the user can run, and which data those reports and
concurrent programs have access to. Each application user is
assigned at least one responsibility. Since Responsibilities cannot
be deleted, the Effective Date must be adjusted to enable/disable
them. This process is typically performed by the Oracle Systems
Administrator only.
Attach Security Profiles to Responsibilities
Once you have created your responsibilities, you may then attach
the security profiles to each responsibility. This effectively
links the organization and responsibility via the security
profiles. This process is typically performed by the Oracle Systems
Administrator only.
Assign Responsibilities to Users
The final step in the Security by Book setup is to assign the
various responsibilities to your users. You can create a
userid/password for each of your fixed assets users and assign them
the appropriate responsibilities through the System Administrator
responsibility.
Refer to Demonstration - Security by Book Setup [LAB0351Y]
Refer to Practice - Review Security by Book Setup [LAB0379Y]
Copyright © 2007, Oracle. All rights reserved.
Troubleshooting Security by Book
Troubleshooting Security by Book
You have set up the Security by Book feature, yet for some reason…
your security by book setup does not seem to be working. This
section lists some possible avenues that you may wish to
investigate:
Functionality review. The Security by Book feature enables you to
designate an organizational hierarchy in which the assets of an
organization can only be seen by (a) the parent organization and
(b) itself. For example, if you are in Headquarters, you should be
able to see all assets and select all books in the
organization.
An Orphan Organization. You may set up and define any number of
organizations and include as many of them as you wish in the
hierarchy. If you set up the organizations but accidentally leave a
location out of the hierarchy, you will be able to see that
location's assets from everywhere in the hierarchy. Make sure that
your hierarchy is set up as you planned.
Leaving out the Security List Maintenance program. This program
populates the LOV's with the appropriate information. If you miss
this important step, your LOV's will not show the correct books
that are available for each organization to access.
Viewing additional books. If there is a book that already exists on
the system and you have not assigned that book to a particular
organization, all organizations will be able to see the book and
its assets. For example, if you are able to view Oracle UK's
corporate book from Oracle Manchester, you may want to check the
Organization form and query up Oracle UK to ensure that the book
was associated with the organization properly.
Copyright © 2007, Oracle. All rights reserved.
Implementation Considerations for Security by Book
Implementation Considerations for Security by Book
Consider the following questions regarding use of the Oracle Assets
Security by Book feature:
Do you need to limit access to asset books?
Do all your books need security?
How do you want to organize security?
Who will update security?
Copyright © 2007, Oracle. All rights reserved.
Summary
In this module, you should have learned how to:
Explain where defining asset books fits into the Oracle Assets
process
Discuss the three types of asset books – corporate, tax and
budget
Explain the setup options and implementation issues concerning the
regions of the defining asset books window
Set up Group Assets
Explain energy assets
Explain the set up and use of the Security by Book feature within
Oracle Assets