Validate my Fixed Assets Setup

User579817-OC
Validate my Fixed Assets Setup Apr 27, 2015 12:00 PM
Hiii
Grateful if someone can validate my FISCAL, ASSET AND PRORATE CALENDAR
Business RequirementsAsset Calendar- Client wants to run depreciation on a Quarterly Basis
Prorate Convention - Client calculates depreciation on a daily basis

The fiscal year has to be the same as that defined for the General Ledger??

Validate my Fixed Assets Setup

Validate my Fixed Assets Setup

Divide depreciation by days!! is it correct??

Validate my Fixed Assets Setup

Thanks

Mohammed Ahmad 1,168 posts since Jun 23, 2010

Re: Validate my Fixed Assets Setup Apr 27, 2015 1:07 PM
Hello Friend,
Starting from Book Controls > Accounting Rules
What is the version of Oracle Assets?
Is Oracle Payables installed?
When compare to Oracle Assets 12.1.3, some Accounting Rules Options are missing, please have a look at
the below print screen:

Please evaluate the following MOS Documents:

How to Disable the 'Auto-Merge' Feature for Create Mass Additions in R12.1? (Doc ID 1540186.1)
FAXSUBCT New Feature "Allow Unallocated Line Types" Flag Missing (Doc ID 1473806.1)
Thank you

Anshu Malhotra -Oracle 684 posts since Jan 18, 2014

Re: Validate my Fixed Assets Setup Apr 27, 2015 1:18 PM
Hi,
Based on your setup you will be getting depreciation based on the number of prorate periods you have in the
quarter.
like a quarter jan to mar would have 31+28+31=90 days with another quarter like apr to jun would be a
30+31+30 days =91 days.
Assuming this is your requirement.
Regards
Anshu

Validate my Fixed Assets Setup

Mohammed Ahmad 1,168 posts since Jun 23, 2010

Re: Validate my Fixed Assets Setup Apr 27, 2015 2:16 PM
Hello,
Referring to your inputs:
1- Asset Calendar- Client wants to run depreciation on a Quarterly Basis
2- Prorate Convention - Client calculates depreciation on a Daily Basis
But, in Book Controls > Calender, it looks like same calendar is used (CWA V4) for Depreciation Calender and
Prorate Calender; which is quarterly calendar.
If my reading is correct, this setup means that:
1- You run depreciation for quarter periods (Q1-11, Q2-11, and so on), and
2- Depreciation calculation will be quarterly-based too
Since the prorate calendar determines how depreciation should be allocated to each period with in a
depreciation calendar, in your case, it most likely has to be a daily prorate calendar (i.e. different calendar than
CWA V4) .
Regards

SusanRuch-Oracle 6,229 posts since Jan 10, 2001

Re: Validate my Fixed Assets Setup Apr 28, 2015 4:20 PM
in response to Mohammed Ahmad
A quarterly depreciation calendar requires 4 periods per FY.
A daily prorate calendar requires 365 periods per FY.
There is no way to achieve daily prorates without a 365 days/year prorate calendar paired with a 365 period
daily prorate convention.
Please mark replies "Correct" or "Helpful" to facilitate solutions to other MOSC participants.

User579817-OC
Re: Validate my Fixed Assets Setup Apr 29, 2015 6:36 AM
in response to Mohammed Ahmad
The accounting rules has been validated by the client. No issue.

User579817-OC
Re: Validate my Fixed Assets Setup Apr 29, 2015 6:37 AM
in response to Anshu Malhotra -Oracle
yes it is the intended requirement

Validate my Fixed Assets Setup

User579817-OC
Re: Validate my Fixed Assets Setup Apr 29, 2015 6:42 AM
in response to Mohammed Ahmad
CWA v4 is the correct daily prorate. I have made a lots of setup to test. v4 is the latest.

User579817-OC
Re: Validate my Fixed Assets Setup Apr 29, 2015 6:51 AM
in response to SusanRuch-Oracle
Please confirm if it is correct?
Fiscal year same as General Ledger that is 01-Jan-XXXX to 31-Dec-XXXX
Asset Calendar - Quarterly that is 4 periods per fiscal year
Prorate Convention - Daily that is 01-Jan to 01-Jan
Then in the Book Control I should choose divide depreciation by days instead of evenly

Mohammed Ahmad 1,168 posts since Jun 23, 2010

Re: Validate my Fixed Assets Setup Apr 29, 2015 7:02 AM
Hello,

Validate my Fixed Assets Setup

Following to SusanRuch-Oracle and my previous replies, to achieve your requirement:

In Assets Book Controls > Calender you have to use Quarterly Depreciation Calender and Daily Prorate
Calender
Thank you,

SusanRuch-Oracle 6,229 posts since Jan 10, 2001

Re: Validate my Fixed Assets Setup Apr 29, 2015 2:45 PM
in response to User579817-OC
You MUST use a DAILY PRORATE CALENDAR to achieve daily prorate results. A daily prorate convention is
not enough.
Please refer to the FA User Guide for more details on how these work:
Oracle Assets User Guide

User579817-OC
Re: Validate my Fixed Assets Setup Apr 30, 2015 7:28 AM
in response to SusanRuch-Oracle
Hello I am a bit confused about the Daily Prorate Calendar.
I have defined
The Asset Fiscal Year Ex 01- JAN to 31 DEC 2014
The Asset Calendar Ex 01-JAN-31 MAR 2014 for each quarter
The Prorate Convention EX 01-JAN to 01-JAN 2014
Is the setup of daily prorate convention calendar done on the same screen as the prorate convention?

Validate my Fixed Assets Setup

Anshu Malhotra -Oracle 684 posts since Jan 18, 2014

Re: Validate my Fixed Assets Setup Apr 30, 2015 8:33 AM
in response to User579817-OC
Daily prorate calendar is set up in th same screen as the calendars.
If you check you book controls screenshot>calendar tab you will see the deprn calendar and prorate calendar.
They are both calendars with different setting.
We need a calendar which is daily entered in the prorate calendar feild here.
Regards
Anshu

Mohammed Ahmad 1,168 posts since Jun 23, 2010

Re: Validate my Fixed Assets Setup Apr 30, 2015 11:14 AM
in response to User579817-OC
Hello,
1. You need to define new Asset Calender (Setup > Calendars): by this you will have two asset Calendars
(1) CWA V4 which is already defined as Quarterly, and (2) CWA V4 - Daily which will be defined as
Daily.

Validate my Fixed Assets Setup

2. The new asset calendar CWA V4 - Daily will be used in asset book controls as depicted in the below
print screen

Regarding the daily Prorate Convention you already defined is correct and you will use it setting up Asset
Categories or during adding assets
Thank you

Mohammed Ahmad 1,168 posts since Jun 23, 2010

Re: Validate my Fixed Assets Setup Apr 30, 2015 11:32 AM
Other important things:
=========================
You cannot update prorate calender in already defined Asset Book
You need to define new book
Ref:
How To Change Prorate Calendar For Defined Asset Book? (Doc ID 236072.1)
=========================
Please review and confirm the following:

Validate my Fixed Assets Setup

1. Setup > System Controls > Oldest Date Placed In Service (You cannot enter a date placed in service
before the oldest date placed in service you specified here)
2. Setup > Fiscal Years > First Fiscal Year (start with Oldest Date Placed In Service)
3. The same is applicable Prorate Calender and Prorate Convention

So, Is Jan-11 the Oldest Date Placed In Service you will use on this instance?
Ref:
How to Setup the Prorate Calender And Convention Calendar Starting Periods (Doc ID 464231.1)
=========================
Regards

SusanRuch-Oracle 6,229 posts since Jan 10, 2001

Re: Validate my Fixed Assets Setup Apr 30, 2015 1:44 PM
in response to Mohammed Ahmad
These topics are covered in our documentation > Oracle Assets User Guide
IN SUMMARY:
1) The depreciation and prorate calendars are setup in the same form.
2) You cannot change calendars on a defined book.
3) You must have a 365 daily prorate calendar and 365 daily prorate convention to achieve daily prorate
results on addition and retirement.
I am going to add a comment here that a quarterly depreciation calendar used on a CORPORATE book can be
difficult to manage if you are posting JEs to GL.
That is because of how FA marks dates on transactions and how they map to GL periods if GL is monthly and
FA is quarterly. I would not recommend this setup to anyone that is posting JEs from FA > GL. It usually is
reserved for TAX books only that do not post to GL, and that often comes with issues as well with Periodic
Mass Copy. That's my 10-cents worth anyway.
Please mark replies "Correct" or "Helpful" to facilitate solutions to other MOSC participants.

User579817-OC
Re: Validate my Fixed Assets Setup Apr 30, 2015 3:06 PM
Thank you everyone for all your replies
In summary I have to define
The Asset Fiscal Year Ex 01- JAN to 31 DEC 2014
The Asset Calendar Ex 01-JAN-31 MAR 2014 for each quarter
The Prorate Calendar Ex 01-JAN to 01-JAN 2014 ( Attach it to the book control)

10

Validate my Fixed Assets Setup

The Prorate Convention EX 01-JAN to 01-JAN 2014

Thanks once again

user12293018 1 posts since Jan 18, 2014

Re: Validate my Fixed Assets Setup Nov 2, 2015 2:38 AM
in response to User579817-OC
My issue with daily prorate calendar:
I have defined:
The Asset Fiscal Year Ex 01- APR 2014 to 31- MAR - 2015
The Asset Calendar Ex 01-APR- 2014 to 30-APR-2014 for each month
The Prorate Calendar Ex 01-APR-2014 to 01-JAN 2014 ( Attach it to the book control)
The Prorate Convention EX 01-APR-2014 to 01-JAN- 2014
This setup works well. The depreciation amount is calculated exactly with daily prorate convention in the
addition period. But, when I do retire the asset, the depreciation amount is incorrect. It is calculated equal =
NBV. So, gain/loss amount in retirement transaction is = 0.
Example:
Cost = 3,600 $
life in months = 3 years
Date placed in service: 15-APR-2014
Run Depreciation, for APR-14 period, depreciation amount ~ 50 $ => NBV ~ 3,550$.
Next step, I do full retirement transaction:
Date retire: 20-MAY-2014,
Cost retire = 3,600$.
The system calculate depreciation amount = NBV = 3,550$ in retirement period => Gain/loss amount = 0.
Retirement Journal : Dr Reserve 3,600$
Cr Cost 3,600$
Please help me, why the system calculated depreciation like that???

Mitani-Oracle 780 posts since Jan 10, 2001

Re: Validate my Fixed Assets Setup Nov 2, 2015 4:44 AM
in response to user12293018
It is all depends on your setup and retirement convention and depreciate in year retired flag , etc.
It is better if you create a new thread and upload asset trace.
There are also bugs related to retirements with daily prorate, so I recommend you log an SR with support
Regards
1 2 Previous Next

11