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Fixed Asset Depreciation Overview

The document provides a comprehensive overview of Oracle ERP and EBS, detailing various business flows such as Order to Cash and Procure to Pay, along with financial modules like General Ledger and Accounts Payable. It also covers Fixed Assets management, including asset types, depreciation methods, and transaction processes for asset addition and retirement. Additionally, it outlines cloud technologies and programming languages relevant to Oracle systems, emphasizing AWS services and their functionalities.

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Dhanya Mohan
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160 views18 pages

Fixed Asset Depreciation Overview

The document provides a comprehensive overview of Oracle ERP and EBS, detailing various business flows such as Order to Cash and Procure to Pay, along with financial modules like General Ledger and Accounts Payable. It also covers Fixed Assets management, including asset types, depreciation methods, and transaction processes for asset addition and retirement. Additionally, it outlines cloud technologies and programming languages relevant to Oracle systems, emphasizing AWS services and their functionalities.

Uploaded by

Dhanya Mohan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ebsguide

Oracle ERP World

GENERIC

ORACLE ERP

ORACLE EBS

BUSINESS FLOW

ORDER TO CASH – O2C PROCURE TO PAY – P2P DROP SHIP ORDER

FINANCIALS

EBS GENERAL LEDGER (GL) EBS ACCOUNTS PAYABLE (AP) EBS ACCOUNTS RECEIVABLE (AR) EBS FIXED ASSET (FA)

EBS ENTERPRISE BUSINESS TAX (EBT) CASH MANAGEMENT

SUPPLY CHAIN MANAGEMENT (SCM)


HRMS

PURCHASING INVENTORY IPROCUREMENT ISUPPLIER HRMS PACKAGES

ORACLE FUSION

ORACLE FUSION FINANCIALS – RELEASE 12

FUSION FINANCIALS GENERIC FUSION GENERAL LEDGER FUSION ACCOUNTS PAYABLE FUSION ACCOUNTS RECEIVABLE

FUSION FIXED ASSET FUSION CASH MANAGEMENT FUSION P2P FUSION O2C FUSION REPORTING

ORACLE FUSION HCM – RELEASE 11

FUSION HCM GENERIC CLOUD CORE HCM

DATABASE LANGUAGES

ORACLE SQL ORACLE PL/SQL PLSQL PROGRAMS ORACLE PERFORMANCE & TUNING ORACLE INTERVIEW QUESTIONS

MICROSOFT SQL SERVER RICEFW PERSONALIZATION OAF WEB ADI


PROGRAMMING LANGUAGES

JAVA PYTHON DJANGO LINUX SCALA REACTJS NODE JS SHAREPOINT PTE


CLOUD TECHNOLOGIES

CLOUD COMPUTING

AWS

AWS DUMPS 1. IAM 2. BILLING ALARM 3. S3 4. CREATION OF S3 BUCKET 5. S3 PRICING TIERS

6. S3 SECURITY AND ENCRYPTION 7. S3 VERSION CONTROL 8. S3 LIFE CYCLE MANAGEMENT

9. S3 LOCK POLICIES AND GLACIER VAULT LOCK 10. S3 PERFORMANCE 11. S3 SELECT AND GLACIER SELECT

12. AWS ORGANIZATIONS & CONSOLIDATE BILLING 13. SHARING S3 BUCKETS BETWEEN ACCOUNTS

14. CROSS REGION REPLICATION 15. TRANSFER ACCELERATION 16. DATASYNC OVERVIEW 17. CLOUDFRONT OVERVIEW

18. CLOUDFRONT SIGNED URL’S AND COOKIES 19. SNOWBALL 20. STORAGE GATEWAY 21. ATHENA VERSUS MACIE 22. EC2

23. SECURITY GROUPS 24. EBS 25. VOLUMES & SNAPSHOTS 26. AMI TYPES (EBS VS INSTANCE STORE)

27. ENI VS ENA VS EFA 28. ENCRYPTED ROOT DEVICE VOLUMES & SNAPSHOTS 29. SPOT INSTANCES & SPOT FLEETS

30. EC2 HIBERNATE 31. CLOUD WATCH 32. AWS COMMAND LINE 33. IAM ROLES WITH EC2 34. BOOT STRAP SCRIPTS

35. EC2 INSTANCE META DATA 36. EFS 37. FSX FOR WINDOWS & FSX FOR LUSTRE 38. EC2 PLACEMENT GROUPS 39. HPC

40. WAF 41. DATABASES 42. CREATE AN RDS INSTANCE 43. RDS BACKUPS, MULTI-AZ & READ REPLICAS 44. DYNAMO DB

45. ADVANCED DYNAMO DB 46. REDSHIFT 47. AURORA 48. ELASTICACHE 49. DATABASE MIGRATION SERVICES (DMS)

50. CACHING STRATEGIES 51. EMR 52. DIRECTORY SERVICE 53. IAM POLICIES 54. RESOURCE ACCESS MANAGER (RAM)

55. SINGLE SIGN-ON 56. ROUTE 53 – DOMAIN NAME SERVER (DNS) 57. ROUTE 53 – REGISTER A DOMAIN NAME LAB

58. ROUTE 53 ROUTING POLICIES 59. ROUTE 53 SIMPLE ROUTING POLICY 60. ROUTE 53 WEIGHTED ROUTING POLICY

61. ROUTE 53 LATENCY ROUTING POLICY 62. ROUTE 53 FAILOVER ROUTING POLICY 63. ROUTE 53 GEOLOCATION ROUTING POLICY

64. ROUTE 53 GEOPROXIMITY ROUTING POLICY (TRAFFIC FLOW ONLY) 65. ROUTE 53 MULTIVALUE ANSWER 66. VPCS

67. BUILD A CUSTOM VPC 68. NETWORK ADDRESS TRANSLATION (NAT) 69. ACCESS CONTROL LIST (ACL)

70. CUSTOM VPCS AND ELBS 71. VPC FLOW LOGS 72. BASTIONS 73. DIRECT CONNECT

74. SETTING UP A VPN OVER A DIRECT CONNECT CONNECTION 75. GLOBAL ACCELERATOR 76. VPC END POINTS

77. VPC PRIVATE LINK 78. TRANSIT GATEWAY 79. VPN HUB 80. NETWORKING COSTS 81. ELB

82. ELBS AND HEALTH CHECKS – LAB 83. ADVANCED ELB 84. ASG

85. LAUNCH CONFIGURATIONS & AUTOSCALING GROUPS LAB 86. HA ARCHITECTURE


87. BUILDING A FAULT TOLERANT WORDPRESS SITE – LAB 1 88. BUILDING A FAULT TOLERANT WORDPRESS SITE – LAB 2

89. BUILDING A FAULT TOLERANT WORDPRESS SITE – LAB 3 : ADDING RESILIENCE & AUTOSCALING

90. BUILDING A FAULT TOLERANT WORDPRESS SITE – LAB 4 : CLEANING UP

91. BUILDING A FAULT TOLERANT WORDPRESS SITE – LAB 5 : CLOUD FORMATION 92. ELASTIC BEANSTALK LAB

93. HIGHLY AVAILABLE BASTIONS 94. ON PREMISE STRATEGIES 95. SQS 96. SWF 97. SNS 98. ELASTIC TRANSCODER

99. API GATEWAY 100. KINESIS 101. WEB IDENTITY FEDERATION – COGNITO 102. REDUCING SECURITY THREATS

103. KEY MANAGEMENT SERVICE (KMS) 104. CLOUD HSM 105. PARAMETER STORE 106. LAMBDA

107. BUILD A SERVERLESS WEBPAGE WITH API GATEWAY AND LAMBDA 108. BUILD AN ALEXA SKILL

109. SERVERLESS APPLICATION MODEL (SAM) 110. ELASTIC CONTAINER SERVICE (ECS) 111. MISCELLANEOUS

BIG DATA DATA SCIENCE DEVOPS AZURE DATA WAREHOUSE RESUME

EBS Fixed Asset (FA)


Assets are of two types

1. Current Asset 2. Fixed Asset

Current Asset: Which will use in an Organization for less than a year. We don’t have depreciation value. Volatile.
Ex: Cash, Marketable Securities, Pre-Paid Expenditures, Inventory Goods etc, Recurring Deposits

Fixed Asset: Which will use in an Organization for more than a year. We have depreciation value.
Ex: Land & Building, Vehicles, Plant & Machinery, Computers etc.
Depreciation: Cost decreases over a period of time. We calculate depreciation on yearly basis, not monthly.

The main purpose of Fixed Asset is to track depreciation and track asset location and to track asset category like lease asset or own asset.

KFF’s in FA are Asset Key, Asset Location, Category

Say Vehicles is a major category then we have 2/3/4 wheelers under minor category.
Asset location determines the location of asset.

Note:

1. Only one structure we can have for FA. Unlike in GL for Accounting Flexfield where we have multiple structures, we cant have in FA.
2. Only one open period we have for FA.
3. FA doesn’t support Multi Org Structure

Structure in FA:
Fixed Assets Manager >> Setup >> Financials >> Flexfields >> Key >> Segments >> Query for Application Assets. Here we find three Location

Flexfield, Asset Key Flexfield and Category Flexfield under Flexfield Title
Also we wont be able to create new structure.

Segment values in FA:


Fixed Assets Manager >> Setup >> Financials >> Flexfields >> Key >> Values >> Enter values as below >> Find
Here we created a value VH with description Vehicles.

Similarly for Category Flexfield for segment Major Category (Vehicle) and Minor Category segment (2-Wheeler and 4-Wheeler) create new values.

To assign the Minor Category segment (2-Wheeler and 4-Wheeler) values enter Independent value VH and enter the values.

Similarly for Location Flexfield for segment Country (India), State (ANDHRA PRADESH), City (Hyderabad), Building (HEADQUARTER)
Now we need to register the location.

Fixed Assets Manager >> Setup >> Asset System >> Locations >> Enter details as below >> Save

Asset Calendar:
We have three types
1. Fiscal 2. Depreciation 3. Pro-Rate Convention

Fiscal: Jan-Dec (Accounting) or Apr-Mar (Fiscal)

Fixed Assets Manager >> Setup >> Asset System >> Fiscal Years

Ensure we enter next year also

Depreciation Calendar: Used to close FA books which break fiscal calendar into periods. The depreciation period name should match with
GL period name (like Jan-15, Feb-15, Mar-15).

Fixed Assets Manager >> Setup >> Asset System >> Calendars >> Create a calendar with period name = GL period name.
Pro-Rate Convention: Used to calculate depreciation of an asset. Say we defined prorate from 01-OCT-2015 to 31-OCT-2015 and we
purchased item on 15-OCT-2015. The actual depreciation should start from 15-OCT-2015 since we defined pro-rate it starts from 01-OCT-
2015
Fixed Assets Manager >> Setup >> Asset System >> Calendars

Depreciation Books (Book Controls) : Asset Information

Fixed Assets Manager >> Setup >> Asset System >> Book Controls
Depreciation Methods and Rates
Commonly used depreciation methods are STL(Straight Line Method) and Flat Rate

1. STL – Asset cost/ asset life in years. Also known as Calculated Method

30000/4 years = 7500 yearly depreciation


2. Flat Rate – Flat depreciation for asset.

FA >> Setup >> Depreciation >> Methods

Click on Rates
Asset Category

Fixed Assets Manager >> Setup >> Asset System >> Asset Categories
The asset bought in India has one value and bought outside India has other value.

Click on Default Rules


Save
Asset Types:

1. Capitalize Asset 2. CIP Asset 3. Group Asset

Capitalize Asset– Which is ready to use. Ex: Laptop


They have depreciation as well as cost

CIP– Construct in Process or Work in Process


Which is not ready to use. Doesn’t have cost or depreciation. This gets converted into Capitalize asset. Ex: Spare parts of vehicle

Group Asset– Grouping assets by 2-wheeler group. Ex: Pulsar, Splendor, CBZ
Grouping assets by 4-wheeler group. Ex: BMW, Jaguar, Bentley
Transaction on Asset (Addition of Asset)
Asset Cost (Minus) Accumulated Depreciation = NBV (Net Book Value)

Fixed Assets Manager >> Assets >> Asset Workbench

FA_15 image should come here

Click on Continue
Click on Continue

Click on Done
Transaction on Asset (Quick Addition of CIP Asset)

Fixed Assets Manager >> Assets >> Asset Workbench >> Quick Additions

In normal addition (done top) we have three forms for adding whereas here all information can be updated in single form.

Capitalizing a CIP asset:

Fixed Assets Manager >> Assets >> Capitalize CIP Assets >> Enter Book Control name >> Find
Check and click on Capitalize

Now we have both the assets under Capitalized. Also we can reverse the transactions by clicking on Reverse button.

Now add value to CIP asset which has been capitalized.

Fixed Assets Manager >> Assets >> Asset Workbench >> Enter Book control name >> Find >> Select Splendor >> Click on Books >> Enter values as

below >> Done

Salvage value = Wastage Value


Click on Financial Inquiry to get the cost.

Fixed Asset Month End Cycle

1. Soft close depreciation – No need to enable “Close Period” option

2. Hard close depreciation – Need to enable “Close Period” option

Soft close depreciation – No need to enable “Close Period” option

Run depreciation and close current period.

Fixed Assets Manager >> Depreciation >> Run Depreciation

Without enabling the close period if we run then it is soft close else its hard close.

Ensure the program successfully completes.

Check the o/p of ‘Journal Entry Reserve Ledger Report’ program


Now go with hard close

After hard close we wont be able to open the same period again.

Review of depreciation

Fixed Assets Manager >> Assets >> Asset Workbench >> Enter the book control name >> Find >> Select any asset >> Books >> Here we find the

depreciation values
Create Accounting

Fixed Assets Manager >> Create Accounting

After successful completion of program to check the entries in GL, login to operations users.

General Ledger Super User >> Journals >> Enter >> Enter batch name ‘%VEH JE Batch 001%’ >> Find >> Review the journals.

Retirement/ Sale of an Asset

FA >> Assets >> Asset Workbench >> Enter book control name >> Find >> Select the asset and click on Retirements
Done >> Ensure the program successfully completes.

For asset retirement we need to run ‘Calculate Gains and Losses’ program which is very much mandatory.

FA >> Depreciation >> Calcualte Gains and Losses >> Enter BOOK name and submit

Assets >> Asset Workbench >> Enter book name >> Find >> Select above asset and click on Retirements >> Control + F11 >> Instead of having 2000
loss we have <1,166.67>. The rest 833.33 amount has been eliminated under depreciation. Status is Processed.

We can use Reinstate to recover back the record. Here the status will be Deleted.

Accounting Entries

Mandatory accounts in FA
Module – Account

INV – AP Accrual A/C


AP – AP Liability A/C

FA – Asset Clearing A/C

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Common questions

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Cross Region Replication in S3 enhances data redundancy and availability by automatically replicating data across different AWS regions. This geographic dispersal protects against regional outages and ensures high availability and fault tolerance for data storage, addressing compliance requirements for data residency. It allows users to maintain backup strategies and ensures data durability across AWS's global infrastructure .

Oracle Fusion Financials Release 12 provides strategic advantages over traditional Oracle EBS Financials by integrating modern cloud architecture, leading to greater scalability, accessibility, and innovation potential. Fusion Financials offers advanced features such as embedded analytics, real-time reporting, and improved usability. This transition reduces IT overhead, enhances business intelligence, and increases adaptability to changing financial needs through a flexible and responsive interface .

Lambda functions facilitate building a serverless architecture in AWS by allowing developers to run code without provisioning or managing servers. They automatically scale with the execution demand, reducing costs and operational overhead. Core benefits include event-driven execution, built-in fault tolerance, and integration with various AWS services, which streamline application development and deployment, reducing time to market while maintaining efficiency .

The IAM roles feature for EC2 in AWS enhances security and management by allowing secure access to AWS resources without distributing credentials. Roles are assigned with permissions that EC2 instances can assume, ensuring they perform tasks with the least privilege necessary. This minimizes the risk of credential exposure and enables scalable and manageable resource access control, improving both security and operational efficiency .

The Fixed Assets Manager in Oracle EBS is responsible for managing the asset lifecycle across various stages: asset addition, capitalization, depreciation, retirement, and reporting. The manager sets up and maintains the Fixed Asset structures, enters and tracks asset details, calculates and reviews depreciation, and ensures proper accounting entries. They also handle asset transactions like capitalization of CIP assets and process retirements by calculating gains and losses .

VPC (Virtual Private Cloud) in AWS offers enhanced segmentation and control compared to traditional networking. It allows users to define their isolated network within the AWS cloud, segmenting resources using subnets. Unlike traditional networking, VPCs give users fine-grained control over network configuration, including IP address ranges, subnet creation, and security group and ACL management. This provides superior flexibility to architect and manage secure, scalable cloud networks .

Depreciation Books in the Oracle EBS Fixed Assets module are essential for tracking the depreciation of an asset over its useful life. They function as a record keeper that outlines the methods and rates used for asset depreciation, allowing for precise calculation and tracking. These books segments the fiscal calendar into depreciation periods and ensure consistency with the General Ledger, maintaining accounting accuracy and compliance .

The Procure to Pay (P2P) cycle in Oracle EBS involves processes related to purchasing goods and services, where the financial flow begins with requisition, follows through purchase orders, receiving goods, and finally ends with vendor payment. In contrast, the Order to Cash (O2C) process involves the sales side, starting from receiving a customer order, shipping the product, and finally collecting payment. The P2P cycle focuses on expenditure control and vendor management, while O2C optimizes sales order management and cash inflow .

In Oracle Fixed Assets, Depreciation Methods are categorized primarily into the Straight Line Method (STL) and the Flat Rate method. The STL calculates depreciation based on the asset cost divided by its useful life, offering a consistent annual depreciation value. The Flat Rate applies a fixed percentage, affecting cash flows and tax calculations differently. These methods influence asset valuation significantly by dictating the pace and amount of depreciation over the asset's life .

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