Karnataka Strips Limited

Fixed Assets – User Manual

Table of Contents
1. CREATING ASSETS THROUGH PURCHASE ORDER.

3
1.1 CREATING PURCHASE ORDER

4
1.2 CREATING PAYABLES INVOICE

8
1.3 CREATING A DIRECT INVOICE IN PAYABLES

9
1.4 PROCESSING ‘MASS ADDITIONS CREATE’ IN PAYABLES

9
2. MASS ADDITIONS

11
2.1 CREATING MASS ADDITIONS – QUEUE STATUS AS ‘NEW’

11
2.1.1 Merging the non-modvatable taxes with the original cost 13
2.1.2 Entering details regarding Asset Capitalization or CIP 14
2.2 CREATING MASS ADDITIONS – QUEUE STATUS AS ‘ON HOLD’

22
2.2.1 Splitting Assets 23
2.2.2 Adding an Asset to the Existing Asset 25
2.3 CREATING MASS ADDITIONS – QUEUE STATUS AS ‘POST’

28
2.4 POSTING MASS ADDITIONS

31
2.5 DELETING MASS ADDITIONS

33
2.6 DELETING ‘ON HOLD’ MASS ADDITIONS

34
3. ASSETS WORKBENCH

35
3.1 SALE OR RETIREMENT OF ASSETS

37

Page 1 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

3.2 REQUESTING ‘CALCULATE GAINS AND LOSSES’ PROGRAM

40
3.3 VIEWING FINANCIAL INFORMATION OF ASSETS

42
3.4 VIEWING SOURCE LINES OF ASSETS

43
3.5 TRANSFER OR ASSIGNMENTS OF ASSETS

44
3.6 VIEWING DETAILS OF ASSETS

45
4. CIP (CONSTRUCTION IN PROGRESS) ASSETS

46
4.1 CAPITALIZING CIP ASSETS

46
4.2 REVERSING CAPITALIZATION OF CIP ASSETS

48
5. DEPRECIATION

50
5.1 STEPS FOR CALCULATION OF DEPRECIATION

50
5.2 ROLLBACK DEPRECIATION

52
6. JOURNAL ENTRIES

53
6.1 CREATING JOURNAL ENTRIES

53
6.2 ROLL BACK JOURNAL ENTRIES

55
7. DEPRECIATION CALCULATION FOR INCOME TAX

56
7.1 SCOPE

56

Page 2 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

7.2 FIXED ASSET SET UP FOR INDIA LOCALIZATION

57
7.2.1 Block of Assets 57
7.2.2 Define Depreciation Periods 60
7.3 TRANSACTIONS

62
7.3.1 Asset Additions 62
7.3.2 Income tax depreciation calculations 63
7.3.3 Run Depreciation - Income Tax Act Fixed Asset Schedules 64
7.3.4 India Depreciation Detail Report 67
8. PHYSICAL INVENTORY

69
8.1 ENTERING OR LOADING PHYSICAL INVENTORY ENTRIES

69
8.2 COMPARING ASSETS IN PHYSICAL INVENTORY AND FIXED ASSET MODULE.

71
8.3 COMPARISON RESULTS

72
9. RECLASSIFY ASSETS

75

10. PROJECTING DEPRECIATION EXPENSE

78

11. DEPRECIATION WHAT-IF ANALYSIS

81
11.1 WHAT-IF ANALYSIS FOR EXISTING ASSET DATA

81
11.2 What-if Analysis for Hypothetical Assets

85

Page 3 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

1. Creating Assets through Purchase Order.

Assets can be created in two ways –

Creation of P.O and Receipt in Purchasing Module

Creation of Direct Invoice in Payables Module
a) Purchase Order and Receipts for Capital Goods item are created in
Purchasing Module. The Invoice for the Capital Goods item are manually
matched and approved in Payables.
b) In some cases a direct invoice need to be created in Payables (for
example exchange fluctuation on a foreign exchange loan may be
capitalized for which a direct invoice has to be created in payables).

The user should ensure that Payables user had processed the following
requests for the relevant period before running ‘Mass Additions Create’
program in Payables.
 Payables Accounting Process – This request create accounting entries
for the approved invoices
 Payables Transfer to GL – This request transfer the accounting entries
to the GL interface table
 Journal Import - This request transfer the accounting entries from GL
interface table to GL Journal Screen
The above requests are specific to Operating Unit and they have to be
processed before running Mass Additions Create. The Mass Additions Create
request, which is specific for the Fixed Assets Book, transfers the Invoices
from the Payables Module to Fixed Assets Module.

Page 4 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

1.1 Creating Purchase Order

Navigation  India Local PurchasingPurchase Orders  Purchase (Orders

Localized)

For detailed steps please refer the KSL PO User Manual

Page 5 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Create a Purchase Order for an Item with Destination as ‘Expense’ and PO

charge Account as either the “Asset Clearing Account” or “CIP (Construction
in Progress) Clearing Account” mentioned in the Asset Category.

Page 6 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Optionally, add Taxes

For detailed steps please refer the KSL PO User Manual

Page 7 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Receive the Purchase Order

Page 8 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

1.2 Creating Payables Invoice

Navigation  Oracle PayablesInvoices Entry Invoices

Create Payables Invoice for the Purchase Order Created.

Match the AP Invoice to the Receipt or Purchase Order.
Validate and Create Accounting for the Invoice.

Run “Payables Transfer to General Ledger” concurrent program to transfer

the Accounting to General Ledger. Also run Journal Import from General
Ledger.

For detailed steps please refer the KSL AP User Manual

Page 9 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

1.3 Creating a Direct Invoice in Payables

In some cases where cost of Direct Invoices needs to be capitalized, (like,

Installation Service Charges, Freight Charges) you can create a Manual AP
Invoice with the Charge Account as the Asset Category Clearing Account.

The Accounting for these invoices have to be transferred to General Ledger

and imported in General Ledger before creating Mass Additions in Payables.

1.4 Processing ‘Mass Additions Create’ in Payables

Navigation  OthersRequestRun

Page 10 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Click for the List of Values in the Name field and select ‘Mass Additions
Create’
After selecting the ‘Mass Additions Create’ the parameters for the GL date
and Fixed Assets Book name have to be entered.

The main request screen appears again. The ‘Mass Additions Create’ can
also be scheduled, but since the process of ‘Payables Accounting
Process’ is a prerequisite before running ‘Mass Additions Create’, it is
recommended for a manual request.
Click on the ‘Submit’ button to process the request.

Ensure that the request has ended in a normal status by navigating

ViewRequest on the Standard Tool bar and then click ‘Find’.

Page 11 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

2. MASS ADDITIONS

After completing the transfer of Mass Additions in Payables Module, switch

to Assets Responsibility for adding new assets to the assets register.

2.1 Creating Mass Additions – Queue status as ‘New’

From the Navigator window, select Mass AdditionsPrepare Mass

Additions.
Select the Book Name from the list of values. In the Queue field select
‘New’ from the list of values. Form displays as shown.

Page 12 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Press the ‘Find’ button.

The asset for which the status is ‘New’ appears on the screen. The base
value of asset and its tax appears in a separate line. Note: Recoverable
Taxes, which do not form part of the cost, do not appear here. There are
four buttons namely Split, Add to Asset, Merge and Open.
Split – If two or more number of assets were bought under same invoice
number then this split the assets into required numbers. For example, if
two assets were bought under the invoice no.”13-MAR-07”, on pressing
‘Split’, two lines are created for the invoice.
Add to Asset – For adding an asset to its original asset this button is used.
For Example, stand alone invoices created for installation charges etc., can
be merged with already existing Assets by clicking ‘Add to asset’ button.
Merge – To merge the Non-modvatable taxes or any other invoices with the
original asset cost in queue, before creation of the asset, ‘Merge’ button is
used.
Open – To perform the capitalization process ‘Open’ button is used.

Page 13 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

2.1.1 Merging the non-modvatable taxes with the original cost

To begin the additions process, click on the Merge button and the form
displays as shown below

The non-modvatable taxes for the asset appear on the screen. Click on the
Check Box under Merged for merging the non-modvatable taxes with the
original cost of asset and then press ‘Done’ button. The non-modvatable
taxes are added to the original cost of the asset
Once the non-modvatable taxes are merged with the original cost, the
capitalization details should be given for each asset.

Page 14 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

2.1.2 Entering details regarding Asset Capitalization or CIP

From the Navigator window, select Mass AdditionsPrepare Mass

Additions
Select the asset, which need to be added to an original asset by selecting
the Book name, Queue status ‘New’ and Invoice number and then press
‘Find’ button.

Click on the open button.

The Asset Description and the Asset Category automatically defaults from the
purchasing module.

Page 15 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Following fields needs to be filled which are ‘Optional’ or ‘Mandatory’

1) Employee Name and Employee Number - Optional
Click on the Employee Name field. List of values of Employee names appear on
the screen. Select the employee name to which the asset is to be assigned.
Once the Employee name is picked, automatically the Employee Number
defaults. Alternatively, the Employee Number can be entered to populate the
Employee Name.

2) Expense Account – Mandatory

The Expense Account field relates to the Depreciation charge account for
the asset.

Page 16 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Click on the Expense Account field. The Accounting flex field appears on the
screen. The values for the Natural Account segment automatically. The
value for the other segments needs to be entered from the List of values.
Ensure that you enter the right cost center for obtaining cost center wise
depreciation
This Expense Account flex field appears in the General Ledger and thereby
the Depreciation can be tracked cost center wise.

3) Location - Mandatory
This field relates to the location of the asset.
Click on the Location field. The Location flex field appears on the screen.
The value for the segments needs to be entered from the list of values.

Page 17 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

4) Income Tax Block Of Assets - Mandatory

This Descriptive flex field relates to the Income Tax Block of Assets.

The inner box contains the list of values of Income Tax Block of Assets.
Click on the Context Value field for the list of values. Select the relevant
Block of Assets and enter the Date of Service in the format ‘DD-MON-YYYY’
and then press ‘OK’ button. Please Refer Section 7 – Depreciation
Calculation for Income Tax for further details.
5) Asset Number - Optional
This field relates to the numbering of Assets.
Click on the ‘Asset, Depreciation’ folder. In case of Automatic numbering
of Fixed Assets this field can be ignored.
6) Asset Key - Mandatory

Page 18 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

This field relates to the Additional information of Assets.

If an Asset is purchased with respect to any Project, Loan, the same can be
captured in the Asset Key flex field. The values for the segments can be
picked from the list of values.

7) Tag Number - Optional

This field relates to any number other than the Asset number.
This field has to be used to capture the Asset number as defined by the
Maintenance Department and have to be entered manually.
8) Units
This field represents the number of assets bought under the invoice
number and should not be altered.

Page 19 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

9) Serial Number, Manufacturer and Model - Optional

These fields can be used to capture the serial number plated on the
machine, name of the manufacturer and model of the asset. The values for
these fields have to be entered manually.

10) Asset Type

This field denotes whether the asset is to be capitalized or to remain in CIP
(Construction in Progress). By default the value is set as ‘Capitalized’. In
case the asset is not be capitalized then the value can be changed to ‘CIP’
by clicking the down arrow. Once the value is set to ‘CIP’ it can be noted
that the ‘Depreciate’ box is unchecked.

11) Parent Asset

The field relates to the Parent Asset, which is to be related to the New
Asset.
Click on the Parent Asset filed. Pick from the List of Values the asset
number of the Parent Asset relevant to the new Asset. The Description of
the Parent Asset automatically defaults. This field can be ignored if the
asset purchased doesn’t relate to a Parent Asset.

Page 20 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

12) Physical Inventory

This box by default is checked and it is used while reconciling physical
assets and book assets. It can be unchecked if the asset is not be
considered for physical verification.

13) Book
This field relates the book name in which the asset is capitalized and its
value automatically defaults and cannot be changed.

14) Cost
This field relates to the base value of the asset and it defaults from the
invoice value and should not be altered.

Page 21 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

15) Depreciate
This field relates to the criteria whether the asset capitalized should
depreciate or not.
By default the box is checked. In case the Asset Type field status is CIP
then this box needs to be unchecked. If an asset needs to be Capitalized
but not be depreciated (Example – Land) then this box can be unchecked.

16) Date Of Service

This field relates to the date of capitalization of assets.
By default the latest open period in the Fixed Asset Book appears on the
field. It can be altered to the required period, which is open period in the
Fixed Asset Book.
After entering the values for the above fields press the ‘Done’ button.

Page 22 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

2.2 Creating Mass Additions – Queue status as ‘On Hold’

Once the details are entered in the Queue Status ‘New’ and ‘Done’ button
is pressed the status of the Queue changes to ‘On Hold’.

In case the values entered were wrong or needs to be altered the same can
be done when the status is ‘On Hold’. To do the same press the ‘Open’
button and the required values can be altered. Finally press the ‘Done’
button.

Page 23 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

2.2.1 Splitting Assets

In case two or more assets are purchased under the same invoice number
then they have to be split to the required number. Pressing the ‘Split’
button will do this. The form displays as under

If the assets need to be split click the ‘OK’ button.

Page 24 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

The ‘Split’ button split the assets bought under the same invoice number into
required numbers. Press the ‘OK’ button. The assets are split into required
numbers and the Queue status of the original number of assets changes from
‘On Hold’ to ‘Split’. The individual assets appear on the screen with the
Queue status ‘On Hold’.
If the assets, which were split, needs to be restored back to the old status then
the ‘Undo Split’ button should be pressed. The ‘Add to Asset’ button is
disabled for the asset, which has been split, since it should not be added to
any other asset in future.

Note : Before the assets are split it should ensured that the non-
modvatable taxes are merged.
Next we move to the process for adding an Asset to an already existing asset,
which has been assigned an asset number.

Page 25 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

2.2.2 Adding an Asset to the Existing Asset

If an asset appearing in the Mass Additions with ‘New’ status needs to be

added to an existing asset, then following steps is to be followed. Before
doing so it should ensured that the capitalization details have entered for
the asset, which is to be added to an already existing asset and an asset
number exist for the existing asset.

From the Navigator window, select Mass AdditionsPrepare Mass

Additions

Select the asset, which need to be added to an original asset by selecting

the Book name, Queue status ‘New’ and Invoice number and press ‘Find’
button.

Page 26 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

In the Asset number field, list of values of existing Asset Number will not
appear. Manually enter the existing asset number to which the new asset is
to be added and press ‘Find’ button.

The details of the existing asset number appear on the screen. Check the
correctness of the details of the existing asset number and then press the
‘Done’ button.

The Queue status of the asset item is now changed to ‘On Hold’.

Page 27 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

If the Add to Asset process is to be restored back then press ‘Remove’

button. The ‘Split’ button gets disabled for the assets added with its
original assets. If the ‘Add to Asset’ button is pressed then the details of
the existing asset to which the new asset has been added appear on the
screen. If the ‘Merge’ button is pressed, the merge cost of the new asset
appears on the screen. If the ‘Open’ button is pressed, the capitalization
details of the new asset appear on the screen.

That ends the process of Split the Assets and Adding an Asset when the
Queue status is ‘On Hold’.

We now move on to the process of Posting of Assets to the Fixed Asset

Register.

Page 28 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

2.3 Creating Mass Additions – Queue status as ‘POST’

From the Navigator window, select Mass AdditionsPrepare Mass

Additions.
Select the Book Name from the list of values. In the Queue field, select
‘On Hold’ from the list of values.

The assets that can be posted appear on the screen. All the assets
appearing on the screen can be posted in one shot by clicking on Tools
Post All on the Standard Tool bar. If each asset has to be posted
individually press the ‘Open’ button. The form appears as under.

Page 29 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Click on the Queue field. Change the status of the Queue field from ‘On
Hold’ to ‘Post’ by clicking on the List of Values and press ‘Done’.

Page 30 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

The Asset with the Queue status as ‘Post’ is ready for capitalization.

If the status needs to be changed back to ‘On Hold’ press the ‘Open’
button. The value for the Queue field appears as ‘Post’. Change it to ‘On
Hold’ by clicking on the list of values and press ‘Done’ button. The status
changes back to ‘On Hold’.

Page 31 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

2.4 Posting Mass Additions

From the Navigator window, select Mass AdditionsPost Mass

Additions.

Click on the Parameters field. A box appears in which the book name for
which Post Mass Additions request needs to be fired. Select the Book name
from the List of Values and press ‘OK’ button.

After selecting the book name press ‘Submit’ button at the bottom in
order to fire the request.

The requests post the assets for which the Queue status is ‘Post’ into the
Fixed Asset Register. Asset number is also assigned to the posted assets at
this stage.

Make sure that all the requests has ended in ‘Completed’ Phase with
‘Normal’ Status by clicking on View RequestFind on the Standard Tool
bar.

Page 32 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

The successful completion of the above requests denotes that the assets
have been Capitalized or held as CIP in the Fixed Asset Register.

The Queue status of the assets for which the Post Mass Additions was fired
changes to ‘Posted’.

From the Navigator window, select Mass AdditionsPrepare Mass

Additions.

Select the Book Name from the List of Values. In the Queue field select
‘Posted’ from the List of Values.

It can be seen that the ‘Split’, ‘Add to Asset’ and ‘Merge’ buttons are
disabled for the Posted assets. The ‘Open’ button is enabled for the
viewing the details. The fields in which the values were entered at the
Queue status as ‘New’ will be disabled and no alteration is possible.

Page 33 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

2.5 Deleting Mass Additions

The Posted assets and Assets that are split into required numbers if they
were bought under the same invoice numbers appear in the Mass Additions
screen with Queue status as ‘Posted’ and ‘Split’ respectively and they are
no longer required for any future action. These lines occupy space in the
system and therefore they need to be deleted for creating space. Firing the
‘Delete Mass Additions’ request will do this.

From the Navigator window, select Mass Additions and click on Delete Mass
Additions.

Click on the Parameter field. The inner box is displayed where the Book
name should be selected and press ‘OK’ button. Finally press ‘Submit’
button at the bottom.

Page 34 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

After the request completes successfully the Queue status ‘Posted’ and
‘Split’ doesn’t appear on the Mass Additions screen.
2.6 Deleting ‘On Hold’ Mass Additions

Further the Assets with Queue status ‘On Hold’ can also be deleted.

From the Navigator window, select Mass AdditionsPrepare Mass

Additions.

Select the Book Name from the List of Values. In the Queue field, select ‘On
Hold’ from the list of values. Press the ‘Find’ button. The Mass Addition
line appears on the screen. Press ‘Open’ button.

Click on the Queue field. From the list of values select ‘Delete’ and press
the ‘Done’ button at the bottom.

The Queue status changes from ‘On Hold’ to ‘Delete’.

Fire the Delete Mass Additions request as explained in Section 2.5

Page 35 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

3. ASSETS WORKBENCH

From the Navigator window, select AssetsAsset Workbench

From the Assets Workbench the assets can be queried based on available
information such as Asset number, Asset category, Invoice number,
Purchase order number etc.

The user the can review the financial information of the asset, source of the
asset, retire or sell the assets, transfer the assets from this single window
of Asset Workbench.

Enter the available information and press the ‘Find’ button. If none of the
information is available, just enter ‘%’ in Asset Number and press the
‘Find’ button, which will give all the asset numbers from which the user
needs to identify the required asset.

Page 36 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

The user can perform sale or retirement of assets, transfer of assets, view
financial details, source line for the assets and any subcomponents exists
for the assets. To perform the required job the user needs to press the
relevant buttons. Let us see the features of each buttons.

Page 37 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

3.1 Sale or Retirement of Assets

From the Navigator window, select AssetsAsset Workbench

Enter the Asset Number and press ‘Find’ button. Click on the
‘Retirement’ button. The form displays as under.

Click on the List of values on the Book Name field. The value in the fields
Retire Date, Current Units, Current Cost, Retirement convention default
automatically and they cannot be altered except for the Retire Date field.

Explanations about other fields while performing a retirement transaction

are.

1) Reference Number – It refers to the automatic number generated at the

completion of retirement transaction, which can be used for tracking
retirements.

2) Comment – The user can type his/her own text here like ‘Sale of Asset’ or
‘Dismantle of Asset’.

Page 38 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

3) Status – For a new retirement the status defaults to ‘Pending’. After the
‘Run Depreciation’ or ‘Calculate Gain or Losses’ request has completed
successfully, the status changes to ‘Processed’

4) Units retired – The number of units that needs to be sold will have to be
entered in this field. The user will not be able to enter a number greater
than the number exiting in the Current units field.

5) Cost Retired – Based on the value entered in the Units retired field the
cost automatically defaults in the Cost Retired field. A value in the Cost
Retired can also be directly entered without entering a value in the Units
retired field.

6) Retirement Sale – From the List of values select the type ‘Sale’ or
‘Extraordinary’ to describe your retirements

7) Proceeds of Sale – The sale value of the asset sold needs to be entered
in this field.

8) Cost of Removal – The cost, if any incurred towards the sale of assets
like commission to auctioneer shall be entered here.

Once the ‘Done’ button is pressed the retirement transaction gets

completed.

After the retirement transaction has been completed request for ‘Calculate
Gains and Losses’ should be made (Section 3.2 for requesting ‘Calculate
Gains and Losses’ program).

The status of a retirement transaction changes from ‘Pending’ to

‘Processed’ after successful completion of ‘Calculate Gains and Losses’
request.

Page 39 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

The reference number is automatically created.

All the fields are disabled and no alteration is possible.

You can undo a retirement in ‘Pending’ Status by clicking ‘Undo

Retirement’.

Page 40 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

3.2 Requesting ‘Calculate Gains and Losses’ program

From the Navigator window, select DepreciationCalculate Gains and

Losses

Enter Book Name and press ‘OK’. Submit the report.

Make sure that the requests has ended in ‘Completed’ Phase with ‘Normal’
Status by clicking on View RequestFind on the Standard Tool bar.

Page 41 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

View the Retirement Details the Status now changes to ‘Processed’. The
system also updates the Gain/Loss Amount field.

Gain/Loss Amount = Proceeds of Sale – Cost of Removal – Net Value of

Assets

Page 42 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

3.3 Viewing financial information of Assets

From the Navigator window, select AssetsAsset Workbench

Enter the asset number and press ‘Find’ button. Click on the ‘Books’
button. The form displays as under.

The above screen shows the financial information of assets such as Original
cost, current year depreciation, Accumulated depreciation, Net Book Value,
Depreciation method etc. If the current cost and the original cost were not
the same then it implies that part of the asset has been sold.

Page 43 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

3.4 Viewing Source Lines of Assets

From the Navigator window, select AssetsAsset Workbench

Enter the asset number and press ‘Find’ button. Click on the ‘Source
Lines’ button. The form displays as under.

This form gives details of the source of assets like, Invoice Number, Invoice
Cost Break-up, Supplier, Purchase Order Number etc.

Page 44 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

3.5 Transfer or Assignments of Assets

From the Navigator window, select AssetsAsset Workbench

Use this form the change the Employee Assignments of an asset. You can
also change the Depreciation Account and Location of the Asset using this
form.

Enter the asset number and press ‘Find’ button. Click on the
‘Assignments’ button.

The user can enter his/her own text in the ‘Comments’ field. In the ‘Unit
change’ field enter the value -1, which implies that one unit is getting
transferred. Move to the next line and enter the value 1 in the ‘Unit
Change’ field.

The Depreciation Expense Accounting flex field and the Location flex field of
the Location to which the asset was transferred should be entered. Finally
press the ‘Done’ button.

Unless the value in the ‘Units to Assign’ field is zero the user will not be
able to complete the transfer.

Page 45 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

3.6 Viewing Details of Assets

From the Navigator window, select AssetsAsset Workbench

Enter the asset number and press ‘Find’ button. Click on the ‘Open’
button.

The non-financial details of the assets appear on the screen.

Page 46 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

4. CIP (Construction in Progress) Assets

4.1 Capitalizing CIP Assets

From the Navigator window, select AssetsCapitalize CIP Assets

Select the Book name from the List of values.

If the asset number of the asset to be capitalized is available, enter the

same in the ‘Asset Number’ field.

Press ‘Find’.

Page 47 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

The assets, which are to be capitalized appears on the screen.

Select the asset, which need to be capitalized by checking the box near
Asset number and press ‘Capitalize’ button at the bottom.

In case all the assets needs to be capitalized then click Tools Check All
on the Standard Tool bar.

The Date Placed in Service defaults from the latest open period and the
same is taken as the date of capitalization of CIP Asset.

Page 48 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

4.2 Reversing Capitalization of CIP Assets

From the Navigator window, select AssetsCapitalize CIP Assets

The form appears as under

Select the Book name from the List of values. Change the value in the Asset
type field from ‘CIP’ to ‘Capitalized’ by clicking on the down arrow

If the asset number of the asset for which capitalization to be reversed is

available, enter the same in the ‘Asset Number’ field and press ‘Find’
button.

If none of the information is available then just press ‘Find’ button.

Page 49 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Page 50 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

5. DEPRECIATION

5.1 Steps for Calculation of Depreciation

From the Navigator window, select DepreciationRun Depreciation

If there are multiple FA Books available, click for the list of values in the
Book field. Select the Book for which the Depreciation needs to be
calculated and press ‘OK’ button.

Once the Book name is selected the latest open period automatically
defaults in the Period field.

Page 51 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

There is a box for closing the period, which will close the latest open period
in the respective book. If the period needs to be closed, check the box and
press ‘Run’ button. Once the period is closed it cannot be reopened.

Even without closing the period, Depreciation can be calculated. In that

case uncheck the box and press ‘Run’ button.

Once depreciation has been processed for an asset in the current open
period, the user cannot perform any transaction on that asset unless
depreciation is rolled back (see Section 5.2 for rollback depreciation) or the
current open period is closed.

Make sure that all the requests have ended in ‘Completed’ Phase with
‘Normal’ Status by clicking on View Request on the Standard Tool bar
and click ‘Find’.

Page 52 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

5.2 Rollback Depreciation

If the depreciation has been calculated for a particular period, the rollback
depreciation feature enables to restore assets to their state prior to running
depreciation.

The user may have adjustments or transactions that need to process for a
period, but already depreciation would have been calculated. If the Closed
Period box was not checked at the time when depreciation program ran
then the user could roll back depreciation to include the outstanding
transactions.

Roll back depreciation is possible only for the current open period.

From the Navigator window, select DepreciationRollback

Depreciation

In the Parameter field specify the Book name for which the roll back
depreciation is required. The current open period in the book defaults
automatically in the Period field. Finally press the ‘Submit’ button at the

Page 53 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

bottom. Ensure that the request has ended in ‘Completed’ Phase in

‘Normal’ Status.

6. JOURNAL ENTRIES

6.1 Creating Journal Entries

The General Ledger period for which the journal entries to be created must
be open.

From the Navigator window, select Journal EntriesStandard

In the Parameter field specify the Book name for which the journal entries
are required. The current open period in the book defaults automatically in
the Period field. Finally press the ‘Submit’ button at the bottom.

Note: You cannot run Standard Create Journal Entries before depreciation
is run for the current open depreciation period. Every time journal entries

Page 54 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

is run, depreciation must have run immediately beforehand for the current
open depreciation period.

Make sure that the request has ended in ‘Completed’ Phase with ‘Normal’
Status by clicking on View Request on the Standard Tool bar and click
‘Find’.

The Create Journal Entries program creates journal entries for the
appropriate General Ledger Set of Books. In General Ledger these entries
can be reviewed and posted.

Given below are the Journal Entries created for basic transactions that take
place in Fixed Assets Module.

Page 55 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Transaction Type Journal Entry Prerequisite

Receipt of non CIP Receipts Created.
Assets Dr. Asset Clearing Purchasing and
Cr. AP Accrual Invoices have been
approved in
Payables.
Capitalization of Dr. Asset Cost Mass Additions are
Non-CIP Assets Cr. Asset Clearing Posted in Fixed
(Mass Addition) Assets

Receipts Created.
Receipt of CIP Dr. CIP Clearing Purchasing and
assets Cr. AP Accrual Invoices have been
approved in
Payables.
Mass Addition of Dr. CIP Cost Mass Additions are
CIP Assets Cr. CIP Clearing Posted in Fixed
Assets
Capitalization of Dr. Asset Cost CIP Assets have
CIP Assets Cr. CIP Cost been Capitalized.

Depreciation Dr. Depreciation Expense Run Depreciation

Cr. Accumulated Completed in Assets
Depreciation

Sale or Retirement Dr. Accounts Receivable Invoice Booked in

of Assets Cr. Proceeds of Sale Receivables
Clearing
Cost Incurred for Dr. Cost of Removal Clearing Invoice has been
Removal of Goods Cr. AP Liability approved in
Payables.
Gain or Loss on Dr. Accumulated Depreciation Calculate Gains and
Sale of Asset Dr. Proceeds of Sale Clearing Losses Completed
Dr. Cost of Removal Loss in Assets.
Cr. Asset Cost
Cr. Proceeds of Sale Gain
Cr. Cost of Removal
Clearing

Transfer of Asset Dr. Accumulated Depreciation Transfer of Asset

(Receiving Org)
Cr. Depreciation (Sending
Org)
Page 56 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

6.2 Roll back Journal Entries

The General Ledger period for which the journal entries need to be roll back
must be open.

From the Navigator window, select Journal EntriesRoll back Journal

Entries

In the Parameter field specify the Book name for which the journal entries
needs to be roll back. The current open period in the book defaults
automatically in the Period field. Finally press the ‘Submit’ button at the
bottom.

Make sure that the request has ended in ‘Completed’ Phase with ‘Normal’
Status by clicking on View Request on the Standard Tool bar and click
‘Find’.

Page 57 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

7. DEPRECIATION CALCULATION FOR INCOME TAX

The base Oracle Fixed Assets Module doesn’t contain the calculation of
Depreciation under Indian Income Tax Act. The India Localization program
enables us to arrive at the Income tax depreciation.

Let us discuss the features available in India Localization for fixed asset
module and the set up that need to be done for using the localization
features effectively. Discussions in this chapter are focused on:

 Scope

 India Local Fixed Asset Setup.

 Specific tasks you can accomplish using India Local Fixed Asset

 India Local Fixed Assets functions and features.

 India Local Fixed Assets windows

 India Local Fixed Assets Reports and Process.

7.1 Scope

Through Localization, user should be able to create Block of assets as

required under the Income tax Act, record the block value of each Block of
assets, define the depreciation percentage for each asset blocks, define the
depreciation that need to be claimed for different periods, allocate each
asset addition to a specific block of assets, identify the block of assets for
each assets which are being retired during the year, work out the
depreciation statement as per the requirements of Income tax Act, perform
adjustments in the opening written down value of any block and
adjustments in the depreciation worked out in any year.

 It may be noted that localization provides only the reports showing

the workings of depreciation based on block of assets. No accounting
entries will be passed on the figures derived through localization
automatically.

Page 58 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

7.2 Fixed Asset set up for India Localization

7.2.1 Block of Assets

Under income tax Act, for working out the income tax liability, depreciation
need to be worked out based on written down value method for the block of
assets and no depreciation can be claimed on individual assets.

All assets need to be assigned to the respective block of assets and written
down value need to be worked out based on the equation prescribed under
the Income Tax Act. Few examples for Block of assets widely used in the
industry are:

 Buildings
 Plant & Machinery
 Motor Vehicles
 Furniture & Fixtures

Depreciation on asset added to a block need to be worked based on the

period of commissioning of the individual asset. As per the current
provisions, depreciation for an asset block can be claimed to 100% of the
allowable depreciation, if the asset is procured between the 1st day of April
and 30th day of September. Only 50% of the allowable depreciation can be
claimed on a block if the asset is procured between 1 st day of October and
31st day of March.

As a part of Localization set up the User has to define the Block of assets.
This needs to be done by defining the block of asset names in the quick
codes. User has the option to define any logical name that need to be
considered as a block of asset. The user is expected to define the block of
asset names prescribed by the Income tax department.

Page 59 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

From the Navigator window select Setup  Asset System  Quick

Codes

User need to query for ‘BLOCK OF ASSETS’

Before rolling on with Oracle Assets with India Localization, user needs to
define the written down value of each block and the rate of depreciation
that can be claimed against each block. User also needs to specify the
start date of the block for which the opening balance is recorded.

The fields in the Form are explained below :

 Book (Required) Name of the Corporate Book wherein the Opening

Balance for the Block of assets are going to be incorporated.

Reporting of depreciation for income tax purpose is done based on

the asset books and for each asset book multiple block of assets
with different depreciation rates can be maintained. User may take
enough care while setting up their asset books by keeping a view on
the localization requirement.

Page 60 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

 Block Name (Required) Block Name can be entered from List of

Values for which the Opening Balance will be entered.

 Depreciation rate (Required) The Corresponding depreciation rate

for a block can be entered here.

 Start Date (Required) This date can be a Start Date of a First Half
or Second half of a financial year.

 Opening Balance (Required) Opening Written down value of a

Block of assets can be entered here.

 Opening WDV Adjustment (Optional) If the User wants to adjust

Opening Written down value of a Block after an Income tax
assessment is finished for a Particular year. The adjustment amount
can be entered here and Opening WDV value will be adjusted
accordingly.

 Depreciation Adjustment (Optional) If the User wants to adjust

Depreciation amount after running the depreciation program, the
same amount can be entered here.

The User must keep in mind the following points while entering the Opening
balances for a Block.

 Carry forward their WDV Opening Balance only for Current financial
year. Once the Opening Balance for a Block has been entered for the
current financial year, the user cannot enter Opening Balances for the
Same Block in the Previous or subsequent years.

 If Oracle Fixed Assets module has been used in the past years, then
the user needs to update Block details for every Assets entered into the
System. After querying the Individual Assets, the User can update the Block
details in the Descriptive Flex-field and also once this is completed the total
number of Assets in a corporate Book for a Block will be captured by the
System.

Page 61 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

7.2.2 Define Depreciation Periods

The User can define the Assessment years for Income Tax purposes. The
assessment year for Income tax purposes starts on the fist day of April and
ends on the 31st day of March of the next calendar year.

The User needs to define Depreciation period rate as per Indian Income tax
Act. Depreciation Rate is based on assets installation date or date on which
it is put into use within a fiscal year.

Date Placed in Service falls Depreciation allowed

between
April 1 to Sept 30 100 % of prescribed
rate
Sept 1 to Mar 31 50 % of prescribed
rate

 It may be noted that the information discussed under topic 7.2.1 and
7.2.2 are mandatory setups that needs to done for working out the
depreciation under Income tax Act. These setups do not have any impact
on the set ups that needs to be done in the base applications as a part of
Fixed asset setup. User needs to complete the base application setup first
and then carry out the localization setups.

The above information can be recorded in define period wise deprecation

screen.

From the Navigator window select Block of Assets Define

Periodwise Dep. Details.

Page 62 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

The start and end date of the assessment year under Income Tax Act needs
to be entered in Year Start/ Year End Dates field.

The User can specify the appropriate Depreciation rate as applicable to a

Block of Assets as per Income Tax Act based on assets installation date or
date on which it is put into use within an assessment year.

Applicable Depreciation Rate% - As per income tax act, 100% of the

allowable depreciation can be claimed for additions between 1 st April to 30th
September and only 50% of the allowable depreciation can be claimed for
assets added between 1 st of October and 31st of March. These dates need to
be recorded in these fields.

100 % Exempt Amount (Optional) This field is presently irrelevant and 0 can
be entered by the user.

Page 63 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

7.3 Transactions

7.3.1 Asset Additions

While recording the additions of assets in Mass Additions, the user need to
allocate the individual asset to the Block of assets defined. The block detail
of the assets needs to be assigned by recording the details in the
descriptive flex field. On recording the complete asset related information
including asset book and cost of the asset, user need to click on the flex-
field and select the context value as “India B Assets”.

Details that need to be recorded in the flex field are:

 Block of Assets (Required) The User needs to enter the relevant

Block of Assets in which the asset will be classified as per Indian
Income Tax Act.

 Date of Acquisition (Optional) User needs to record the date on

which the asset was acquired.

Page 64 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

7.3.2 Income tax depreciation calculations

The calculation of written down value of the Block of asset is worked out
based on the prescribed calculations that need to be carried out under
Income Tax Act. These are:

Opening Written down value of the block xxxx.xx

(as at the beginning of the assessment year)

Add : Additions during the Assessment year xxxx.xx

I half and II Half

Less : Retirements of asset from each (xxxx.xx)

individual asset

Less : Depreciation on the opening (xxxx.xx)

written down value of the block

Less : Depreciation on the additions (xxxx.xx)

during
the second half of the assessment year

= Closing Written Down Value of the xxxx.xx

Block of Asset

Page 65 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

7.3.3 Run Depreciation - Income Tax Act Fixed Asset Schedules

For calculating the depreciation under Income Tax Act, user needs to run
a concurrent programme - Income Tax Act fixed asset schedule. On
completion of the programme, user can view/print the output and closing
written down value will get updated.

From the Navigator window select Others  Request  Run

 Start Date Users need to enter start date from the LOV of a
Financial year to run the depreciation calculation. Since the financial
year for the Income Tax purpose is 1st April to 31st March this start
date use to be 1st of April of a year.
 Book Name Users need to enter Book Name where in the
Depreciation Calculation is need to be done.

Page 66 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

After completion of Run Depreciation, users can view the Fixed Assets
Schedule as per Income Tax Act (Block wise) through Reports. If the user
needs to add an unplanned depreciation, it can be done in the
Depreciation adjustment column of Opening WDV Balance form.
Unplanned Depreciation amount will be shown separately in the report
output.

A Sample Report output is given below

Page 67 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

After completion of above report, the user can view the Fixed Assets
Schedule as per Income Tax Act (Block wise) by pressing ‘View Output’
button. If the user, add any unplanned depreciation in the Depreciation
adjustment column of Opening WDV Balance form, then unplanned
Depreciation amount will be shown separately in the report output.

Page 68 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

7.3.4 India Depreciation Detail Report

The Details of Depreciation calculated through “India - Income Tax Act

Fixed Asset Schedules” program can be viewed at anytime by submitting
the “India-Depreciation detail report “ concurrent Program.

From the Navigator window select Others  Request  Run

Parameters for this request are –

 Start Date (Required) Start date of a financial year to run the

depreciation calculation i.e., 1st of April of a year.
 End Date (Required) Start date of a financial year to run the
depreciation calculation i.e., 31st of March of a year.
 Book Name (Required) The User need to enter Book Name where in
the Depreciation Calculation is need to be done.
 Level of Detail (Required) The User needs to enter the level of
detail, Summary or Detail, in this field. The Detail report additional
gives the Asset No. and Description details.

Page 69 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

The output for this request is same as “India- Income Tax Act Fixed Asset
Schedules” Request.

Finally press the ‘Submit’ button at the bottom.

Make sure that the request has ended in ‘Completed’ Phase with ‘Normal’
Status.

Page 70 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

8. PHYSICAL INVENTORY

The Physical Inventory feature enables us to compare and reconcile the

assets recorded in the fixed assets module with that off physically
available.

Following are prerequisites for effective utilization of Physical Inventory

feature.

a) The ‘In Physical Inventory’ box should be checked for the required
assets.

b) The Physical Inventory has been completed for the required assets and
information about the asset number or tag number is recorded at the time
of Physical Inventory.

8.1 Entering or loading Physical Inventory Entries

From the Navigator window select Physical Inventory  Enter.

Page 71 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Enter the Name of the physical inventory in the Inventory field.

Enter the Start Date. Entering the End Date indicates that the physical
inventory is complete, so the user should not enter the End Date until the
physical inventory is completed.

Press the ‘Open’ button. The form displays as under

Page 72 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

The Physical Inventory data can be loaded into the above screen through
several methods:

- Enter data in the Physical Inventory Entries window manually

- Import data from a non-oracle system using SQL*Loader

Page 73 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

8.2 Comparing Assets in Physical Inventory and Fixed Asset

Module.

Having loaded the physical inventory entries into the system, the Physical
Inventory Comparison program should be fired.

From the Navigator window select Physical  Comparison  Run

Comparison

Select the Name of the Physical inventory from the list of values for which
the comparison is to be fired.

The user can also select either Category or Location to narrow the search
criteria. If none of these parameters is entered, the comparison program
compares all assets in the physical inventory with the assets in the fixed
assets module.

Press the ‘Run’ button.

Page 74 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Make sure that the request has ended in ‘Completed’ Phase with ‘Normal’
Status by clicking on View Request on the Standard Tool bar and click
‘Find’.

8.3 Comparison results

The results of the Physical Inventory Comparison can be viewed through

Physical Inventory Comparison Window.

From the Navigator window select Physical  Comparison  View

Select the name of the Physical Inventory from the list of values in
Inventory field.

If the user wants to narrow the search criteria, then enter additional
parameters such as asset number or category.

Press ‘Find’ button.

Page 75 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

The above screen shows the comparison of assets in fixed assets module
and physical inventory entries.

The Adjustments part contains status codes for Location, Units and
Reconciliation.

Status codes for Location column

None – If there is no difference in the location flex filed between the assets
in the fixed assets module and those entered at the time of physical
inventory for an asset, then the status code of ‘None’ defaults.

Transfer - If there is a difference in the location flex filed between the

assets in the fixed assets module and those entered at the time of physical
inventory for an asset, then the status code of ‘Transfer’ defaults.

Status codes for Units column

Down – Unit Adjustment – If, for a particular asset, more units are listed in
fixed asset than found in physical inventory, then the status code of ‘Down
– Unit Adjustment’ defaults.

Page 76 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Full Retirement – When an asset is listed in fixed assets but not found in
physical inventory, then the status code of ‘Full Retirement’ defaults.

Partial Retirement – When for a particular asset, the units listed in physical
inventory is less than the one in fixed assets module then the status code
of ‘Partial Retirement’ defaults.

None – When there is no difference in unit exits between fixed assets

module and physical inventory, then the status code of ‘None’ defaults.

Status codes for Status column

Difference – When there is a difference in either location flex filed or units

for a particular asset, then the status code of ‘Difference’ defaults.

To Reconcile – When a difference is identified in the comparison, then the

user can change the status from ‘Difference’ to ‘To Reconcile’ to indicate
that the entry is ready for reconciliation.

Reconciled – When the assets in the fixed assets and physical inventory
matches each other, then the status code of ‘Reconciled’ defaults.

Page 77 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

9. RECLASSIFY ASSETS

If at the time of entering details regarding capitalization, the asset category

was wrongly selected and the same has been posted to fixed asset register,
it can be rectified by reclassifying the asset.

In case Run Depreciation program has been executed without closing the
period, then Roll Back Depreciation program needs to be executed for
reclassifying the category.

When you reclassify an asset in a period after the period you entered it,
Oracle Assets creates journal entries to transfer the cost and accumulated
depreciation to the asset cost and accumulated depreciation accounts of
the new asset category.

This occurs when you create journal entries for your general ledger. Oracle
Assets also changes the depreciation expense account to the default
depreciation expense account for the new category, but does not adjust for
prior period expenses.

Note : Reclassification does not re-default the depreciation rules to the

default rules from the new category. Manually change the depreciation
rules in the Books or Mass Change windows if necessary.

From the Navigator window, select AssetsAsset Workbench

Page 78 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Click on the Category field. The Major Category and Minor Category can be
changed to the required category by selecting from the list of values.

Changing Depreciation Rules

You can manually Change the Depreciation rules through the Asset work-
bench.

From the Navigator window, select AssetsAsset Workbench

Page 79 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Manually Change the Depreciation Method Basic Rate and Adjusted Rates.
(In the above example 16.21% to 4.75%)

Press ‘Done’ and re-query the Asset.

Oracle Assets automatically recalculates the accumulated depreciation till

previous period. The Journal Entries for Depreciation adjustment is created
on running the create Journal Entries Program.

The revised Accumulated Depreciation Values are shown below.

Page 80 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Page 81 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

10. PROJECTING DEPRECIATION EXPENSE

Depreciation projections are estimates of actual depreciation expense for a

future period. You can project depreciation expense for any depreciation
book. This will be useful during budget exercises when we need to know the
depreciation expenses for a future period.

From the Navigator window select Depreciation  Projections

 Enter the Projection Calendar to specify how you want to

summarize the projection. For example, you can choose a
monthly calendar.

 Enter the Number of Periods for which you want to project

depreciation.

 Enter the Starting Period for your projection

 Check Cost Center Detail to print a separate depreciation

projection amount for each cost center. Otherwise, Oracle Assets
prints a consolidated projection report for each expense account
without cost center detail.

Page 82 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

 Check Asset Detail to print a separate depreciation amount for

each asset. Otherwise, Oracle Assets prints a consolidated
projection report without asset detail.
 Enter the Book(s) that you want to include in your projection. You
can enter a maximum of four books, and all of them must use the
same Account structure and Calender.

 Press ‘Run’ to Submit the Report.

Two concurrent Requests “FA Projections (Depreciation Projection)” and “FA

Projections Report (Depreciation Projection Report)” are fired. Use Menu >
View > Requests to ensure that the requests have completed normally.
Open the Output of the “FA Projections Report” to view the Depreciation
forecasts. A sample of the report output is shown as given below:

Page 83 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Note : You can run depreciation projection only for the current depreciation
parameters set up in your system. If you need to project depreciation for
scenarios other than your current setup, you can run what–if depreciation
using parameters that are not yet set up in your system. See: Depreciation
What-If Analysis: Section : 11.

Page 84 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

11. DEPRECIATION WHAT-IF ANALYSIS

Use the What–if Depreciation Report to display and analyze the results of
what–if depreciation analysis. This report contains depreciation data based
on depreciation parameters you entered for analysis purposes.

You can use this report for forecasting depreciation for the existing asset
data in Oracle assets and also to forecast depreciation for hypothetical
assets that are not defined in Oracle Assets

11.1 What-if Analysis for Existing Asset Data

The report also lists depreciation projections for your current depreciation
parameters so that you can use the report to compare your current
depreciation projections with the what–if depreciation projections.

You must enter a book, start period, and number of periods when you
submit this report.

From the Navigator window select Depreciation  What-If Analysis

The Parameters given in the form are explained below:

Page 85 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Book Enter the book containing the assets for which you want to run what–
if analysis.

Currency The value in the Currency field defaults to the book’s currency.

Start Period Enter the starting period for which you want to run What–if
Analysis.

Number of Periods Enter the number of periods for which you want to run
What–if Analysis.

Assets to Analyze

In the Assets to Analyze tabbed region, enter the parameters you want to
use to identify the set of assets (Asset Number, Dates in Service,
Description or Category) for which you want to run what–if depreciation
analysis

Depreciation Scenario

Method Enter the depreciation method, for example, flat–rate. This field is
not required, however, if you do enter a depreciation method in this field, it
affects other fields you can enter, depending on the value you entered in
the Method field. If you enter a life–based method, the Life field appears
where you can enter the life of the asset. If you enter a rate–based method,
the Rate field appears where you can enter the rate.

Life Enter the life of the asset in years and months. If you entered a value
in the Method field, it must be a life–based method for the Life field to be
valid.

Rate Enter the depreciation rate. If you entered a value in the Method field,
it must be a rate–based method for the Rate field to be valid.

Prorate Convention Enter the prorate convention you want applied to the
assets in the what–if analysis.

Salvage Value % Enter the percentage of the cost of your assets that
should be
equivalent to the salvage value, based on the following formula:

Salvage Value=Cost x Default Percentage

Page 86 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Amortize Adjustments Check the Amortize Adjustments check box if you

want your
adjustments to be amortized in your analysis. If you do not check the check
box, adjustments will be expensed on the analysis.

Example:

In the Depreciation Projection Report given above, the depreciation

forecast for Asset Number 1 for a period of 12 months from April 2007 to
April 2008 is Rs.474.97 Following are the existing data for Asset Number 1

Original Cost Rs. Depreciation Method SLM

10,000.00
Salvage Value Rs. 0.00 Basic Rate 4.75%
Date in Service 31-JAN- Adjusted Rate 4.75%
2007

We will now forecast depreciation for Asset Number 1 for the same period
with a Basic Rate of 16.21% and a Salvage Value of 20% and all other
values remaining the same.

Page 87 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

On Pressing Run, the following report is generated.

We can see from the report projects as per existing data and also New
Depreciation projects based on data given above.

Page 88 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

11.2 What-if Analysis for Hypothetical Assets

You can use what–if depreciation analysis to forecast depreciation for

hypothetical assets that are not defined in Oracle Assets by entering the
parameters in the hypothetical assets region.

The Parameters in the Hypothetical Assets Region are explained below:

 Category Required - Enter the category of the hypothetical asset.

 Date in Service Required - Enter a hypothetical date placed in

service.

 Cost Required - Enter a hypothetical asset cost.

 Accumulated Depreciation Optional - Enter hypothetical

accumulated depreciation.

Page 89 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

The Depreciation Scenario parameters are same as described in the

earlier section.

Press Run. This submit a new report “Hypothetical What If report”. View
open the output of this report to view the projected Depreciation Values
for the Hypothetical Asset(s). A Sample output is given below :

Page 90 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Page 91 of 92
Karnataka Strips Limited
Fixed Assets – User Manual

Page 92 of 92