Expensed Asset in Oracle Assets.

Hi,
We wanted to get more clarification around Expensed assets. If we have some assets,which are of non depreciable nature,say for example Land, then such assets should be treated as expensed assets by attaching them to the expense asset category? or for each of these assets the depreciation check box should be unchecked at the asset level? What should be the ideal approach in such a case?
Kindly provide inputs regarding the same.
Thanks

Hi,
expensed assets are to be used only for assets which are of insignificant value as decided by management. If a normal asset is treated as expensed asset, it would not be charged to an asset account it would be charged to an expense account directly, and there would be no depreciation computed in the asset module, no jounal entry would be created in asset module, the expensed asset would appear in Asset module for tracking purposes alone ...
For example, say your company has been providing Blackberry device to all its employees, ideally this can be treated as an asset, however when compared to the total value of your assets, you may feel it is less significant to be treated as assets, this could very well be treated as an expenditure... hence this would be taken care in the oracle payables stage itself ... however for the sake of tracking alone you want this to appear in asset module...
for which case you would have a dedicated asset category defined without depreciation checkbox enabled and using mass addition process create expensed assets .... Expensed assets has zero financials impact ...
It is not right to treat LAND or other non depreciaable assets as expensed assets reason being, oracle assets would not generate any accounting entries for expensed assets, which means cost related entries for LAND would not be created by system .... Hence you can either create a zero rate depreciation method and map it against the LAND asset category which is a simple step, hence all assets under LAND category would inherit that depreciation method
.... else you can uncheck depreciation checkbox at asset level i.e. for each and every asset under the LAND category.
Regards,
Ivruksha

Similar Messages

Adding "Expensed" assets to FA - 11i

Hello,
Can someone tell me whats the setup needed in FA module so that I can add and track expensed assets?
I know how to import it from AP (track as asset etc). I know we need a separate category for expensed assets (non capitalize category). But I'm having some issues when it comes to defining asset cost, clearing depreciation account etc.
The only concrete information I could get from various sources, metalink notes and user guide is that the clearing account has to be a liability account. So does Asset Clearing account will be the same as the "AP liability account"?
What will be the asset cost and depreciation account? will they be expense type? or asset accounts?
Lastly, It is clearly said that expensed assets do not depreciate and do not create any journal entries. But when i run my depreciation, the depreciation run terminates because of some cross validation rules, and the culprit is the depreciation expense account and in the asset account in the expensed asset. Why should it check for cross validation if the expensed asset doesnt depreciate?
Any info on detailed steps for configuring asset categories for expensed assets is highly appreciated.
Thanks,
Srini.

Hi
I had reviewed the following note in Metalink which talks about the loading of assets source from source systems.
In the same note they are mentioning that the obvious period in which data load is preferred is "The typical choice is last period in the fiscal year
preceding the current fiscal year, since this will provide accumulated depreciation numbers that can be reconciled with financial statements, and will also ensure that the year-to-date numbers on reports are
correct for the current fiscal year"
This means that this is the ideal period which u can use for loading the assets rather than the other side,
Also it depends on you whether you want to calculate those fields and provide the same or let system do the same once your assets are already migrated to Oracle and depreciation run is done.
It is fully dependent on how client wants the data to be migrated.
Oracle Assets only wants specific fields to be populated and for optional fields it is on the client, implementer to decide how they wants the data to be migrated/reconciled.
Please also review the following note from Metalink which might help you - Loading asset data with source data from an external source [ID 200077.1]
Hope this helps
Thanks and Regards
Manish Jain

Use AM module to post pre-paid expense asset amortization (Straight Line)

I'm new to this area and please explain in detail what I'm supposed to do for this requirement.
The requirement: Use AM module to post pre-paid expense asset amortization (Straight Line amortization)
The implementation of this capability will allow Property Accounting to enter prepaid expenses into the FA subledger and have SAP automatically post monthly straight line amortizations as part of the month-end process. The idea is to configure a new asset class for "prepaid Leasing Commission" assets that will have the following GL accounts.
GL Account: 159001000
Cost Center: 159001000
Profit Center: SN09120001
Non-Reconcilition Account: 159002000
Expense Account: 890304000
What I have done so far:
I have created an asset and have created a Cost center and assigned the profit center to that. I have also created a non-recon account. The question is where do I use the Non-recon account and the expense account and have the SAP post it automatically? Will be helpful if you can provide the steps I should be following and the tcodes for this. Thanks for the help.

Hi,
I would recommend that you go through the IMG of Fixed Asset Accounting and complete the FI-AA configuration.
You store the accounts to be used in postings in the node "Integration with General Ledger".
Requirements to use cost center as accounting object are documented in the SAP Help Portal as well as in note 684659.
Regards,
Markus

Concur (Third Party Tool to enter expenses) integration with Oracle Payables

Hi Gurus,
My client is replacing Oracle iExpenses with Concur (Third Party Tool to enter expenses). I need to work on the inbound and outbound interfaces from Concur to Oracle Payables and vice versa. Here my concern is: how to deal with the Credit card transactions?
If you have any idea on this, please give me some suggestions.
Thank you.
Thanks
BMK

Hi,
1. How we need to interface the credit card transactions to Payables?
2. Will Concur send credit card details to Payables?
Can you please provide me the process (how you people are integrating concur with payables)?
Thank you very much.
Thanks
BMK

Getting error while creating expense sheet in Oracle internet expenses

Hi,
while creating new expense sheet i am getting following error
Approver: The specified approver is not defined as a user of the application. Please enter another approver, or select one from the list of values.
can you please enlighten on it.
Thanks,
Astha

Although the reply is late, but for further research.
The reason behind this message is that there is no username created for the employee assigned as approver while creating expense report.
Try creating a user in System Administrator > Security > Users > Define, for the emplyee assigned as approver.
Regards,
Wissam Hasrouny

Definition of Asset Reorganization,eg Manage History flag in class define?

Hello.
The F1 help behind the "Manage Historically" flag in Asset Class definition states one of the effects is:"The asset and the values/transactions belonging to it cannot be reorganized until the asset is deactivated."
What does "reorganized" refer to in this context?
I've searched this forum, and there are references using the term but not including any reference to the definition. Googling variations on SAP/Asset/reorg has returned some great results, e.g. a 500+ page amazingly complete detail manual from SAP on fixed assets that I'm very happy to have found, but even that does not define the term in tht context of Fixed assets. Searching for the term in the document points to a page that simply states"For more information on archiving and reorganization of asset data, see Archiving in the R/3 System [Ext.]." So I've got it narrowed down to having something to do with archiving.
So here's my specific question; At the highest possilble level,e.g. one or two sentences, can someone tell me what the term "Reorganization" refers to in this context?
Any info would be appreciated.
Thanks.

Hello David,
Whenever you're confronted with an issue of this sort, the first thing you have do to is to break the down the issue or definition. Your main bone of contention is the word "Reorganization".
In this instance, if I were you, I will take the this issue out of the realm of technicality or SAP and try to understand what the word "reorganize" means.
"Reorganize" means to effect changes or organize something new. Although "historically or history" means a written record or systematic record of events or accounts, SAP is saying, if you check "manage historically" in the asset master record, in order for you to reorganize the asset record, you would have to deactivate the check.
Let's take a typical example: Your company implemented IRFS standard IAS16 and therefore you need to make some changes to your property, plant and equipment which may also require changes to your depreciation expense, asset values as a result of new useful life etc. You can't do any of this if you check manage history. It does not however means you cannot post depreciation values. What you cannot do though is make changes.
If you ask in the asset accounting category forum the number of companies which have activated this check, I'm pretty sure you might not even get one. We have fixed asset module activated at my company and we've never had this check activated. And I did the whole config. from A to Z.
Finally, it is good to play around the issue in your sandbox client and that will give you a better idea of the function.
Regards,
Elias

Interface expense reports from Payables

Hi,
We are using projects based expneses in our iExpense module. This flows into Accounts payable and then we have a nightly process that pulls the expnese report that satisfies certain criteria. Does the expense reports needs to be accounted, paid and posted or what are the exact conditions that the process marks the expense reports that needs to be pulled into projects.
Thanks,
- Vasu Krishnaswamy -

Hi,
The expense report must be validated and accounted. Then only it is possible to send the expense report to Oracle Projects as expenditure item. It is not mandatory to transfer the accounting entry to GL or make payment of the expense report.

Internet expense report migrate with Project budgetary control

Dear All ,
      Does anyone use Oracle internet expense and enable Oracle Project budgetary control ?
      Casue Oracle Project standard function budgetary controls are not enforced for project-related expense reports
entered in Payables , the expense report amout is not calculated as deduction of project available fund.
      for example : create one expense report $100 , complete manger approval and export to Payables . Project budget $150.
      For out client , the project available fund should $50 . however , when I create one Procecument $80 and process fund checking . It will be passed . because system considers the available fund is $150 ( not deduct expense report entry ) . Does anyone have workaround or customization solution ?
regards,
Karol

Hi Jennifer,
Are you using AME for Internet Expense Approval or Supervisory hierarchy.
If using supervisory hierarchy than Signing limits of approving user must be define.
Also apply the Recommended Patches - Patch 16234880:R12.OIE.B
NEW! R12.1: Oracle Internet Expense Recommended Patch Collection (OIE RPC), March 2013 (Doc ID 1534509.1) -

Oracle DB Enterprise for non-commercial use

Hi.
I've unusual question about using an Enterprise edition od Oracle Database (11g). I need to show some extended options of this daabase in my thesis, but I don't know how long can I use it after the installation. If I remember correctly, when I using 10g version there wasn't any time limits to use database, but I also know that Enterprise Edition is extremely expensive edition of Oracle DB.
Anybody knows how it works?
Regards
Krzysztof

As long as your respect the OTN license http://www.oracle.com/technetwork/licenses/standard-license-152015.html there is no time limit.

DB links Oracle to Sql server

Hi All,
I am planning to create DB link from oracle to sql server 2005.
Please provide the doc for creating db link from oracle to sql server 2005 and also let me know is their any freeware to do the same.
Regards

It would be helpful if you could mention which platform your Oracle database is running on and which word size the OS is (32/64bit).
The free solution would be to use the Database Gateway for ODBC (=Dg4ODBC) and install it on a MS Windows platform or on Linux 64bit as for these 2 platforms Microsoft offers a free ODBC driver. On all other platforms you have to purchase an suitable ODBC drivers from a 3rd party vendor like DataDirect. I know, some people here on the Forum are using FreeTDS but this driver is not a good choice when using it in production.
Starting with the documents where you can build up a database link without additional costs:
Please have a look at the documents available on My Oracle Support portal:
How to Configure DG4ODBC (Oracle Database Gateway for ODBC) on 64bit Windows Operating Systems to Connect to Non-Oracle Databases Post Install [ID 1266572.1]
How to Configure DG4ODBC (Oracle Database Gateway for ODBC) on Windows 32bit to Connect to Non-Oracle Databases Post Install [ID 466225.1]
and
How to Configure DG4ODBC (Oracle Database Gateway for ODBC) on Windows 32bit to Connect to Non-Oracle Databases Post Install [ID 466225.1]
As mentioned for other platforms you commonly have to purchase a 3rd party ODBC driver and depending on the licensing costs this 3rd party ODBC driver might be more expensive the using Oracle's commercial product, the Database Gateway for MS SQl Server. It is designed for MS SQl Server connections and much more powerful then DG4ODBC - for example it allows you to call remote SQL Server stored procedures or to participate in distributed transaction.
Documents about DG4MSQl can be found also on Oracle's support portal.
- Klaus

ACH in internet expenses

Hi,
I'd appreciate any information on how to implement Direct Deposit of Employee expense checks in Oracle Payables 11.5.9 in ACH Format.
Thanks in advance,
Andrea.

Hi,
Thank you for the link. I have read the guide.
What I was hoping for was an example of how it was used, and if anyone has managed to configure, without customizing the workflow, anything similar to what I need to do.
Any other information would be useful.
Thanks
Heath

Custom Expense Category creation in iexpenses

Hi Gurus,
To use the Expense template in i expense modules, i have created the Expense report Template in AP -->Setup --> Invoice --> Expense Report Template.
Here we are having predefined Expense Category like Accommodation, Airfare, Car Rental, Meals, Mileage, Miscellaneous and Per Diem. Now my required is i have to create custom Expense category and have to in that populist.
Please let me with navigation how to achieve this.
Thanks,
Sreehari.

Hi Sreehari,
You cannot have USER DEFINED expense categories, you have to use the predefined/seeded expense categories only.
The seeded categories are stored in the payables lookup OIE_EXPENSE_CATEGORY which has Access Level of System, hence one cannot modify/add more lookup values under it. (Navigation for the lookup is Setup > Lookups > Payables)
Moreover any type of expenditure which a organization has can be mapped under the seeded categories provided..
I believe this restriction is due to the built in policy validation configuration based on expense category.
Oracle also states, any modification to the OIE_EXPENSE_CATEGORY would be treated as CUSTOMIZATION, hence it would not be supported.
Refer - [ID 784448.1] - Unable To Modify The System Lookup 'OIE_EXPENSE_CATEGORY'
Regards,
Ivruksha

Withholding Tax on Receivables

Hi ,
How to make setup for Withholding Tax and the JE as following :
DR.AR
DR.Withholding Tax
CR.Revenue
CR.Sales Tax
Thanks
Mohammed Moustafa

Octavio,
This does raise an interesting point. In Accounts Payable, we are seeing more cases of having to withhold tax from a payment to a supplier. At least that is the case in the United States. So in Oracle Payables we have the ability to define a withholding tax and reduce the payment amount to the supplier by the amount of the payment. Say for example we are scheduled to pay the supplier $100. But we have to withold say 15% and remit to the U.S. IRS. So our entry becomes something like this -
Debit AP Liability $100
Credit Cash $85
Credit W/H Tax $15
Well that transaction then creates an issue on the Receivables application for the supplier. Should not Oracle be coming up with a way to handle withholding tax in the Oracle Receivables application? Are there perhaps any plans to handle withholding tax in Oracle Receivables in the future? From the Receivables Application, I can see the Receivable entry being something like this -
When the receivable transaction is recorded -
Debit Receivables $85
Debit W/H Tax $15 (so a tax expense/asset, as you can then claim as already paid on the tax return)
Credit Revenue $100
Then when the payment is received -
Debit Cash $85
Credit Receivables $85
Today we have to handle this as a receipt write-off. Which gets the job done, but is a bit of a pain. So today you end up with something like this for the receipt -
Debit W/H Tax Writeoff $15
Debit Cash $85
Credit Receivables $100
Just something to think about.
John Dickey

Flash Forward: Get Ready to Deliver Flash as a Service

August 2015
Andrew Grimes
Principal Architect for Flash
NetApp
You've probably seen the headlines announcing that "flash changes everything" in the storage industry. The truth is that the fundamentals of storage remain unchanged. You still need to serve data with reliability, to protect your data, and to deliver IT services across a range of requirements, regardless of the media under the data. But as flash technology matures, it lets us change the way we deliver those services: with greater efficiency and performance, and with the potential for major savings for your organization.
The evolution of flash goes hand in hand with other changes sweeping through our industry, most obviously the migration of data to the cloud. Any storage solution using flash shouldn't isolate you from that change. Today, most flash solutions are silos with a few features that take you back to the days of stand-alone servers and external backup software. To drive business value, flash must support your enterprise data management, both on premises and in the cloud—without compromises.
At this October's NetApp® Insight™ conference in Las Vegas, I'll be sharing some ideas for how to make that happen.
Flash Matures Beyond Silos
Initially, flash was all about raw speed. If you had an application that couldn't tolerate high latency, it was worth the high price and single-purpose performance focus to use flash media. But disk prices are reaching a tipping point. NetApp estimates that by 2016, flash solid state disk (SSD) prices will drop below prices for serial-attached SCSI (SAS) hard disk drives (HDDs).
As a result, flash technology is rapidly replacing traditional 10k spinning HDDs. The problem with the current iterations of these new arrays, however, is that they are just silos of flash with limited features and tools for data management.
Early adopters of flash were willing to overlook the inadequate data management and data protection features of flash arrays to gain the benefits for database acceleration, virtual desktop infrastructure (VDI), real-time apps, and other performance-driven applications. But as more enterprise operations move to cloud or hybrid cloud environments, it's no longer realistic to expect enterprises to work around flash arrays' limitations.
The era of the shared flash storage array is here. Yes, this new class of flash array is fast. But it doesn't make you go without the features you expect from enterprise storage.
Figure 1) Enterprises use flash technology for a variety of applications (customer use cases).
Source: 451 Research LLC, July 2015
What "Enterprise-Grade" Flash Really Means
Flash arrays that run a range of applications are becoming the norm. In fact, they are considered table stakes for the flash space. Shared multi-tenant flash arrays are going to be the standard, and if a vendor can't innovate to that standard, its days are numbered.
To support these changes, IT consumers of flash will need all the tools and features of traditional HDD arrays merged with all the benefits of flash. The performance is already in place. Now it's a race to give the enterprise the rest of what it needs for enterprise-grade flash.
But what, exactly, is "enterprise-grade flash"? In addition to the assumed capability of superb storage efficiencies, it must also deliver:
A unified architecture that supports both networked-attached storage (NAS) and storage-area network (SAN) protocols
Scale-out storage with dynamic capacity additions
Built-in backups
Cloud-enabled operations for the complete data life cycle
Quality of Service (QoS) to manage and enforce service levels
Automation and orchestration
Application integration
Secure multi-tenancy
Snapshot copies for on-array backups
Storage-reduction techniques, such as deduplication and thin provisioning
Synchronous and asynchronous replication
Storage encryption
All of these capabilities are available today in NetApp All Flash FAS systems, thanks to the powerful data management capabilities of our Data ONTAP® storage operating system (OS). Because our AFF8000 All Flash FAS systems run the Data ONTAP OS, they automatically inherit the full complement of enterprise-grade capabilities within their all-flash architecture.
"Our dealership customers expect a live market view of vehicle inventory and pricing. To provide dealers with real-time data, we've moved a 15 terabyte Oracle database to a NetApp FAS8080 EX all-flash array with outstanding results. Database latency now averages a mere 370 microseconds, helping us provide consistently excellent performance and maintain the attention of the dealer community. And our IT operations team can use all the NetApp software features they have come to rely on, such as deduplication, replication, snapshot copies, and thin clones."
— Chris Prosceno, Manager of Enterprise Data Storage, Cox Automotive (parent company of Autotrader.com, Kelley Blue Book, vAuto)
Flash as a Service
As flash adoption becomes mainstream, flash will become a service level of your infrastructure—a way to deliver multi-tier performance, all from the same media types.
Enterprise IT is now about delivering services to the organization. Those services can be co-located off site or delivered on premises, or by a service provider, or in the cloud. Modern IT has to support all methods of service delivery so that your data is not stranded.
Flash must be a part of this service delivery model, providing tier 0, tier 1, tier 2, tier 3, data recovery (DR), archive, and cloud data support. Your flash storage can't imprison your data. Your shared multi-tenant flash arrays must work with everything in your IT environment. For example, you need:
Replication from flash to capacity drives for cost savings, development/test, DR, and archive
Replication from flash to cloud for cost savings, development/test, DR, and archive
Efficient flash storage management across both sites and platform sizes, and as your IT environment grows, evolves, and scales
Benefits of Enterprise-Grade Flash
Is enterprise-grade flash really that important? Does it deliver real benefits? Our answer is a resounding YES. Here are a few examples:
Increased storage efficiency. Achieve higher petabyte (PB) per full-time equivalent (FTE) data administrator, up to 2PB to 3PB per admin.
Power and space-cooling savings. Replace three floor tiles by 8U of rack space, or more.
Improved organizational efficiency. Use fewer technologies, and have fewer people to manage.
Scalability. Migrate easily between underlying technologies as your IT environment evolves.
Reduced costs. Reuse your expensive assets for years to come, with nondisruptive operation (NDO) and scale-out capabilities. NetApp customers report an average disk age of seven years with our technology. This longevity allows you to reuse and keep your disk even as you upgrade.
Figure 2) Oracle Database performance excels on NetApp AFF8080 EX All Flash FAS systems.
Source: "NetApp AFF8080 EX Performance and Server Consolidation with Oracle Database, TR-4415"; June 2015
Figure 3) Microsoft SQL Server performance excels on NetApp AFF8080 EX All Flash FAS systems.
Source: "NetApp AFF8080 EX Performance and Server Consolidation with Microsoft SQL Server 2014, TR-4403"; June 2015
Let's Talk More
By now, I hope you're convinced that the flash revolution is real and that there's much to be gained by putting enterprise-grade flash to work for you.
Unfortunately, however, the revolution has caught many storage vendors off guard. They're scrambling to invent the features NetApp has been providing all along. Our All Flash FAS systems prove that enterprise-grade flash is available today, not as some future promise.
The Data Fabric, enabled by NetApp, is another big part of the story of our evolving industry. The Data Fabric works with our flash solutions to give you cradle-to-grave, on-premises-to-cloud life-cycle support for your data.
I hope you'll join us at the NetApp Insight conference in Las Vegas in October. We can talk about how NetApp enterprise-grade flash, with cloud enablement, can help address your current and future data issues.
The market is changing. Are you ready?
Andy Grimes has been in the IT industry for 15 years. He worked as a business systems architect, systems engineer, and chief technology officer for healthcare at NetApp before becoming NetApp's principal architect for flash. Previously, he worked for IBM developing and testing storage technology, generating four storage technology patents.
Quick Links
Tech OnTap Community
Archive
PDF

Saluting Andrew, Would you please alsoa dvice the top 3 reason AFF8080 is better than M Series from Pure Storage? Tks from Henry PAN

CLS Account

Hi everybody,
I am working in PPAC costing environment, as you know the OPM use CLOSE sub event to clear WIP account and charge CLS account. This happens when there is a variance in ITEM cost between two periods. My question is what is the CLS account type (expense, asset ...etc)? Is it Cost of sales account? Where I should charge such variance? Also I would like to know if there is a need to do cost revaluation on monthly base? and if so where should I charge IRV account?
Any input will be of much help.
Thanks

CLS will be expense account.
And same true for WIP, RCA, IRV.
CLS should have very small amounts near to zero (rounding differences) if you maintain correct costs.
Revaluation process should be carried out for each period.
1) Issue material Entry is Debit WIP Credit INV (you will have RCA if burden costs used)
2) Produce material Entry is Debit INV Credit WIP (you will have RCA if burden costs used)
3) Certify batch Entry is Debit RCA Credit WIP
4) If you don't have too much variations in batch process then you will have pretty steady cost and average output cost will not differ much. and you won't have much of CLS because WIP at the time of output = total of all WIP at the time of input.
Difference in output/input WIP gets distributed as:
RUV - resource usage variance
SUB- Substitution variance
USG - usage variance
RSV - resource substitution variance
etc.
Any amount that cannot be specifically allocated to any of the variance gets allocated to CLS account (hence it should be just small amount related to rounding)
I have seen that oracle puts the revaluation entry to CLS account for batches that cross over periods. Hence it is a good practice to close all batches within the period.

Expensed Asset in Oracle Assets.

Similar Messages

Maybe you are looking for