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Book Control Defaults (FAXSUBCT) [ID 199975.1]

Modified: Dec 14, 2012 Type: HOWTO Status: PUBLISHED Priority: 3

Applies to:
Oracle Assets - Version 11.5.10.2 to 12.1.3 [Release 11.5 to 12.1] Information in this document applies to any platform. FAXSUBCT ***Checked for Relevance 14-Dec-2012**

Goal
This document should provide guidance in determining default values associated with the Oracle Assets book controls form and ramifications associated with selecting these defaults.

Fix
Book Control Defaults Navigation: Setup > Asset System > Books Controls 1. Open the Book Controls window. 2. Enter the name of the book you want to define. 3. Enter a brief, unique description of the book. 4. Choose a Corporate, Tax, or Budget book class. 5. For Class of Tax or Budget use the LOV (list of values) to select the associated corporate book. Enter Calendar Information for a Book. 1. 2. 3. 4. Choose Calendar from the LOV (list of values). Optionally enter an "Inactive on" for the depreciation book. Note once a book is disabled, it can not be re-enabled. Choose whether to Allow Purge for the book. Enter the General Ledger set of Books. (a) Allow GL posting if you create journal entries for this book. 5. Enter the name or use LOV to find the Depreciation Calendar you want to use for this book. 6. Enter the name or use LOV to find the prorate Calendar that you want to use this book. *Use the prorate calendar with the smallest period size or resolution you need for determining your depreciation rate. 7. Enter or use LOV to find the current open period name for this book. 8. Use LOV to select the method for dividing the annual depreciation amount over the periods in your fiscal year for this book. (a) Choose Evenly to divide depreciation evenly to each period. (b) Choose By Days to divide it proportionally based on the number of days in each period. 9. Choose whether to depreciate assets in this book that are retired in the first year of life. 10. Last Depreciation Run Date = Assets updates this data when you run depreciation. Enter Accounting rules for a Book. 1. Check the Allow Amortized Changes check box to allow amortized changes in this book. 2. Choose Allow Mass Changes to allow mass changes in this book. *Assets does not allow mass change to assets for which you have entered unplanned depreciation.
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3. Enter the minimum time you must hold an asset to report it as a capital gain when you retire it. (a) If you want Oracle Assets to report capital gain for all assets when you retire them, enter zero for the threshold. (b) If you hold the asset for less than the threshold, Assets reports it as ordinary income. 4. Select UK Local Authority Accounting if applicable to your business (Ref Note 758012.1) 5. Allow Revaluation, select if applicable to you business. If Selected update: (a) Revalue Accumulated Depreciation. If you do not revalue accumulated depreciation Assets transfers the accumulated depreciation to the revaluation reserve account upon revaluation. (b) Revalue YTD Depreciation. (i) Check this to revaluate year-to-date depreciation. (ii) If you do not revalue accumulated depreciation, Oracle Assets transfers the accumulated depreciation to the revaluation reserve account upon revaluation (c) Retire Revaluation Reserve. Check this to retire revaluation reserve. (d) Amortize Revaluation Reserve. Check this to allow revaluation reserve to be amortized in this book. (e) Revalue Fully Reserved Assets. Check this to revalue fully reserved assets (f) Maximum revaluations. Enter the maximum number of times an asset in this Book can be revaluated as fully reserved. If you leave this field blank, Assets does not limit the number of times you can revalue an asset as fully reserved. (g) Life Extension Factor. Enter the life extension factor for fully reserved assets in this book. Assets multiplies the life extension factor by the asset original life to determine the asset's new, extended life. (h) Life Extension Ceiling. The life extension ceiling limits the depreciation adjustment when revaluing fully reserved assets. 6. Allow Group Depreciation, enable if applicable to your business (a) Allow CIP Members in Group Assets. Allows assets with type of CIP to be added to the Group Assets (b) Allow CIP Depreciation in Group Assets (J). Check this check box to allow depreciation of member CIP asset cost. (c) Allow Member Asset Tracking. Allows member asset tracking for group depreciation. (d) Allow Intercompany Member Asset Assignments (Q). Check this check box to allow the group asset and its member assets to have a different balancing segment value. If the check box is not checked, the group asset and each of its member assets must have the same balancing segment value. Enter Natural Accounts 1. Choose Natural Accounts from the LOV. 2. Enter Retirement Accounts. You can set up your gain and loss accounts so that Assets creates individual journal entries for each component, or to a single account for the net gain or loss. 3. Enter Intercompany Receivables and Payables clearing account. 4. Enter Deferred Depreciation reserve and Deferred Depreciation Expense accounts. 5. Enter the GL account that you want to use as an offset account for the entry against accumulated depreciation when you perform reserve adjustments. 6. Enter the Account Generator default segments values for this book's journal entries. By default, Assets creates journal entries without cost center level detail for all accounts except the depreciation expense account. The Account generator uses the other segments from the default segment values you enter for the book in this field. Specify Tax Rules 1. Allow Reserve Adjustments if you want to allow changes to the accumulated depreciation in your tax book.
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2. Allow Cost/Expense Ceilings however, you cannot apply a cost ceiling and a expense ceiling to the same asset in a depreciation book. 3. Check CIP Assets if you want to be able to automatically add CIP assets to your TAX Book when you add them to your corporate book. 4. If you choose to Allow Mass Copy into this tax book, choose (a) whether to copy additions, adjustments, retirements and/or salvage value. (b) Choose Copy Amortized Additions and Adjustments as Expensed if you wish to copy corporate amortized event to tax books as expense. 5. Group Rules (a) Group Asset Additions. Choose Copy if you wish to allow mass copy of group assets into this tax book. (b) Member Asset Assignments. Choose Copy if you wish to allow mass copy of the member asset group asset assignments into this tax book (c) Group Change 6. Copy Amortized Additions and Adjustments as Expensed. Yes will copy corporate amortized adjustments to Tax as Expensed. Standard Code After/above code levels R12.0 Patch 8706840 or R12.1 Patch 8706842. Entering Journal Entry Categories for a Book. 1. Choose Journal Categories from the LOV 2. Enter the journal Source of your general ledger entries. This source labels the journal entries that come from Oracle Assets. 3. Enter the general ledger category you want to use for capitalized and CIP journal entries. Save your work. RELATED DOCUMENTS Oracle Assets User's Guide Release 12.1 Part No. E13586-02

References

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