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Contents
ABSTRACT..............................................................................1
INTRODUCTION .....................................................................2
FIXED ASSETS BUSINESS SCENARIO ......................................... 2
SETUP REQUIREMENTS ......................................................... 2
HIGH LEVEL SOLUTION .......................................................... 3
ACCOUNTING PROCESS FLOW ................................................ 4
ACCOUNTING MANAGER SETUPS FOR SECONDARY LEDGER .... 7
FIXED ASSET BOOKS SETUP..................................................... 9
ASSET CATEGORIES .............................................................. 11
HOW TO CAUSE 100% DEPRECIATION IN THE SAME MONTH AN ASSET
IS ADDED TO ORACLE ASSETS ............................................... 16
CONCLUSION ....................................................................... 27
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
Page i
Abstract
Oracle Accounting Setup Manager is the new configuration tool for
accounting setups in General Ledger for Oracle E-Business Suite R12.
The Accounting Setup Manager can also be used to control the flow of
Journal Entries from the Primary Ledger journal entries to secondary
ledger for Fixed Assets Subledger, only using the Subledger accounting
options for secondary ledger.
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
Page 1
Introduction
This paper provides information to help familiarize users with some
implementation options to control the flow of Fixed Asset Journal entries
as a solution for dual GAAP ledgers. It will also describe the journal
entry flow from Fixed Assets to the appropriate Ledger. The necessary
setups within the Accounting Setup Manager, Fixed Asset setups for
Fixed Asset Book, and Asset Categories will also be provided in detail.
S ETUP R E QUIREMENTS
Primary Ledger US GAAP with PRC COA
Secondary Ledger PRC GAAP with PRC COA
Fixed Asset Corporate Book pointed to Primary Ledger
Fixed Asset Tax Book based upon Corporate Book pointed to
Secondary Ledger
Use Accounting Setup Manager to switch off the flow of
Primary Ledger journal entries to secondary ledger for Fixed
Assets Subledger only using the Subledger accounting options
for secondary ledger
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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FA Clearing A/C DR
AP Liability A/C CR
Mass Additions Create will run and the Asset will be sent to the
FA Mass Additions Table of the FA Corporate Book.
FA Accountant will process the Asset in Mass Additions;
selecting location and a normal asset category.
Post Mass Additions to Fixed Assets
o
o
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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o
o
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Beneath Application, select Assets then click on the Pencil icon in the
Update Accounting Options column.
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Every time a journal is posted in the Primary ledger, it gets created in the
Secondary Ledger.
Set Use Primary Ledger Amounts to No to switch off the flow of all
journal entry transactions for assets generated in the Fixed Asset
Subledger, from the Primary ledger into the Secondary ledger.
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Tax Book
The Tax FA book for China will be based upon China GAAP and will be
pointed to the Secondary Ledger (FA-TEST).
Assets costed above 250 USD will be depreciated based upon China
PRC GAAP depreciation Schedule.
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Asset Categories
*Note: Two different Asset Categories were created for the same type of
asset (i.e. Building).
First asset category TEST.TEST was created for assets costing < 2,500
USD. HUTS Corp Book and HUTS TAX2 Book were added to
TEST.TEST Asset Category.
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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The difference between the HUTS Corp Book and HUTS Tax2 Book is
the account numbers used for Depreciation Expense and Accumulated
Depreciation.
For an asset costing < 2,500 USD, for the corporate book the:
- Common Expense account number was inserted in the Depreciation
Expense Account field
- Asset Cost account number was inserted in the Accumulated
Depreciation Expense Account field
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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For an asset costing < 2,500 USD, the normal Depreciation Expense
and Accumulated Depreciation accounts were still used for the Tax
Book.
The second Asset Category TEST2.TEST2 was created for assets costing
> or = 2,500 USD:
HUTS Corp Book and HUTS TAX2 Book were added to the
TEST2.TEST2 Asset Category.
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Because the asset cost is > or = 2,500 USD in both books, normal
Asset Cost and Accumulated Depreciation account numbers were
inserted for HUTS Corp and HUTS TAX2 for the TEST2.TEST2 asset
category.
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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After the financial data appears, [tab] to the Salvage Value field:
change the amount to 0 USD.
After the change is made, the Recoverable Cost field should display the
same amount as the Current Cost field.
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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In the Depreciation tab, [click] on the Life Years field. Use the LOV to
change the Years to 0 and the Months to 1 as highlighted in the Lifes
window below.
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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The Create Accounting Entries program will create the GL import for the
Journal Entries.
Review the Journal Import Execution Report, for Status of Success and
to ensure there are no errors.
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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The Journals window will appear. Because the Asset #181056 amount
is < 2,500 USD in the Primary Ledger, the following journal entry was
created:
- Debit: The Common Expense account (instead of Depreciation
Expense) 2,100.00 USD
- Credit: The Asset Cost account (instead of Accumulated Depreciation)
2,100.00 USD
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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The Financial Inquiry window in Fixed Assets displays the asset for
both books.
In HUTS Corporate (Corporate Book), the asset, for < 2,500 USD has
been fully depreciated.
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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In the HUTS TAX2 (Tax Book), the asset, for < 2,500 USD has
remaining life.
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Yes
FA Accountant
processes new assets,
selecting a special
Asset Category &
Location for Assets <
2,500 USD (M)
FA Accountant will
post Mass
Additions to Fixed
Assets (A)
FA Corporate Book
(Linked to Primary Ledger)
No
Asset added to
Mass Additions
table in Fixed
Assets (A)
FA Accountant processes
new assets, selecting
usual Asset Category &
Location for Assets > or =
to 2,500 USD (M)
FA Accountant will
run Periodic Mass
Copy to transfer
assets from the FA
Corporate Book to
the FA Tax Book (A)
In the FA Corporate
Book, FA Accountant
verifies the life of the
asset (<2500 USD) is
1 month (M)
Page 2
Primary
Ledger
Page 2 FA
Tax Book
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
Page 25
Secondary
Ledger
FA Tax Book
(Linked to Secondary Ledger)
Primary Ledger
Page 1
Page 1
FA Accountant will
update the depreciation
life in FA Tax Book for
the new assets based
upon Local GAAP
Depreciation Schedule, if
necessary (M)
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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Conclusion
This document provided an overview of the Fixed Asset solution for
Dual GAAP Ledgers. It highlighted the accounting journal entry flow,
covered the necessary setups for Accounting Setup Manager and Fixed
Assets (Asset Books and Asset Categories) and provided detail steps on
how to fully depreciate an asset the same month it was added.
Fixed Asset Solution for Dual GAAP Ledgers Using Oracle Release 12 Standard Functionality
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