Period End process in Oracle Assets R12

When compare with 11i there is slightly change in FA Period Closure process because of SLA.

Here are steps & procedures for performing period-end processing in Oracle Assets Release 12.

In FA, at period end, we require to run depreciation for depreciation books set up for the organization, and to Create accounting for Oracle General Ledger. Oracle Assets has only a single open depreciation period in each depreciation book.

1.Complete All Transactions for the Period Being Closed

You need to ensure that all transactions have been entered for the period being closed. Once a depreciation period in Oracle Assets has been closed, it cannot be re-opened. Check that no-one is entering transactions as Oracle Assets prevents transaction data entry while the Depreciation Run Process is running. You need to complet all transactions for Oracle Assets:

·         Prepare and Post Mass Additions

·         Complete Manual Additions

·         Complete Adjustments

·         Complete Retirements

·         Complete Transfers

·         Complete Reinstatements

2.Then if you required, you need to assign distribution lines to all assets.

If an asset has not been assigned to a distribution line, the period end Depreciation Process will not complete, and will not close the period. Take the advantage of running "Assets Not Assigned to Any Cost Centers Listing " report to determine which assets have not been assigned to a distribution line.

3.Run Calculate Gains and Losses

This is optional , the Calculate Gains and Losses program for retirements can be submitted prior to running depreciation. The Calculate Gains and Losses process is performed independently for each depreciation book.

4.Run the depreciation

In Release 11i when you ran depreciation you would automatically close the period whereas in Release 12 you can now run depreciation without closing the period.

5.Create accounting

Create Journal Entries (FAPOST) is replaced by Create Accounting – Assets process (FAACCPB)

6.RollBack Depreciation for adjustment

When you are trying to do adjustment on a particular asset, FA automatically rolls-back depreciation for that particular asset.This is one of the area where you will experience change if you are coming from other versions.

7.Once you are sure that all the balances are correct you need to run depreciation and close the period.

8.Create accounting

You need to run "create accounting" very similar as mention in step 5.

9.Post Asset Transaction in GL

You need to make sure the step 8 must be completed only if you done transfer and posting for the accounting entries to GL.

These steps are basically takes care of data movement , then next step for you to tie FA and GL.

For reconciliation of assets you need to take advantage of some of seeded and newly added report that will help business user to reconcile and closing the period.

10. Reconcile your Fixed Asset and GL

• Reconcile Assets to the GL Using Reports
• Journal Entry Reserve Ledger - reconcile with the Account Analysis with Payables Details Report.
• Tax Reserve Ledger Report
• Account Reconciliation Reserve Ledger Report
• Balance Report
• Cost Detail and Cost Summary Reports
• CIP Detail and CIP Summary Reports
• Reserve Detail and Reserve Summary Reports
• Revaluation Reserve Detail and Revaluation Reserve Summary Reports
• GL Report
• Journal - posted/Unposted
• Account analysis

Verification Reports

You can use these Verification Report for your FA and GL monthly Reconcilation.

1. Cost Detail Report :Use the Cost Detail and Cost Summary reports to reconcile your asset cost accounts to your general ledger to reconcile with Oracle General Ledger, compare the Cost Summary report with the Account Analysis Report.
2. Asset Retirements Report :Use this report to review the assets you retired for the Book and accounting Period range you choose. The report is sorted by balancing segment, asset type, asset
   account, cost center, and asset number. It prints totals for each cost center, account,asset type, and balancing segment.
3. Asset Reclassification Reconciliation Report
4. Asset Transfer Reconciliation Report :Use this report to review asset transfers for the Book and Period you choose. For each transaction Oracle Assets lists the expense account, balancing segment, cost center,and location of the asset before and after the transfer. Oracle Assets sorts the report by
   asset number.
5. Journal Entry Reserve Ledger Report : This report can be used to review how much depreciation Oracle Assets charged to a depreciation reserve account in an accounting period. The report is sorted by, and prints totals for each balancing segment, asset account, reserve account, and cost center.
6. CIP Capitalization Report
7. CIP Assets Report
8. Unposted Mass Additions Report
9. CIP Detail Report (If using adding asset through Project)
10. Asset Addition Report
11. Cost Adjustment Report