Accounting entries for the Asset Life Cycle

Accounting entries for the Asset Cycle.

1. Asset Cost
2. Asset Clearing
3. Depreciation Expense
4. Accumulated Depreciation
5. Revaluation Reserve
6. Revaluation Amortization
7. CIP Cost
8. CIP Clearing
9. Proceeds of Sale Gain, Loss, and Clearing
10. Cost of Removal Gain, Loss, and Clearing
11. Net Book Value Retired Gain and Loss
12. Intercompany Payables
13. Intercompany Receivables
14. Deferred Accumulated Depreciation
15. Deferred Depreciation Expense
16. Depreciation Adjustment

The setup of these accounts is done while you defining the asset books as per below. The number for above accounts can usually map it with Oracle seeded screen of setup;.

Fig 1: Accounts and accounting in Fixed Assets

Fig 2: Accounts and accounting in Fixed Assets
Next we will see the different accounting at various transactional events.
Depreciation Accounting

Whenever you run depreciation, Oracle Assets creates accounting entry with your accumulated depreciation accounts and your depreciation expense accounts. Oracle Assets creates separate journal entries for current period depreciation expense and for adjustments to depreciation expense for prior period transactions and changes to financial information.
Oracle Assets creates the following journal entries for a current period depreciation charge of AU$ 200:

Current and Prior Period Addition

The recoverable cost is AU$ 4,000 and the method is straight-line 4 years. You purchase and place the asset into service in Year 1, Quarter 1.

You place an asset in service in Year 1, Quarter 1, but you do not enter it into Oracle Assets until Year 2, Quarter 2. Your payables system creates the same journal entries to asset clearing and accounts payable liability as for a current period addition.

Merge Mass Additions

When you merge two mass additions, Oracle Assets adds the asset cost of the mass addition that you are merging to the asset account of the mass addition you are merging into. Oracle Assets records the merge when you perform the transaction. Oracle Assets does not change the asset clearing account journal entries it creates for each line, so each of the appropriate clearing accounts clears separately.

Construction-In-Process (CIP) Addition

You add a CIP asset. (CIP assets do not depreciate )

Capitalization

Once you decide that a CIP asset is completed you can capitalize it very easily.
Navigation: Assets > Capitalize CIP Assets
A capitalization transaction is similar to an addition transaction: you place the asset in service so you can begin depreciating it. When you capitalize an asset in the period you added it, Oracle Assets creates the following journal entries:


When you capitalize an asset in a period after the period you added it, Oracle Assets creates journal entries that transfer the cost from the CIP cost account to the asset cost account. The clearing account has already been cleared.

Deleted Mass Additions

Oracle Assets creates no journal entries for deleted mass additions and does not clear the asset clearing accounts credited by accounts payable. You clear the accounts by either reversing the invoice in your payables system, or creating manual journal entries in your general ledger.

Asset Type Adjustments

If you change the asset type from capitalized to CIP, Oracle Assets creates journal entries to debit the CIP cost account and credit the asset clearing account. Oracle Assets does not create capitalization or reverse capitalization journal entries for CIP reverse transactions.

Cost Adjustments to Assets
Understand this way, you placed an asset in service in Year 1, Quarter 1. The recoverable cost is AU$4,000. The life of your asset is 4 years, and you are using straight-line depreciation. In Year 1, Quarter 4, you receive an additional invoice for the asset and change the recoverable cost to AU$4,800.

Expense will go at it:

Amortized


Reinstatement

Current Period Reinstatement

Reclassification

When you reclassify an asset from office equipment to computers in Year 1, Quarter 3. The asset cost is AU$4,000, the life is 4 years, and you are using straight-line depreciation

Transfer Asset

In Year 2, Quarter 2, you transfer the asset from cost center 100 to cost center 200 in the current period

In Year 3, Quarter 4, you transfer the asset from the ABC Manufacturing Company to the XYZ Distribution Company.

you place the same AU$4,000 asset in service with two units assigned to cost center 100. In Year 2, Quarter 3, you realize the asset actually has four units, two of which belong to cost center 200. If all units remain in the original cost center, Oracle Assets does not create any journal entries.

Procure to Pay (P2P) – Accounting Entries

1. Enter purchase order
When you enter a purchase order, accounts are created and stored with the purchase order distribution. The accounts will eventually be used as a basis for creating accounting that is sent to the general ledger. Creating a purchase order in and of itself generates no accounting that is sent to the general ledger.
2. Receive
When you process a receipt, no accounting is created for period end accruals. Receipts that are accrued at period end will always be for a destination type of expense.
3. Deliver and cost
When you deliver a receipt to its final destination, no accounting is created. The expense will be recorded after matching to the purchase order, running the Payables Accounting process and subsequently running the Payables Transfer to General Ledger process.
4. Period end accrual
If an invoice is not entered by period end, the Receipt Accruals - Period End process will generate accruals and transfer the accounting for them to the GL Interface. Use the Journal Import program to create unposted journals. This journal is created with a reversal date in a subsequent period. The journal must be reversed so your receipt liability is not overstated.
5. Reverse accrual in the general ledger
In the subsequent period, reverse the prior period accrual.
6. Invoice and match
Entering an invoice and matching creates a debit to the Inventory AP Accrual account to clear the liability for the uninvoiced receipt (you now have an invoice).
The entire credit is to the AP Liability account that defaults from the supplier site if the invoice unit price is the same as the purchase order line unit price. Any difference is charged to the Invoice Price Variance account.
For items with destination type of Expense, the Invoice Price Variance account will be the same as the charge account. The AP Liability account is cleared when a payment is processed.

As you know "procure to pay" Business Flow start Purchasing requisition till paying to vendors and most important, in all the case the purchase is made for basic element called Items.

As you know there are three types of items:

• Inventory Expense Item
• Inventory Asset Item
• Expense item

Definition of above Items used in Purchasing can be best understood as:

Definition of above Items used in Purchasing can be best understood as:

Asset flag means means it is an asset and the items value will show in your inventory valuation.

Inventory Item

Expense Item

These are one which is used for consumable items purchase for your organization. More importantly , for creating an expense item you have to perform following setup doing in the Master Item form.Go to same path in oracle inventory

Oracle Inventory -> Items -> Master Items

When master items form open Go to Inventory Menu you need to tick followings

1.   Inventory item

2.   Stock able

3.   Transactble

4.   Resolvable

And you can also setup in Costing and purchasing menu account code as per your requirement.

Asset Item

As discussed above , the following attributes need to be enabled for such an item.

·         Inventory item

·         Stock able

·         transact able

·         Costing flag

·         Inventory asset value

For entering on purchase orders
It should have purchased and purchasable flags enabled and you have to make sure you are assigning this item to the Purchasing org which you have defined at

Oracle Purchasing > Setup > Organizations >
Financial Options > 'Supplier-Purchasing' alternate region 'Inventory Organization' field.

The accounting can be best described for such kind of items is;

Is there any effect on Step 5 in all three cases, that mean do matching have different accounting entry?

The answer is no; as per my understanding purpose of setting the PO to a 2way, 3 way or 4 way match is to ensure that the corresponding hold is generated on the invoice.

The holds are basically designed for control purposes, they do not have any accounting effects.

Cash Management new features R12

I. Bank Account Balances and Interest Calculations:

In prior releases, bank account balances were only available as a part of the bank account statement. The bank account interest calculation was only available for bank accounts set up in Treasury. In Release 12, the functionality to keep track of the multiple bank account balance types and calculate accrued interest is available to all internal bank accounts set up in the centralized bank account model.

Not only can you enter the balances manually, but also you can import them automatically at the same time when the bank statement is imported. In addition to the actual historic balances, you can keep track of the projected balances. Such balances can be entered manually or copied over from the Cash Position. You can then create reports that will compare the actual balances versus projected, and you can accomplish it in either an onscreen report or via XML Publisher. Finally, to simplify the bank account interest calculation, you can create reusable interest rate schedules that will contain the interest rates and other interest calculation parameters. Interest calculation features will work not only for stand-alone bank accounts but also for the notional cash pools as well.

Bank Account Balances and Interest Calculations - Benefits:

The new bank account model allows you to view bank account balances independent of the bank statement, calculate accumulated interest on the fly, and create customized balance reports.

Bank Account Balances and Interest Calculations Maintenance:

Once you have defined your bank accounts in the centralized bank account model, query them in the bank account balance page and manage historical or projected amounts.

Bank Account Balances and Interest Calculations Setup:

To obtain a balance report, create a report layout or a view and generate a report based on that. To calculate interest on the bank account balance, create the interest rate schedules, tie them to the bank accounts and use the interest calculator page to view the accumulated interest.

II. Bank Account Transfers:

In Release 12, you are able to create bank account transfers in Cash Management. The transfers can be initiated, approved, settled and accounted for. The settlement is done through the Payments application, while the accounting is done though the Subledger Accounting engine.

Bank Account Transfers Description:

Bank Account Transfers can be created manually by the user in the system. In addition, if there are any physical cash pools defined in the system, the transfers can be created automatically when the cash leveling process is run or when a bank statement with ZBA sweep lines is processed.

With manual transfers, you have the option of creating and using a payment template. The template will default the transfer information, such as the source and destination bank accounts, currency, and payment method, and can be used in the same fashion as a repetitive or semi-repetitive wire template created by your bank.

In cases when the settlement of the bank account transfer does not have to be initiated by the system (for example, for ZBA bank account transfers that the bank processes on its own), there is an option to exclude such a transfer from the settlement process and only create the accounting entries.

Finally, the UMX security model lets you define who can create bank account transfers for which legal entities. The settlement authorization function is also separate from the transfer creation, so you can implement the separation of duties for bank account transfer management.

Bank Account Transfers - Benefits:

The bank account transfer functionality enriches the Cash Management functionality so that you could take action on the projected closing balances calculated by the system. The seamless integration with the Payments application allows you to send payment instructions to the bank in a variety of payment formats and the integration with the Subledger Accounting allows you to use flexible journal creation rules.

Bank Account Transfers Process:

•Responsibility: Cash Management

•Navigation: Cash Management > Bank Account Transfers

Once the setup is in place, you can start creating the bank account transfer. If the system parameter requires authorization, the bank account transfer must be authorized before it is available for settlement or journal creation. Otherwise, you can proceed to settle or journalize the bank account transfer immediately after creation and validation.

The Payments application formats your payment request and sends it to the bank. Any exceptions in the payment process are communicated back in the form of an error status. If settlement of the bank account transfer errors out, you can see the reason so that the cause of the error can be rectified and the bank account transfer recreated. If the payment is processed without any exception, you see a successful payment status returned.

The subledger accounting process creates journal entries according to your setup and you can drill down to view these journal entries.

Bank Account Transfers – Dependencies and Interactions:

The bank account transfer feature depends on Payments application in cases where the settlement of the bank account transfers is required. There is also a dependency on the Intercompany setup when funds are transferred between different legal entities. Finally, all of the accounting activity for bank account transfers happens in the Subledger Accounting framework.

Bank Account Transfers Setup:

•Responsibility: Cash Management

•Navigation: Setup:System Parameters > (T) Cash Management Transactions

If you are using the cash leveling or ZBA features, the setup starts with the new system profile. Then, optionally, you can set up Transaction Subtypes and Payment Templates for bank account transfers. The Payment Templates are required if you intend to send the payment instructions to the bank to process the bank account transfer. The Transaction Subtypes are optional and can be used for reporting purposes.

Bank Account Transfers Setup – Set System Profile:

The new system profile option CE: Bank Account Transfers defines where the cash transfers will be created as a result of the cash pool activity. If you choose Cash Management, then the cash transfers created by the cash leveling or ZBA sweep activity are created in Cash Management using the Bank Account Transfer framework. If you choose Treasury, then these cash transfers are created in Treasury using Inter-Account Transfers (if both bank accounts belong to the same legal entity) or Intercompany Funding transactions (if bank accounts belong to different legal entities). Before Release 12, Bank Account Transfers could only be created in Treasury. This functionality is preserved but now you have a choice.

III. Subledger Accounting:

Subledger Accounting provides a common flexible framework for creating journal entries for Bank Account Transfers and Bank Statement Cash Flows in Cash Management. Prior to Release 12, Cash Management produced journal entries for bank statement activity based on simple rules and sent them to the General Ledger interface. In Release 12, in addition to the bank statement activity, a new source of accounting entries is available – bank account transfers – and the rules for journal entry creation are more flexible and sophisticated. Finally, you can now view all the journal entries produced by Cash Management events in Cash Management.

Subledger Accounting for Cash Management:

In Cash Management Release 12, bank account transfers and bank statement cash flows are the two objects that can produce accounting events. Once the events are created and the accounting program is run, the journal entry setup and the accounting configurations are referenced to produce journal entries. The journal entries are then transferred to GL. GL has visibility into the source transactions and Cash Management users can drill down from the transaction level to the journal entry details.

Subledger Accounting - Benefits:

The Subledger Accounting feature allows multiple accounting representations for a single business event, resolving conflicts between corporate and local fiscal accounting requirements. In addition, with subledger accounting you retain the most granular level of detail in the journal entries, with different summarization options in the General Ledger, allowing full audit and reconciliation

Subledger Accounting Key Concepts :Here are some key subledger accounting concepts:

•Event model is defined in SLA for each subledger represents the transaction/document types and the lifecycle of each transaction:

-Event class classifies transaction types

-Event type defines possible actions on each event class with possible accounting significance.

The journal creation rules are defined per event class/event type. In Cash Management, there are two event classes: Bank Account Transfer and Bank Statement Cash Flow. An accounting event for a Bank Account Transfer, for example, would be the creation or cancellation of a bank account transfer. So, any time a bank account transfer is created, an accounting event is created as well. Based on the rule setup, there may or may not be a resulting journal entry. You may set up rules to generate journal entries for some events, but not for others.

Transaction object and sources are the data model for each subledger that contains the transaction attributes/information made available to be used during journal rule setup and journal entry generation.

Oracle Apps Reporting tools

Introduction : Oracle provides over a thousand standard reports within the application. These standard reports are developed to cover common generic needs. Before creating any new reports, one should examine the standard report sets to determine if any meet the requirements. If requirements cannot be met with the standard Oracle report sets, tools are available to create custom reports.

The following matrix addresses reporting tool options, including:

A brief description
Who should be provided the access to the tool?
Advantages
Disadvantages

Whats new for Fixed Assets in R12

I.            Subledger Accounting Architecture:

•Oracle Assets is fully integrated with SLA, which is a common accounting platform for Sub Ledgers
•You can use the seeded Account Derivation definitions or modify them as required
•SLA supports Account Generator functionality for existing Asset Books
•Supports new SLA Accounting report and online account inquiry

Benefits:
The flexibility of the accounting rule setup allows meeting different requirements in different legislative, geographic or industry contexts within a single instance. Assuming operations in multiple countries, each with its own legal requirements and accounting standards, you are able to define a setup to meet each of the requirements. SLA allows for multiple accounting requirements for a single transaction or business event.

The accounting data that is generated is viewable and provides full auditability.

Subledger Accounting Process:
The process is executed as follows:
•Enter transactions in Oracle Assets
•Run the Create Accounting Program to process accounting.
•Inquire and drilldown from SLA Pages

II. Enhanced Mass Additions for Legacy Conversions:

• Many attributes have been added to the FA MASSADDITIONS interface table, including:
–Asset life
–Depreciation method
–Prorate convention
–Bonus rule Ceiling name
–Depreciation limit

• Oracle Web Applications Desktop Integrator (Web ADI) has been enhanced to support the following new columns:
–Depreciation Method
–Life in Months
–Basic Rate
–Adjusted Rate
–Prorate Convention
–Bonus Rule
–Depreciation Limit Type

Enhanced Mass Additions for Legacy Conversions Benefits:
You can use the mass additions process to convert data from a previous asset system. Instead of loading the asset information into multiple Oracle Assets tables, load it into the FA_MASS_ADDITIONS table. The Post Mass Additions process can then be used to move the asset information from the table to Oracle Assets. After placing your data in this table, you run the Post Mass Additions program to perform the data import.

III. Automatic Preparation of Mass Additions:

•Consist of default rules and Public APIs that can be used by customers to complete the preparation of mass addition lines automatically
•Auto populate required fields such as Expense Account, Asset Category, and others

Benefits:
The major benefits of this feature are that you can:
•Avoid manual intervention during the Mass Additions prepare process
•Avoid customization and use public APIs to effect custom business logic

To process mass addition lines:
1.Interface Mass Additions Lines from Accounts Payable or any other system
2.Run the Prepare Mass Additions Program
3.Optionally verify Mass Additions data
4.Post Mass Additions

Automatic Preparation of Mass Additions Setup QuickcodesSet up the Rules to Prepare Mass Additions in Quickcodes:
•Use Default: The Asset Category is derived based on the Asset Clearing Account if there is a one to one match in the Asset Category setup. The Expense account is derived based on the Clearing Account by replacing the natural account segment from the Asset Category.
•Use Custom: The Prepare Mass Additions program will use the custom logic coded in the Public API
•Use Custom Energy: Energy industry specific custom rule.

IV. Flexible Reporting Using XML Publisher:

•Major Asset Transaction reports have been modified to support XML publisher
•You can customize report output by modifying seeded templates or by using new templates

XML reporting is available for the following asset reports:

•Asset Transfers Report
•Transaction History Report
•Asset Reclassification Report
•Mass Additions Create Report
•Cost Adjustment Report
•Cost Summary Report
•CIP Summary Report
•Reserve Summary
•Journal Entry Reserve Ledger
•Asset Additions Report
•CIP Capitalization Report
•Mass Additions Posting
•Asset Retirements

Set up Procedure:
1.Query up the concurrent program as system administrator
2.Change the output format to XML
3.Once the output is flagged as XML, submit concurrent request


V. Automatic Depreciation Rollback:
Since release 11i, users have been able to run depreciation for an asset book without closing the period. If additional adjustments are required in the current period, then the user submits a process to roll back depreciation for the entire book, performs the necessary adjustment(s) and then resubmits the depreciation program.

In Release 12, the intermediate manual step of rolling back depreciation for the entire book in order to process further adjustments on selected assets is no longer necessary. As before, you can submit depreciation for the entire book prior to closing the period. If it becomes necessary to process financial adjustments on one or more assets, you may proceed with the transaction normally via the asset workbench or mass transactions. Oracle Assets automatically rolls back the depreciation on just the selected assets (instead of the whole book) and allows the transactions to be processed normally. The assets for which depreciation was rolled back is automatically picked up during the next depreciation run or at the time that the depreciation period is finally closed.

Benefits:

1. It is no longer required to run depreciation rollback program manually.
2. Depreciation rollback is executed only on select assets as required and not on the entire Asset Book, thereby enhancing performance of the program.

Period End Process In Cash Management R12

Oracle Cash Management is an enterprise cash management solution that helps you effectively manage and control the cash cycle. It provides comprehensive bank reconciliation, bank, bank branches & internal bank accounts setup, intra-bank account transfers, cash pooling and flexible cash forecasting. The Bank Reconciliation process enables the verification of entries on the Bank Statement by reconciling that information with system transactions in Oracle Payables, Oracle Receivables and Oracle General Ledger.
During the Bank Reconciliation process miscellaneous transactions can be created for bank-originated entries, such as bank charges and interest. Cash forecasting is a planning tool that helps anticipate the flow of cash in and out of the enterprise, allowing the projection of cash needs and evaluation of the company's
liquidity position.

Procedures
The following steps are taken in performing period-end processing for Oracle Cash Management.
 
1. Complete Daily Cash Management Activities
Complete bank account transfers for the day, validate them, if necessary, and send payment instructions to the bank.
 
2. Load Bank Statements
Detailed information from each bank statement, including bank account information, deposits received by the bank, and checks cleared needs to be entered into Cash Management. Bank statements can be either manually entered or loaded electronically from information received directly from your bank. For organizations with high transaction volumes bank statements should be loaded and reconciled on a daily basis.
 
3. Generate Sweep Transactions
If you have target balance or zero balance accounts (ZBA) with your banks, you can automatically generate system transactions to match banking information once the bank posts the sweeps. Once the bank statements are imported, run the Sweep Transaction Generation concurrent program. The program will scan the bank statement for sweep lines and, based on the cash pool setup in the system, create sweep transactions between your internal bank accounts, which can be accounted for and subsequently reconciled.
 
4. Create Bank Statement Cashflows
If you have recurring items such as bank fees and interest appear on your bank statement, you can use the Bank Statement Cashflow Creation program to create system transactions (cash flows) to match banking information . Once the bank statements are imported, run the Bank Statement Creation concurrent program. This program will scan the bank statement for specific codes, as defined in the Bank Statement Cashflow Mapping, and create cashflows, which can be accounted for and subsequently reconciled.
 
5. Reconcile Bank Statements
Once detailed bank statement information has been entered into Cash Management, the information must be reconciled with the subledger transactions. Cash Management provides two methods to undertake reconciliations:
 
a) Automatic
Bank statement details are automatically matched and reconciled with subledger transactions. This method is ideally suited for bank accounts which have a high volume of transactions.

b) Manual
This method requires a manual match of bank statement details with subledger transactions. This method is ideally suited to reconciling bank accounts which have a small volume of monthly transactions. The manual reconciliation method can also be used to reconcile any bank statement details, which could not be reconciled automatically.

6. Create Miscellaneous Transactions
During the reconciliation process, miscellaneous transactions for bank-originated entries, such as bank charges and errors can be created. Oracle Payables payments or Oracle Receivables receipts can also be manually created.
Note: The automatic reconciliation process can be set up to create miscellaneous transactions automatically.
Attention: If you create transactions during the reconciliation process, you will need to re-run the ‘Create Accounting’ routine from Oracle Receivables to ensure all information is transferred to the General Ledger.
 
6a.Complete Bank Transfers
Complete the bank account transfer whether it is manual or automatic and record the validation if required before completing the transfer.
 
7. Review Auto-Reconciliation Execution Report
Once the reconciliation process has been completed, reviewing the reconciliation results is recommended.
This report shows import and reconciliation errors that occurred when running the Auto-Reconciliation program. Cash Management automatically produces this report during the automatic reconciliation process. You may also request it as needed from the Submit Request window. This report includes either statement import errors, which prevented the automatic loading of your bank statement, or your reconciliation exceptions found during the automatic reconciliation process. This report lists the details of any miscellaneous transactions that were created in Receivables during the automatic reconciliation process.
 
8. Resolve Exceptions on the Auto-Reconciliation Execution Report
Resolve the exceptions on the Auto-Reconciliation Execution report by either rerunning the import process or by manually reconciling the exceptions.
 
9. Run Bank Statement Detail Report
This report shows statement and transaction information for a specific bank account statement, including bank statement header information, statement line detail, and reconciled transaction detail. This report lists any un-reconciled transactions separately with their current status, and the statement totals for each type of transaction, including the amount entered, reconciled, un-reconciled, over-reconciled and under-reconciled, and gives you the option to select only un-reconciled statement lines.
 
10. Run Transactions Available for Reconciliation Report
This report shows all transactions available for reconciliation for a specific bank account. It lists detailed transaction information for your Available Receipts, Available Payment, and Available Journal Entries for reconciliation. Detailed information includes the Customer, Supplier or Batch Name, Transaction Date,
Payment Method, Transaction Number, Currency, and Amount. This report only lists void payments if the Show Void Payments option on the Systems Parameters window is checked. It does not list reversed receipts due to user error nor does it list the associated original receipts that were not reconciled. This
report groups transactions by status so that void or reversed transactions are separate from other transactions.
 
11. Resolve Un-reconciled Statement Lines
Resolve the un-reconciled statement lines by manually reconciling the statement lines to the available transactions.
 
12. Post to General Ledger
Create journal entries for eligible accounting events generated by Bank Account Transfers and Bank Statement Cash Flows by submitting "Create Accounting" concurrent program. The program creates and optionally transfers and posts journal entries to General Ledger. If you do not transfer the journals to General Ledger immediately, you can later submit the "Transfer Journal Entries to GL" concurrent program.
Attention: Final journal entries cannot be further modified in Cash Management. Please make sure you are satisfied with the draft journal entries before creating final accounting. In addition to creating final accounting entries, the program can be run in a draft mode, in which case draft journal entries will be created. Such journals cannot be transferred or posted to General Ledger.
 
13. Run the GL Reconciliation Report
Use this report to reconcile the General Ledger cash account to a bank statement balance.

This report lists a balance and an adjusted balance for the bank statement. It also lists a separate adjustment amount for un-reconciled receipts, payments, and journal entries, as well as bank errors.
Warning: To ensure that this report is accurate, you must first perform these tasks:
* Reconcile all statements in Cash Management.
* Transfer journal entry transactions from Oracle Payables and Oracle Receivables to your General Ledger.
* Post journals in General Ledger, if transfer from sub-ledgers was not in FINAL POST mode.
 
14. Run the Account Analysis Report for the General Ledger Cash Account
Run the Account Analysis Report from General Ledger for the General Ledger Cash Account Flexfield and sort by Source.
 
15. Review the Account Analysis Report
Review the Account Analysis Report to ensure that only bank account related transactions have been posted to the General Ledger Cash Account by checking the Source of the transactions. Valid sources will include Payables and Receivables. Transactions entered directly via General Ledger will have a Source of Manual or
possibly Spreadsheet if Web Applications Desktop Integrator (Web ADI) is used.
 
16. Correct any Invalid Entries to the General Ledger Cash Account (Optional)
Reverse or amend any journals incorrectly posted to the General Ledger Cash Account, which were highlighted during the review of the Account Analysis Report. To prevent invalid journal entries to the General Ledger Cash Account enable security rules appropriately.

FA To GL Reconciliation in R12

FA To GL Reconciliation:

You can use reports to reconcile journal entries to your general ledger accounts. This
section illustrates the relationships among Oracle Assets accounting reports.
You can use reports to reconcile journal entries to your general ledger accounts. The
following sections illustrate the relationships among Oracle Assets accounting reports:
• Reconciling Journal Entries to General Ledger Accounts,
• Reconciling Asset Cost Accounts
• Reconciling CIP Cost Accounts
• Reconciling Reserve Accounts
• Reconciling Depreciation Expense Accounts
• Tracking and Reconciling Mass Additions

Reconciling Journal Entries to General Ledger Accounts
 
Use the Unposted Journals Report in Oracle General Ledger, to match GL batch totals
with the asset batch totals found in the Subledger Accounting Account Analysis report.
Related Topics
Unposted Journals Report, Oracle General Ledger
Account Analysis Report

Reconciling Asset Cost Accounts

Steps to reconcile asset cost accounts:

1. In Oracle General Ledger, match the ending balances in the Detail Trial Balance report with the ending balances in the ledger Subledger Accounting AccountAnalysis report.
2. Match the general ledger ending balances with those of the Cost Summary Report.
3. Match the ending balances of the Cost Summary Report with those of the Cost Detail Report.
Match the individual source amounts of the Cost Detail Report to the detail reports in the next steps.
4. Match additions to cost in the Asset Additions report.
5. Match adjustments to net change in the Cost Adjustment Report.
6. Match retirements to cost retired in the Asset Retirements Report.
7. Match reclasses to cost in the Asset Reclassification Reconciliation Report.
8. Match transfers to cost in the Asset Transfer Reconciliation Report.

   

Reconciling CIP Cost Accounts

Steps to reconcile CIP cost accounts:
1. In Oracle General Ledger, match the ending balances in the Detail Trial Balance Report with the ending balances in the Subledger Accounting Account Analysis report..
2. Match the general ledger ending balances with those of the CIP Summary Report.
3. Match the ending balances of the CIP Summary Report with those of the CIP Detail Report.
Match the individual source amounts of the CIP Detail Report to the detail reports in the next steps.
4. Match additions to CIP cost in the Asset Additions report.
5. Match adjustments to CIP net change in the Cost Adjustment Report.
6. Match retirements to CIP cost retired in the Asset Retirements Report.
7. Match capitalized to CIP cost in the CIP Capitalization Report.
8. Match reclasses to CIP cost in the Asset Reclassification Reconciliation Report.
9. Match transfers to CIP cost in the Asset Transfer Reconciliation Report.
10. Match ending balances to CIP cost in the CIP Asset Report.

   

Reconciling Reserve Accounts

Steps to reconcile reserve accounts:
1. In Oracle General Ledger, match the ending balances in the Detail Trial BalanceReport with the ending balances in the Subledger Accounting Account Analysis Report.
2. Match the general ledger ending balances with those of the Reserve Summary Report.
3. Match the ending balances of the Reserve Summary Report with those of the Reserve Detail Report.
Match the individual source amounts of the Reserve Detail Report to the detail reports in the next steps.
4. Match additions to accumulated depreciation in the Asset Additions report.
5. Match adjustments to reserve adjustment in the Reserve Adjustments Report.
6. Match retirements to cost retired and NBV retired in the Asset Retirements Report.
7. Match reclasses to accumulated depreciation in the Asset Reclassification Reconciliation Report.
8. Match depreciation to depreciation amounts in the Account Reconciliation Reserve Ledger report.
9. Match transfers to accumulated depreciation in the Asset Transfer Reconciliation Report.

   

Reconciling Depreciation Expense Accounts

In Oracle General Ledger, use the Detail Trial Balance Report to match with the ending balances for the Subledger Accounting Account Analysis Report.
Use the Journal Entry Reserve Ledger report to match the depreciation balances with the ending GL depreciation balances.

Tracking and Reconciling Mass Additions

You can use reports to track your mass additions from the time you bring them over from your accounts payable system to the time you post them into Oracle Assets:

Steps to reconcile Mass Additions:

1. Match asset journal amounts found in your general ledger with those in the Cost Clearing Reconciliation Report Oracle Assets automatically makes these journal entries for your general ledger.
2. Match amounts in the Cost Clearing Reconciliation Report with those in the Mass Additions Posting Report. Adjusting journal entries are necessary for account transfers and cost adjustments to posted invoice lines.
3. Match amounts in Mass Additions Posting Report with those of the Mass Additions Invoice Merge Report, Mass Additions Invoice Split Report, Unposted Mass Additions Report and Mass Additions Delete Report. Oracle Assets posts mass additions with a status of post. You can also match amounts in the Mass Additions Posting Report with those in Additions by Source Report and Cost Adjustments By Source Report. The Asset Additions Report includes posted mass additions as well as manual asset additions.
4. Match amounts in the Mass Additions Invoice Merge Report, Mass Additions Invoice Split Report, Unposted Mass Additions Report and Mass Additions Delete Report with amounts in the Mass Additions Create Report. Split, merge, delete, place on hold, or prepare for posting invoice line items brought over from accounts payable.

   
Use the Cost Clearing Reconciliation Report to match additions with those found in the Additions By Source Report.
Use the Cost Clearing Reconciliation Report to match adjustments with those found in the Cost Adjustment By Source Report.