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R12 Event Accounting

Revolutionizes AccountiProcess in Oracle Asset

Brian BouchardSIG Coordinator

Copyright 2010 Chi-Star Technology

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Agenda

Other New Features that Contribute to Event Accou

2

1 Accounting Process Evolution

4 Month-end Close Processing Possibilities

3

Event Accounting vs. Monthly Accounting

Great Sources for Asset Information5

Q&A6

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Accounting Process Evolutio

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Accounting Process EvolutionRelease 9 10: Depreciation was run once and in a hard close statu

option to soft close. Journals were created once at month-end running depreciation.

Release 11 11i: Introduction to soft close in Oracle Assets. Abilitdepreciation without closing the period. If needed run a prograrollback depreciation and make adjustments or additions. Re-rudepreciation these steps could be performed as many times asOnce depreciation was run > create journals to account for all oactivity performed during the month.

Release 12: Introduction of auto rollback depreciation and create aAbility to run depreciation without closing the period as often aduring the month. Create journals as often as needed during th

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Event Accounting

vs.

Monthly Accounting

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Event Accounting vs.

Monthly Accounting

Monthly Accounting: Create accounting once at month-end to accof the activity performed during the month

Event Accounting: Create accounting as needed throughout the mevents/activity or specific events/activity performed from the accounting was created

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Event AccountingAssets now has event accounting, meaning that every transacttreated as a new event to the assets. The impact on assets are

Audit trail will no longer show voided transaction types if coccur in the month an asset was added

No longer forced to delete assets in the period it was addedevent accounting Oracle treats the addition and retiremeseparate events, so now Oracle allows assets to be retired period added

Event accounting also allows for transferring accounting to

times in a period.

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Whats an Event?Oracle has defined the specific event classes and types that can oc

Oracle Assets:

Event Class Event Type

Additions All

Adjustments All

CIP Additions All

CIP Adjustments All

CIP Category Reclass All

CIP Retirements CIP Reinstatements

CIP Retirements CIP Retirements

CIP Revaluations AllCIP Source Line Transfers All

CIP Transfers All

CIP Unit Adjustments All

Capitalization Capitalization

Capitalization Reverse Capitalization

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Whats an Event?Event Class Event Type

Category Reclass All

Deferred Depreciation All

Depreciation AllDepreciation Adjustments All

Inflation Revaluation All

Reserve Transfers All

Retirement Adjustments All

Retirements Reinstatements

Retirements Retirements

Revaluation All

Source Line Transfers All

Terminal Gain and Loss All

Transfers All

Unit Adjustments All

Unplanned Depreciation All

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Impact to Transaction HistoryScenario: An asset added to the system, in the same period the co

updated:

Prior to R12 R12

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updated:

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updated:

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updated:

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updated:

R12

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updated:

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updated:

R12

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Impact to Transaction HistoryAdditional Impact: Asset Category defined with a default of 1 mo

to update assets when added to the system:

Prior to R12

Run Asset Additions Report

Identify Assets with 1 month life

Update assets to actual life

Re-run Asset Additions Report

New life should be reflected on report

R12

The change of life is a new event and will not appear on the AsAdditions Report. The Asset Additions Report will always refleas 1 month

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R12

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R12

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Asset Retirements vs. DeletionScenario: Asset added in the system and needs to be removed:

Prior to R12

Query Asset in Asset Workbench Select Open

Delete asset by selecting the Red X from the toolbar

OR

Query Asset in Asset Workbench

Select Books

Adjust the cost to zero

Retire in next period

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R12

Delete as the above (NOTE: no other transactions can be perfasset prior to deleting otherwise create accounting will errorPatch 8554742)

Retire asset in same period added (different event Oracle wi

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Prior to R12

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R12

R

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R12

A t R ti t D l ti

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R12

A t R ti t D l ti

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R12

A t R ti t D l ti

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R12

A t R ti t D l ti

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R12

I t t M th E d

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Impact to Month-EndPrior to R12

Big push at month-end to process all activity

Run depreciation (depending on the number of assets, processseveral hours)

Create Journals for business units to see impact to budgets

R12

Eliminate/Reduce big push at month-end

Ability to run depreciation, create accounting and post jourthroughout the month

Business units can see the majority of the impact prior to mclose

Reduce processing time at month-end and spread it out over thrunning depreciation at the beginning of month and throughou

Allows incremental processing

Incremental Journals

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Incremental JournalsPrior to R12

Journals created one-time for all activity

R12

Allows multiple creation of journals

Each new creation of journals will only include new eventssince the last time the create accounting was performed fospecific event

If depreciation is run at the beginning of the month and journa

booked. If an adjustment is made to an asset, Oracle will rollbdepreciation and re-calculate depreciation when the run depreprocess is generated. Oracle will book the net impact of the adto depreciation.


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Incremental JournalsPrior to R12


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Incremental JournalsR12


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Incremental JournalsR12

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Other New Features

that contribute to

Event Accounting

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Other New Features Automatic Depreciation Rollback

Create Accounting

Subledger Accounting

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Automatic Depreciation Roll

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Auto Depreciation RollbackIn Release 12, you will no longer be required to run the RollbaDepreciation process in order to make corrections to assets. Adepreciation (not closing the period) when a correction/changrequired, simply choose the asset to modify. Oracle will autom

rollback depreciation for this single asset. Make your modificawhen you re-run depreciation, Oracle will re-calculate depreciaoff of the modifications made to the asset.

The features to rollback depreciation and rollback journal entrin R11i are no longer available in R12.

Allows for better utilization of system resources and less proce

required.Notes:

This new feature should save time spent rolling back depreciation in order to make correc

Critical Patch 6812211 fix data corruption when process is kicked-off

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Create Accounting

C

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Create AccountingCreate Accounting process is now used in Assets journals arenot by a period, but by events and a date. This means that you

create accounting on the 15th of a month for all transactionperformed at that time and then create accounting again athe month.

create accounting for specific events, such as retirements,adjustments, etc.

daily processing of assets

This allows for clients to view accounting prior to month end fothat will greatly impact the books.

Whats an Event?

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What s an Event?

Process Category

Additions

Adjustments

CIP Additions

CIP Adjustments

CIP Category Reclass

CIP Retirements

CIP RevaluationsCIP Source Line Transfers

CIP Transfers

CIP Unit Adjustments

Capitalization

Category Reclass

Oracle has defined specif ic Process Categories (Events) th

be run during Create Accounting in Oracle Assets:

Process Category

Deferred Depreciation

Depreciation

Depreciation Adjustments

Manual

Reserve Transfers

Retirements Adjustments

RetirementsRevaluation

Source Line Transfers

Terminal Gain and Loss

Third Party Merge

Transfers

Process Category

Unit Adjustments

Unplanned Depreciat

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Subledger AccountingMore flexible than Account Generator. Account Generator allow

journals to be defined by one of three levels (Asset, Book, or CaSubledger Accounting allows the defining of how journals will bfor each accounting event and each journal line for that event.

Example: Event Class: Additions Event Type: All

Journal Lines:

Addition Bonus Depreciation Expense

Addition Bonus Depreciation Reserve

Addition Cost

Addition Cost Clearing

Addition Depreciation Reserve Counter Balance for Bonus

Addition Depreciation Expense Counter Balance for Bonus

Addition Depreciation Expense

Addition Depreciation Reserve

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Month-End Close

Processing Possibilities

Month-End Close Processing

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gThe introduction of Event Accounting along with Subledger AccoAuto-Rollback of Depreciation and Create Accounting will allow account for asset activity any way you require, for example:

1. Process as you did in prior release monthly processing of depr

and journals2. Process depreciation at beginning of month then process all o

transactions, at month-end run depreciation for new activity anadjustments and create journals

3. Periodically process depreciation and create accounting for specevents/activities throughout the month

4. Daily process depreciation and create accounting for all events/

throughout the month

NOTE: No matter how you process the last run of create accountthe hard close of depreciation should include all

events/activities to ensure that one was not

missed

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Great Sources for Informa

Asset Special Interest Group

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Asset Special Interest Group

FREE to join group:

Meetings (Semi-Annual)

OAUG Conference

OpenWorld Conference

http://assetsig.oaug.org

LinkedIn: http://www.linkedin.com/groups?gid=2202521

Questions
http://assetsig.oaug.org/http://www.linkedin.com/groups?gid=2202521http://www.linkedin.com/groups?gid=2202521http://assetsig.oaug.org/

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Questions?

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Questions?

Questions after the fact

Send email to:

[email protected]

Copyright 2010 Chi-Star Technology

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