Oracle Asset Transfer
Asset transfer is a complex process and should not be entered into
lightly, if your customer business is bit complex in nature. The complexity
varies from companies to companies along with industry type.This post will
briefly tells about Asset Transfer functionality of Oracle.
You may have three main business scenario's within Asset Transfer.
- Location Transfer without ownership change
- Location Transfer with ownership change
- Ownership Transfer without location change
In reality 1,2 is sort of intra Transfer of asset where as #3 is
consider as Inter Transfer. Lets take a detail understanding what is meant and
see key difference:
Assets are sometimes transferred between locations within the same
entity. These are referred to as INTRA Entity transfers as opposed to INTER
Entity transfers where the asset transfers between two entities.
Companies have requirement , when an asset is transferred Intra
Entity the location of the asset changes. It is therefore necessary that those
changes are identified and recorded in the Fixed Assets module for controlling
the physical location of the asset.
Navigation -> Assets -> Asset workbench -> Assignments
You can use Find Assets form to make a transfer of a particular
asset.
(N) Assets > Asset Workbench (B) Assignments
To get use of Intra Entity transfer which might be location change
, you can transfer assets between employees, depreciation expense accounts, and
locations. These are some of key things which you need to have a clarity:
- You can change
the transfer date to a
date in a prior period for a particular transfer, but the transfer must
occur within the current fiscal year
- You can change the transfer date of an
asset to a prior period only
once per asset.
- Oracle does not allow you to transfer an
asset to a future period.
- Oracle does not transfer an asset after
its normal life is completed.
- In the Unit Change field of the
Assignments window, enter a negative number for the assignment line from
which you want to transfer the asset. Enter a positive number if you want
to add units to existing assignments or create new assignments. Only one
negative line is allowed per transaction.
- A journal entry is created as soon as an
asset is transferred from one Depreciation Expense Account to another.
In reality , Oracle Asset does not have a facility to transfer
assets from one corporate book to another. For the purpose of understanding you
can consider corporate book to be synonymous with legal entity. In order to
transfer assets from one legal entity to another it is necessary to retire the
asset in one corporate book and add it to the other corporate book.
In EBS, there is no standard
functionality/process in FA for transfer assets Inter Entity.
The work around for handling such scenarios consist
of 2 simple steps.
1) In Entity book(s)1 you need to adjust Current Cost
= 0, retire the assets.
This will reverse all accumulated depreciation and have no gain/loss on the
retirements passed to GL.
2) Add the assets to the new book(s)(entity 2) via
FA_MASS_ADDITIONS or the Addition API.
Here you probably do not want to add with
DEPRN_RESERVE values - just let FA re-establish the balances when you run
depreciation and create JEs > GL.
A tranfer is recorded as such in the
FA_TRANSACTION_HEADERS table. The old and the new line is shown in the
FA_DISTRIBUTION_HISTORY table and the journal lines are shown in FA_ADJUSTMENTS
after depreciation is run. In FA_DEPRN_DETAIL you see a row with the old
distribution_id and the new distribution_id in the period_counter of the
transfer.
You can get use the Oracle Transfer API's to add
assets directly by writing a PL/SQL based driven program . The Transfer API
FA_TRANSFER_PUB.DO_TRANSFER can be used .
Scenarios in Intra entity Transfer - Asset Accounting
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| Oracle Asset Transfer |
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